1. Site and Situation Factors; Location Obstacles

2.  Take five minutes to write down Key Issue 4 vocabulary

3. Bulk-reducing industry: final product weighs less than its inputs Bulk-gaining industry: final product weighs more than its inputs Break-of-Bulk point: location where transfer between transport modes occurs Labor intensive industry: cost of labor is high percentage of expense Footloose industry: can locate in variety of places without greatly influencing costs

4.  Situation factors  Proximity to inputs  Proximity to markets  Transport choices  Site factors  Labor  Land  Capital

5.  Post 1950 shift in manufacturing in U.S. from Northeast to Southern states  Why?  Right-to-Work States  The Southeast offers the cheapest labor because of the lack of Unions.  Labor Unions were formed to protect workers from low pay to time for breaks.

7.  Have the person behind you look at your tag in your shirt.  All in USA? Why not?

8.  US saw opportunities to cut costs  Manufacturing with human labor may have gradually declined in the US, but did not disappear from the world  Industries such as textiles have moved to LDC which offer cheap labor…is it ethical?

11.  Mexico  NAFTA  China, Korea, Malaysia, etc.  Same reasoning…low labor costs  What about the shipping costs?  Containerization

12.  How have the invention of the containers and container ships help transform the global economy?

13. Out – Sourcing Industries having their resources scattered out to other countries Resources have to come together to form finished product If they do not, production can halter

14. Just In Time Production To Warehouse or not to warehouse? Some companies only make a specific amount of their product BMW does not have cars sitting in a warehouse Why? -> too much $$$ JAPAN EXAMPLE Tsunami knocked out many car plants They did not want/need other parts they’d normally have shipped in Not only were they affected, but the plants in other countries were affected because they could not produce

15.  Go to the class website and download the Just- In-Time Reading and do the following:  Examine and note the steps in the manufacturing process, for the various companies.  What potential effects does just in time production have on local economies?

17.  US saw countries in pre-conditional stages  Starting or had infrastructure to support US industries for cheap labor

18. Least cost theory has three factors – Transportation – Labor – Agglomeration (clustering of supporting industry) Developed 1909; inflexible – Businesses can juggle costs (substitution principle)

19.  Most important aspect was cutting transportation  Which method of transportation is the cheapest?  Do you think America understood that when they sent industries to other countries?

21. Turn and talk Where have the plants migrated to? Why?

26.  International agreements that eliminate barriers to trade within regions:  North American Free Trade Agreement (NAFTA)  European Union (EU)  TransPacific Partnership Trading Organizations § International agreements that eliminate barriers to trade among members: l World Trade Organization (WTO)

27.  Labor Unions were formed to protect workers from pay to time for breaks.  The Southeast offers the cheapest labor because of the lack of Unions.  Because of this industries such as textiles have moved to LDC which offer cheap labor…is it ethical?

28.  Create a school union group  What requests do you have?  Conditions, incentives, etc.  Can you back up these requests?  Create a PowerPoint to present your case later  Include the negative consequences of outsourcing in your slides

32. Match the type of factory to the location within the United States: ________ designer's clothing ________ computing equipment ________ automobile assembly ________ steel mill a. East coast and southern Lake Michigan b. California and Texas c. Northeast d. interior corridor from Michigan to Alabama

33.  Upstate of South Carolina  Union, SC (population 8,000)  Spartanburg, SC  Heavy textile industries  Monarch Mill  Grandpa worked for 47 years  Dad worked from ages 15-20  Closed late 1980s/early 1990s  Why?

34.  BMW and Michelin to the rescue  Why did BMW decide to move to the South East?  Think labor  Early/mid 90s  Aunt and cousin work for BMW and Michelin now