Part 5 industry

South Asia-IndiaSouth Asia-India

• Blessed with large coal deposits, metallic minerals such as iron ore and a vast labor force, India is growing by 8% year.

• Despite rapid industrialization it still remains agrarian and underdeveloped due to a poor infrastructure-over 50% of India’s crops rot in the field due to a lack of transportation

South Asia-IndiaSouth Asia-India• The Bihar Steel Mill in India

produces high quality steel at a low price-the down side-low pay, few environmental restrictions=pollution.

• India’s service sector is also growing very rapidly.

• The Delhi Call Center at right is typical of the the outsourcing done by many Western firms.

• India has millions of low paid blue-collar workers and millions of white collar, high tech. workers

How has Industrial Production Changed?

Fordist –Fordist – dominant mode of mass production during the twentieth century, production of consumer goods at a single site.

Post-FordistPost-Fordist – current mode of production with a more flexible set of production practices in which goods are not mass produced. Production is accelerated and dispersed around the globe by multinational companies that shift production, outsourcing it around the world.

Time-Space CompressionTime-Space Compression Through improvements in

transportation and communications technologies, many places in the world are more connected than ever before.

Time-Space CompressionTime-Space Compression• Just-in-time deliveryJust-in-time delivery

rather than keeping a large inventory of components or products, companies keep just what they need for short-term production and new parts are shipped quickly when needed.

Global division of laborGlobal division of laborcorporations can draw from labor around the globe for different components of production.

New Influences on the New Influences on the Geography of ManufacturingGeography of Manufacturing

• Transportation-intermodal connections where air, rail, truck, ship and barge connect-eases flow of goods-e.g. container shipping

• Regional and global trade agreements-WTO, Benelux, European Union, NAFTA, MERCOSUR, SAFTA, CARICOM, ANDEAN AFTA, COMESA, etc. goal to ease flow of goods by eliminating trade tariffs or quotas

• Energy-coal was replaced by natural gas & oil after WW II-transported by pipeline or tanker

• Europe-despite North Sea Oil-still must import• Mexico & Canada oil and natural gas

• U.S. uses 27% if oil & 37% of natural gas produced in the world. Dependent on imported oil

• Saudi Arabia, Kuwait, Iraq, Russia large oil reserves

Where are the Major Industrial Belts in the Where are the Major Industrial Belts in the World Today and Why?World Today and Why?

Idle steel mill in Pennsylvania, part of the American Rust Belt

Deindustrialization – a process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and work through a period of high unemployment.

Abandoned street in Liverpool, England, where the population has decreased by one-third since deindustrialization

Newly IndustrializedNewly Industrialized

China – major industrial growth after 1950-Soviet planners helped from 1949 to 1964Industrialization in the last half of 20th cent. was state-owned and planned:

focus on: Northeast district-Dongbei Shanghai and Chang district

Today, industrialization is spurred by companies that move production (not the whole company) to take advantage of Chinese labor and special economic zones (SEZs). Rapid growth on the Pacific Rim

As China’s economy continues to grow, old neighborhoods (right) are destroyed to make room for new buildings (below).

Beijing, China

Left-Chinese industrial air conditioner plant

Right-Singapore container port