industrial location and globalization of enterprise
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Industrial Location and Globalization of Enterprise. Geography: Meet the Profs Seminar Allocation Review Questions Changing Global Map Global shifts in production and trade Student analysis of empirical data! Foreign Direct Investment More student analysis of empirical data. - PowerPoint PPT PresentationTRANSCRIPT
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Industrial Location and Globalization of
Enterprise Geography: Meet the Profs Seminar Allocation Review Questions Changing Global Map
Global shifts in production and trade Student analysis of empirical data!
Foreign Direct Investment More student analysis of empirical data
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Name Textiles Auto- SemiconBeef Fin.
SvcsDistrib-
ution
Boylan, Tyson R.
Evans, Richard J.
Friio, Erin B.
Gilbride, Neill A.
Hagen, Richard P.
Han, Qiang X.
Newman, Kenneth D.
Platt, Clark C.
Soup, Janetta M.
Stupple, Geoffrey W.
Thomas, Grant A.
Ziebart, Lisa A.
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7 Surprises (p. 45)7 Surprises (p. 45)
Rise of Japan to #2 and #3Rise of Japan to #2 and #3 Continued dominance of the USAContinued dominance of the USA NIE/NIC export performance in NIE/NIC export performance in
manufacturesmanufactures Rapid development in ChinaRapid development in China Weak performance in Latin America and Weak performance in Latin America and
sub-saharan Africasub-saharan Africa ‘‘Transitional economies’ of C-E Europe is a Transitional economies’ of C-E Europe is a
new category, …too early to tellnew category, …too early to tell
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Foreign Direct InvestmentForeign Direct Investment
Production, trade, investment as Production, trade, investment as indicatorsindicators
……of globalizationof globalization Investment:Investment:
spending on capital goods to increase spending on capital goods to increase productive capacity and earn a returnproductive capacity and earn a return
any purchase of an asset to increase any purchase of an asset to increase future incomefuture income
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Foreign InvestmentForeign Investment
Purchase by non-residents of assets Purchase by non-residents of assets capable of yielding a returncapable of yielding a return
Short or long termShort or long term Portfolio investmentPortfolio investment in stocks and in stocks and
bondsbonds Direct investmentDirect investment in shares or in shares or
productive assets to own or operate a productive assets to own or operate a businessbusiness
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FDIFDI Foreign Direct Investment (FDI-DFI)Foreign Direct Investment (FDI-DFI)
Direct investment by one firm in another to Direct investment by one firm in another to gain a degree of control over that firm’s gain a degree of control over that firm’s operations (p. 51)operations (p. 51)
‘‘across national boundaries’ across national boundaries’ vsvs ‘non- ‘non-residents’residents’
Acquisition of controlling interest in a firmAcquisition of controlling interest in a firm mergers and acquisitionsmergers and acquisitions
Establish a branch or subsidiary in another Establish a branch or subsidiary in another countrycountry
Building new facilities (greenfield investment)Building new facilities (greenfield investment)
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Measuring InvestmentMeasuring Investment
StocksStocks Capital stock at market cost ORCapital stock at market cost OR Capital stock less accumulated Capital stock less accumulated
depreciationdepreciation
Flows:Flows: Inward flowsInward flows Outward flows Outward flows
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Macro-scaleMacro-scale
National scale dataNational scale data Geographers explore other scales too!Geographers explore other scales too! Macro: global triad EU, US, East and SE Macro: global triad EU, US, East and SE
AsiaAsia 85% or world mfg output85% or world mfg output 81% of world mdse exports81% of world mdse exports
Growing concentrationGrowing concentration East AsiaEast Asia
29% and 26%29% and 26%
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Micro-scaleMicro-scale
A ‘fine-grained mosaic’A ‘fine-grained mosaic’ Economic activity is grounded in spaceEconomic activity is grounded in space Urban areasUrban areas
Dense web of economic activityDense web of economic activity Labour marketLabour market Daily Urban System: city and functional Daily Urban System: city and functional
regionregion Perrouxian Growth Poles: China’s SEZsPerrouxian Growth Poles: China’s SEZs
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Meso-scaleMeso-scale
Corridors and axesCorridors and axes MegalopolisMegalopolis Conceptions of the core of EuropeConceptions of the core of Europe Regional scale economic zonesRegional scale economic zones
Gigantic ConurbationsGigantic Conurbations JabotabekJabotabek
Border zone (s)Border zone (s) Maquiladora zone along U.S. Mexico borderMaquiladora zone along U.S. Mexico border
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