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Industrial Location and Globalization of Enterprise

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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Industrial Location and Globalization of Enterprise

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  1. 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

  2. 7 Surprises (p. 45) • Rise of Japan to #2 and #3 • Continued dominance of the USA • NIE/NIC export performance in manufactures • Rapid development in China • Weak performance in Latin America and sub-saharan Africa • ‘Transitional economies’ of C-E Europe is a new category, …too early to tell

  3. Foreign Direct Investment • Production, trade, investment as indicators • …of globalization • Investment: • spending on capital goods to increase productive capacity and earn a return • any purchase of an asset to increase future income

  4. Foreign Investment • Purchase by non-residents of assets capable of yielding a return • Short or long term • Portfolio investment in stocks and bonds • Direct investment in shares or productive assets to own or operate a business

  5. FDI • Foreign Direct Investment (FDI-DFI) • Direct investment by one firm in another to gain a degree of control over that firm’s operations (p. 51) • ‘across national boundaries’ vs ‘non-residents’ • Acquisition of controlling interest in a firm • mergers and acquisitions • Establish a branch or subsidiary in another country • Building new facilities (greenfield investment)

  6. Measuring Investment • Stocks • Capital stock at market cost OR • Capital stock less accumulated depreciation • Flows: • Inward flows • Outward flows

  7. Macro-scale • National scale data • Geographers explore other scales too! • Macro: global triad EU, US, East and SE Asia • 85% or world mfg output • 81% of world mdse exports • Growing concentration • East Asia • 29% and 26%

  8. Micro-scale • A ‘fine-grained mosaic’ • Economic activity is grounded in space • Urban areas • Dense web of economic activity • Labour market • Daily Urban System: city and functional region • Perrouxian Growth Poles: China’s SEZs

  9. Meso-scale • Corridors and axes • Megalopolis • Conceptions of the core of Europe • Regional scale economic zones • Gigantic Conurbations • Jabotabek • Border zone (s) • Maquiladora zone along U.S. Mexico border

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