Economic Development: Industry

Industrial Revolution

• Series of improvements in industrial technology that changed the way goods are made

• Began in France

• Included improvements like electricity and airplanes

• Occurred everywhere in the world at the same time

Industrial leader of the 21st century

• Sub-Saharan Africa

• East Asia

• Latin America

• Europe

Where is industrial production centered in the USA?

• Northeast

• Southwest

• Midwest

• Southeast

Which is NOT an industrial cluster?

• Europe

• North America

• East Asia

• South Asia

How many people work in industry around the world?

• 250 million

• 500 million

• 1 billion

• 1.5 billion

Labor-Intensive Industry

• Wages are a low % of expenses

• Wages are not included in expenses

• Wages are a high % of expenses

• Automation used instead of humans

Average hourly wage of an industrial worker in a developed country

• $10-$20

• $35-$40

• $50-$60

• $80-$90

Capital-Intensive Industry

• Wages are a low % of expenses

• Wages not included in expenses

• Wages are a high % of expenses

• Automation is used instead of humans

Why is capital and important site factor?

• Manufacturers need a central location

• Manufacturers borrow money to build new factories

• Manufacturers need to purchase expensive permits

• Manufacturers invest to drive down competition

Silicon Valley

• Banks in Silicon Valley give loans for new ideas

• There is a potential return for high investment

• 1/4 of all capital in USA is spent in Silicon Valley

• All of them