CAN INDUSTRY COEXIST WITH CAN INDUSTRY COEXIST WITH A HEALTHY POPULATION AND A HEALTHY POPULATION AND

ENVIRONMENTENVIRONMENT

The 19The 19th (1800’s) th (1800’s) century brought century brought change:change: Production of items became mechanized.Production of items became mechanized. Factories produced a growing number of Factories produced a growing number of

goods.goods. Quantities of goods produced increased.Quantities of goods produced increased. People left the countryside to move People left the countryside to move

closer to the factories in towns and cities closer to the factories in towns and cities (known as urbanization).(known as urbanization).

During the 20During the 20thth century… century… Agriculture and hand manufacture decreased drastically and Agriculture and hand manufacture decreased drastically and

was replaced by Industry (factories and mass production!).was replaced by Industry (factories and mass production!).

An activity is ”industrial” when…An activity is ”industrial” when…1.1. Transforms natural resources into mass-produced goods. Transforms natural resources into mass-produced goods.

2.2. Costs money to manufacture these items.Costs money to manufacture these items.

3.3. Requires skilled labour. Requires skilled labour.

What do industries produce?What do industries produce? Almost everything around us is manufactured industrially, Almost everything around us is manufactured industrially,

from airplanes to clothes, including medicines and computers.from airplanes to clothes, including medicines and computers.

Four Types of IndustriesFour Types of Industries1. 1. Heavy industry: Heavy industry: It involves extracting metals like iron, aluminium, It involves extracting metals like iron, aluminium,

copper, tin and lead from ore.copper, tin and lead from ore. It also includes chemical plants and oil refineries.It also includes chemical plants and oil refineries.

2. 2. Processing industry:Processing industry: Transforms materials (metal, food, wood, etc.) into Transforms materials (metal, food, wood, etc.) into

goods (motors, plastic, paper to be used by another goods (motors, plastic, paper to be used by another industry)industry)

3. 3. Hi-tech industry:Hi-tech industry:

These include all products manufactured These include all products manufactured in pharmaceuticals, biotechnology, in pharmaceuticals, biotechnology, computers and electronics, aerospace, computers and electronics, aerospace, and telecommunications.and telecommunications.

4. 4. Consumer goods industry:Consumer goods industry: Manufactures products such as processed Manufactures products such as processed

foods, clothing, house-hold appliances, foods, clothing, house-hold appliances, cars, furniture and toys (for individual cars, furniture and toys (for individual consumption).consumption).

What is a industrial territory?What is a industrial territory? Activities in this space are mostly industrial.Activities in this space are mostly industrial. SSt-Laurent has an industrial park.t-Laurent has an industrial park.

Typical characteristics of industrial parks:Typical characteristics of industrial parks:

1.1. This area is comprised of industrial plants.This area is comprised of industrial plants.

2.2. There’s a road and rail network for transporting There’s a road and rail network for transporting raw materials and finished products.raw materials and finished products.

3.3. There are ports and airports for exporting There are ports and airports for exporting products.products.

4. Energy transportation system to keep 4. Energy transportation system to keep factories running.factories running.

5. There is enough people to meet labour 5. There is enough people to meet labour needs.needs.

Are industries in the North or the Are industries in the North or the South? South? Some of the wealthy countries that are usually Some of the wealthy countries that are usually

present at G7 or G20 meetings:present at G7 or G20 meetings: United StatesUnited States JapanJapan GermanyGermany United KingdomUnited Kingdom FranceFrance Canada Canada ItalyItaly

Industrialization around the Industrialization around the worldworld

The European Union, North America and The European Union, North America and Japan are highly industrialised.Japan are highly industrialised.

Other countries, like China, South Korea, Other countries, like China, South Korea, Singapore and Taiwan are considered Singapore and Taiwan are considered “emerging industrial powers”.“emerging industrial powers”.

American Toys – made in American Toys – made in China:China:Case StudyCase Study Barbie dolls are made by Mattel.Barbie dolls are made by Mattel. Mattel is a multinational based in the United Mattel is a multinational based in the United

States.States. The dolls, however, are made in China!The dolls, however, are made in China!

Why?Why?

1. Reduce production costs1. Reduce production costs

2. Increase profit2. Increase profit

These multinationals relocate to other These multinationals relocate to other countries where the cost of production is countries where the cost of production is lower than in developed countries like lower than in developed countries like Canada or United States. Canada or United States.

Why move United Stated-basedcompanies to China?

1. Chinese workers are paid less (lower wages).2. Chinese government offers better rates on buying

and transporting raw materials and energy.3. American companies pay less taxes (tax reductions)

and do not pay any duty fees (tax exemptions).

Making dolls is an international effort! China offers manufacturing site, labour, and electricity.

Japan provides nylon (doll's hair)

Saudi Arabia offers oil.

Taiwan transforms oil to ethylene to plastic.

United States and Japan manufacture most of the machinery and tools used to produce goods.

Is “offshoring” good for everyone?

Relocating production to another country is called “offshoring”.

Offshoring is closing down a plant in American and reopening it in a foreign country.

IN FAVOR Companies like Mattel benefit from

offshoring because it increases their profits Chinese leaders are also in favor of it

because offshoring to China has created 1.2 million jobs

American employees are against offshoring because it means job losses in the United States.

The Mattel factory in Kentucky closed down in 2002.

Humanitarian organizations have noted that “offshoring” to developing countries can sometimes lead to bad working conditions.

The Great Lakes automotive industry: What of its future? American car companies are concentrated in the

Great Lakes region.

Detroit is home to General motors, Ford and Chrysler.

Canada's automotive industry: Most factories are in Ontario between Windsor and

Oshawa.

En route to… relocation: Japan is a fierce competitor in the automotive

industry.

Since the 1960s, the rise of Japanese car companies (Toyota, Nissan and Honda) has affected the sales of American made cars.

Japanese cars were more compact and consumed less gas.

GM, Ford and Chrysler made the decision to offshore (relocate its companies to Mexico in order to remain competitive with Japan by lower their production costs).

Relocating to Mexico meant closing many factories in the United States and Canada.

General Motors, Ste-Thérèse (the end):

A monthly union meeting of former GM employees, TCA local 1163, in their spaces in the town of Boisbriand — despite the plant’s closing, bringing thirty years’ operation and Quebec’s automotive industry to an end. The parking lot storing the last Impalas, the only view one has of the production as access to the manufacturing premises was denied. We’re on the outside, and that’s where we’ll stay, the factory having been torn down.

2004 Working, Mercer Union, Toronto.

The case of Detroit: It was once the automotive capital of the United

States.

Relocating factories to Mexico really affected the Great Lakes region.

The region still manufactures cars however, it has reorganized production by installing technology that reduces the number of employees (labor) and making cars that sell really well in America.