GEOG 304 Exam 2 - Deindustrialization

Outsourcing

Delegating functions or tasks to a third-party vendor. This reduces costs, scale processes, and expand operations

Offshoring

Getting work done in a different country

Maquiladoras

Trade enclaves that import raw materials, process them, and then export to the world economy

Deindustrialization

Decline in manufacturing capacity, which leads to a loss of manufacturing jobs

Special economic zones

Area in a country that’s designed to generate positive economic grow

North American Free Trade Agreement

Allows companies to ship qualifying goods to customers in Canada and Mexico duty free

What did the North American Free Trade Agreement lead to?

Boom in vehicle production in Mexico

Why do special economic zones exist?

Lower wages than core, have incentives like lowering taxes, repress unions, and have weaker safety and environmental regulations

What happened to Liverpool?

200,000 jobs disappeared as Liverpool deindustrialized

What countries have seen an increase in manufacturing employment?

Lower-wage industrialized countries

What does deindustrialization and industrialization mean?

Uneven development continues