AIM: Where is industry expanding? Do Now: Answer the following on a piece of loose leaf. How does the term. “right-to-work” mean? How does it affect unionization? Why is central Europe more attractive to some employers than Western Europe in manufacturing? Name two Latin American countries, and one Asian country that have experienced a dramatic increase in industrial production in the last 20 years.

Interregional Shifts in Manufacturing Manufacturing has shifted from the northeast to the south and west in the United States. 1,000,000 jobs in the north east have been lost in the last 30 years. NY and PA have lost the most jobs. A shift started moving manufacturing to the south in the 1930s.

Tennessee Valley Authority

Southern Changes The development of air conditioning led to making work more comfortable in the south. The TVA helped create the infrastructure necessary to develop industry. Southern states passed attractive laws to lure manufacturers such as “Right-to-Work” laws.

Right-to-Work Laws Requires a factory to maintain an “open-shop” and prohibits a “closed-shop”. Closed Shops are only allowed to hire union workers. This makes it difficult to organize workers unions. Thus the southern states established that they would be anti-union and pro-owner. Why would this suit business owners?

Manufacturing moves West Los Angeles completed a harbor in 1910. The Panama canal opened in 1914 And the West Coast climate is favorable for farming certain crops. LA is the country’s largest area of clothing and textile production, 2nd largest furniture producer, major food processing center, and has a low cost labor pool.

Interregional Shifts in Western Europe. Manufacturing has shifted in Europe toward southern and eastern Europe. European governmental policies have explicitly encouraged this relocation. The governments use incentives to lure industry to poor areas and discourage growth in richer regions. Spain has experienced the most growth in the last 2 decades. (cars, textiles) (Spain has collapsed in the last few years)

NEW INDUSTRIAL REGIONS In recent years, manufacturing has grown rapidly in certain LDCs. The production of steel illustrates this change. 1980 MDC Steel Production =80% LDC=20% 2005 MDC Steel Production=45% LDC=55% China is now the leading producer of Steel in the world.

Growth Regions Certain regions have seen more growth than others.

Asia (China) China has turned into the world’s largest manufacturer of textiles and apparels, steel and many household products. They have an abundance of low cost labor and the world’s largest market for consumer products. In the 1990s, Chinese foreign policy changed to allow an influx of foreign-owned firms.

China’s manufacturing centers Guandahong and Hong Kong on the east coast. The Yangtze valley between Shanghai and Wuhan The Gulf of Bo Hai from Tianjin and Beijing to Shenyang. These 3 regions contain half of China’s wealth and ¼ of it’s population.

India and Thailand are also growing their industrial sectors.

South Asian Factories Textiles LG Television Sets

Latin America Brazil and Mexico are the two leading industrial centers in Latin America. Mexico City and Sao Paulo are the two major markets and the largest cities in each country.

Maquiladoras Factories built by U.S. companies in Mexico near the U.S. border to take advantage of the low cost Mexican labor.

Maquiladoras

How are maquiladoras harmful to both American and Mexican workers?

How could the Mexican government prevent the creation of more maquiladoras that harm workers?

Latin America In the 1960s, imports from the United States were cut off, and foreign investors were only allowed to open factories if they promised to use raw materials and parts produced in Latin American countries. In Mexico, manufacturing expanded during the 1980s along the United States border. In the 1990s the NAFTA was signed which eliminated tariffs. Competition from Asia has put some Mexican maquiladora plants out of business.

Central Europe Poland, the Czech Republic and Hungary have also grown a lot in recent years. Offers workers and market location. The workers are cheaper but less skilled than those from Western Europe. More expensive and skilled than Asia and Latin America

Judge What type of specialty products might lend themselves to having factories opened in New York City? What types of products would be better suited in Mexico?

Flavor Paper Factory, Brooklyn NY

Flavor Paper

Extra Credit Take a picture in front of the flavor paper factory and write up a 1 page description of what they do as a company. This assignment can add 10 points to any homework assignment this semester. IE: It can turn a 10/10 into a 20/10 or a 0/10 to a 10/10. Due by 3/29

New York Specialty Beer (Microbreweries)

Gothic Cabinet and Craft