Describe the change in the dominant economic sector during industrialization and during deindustrialization.

A. Industrialization is the process of transitioning from an agrarian economy (primary sector) to an economy dominated by industry (secondary sector). As industrialization occurs, a large percentage of the workforce is employed within the secondary sector, and employment within the primary sector decreases.

Deindustrialization is the process of transitioning from an economy dominated by industry (secondary sector) to an economy dominated by services (tertiary sector). As deindustrialization occurs, a large percentage of the workforce is employed within the tertiary sector, and employment within the secondary sector decreases.

B. Companies may move their industrial activities and manufacturing jobs to:

- areas with a lower cost of labor. This process can occur on a regional scale (for example, automobile manufacturing moving from the Midwest to the South in the United States) or a global scale (for example, manufacturing jobs moving from a more developed country to a less developed country).

- special enterprise zones or areas offering tax incentives.

- locations where government regulations are less strict.

C.

- As manufacturing plants and factories shut down, the number of manufacturing jobs will decrease, leading to higher levels of unemployment.

- As manufacturing plants and factories shut down, the population is likely to decline as people seek employment elsewhere.

- Due to a lack of investment and declining tax revenues, manufacturing communities may experience decaying infrastructure, falling property values, and social problems such as increased crime.

D.

- Facilitating the construction of railroads, bridges, tall buildings, larger ships, and other infrastructure

- Facilitating the manufacture of engines and other mechanized labor-saving services

- Facilitating the production of steel cable, steel rod, sheet metal, or steel alloys making for lightweight or stronger steel to use in manufacturing and construction

- Making the computer revolution and the digital age possible through internet commerce, cellular communications, networks, servers, and super computing.

- Powering service-sector industries such as information technology, financial services, retail, and education, all of which depend on the processing power and connectivity brought about by the computer chip

- Making all sectors of the economy more efficient through labor-saving computing devices

E.

- A growth pole is a concentrated area of technologically advanced industry. This type of area is significant because it is likely to attract job seekers, thereby stimulating the housing market and overall economic activity at a regional scale.

- A growth pole is significant to an urban economy as it will attract supporting businesses such as retail establishments, restaurants, and other service industries to the city or urban area on a local scale.

F.

- production at individual factories is specialized to meet consumer tastes and demands or are set up for flexibility to meet rapid changes in consumer tastes and demands.

- manufacturing is characterized by just-in-time delivery of supplies so that a factory does not need to retain a large inventory of parts, requiring less space and labor.

- companies disintegrate vertically and/or a factory may rely on subcontractors or spinoff companies for some of production such as component parts or aftermarket parts.

- workers may be trained for specialization and/or flexibility to operate different machinery or produce different types of products

- an emphasis of product quality and/or manufacturing process quality may transform operations at factories.

G. Least-cost theory is better suited to explaining site locations for manufacturing companies than for service-industry corporations. According to least-cost theory, industrial locations should be selected based upon the availability of natural resources (for example, a steel factory would be located near high-loss raw materials like coal or water).

Service-based industries do not require access to natural resources. Instead, a multinational corporation in the service industry is likely to locate its headquarters based on one or more of the following:

- Availability of communications networks

- Availability of a highly educated workforce

- Availability of investment capital or tax incentives

- Locational factors such as proximity to technology growth poles (universities, military bases, aerospace facilities)

- Locations of competitors or clients

- Locations of cultural or artistic center

- Lifestyle factors such as recreational opportunities, food, restaurants, and/or entertainment

- Proximity to airports

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Describe the change in the dominant economic sector during industrialization and during deindustrialization. One spatial change in manufacturing employment patterns as a result of deindustrialization is production shift. This is because it lowers the cost on labor and some places were made unfit for human contact.

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