7.7

Changes tot he Global Core (MDC’s)

1) Continued shift towards teritary sector and above (economic restructuring)

2) Deindustrialization (decline in secondary sector)

a. Still a storng emphasis on high tech secondary sector

b. Greater use of mechanized/computer-aided methods of production (automation)

3) Outsourcing of secondary

4) Innovation

Deindustrialization

• Occurred in Rustbelt of US

  • Migration to the South

  • Poorer Southern states

• Profitability of old established industries vs. new activities

  • New activities > profit of old= less investment in old activities

Secondary (Newly Industrializing) Regions

• Semi-periphery: BRICS (Brazil, Russia, India, China, South Africa); also Egypt, Indonesia, Iran, Ethiopia, Argentina, Saudi Arabia, UAE

1) China=industrialization inc oastal areas (problems-pollution, traffic, excesive buildup, etc.)

• Special eocnomic zones (SEZ’s, China), open to foreign investment, capitalist activity-special ruels/regulations

2) SE Asia (Thailand, vietnam, indonesia, Malaysia)