Globalization and Economic Zones

Brownfields

• Definition: Post-industrial lands including sites of abandoned factories.
• Renovation: Many buildings are torn down, but some are renovated into apartments, restaurants, recreational facilities, and artisan boutiques.
• Job Shift: Manufacturing jobs are transitioning to service industry jobs.

Zollverein Coal Mine Industrial Complex

• Location: Essen, Germany, a significant historical site of industrial activity.

Global Manufacturing Trends

• Globalization: Enables more developed countries (MDCs) to move industrial production to developing countries.
• Transnational Corporations: These corporations can easily manage processing plants worldwide, increasing global interconnectedness.
• Distribution: Manufactured goods are readily transported to global consumers.

International Division of Labor

• Definition: The global distribution of different economic activities.
• Artisanal Mining: Example of cobalt supply chain from artisanal mines in the Democratic Republic of Congo (DRC) to global markets.
  • Stages of Supply:
  • Artisanal mines provide cobalt, which moves through trading and refining centers to producers and finally to consumers.
  • Statistics: Over half the world's cobalt comes from the DRC, with 20% sourced from artisanal mines.

Economic Sectors by Country Stage

• Core Countries: Experience growth in quaternary sectors focused on research and development.
• Middle-Income Countries: Primarily manufacture goods developed in MDCs.
• Less Developed Countries (LDCs): Feature large primary sectors, exporting minerals essential for production processes.

Technopoles

• Definition: Hubs for information-based industry and high-tech manufacturing, often located near universities.
• Examples:
  • Silicon Valley, CA, USA
  • Research Triangle, NC, USA
  • Austin, Texas
• Factors for Success: Access to capital, an educated labor force, government incentives for research and development.

Outsourcing

• Definition: The practice of corporations offshoring work to cut labor costs.
• Impact on Employment: Potential job loss due to automation or competition with lower-wage countries.
• Consumer Benefits: Lower prices for products due to reduced labor costs.

Special Economic Zones (SEZs)

• Definition: Designated areas in a country with different economic laws to encourage development.
• Incentives: Tax breaks, infrastructure support, loans, land use benefits, and weakened labor regulations aimed at attracting businesses.
• Notable Example: China's SEZs, established in the 1980s, boosted economic productivity and attracted foreign manufacturing.

Export Processing Zones (EPZs)

• Definition: Specific zones that attract foreign businesses through favorable regulations.
• Location: Near international transportation hubs for ease of exporting products.
• Example: Maquiladoras in Mexico function as EPZs.

Free Trade Zones and Trading Blocs

• Context: Globalization has advanced international trade through regional agreements.
• Definition of Free Trade: Includes removal of tariffs, easier customs processes, and open borders.
• Notable Trading Blocs:
  • NAFTA (now USMCA): Free trade agreement promoting trade in North America.
  • EU: Facilitates free trade in Europe.
  • APEC: Promotes trade throughout the Asia-Pacific region.

Summary of Changes in Economic Patterns

• Shift of manufacturing jobs from MDCs to LDCs driven by globalization.
• Importance of SEZs and EPZs in attracting foreign investment and enhancing productivity.