Industrial Location and Globalization of Enterprise Geography: Meet the Profs Seminar Allocation Review Questions Changing Global Map Global shifts in production and trade Student analysis of empirical data! Foreign Direct Investment More student analysis of empirical data

NameTextilesAuto-Semicon BeefFin. Svcs Distrib- ution Boylan, Tyson R. Evans, Richard J. Friio, Erin B. Gilbride, Neill A. Hagen, Richard P. Han, Qiang X. Newman, Kenneth D. Platt, Clark C. Soup, Janetta M. Stupple, Geoffrey W. Thomas, Grant A. Ziebart, Lisa A.

7 Surprises (p. 45) Rise of Japan to #2 and #3 Rise of Japan to #2 and #3 Continued dominance of the USA Continued dominance of the USA NIE/NIC export performance in manufactures NIE/NIC export performance in manufactures Rapid development in China Rapid development in China Weak performance in Latin America and sub- saharan Africa Weak performance in Latin America and sub- saharan Africa ‘Transitional economies’ of C-E Europe is a new category, …too early to tell ‘Transitional economies’ of C-E Europe is a new category, …too early to tell

Foreign Direct Investment Production, trade, investment as indicators Production, trade, investment as indicators …of globalization …of globalization Investment: Investment: spending on capital goods to increase productive capacity and earn a return spending on capital goods to increase productive capacity and earn a return any purchase of an asset to increase future income any purchase of an asset to increase future income

Foreign Investment Purchase by non-residents of assets capable of yielding a return Purchase by non-residents of assets capable of yielding a return Short or long term Short or long term Portfolio investment in stocks and bonds Portfolio investment in stocks and bonds Direct investment in shares or productive assets to own or operate a business Direct investment in shares or productive assets to own or operate a business

FDI Foreign Direct Investment (FDI-DFI) Foreign Direct Investment (FDI-DFI) Direct investment by one firm in another to gain a degree of control over that firm’s operations (p. 51) Direct investment by one firm in another to gain a degree of control over that firm’s operations (p. 51) ‘across national boundaries’ vs ‘non-residents’ ‘across national boundaries’ vs ‘non-residents’ Acquisition of controlling interest in a firm Acquisition of controlling interest in a firm mergers and acquisitions mergers and acquisitions Establish a branch or subsidiary in another country Establish a branch or subsidiary in another country Building new facilities (greenfield investment) Building new facilities (greenfield investment)

Measuring Investment Stocks Stocks Capital stock at market cost OR Capital stock at market cost OR Capital stock less accumulated depreciation Capital stock less accumulated depreciation Flows: Flows: Inward flows Inward flows Outward flows Outward flows

Macro-scale National scale data National scale data Geographers explore other scales too! Geographers explore other scales too! Macro: global triad EU, US, East and SE Asia Macro: global triad EU, US, East and SE Asia 85% or world mfg output 85% or world mfg output 81% of world mdse exports 81% of world mdse exports Growing concentration Growing concentration East Asia East Asia 29% and 26% 29% and 26%

Micro-scale A ‘fine-grained mosaic’ A ‘fine-grained mosaic’ Economic activity is grounded in space Economic activity is grounded in space Urban areas Urban areas Dense web of economic activity Dense web of economic activity Labour market Labour market Daily Urban System: city and functional region Daily Urban System: city and functional region Perrouxian Growth Poles: China’s SEZs Perrouxian Growth Poles: China’s SEZs

Meso-scale Corridors and axes Corridors and axes Megalopolis Megalopolis Conceptions of the core of Europe Conceptions of the core of Europe Regional scale economic zones Regional scale economic zones Gigantic Conurbations Gigantic Conurbations Jabotabek Jabotabek Border zone (s) Border zone (s) Maquiladora zone along U.S. Mexico border Maquiladora zone along U.S. Mexico border