Bellringer

•What are reasons Steve Jobs (former Apple CEO) said that jobs making iPhones would never move to the United States?

• Get out your notebook for Ch 12 notes

INDUSTRY AND SERVICESChapter 12 Lecture

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Industrial Regions of the US – Why There?

Location Theories

Location theory: – Predicting where business will or

should be located• Location depends on:

1.Variable costs• Energy, transportation, labor

2.Friction of distance • increased distance increases costs

Location Models

Weber’s Model

Manufacturing plants will locate where costs of transportation, labor, and agglomeration are the least

Theory: Least Cost Theory

Hotelling’s Model

Location of an industry depends on location of other industries of the same kind

Theory: Locational Interdependence

Losch’s Model

Manufacturing plants choose locations where they can maximize profit

Theory: Zone of Profitability

Major Manufacturing Regions of North America

How Has Industrial Production Changed?

• Fordist : Dominant mode of mass production during the 20th century, with production of goods at a single site

• Post-Fordist: Current mode of production with more flexible production practices – Multinational companies (like Apple) can

shift production, outsourcing it around the world

Time-Space Compression• Improvements in transportation and

communications technologies has led to post-Fordist systems

• Global division of labor: Corporations drawing from labor around the globe for different components of production

A Changing Economy

• Deindustrialization – A process by which companies move

industrial jobs to other regions with cheaper labor

– Leads to high unemployment in deindustrialized region

– Manufacturing jobs are sometimes replaced with service jobs