International Shifts
There has been a large shift in industry from the regions of Europe and North America to East Asia, South Asia, and Latin America.
East Asia: This region includes China, Japan, and South Korea. Due to the industrial growth and manufacturing capabilities of these countries, East Asia has seen massive growth industrially and leads the world in steel production and motor-vehicle manufacturing.
South Asia: This region is dominated by India. India has seen massive growth in textiles and motor-vehicle production.
Latin America: One of the leading trade partners of the US, Mexico has created manufacturing plants called maquiladoras. Maquiladoras take raw materials or parts on a duty free or tariff free basis, assemble or manufacture the goods, and export the finished products out. Included in this region is Brazil, the leading industrial country.
Southwest Asia: Primarily the leader in petroleum. Dubai, a fast growing city, has become a center for financial, banking, and international trade.
There has been a change in distribution worldwide from MDCs to LDCs, especially in labor-intensive industries such as textiles. With low-cost wages and compensation, many companies have moved from Europe and the US to Latin America, Asia, and Africa. South Korea has even needed to import wage workers from Eastern Europe to meet demand of its products.
Outsourcing is the transfer of certain processes in manufacturing to another contractor. Globally, this is in the form of a transnational corporation sending certain labor-intensive processes to be filled by LDCs. The savings on labor and compensation overcome the transportation costs incurred by going down this path. Deciding to choose to outsource from MDCs to LDCs is the "new international division of labor". For example, the US has used India as a source for many of its technical support help over the past decade.
MDCs have seen a decrease of manufacturing due to outsourcing to LDCs. There are two factors why some companies and factories would still want to stay in Europe or the US versus move to an LDC. These factors are: proximity to skilled labor and proximity to markets. Computer and high tech manufacturing and motor-vehicle production still value a pool of skilled workers and a market where the consumer can purchase these products, whereas the textile industry has been affected more.
East Asia: This region includes China, Japan, and South Korea. Due to the industrial growth and manufacturing capabilities of these countries, East Asia has seen massive growth industrially and leads the world in steel production and motor-vehicle manufacturing.
South Asia: This region is dominated by India. India has seen massive growth in textiles and motor-vehicle production.
Latin America: One of the leading trade partners of the US, Mexico has created manufacturing plants called maquiladoras. Maquiladoras take raw materials or parts on a duty free or tariff free basis, assemble or manufacture the goods, and export the finished products out. Included in this region is Brazil, the leading industrial country.
Southwest Asia: Primarily the leader in petroleum. Dubai, a fast growing city, has become a center for financial, banking, and international trade.
There has been a change in distribution worldwide from MDCs to LDCs, especially in labor-intensive industries such as textiles. With low-cost wages and compensation, many companies have moved from Europe and the US to Latin America, Asia, and Africa. South Korea has even needed to import wage workers from Eastern Europe to meet demand of its products.
Outsourcing is the transfer of certain processes in manufacturing to another contractor. Globally, this is in the form of a transnational corporation sending certain labor-intensive processes to be filled by LDCs. The savings on labor and compensation overcome the transportation costs incurred by going down this path. Deciding to choose to outsource from MDCs to LDCs is the "new international division of labor". For example, the US has used India as a source for many of its technical support help over the past decade.
MDCs have seen a decrease of manufacturing due to outsourcing to LDCs. There are two factors why some companies and factories would still want to stay in Europe or the US versus move to an LDC. These factors are: proximity to skilled labor and proximity to markets. Computer and high tech manufacturing and motor-vehicle production still value a pool of skilled workers and a market where the consumer can purchase these products, whereas the textile industry has been affected more.
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Related Links: Industry- Interregional and International Shifts Quiz Interregional Shifts AP Human Geography Quizzes AP Human Geography Notes |