What to do: Get out stuff for notes. Title: “Why are situation and site factors changing?”

Changes within the USA Industrial Revolution in USA did not affect the South – Still recovering from losing the Civil War Lacked infrastructure Poor Gov’t policies have tried to reduce historical gaps

Cheaper in South Cost of living is lower Land cheaper Now more tolerable with air conditioning Gulf Coast Has become important oil area – Only AFTER cars become more popular

Right to Work laws Requires a factory to keep an “open shop” & prohibits a “closed shop” Unions: group that negotiates contracts and other interests on behalf of workers; requires dues

Changes in Europe European Union has provided assistance to help struggling regions – Central Europe – Eastern Europe

Emerging Industrial Regions Labor-intensive industries attracted to emerging regions – Why? Cheaper! Outsourcing: turning over an aspect of company or industry to independent supplier or in another country

Outsourcing

New international division of labor: – Production requiring highly skilled workers to factories located in developed countries Ex? – Production requiring little skill to factories located in developing countries. Ex?

Mexico & NAFTA Mexico attracts labor-intensive industries – Maquiladoras Criticisms – Taking advantage – Less environmental regulations Starting to lose some of its appeal because cheaper labor elsewhere but proximity will usually work in favor

BRIC Countries expected to dominate manufacturing in the future Brazil, Russia, India, China

Renewed attraction to traditional regions Proximity to skilled labor – Mass production – Work in teams to utilize strengths – Solve problems cooperatively – Everyone on same “field” – Access to technology Rapid delivery to market – “Just in time”

“American made” If most of the parts come from elsewhere, is it really an American product?