1. Chapter 27: Deindustrialization & Rise of the Service Sector
Global Patterns
New International Division of Labor
Foreign Investment
Deindustrialization
Specialized Economic Zones

2. Global Patterns
Fordist- assembly line; dominant form of large-scale manufacturing
Post WWII- mass consumption, labor activism, decline in costs of transportation challenged old order – Fordist order
Postindustrialization: modern production; producers can move sites more freely due to technology and communication improvements
Readjustment of industry directed to more service and information industries
Some transnational companies (TNCs) and multinational companies (MNCs) produce more than some countries; Ford, Exxon, General Motors,…

3. Postindustrial Industries
Quaternary Services:
Collection & processing of information
Finance, administration, accounting, insurance, computer services
Quinary Services:
Complex decision making and advancement of human capacities
Scientific research, higher-education, high-level management
Service industries (tertiary) don’t generate a tangible product
They produce a myriad of services we use
Specialization broken into two designations:
Quaternary services
Quinary services

4. New International Division of Labor
Periphery regions are dependent on core for manufacturing jobs
Core TNCs are dependent on periphery for cheap labor, fewer environmental regulations, and

5. Foreign Investment
Foreign direct investment: capital invested by a country or corporation in a foreign country- usually in the periphery; U.S., Japan, Germany, U.K., China
Foreign debt: for many countries- cost of servicing debts (repayment + interest) exceeds revenues (i.e. Argentina)

6. Deindustrialization
Regions with high labor costs & old technology may experience deindustrializatoin. (core countries, “Rustbelt”) as new tech. can be more appropriated elsewhere
US Sunbelt drew investment away from NE b/c of lower rates of unionization, higher amenity values (i.e. place), lower cost of land, cheaper tax breaks on land- gov’t contracts

7. World Cities
John Friedman (1980s): control centers of world economy- not largest per se, but centers of financial and corporate institutions
Most ‘World Cities’ are located in developed core
Cities also illustrate changing patterns of human geography- populations in core cities sometimes feel greater relationship or affinity with other core cites (Londoners and New Yorkers and Tokyans)

8. Economic Concentration
Specialized Economic Zone: area w/in a country in which tax incentives & fewer environmental regulations attract foreign business/investment
Manufacturing export zone: periphery; favorable tax, regulatory & trade arrangements
High technology corridors :core; network of research, development & tech. enterprises

9. Time-Space Compression
Coined by geographer David Harvey- developments have drastically changed the way we think about space and time
Refers to the social and psychological effects of living in a technologically advanced world – offshoot of Time-space convergence
Time-space convergence – refers to the greatly accelerated movement of goods, ideas, and information during the 20th cen. made possible by tech. innovations in transportation & communication
Transition from Fordist ind. system to a faster, more flexible system that has opened new markets & brought places “closer together”
World Wide Web - no accurate estimates of its economic impact, but it is growing