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Fordism, Outsourcing, and other changes as a Result of the World Economy! AP Human Geography
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- welcome to an ap human geography video on changes as a result of the world economy so let's get started so where are the
- jobs happening jobs bring money to a country and that increases the economy well jobs change in certain places because of processes like outsourcing
- offshoring and economic restructuring outsourcing is a where a company hires a third-party group maybe another
- company to handle a specific task this could be to manufacture something or collect something and then they're going to
- deliver it to this company the company will pay them and then uh the company who received the product will do whatever the heck they want to
- do with it then there's offshoring which is a company relocates a part of its operation to another location
- it's still part of that company it's still under the name so under the contract still has the same goal uh and others of however it's in a
- different place across borders a good example this is call centers uh in india mexico the philippines
- places outside america uh and yeah that's offshoring for you and outsourcing as well uh and they all
- do this to save money because it's cheaper there they're doing this primarily in industrial countries where the cost to
- do this are lower then there's economic restructuring which is the transfer of an economy from the industrial sector
- sector sector to the service sector basically from the secondary sector to the primary sector remember that from 7.2 uh and we see
- uh american jobs uh for call centers decrease and any job in mdc's decrease because of economic restructuring because
- jobs and ldcs are increasing yay cool cool cool because they're uh hiring these services in ldcs because it's cheaper
- these companies and mdcs are saving money by doing this because of that we see some effects
- so some effects in the ldcs are emergence of the middle class people are getting jobs people are getting money there's urbanization
- call centers aren't going to be in those rural towns and where farming is popular and then we see an increased gross national income as more people have an
- income and we see more developments because the country's getting money their economy is growing they can
- afford things like infrastructure now let's get into new manufacturing zones in the periphery so the periphery is developing crazy i know
- uh there's free trade zones export processing zones and special economic zones let's get into all these individually so starting with free trade
- zones these are areas where goods can be manufactured handled and distributed uh without tariffs or a customs duty which customs
- do is like a tax on a good then there's export processing zones which are areas that promote exports and
- encourage economic growth with ways like lower or no taxes and there could be other incentives that
- uh get people to you know export their stuff here and then there's special economic zones which are trade and business laws that
- are different from the rest of the countries they're different in this region they're unique i guess
- uh and so yeah now special economic zones we've got a little bit of an operation going on they stop uneven development and they
- increase economic activity in less developed country this is why governments would try to promote them or implement them in certain areas
- because they're like all right this place is not that developed let's put in a special economic zone to raise the development raise the
- economy and try to uh balance out that economic development because you remember uh in centrifugal and central and
- centripetal forces uneven development is a centripetal for not centripetal a centrifugal force it's bad it doesn't
- unify the people and we can see these in china they're putting in special uh economic zones as well and we can see this primarily on
- the coastlines or on the borders where interaction is easy and encouraged and that's where the people are that's where the money is
- uh and that kind of thing easy access and yeah that's where they're located in china now there's also been an increase in you
- know change in the international division of labor which is the shift of the secondary sector from the more developed countries to the less
- developed countries due to its low cost of production and lower wages of labor so the more developed countries are are
- putting in jobs in the tertiary sector while those less developed countries are decreasing the amount of jobs in that primary sector and moving into the
- secondary sector aka the industrial sector so some causes of this that's why it's happening is increased interaction among the
- states we can talk to them now crazy i know there's globalization companies are now international
- economic independence if the economy fails in one country it's gonna fail on the other and then there's the dependence theory
- the dependency theory i said dependence theory didn't i uh so yeah that's happening as well the core buys things from the secondary
- and then not the secondary from the periphery and the periphery buys things from the core and it's just they're all dependent on one each other
- and we can see this with the made in china china is technically an industrializing country and the things that are produced in
- china which is from the secondary sector that has that made in china thing and that's why you see so much made in china stuff on
- your goods and then of course uh there's some changes to the cultural landscapes like this like special economics as we have ports and stuff
- more as well and what about changes to the economic landscape well there's fordism which is basically
- the assembly line people are doing the same tasks over and over again it's repetitive people do this to save costs and there's
- a lower need for high skilled workers because they're not doing multiple things at once they're just doing the same
- thing over and over again and this is produced this produces um usually high quality goods and goods that are similar to one another
- then there's post-fortism which is kind of the same thing but with machines so the machines are replacing the humans
- as well uh and this can be expensive i know but this will save money over time instead of paying people wages uh and the use of machines instead
- of humans is called the substitution principle then there's the multiplier effect which is when one opportunity creates a
- multitude of economic opportunities let's look at an example with this let's say you're opening up a restaurant in oklahoma you open it in pain
- and then you move a location to creek then lincoln then logan and since they're doing well you're going to move them outwards to the rest
- of oklahoma and then soon across the united states more jobs are being opened up for for rules like servers cooks and
- managers uh and yeah more jobs are there more people are getting jobs and all the cool economy stuff that stonks
- uh so yeah pretty pretty cool uh and then we have economies of scale so this is where the cost of production is lower while output is
- output is higher so this could be due to things like machines that can uh have a high output but they're not that expensive over time
- um they can be expensive to implement yes but you know the outcomes of it are pretty pretty good compared to human labor i
- mean humans have to take breaks and stuff and machines they don't really have to take breaks unless they're overheating
- then there's agglomeration which is the collection of similar businesses in an area that may share infrastructure labor techniques and collaboration
- good example of this is the silicon valley we see a lot of tech businesses here uh so they share roads they may invest
- in the same thing uh they get people from berkeley for jobs uh and that sort of thing as well so they're pretty similar
- to one another and then there's just in time delivery which is the concept of receiving parts and materials right as they are needed
- uh and you know there could be some drawbacks to this but there's some good things to it like reduce uh reduces the inventory
- cost and there saves time and storage you don't have to fill up that freezer uh until you need the food to sell it
- and then there's a possible risk that you can get them late and production can fall up behind and you can lose money and then
- there's growth polls our final concept in the video which is a cluster of highly innovative productive and technologically advanced
- areas stirring and diffusing economic growth uh we see this with the silicon valley we see money being created in the silicon
- valley we see apple and google here oracle that kind of thing as well there's money there you know uh and the government likes this because
- it's they're getting money the country is developing they can buy things and the us is number one in imports
- and we have the silicon valley we have a bunch of technology we have a bunch of growth polls as well uh so they might influence uh where
- companies locate through higher taxes and uh un in areas without growth polls and they're like businesses go to these
- growth pools so we can increase our economy even more and the economy will increase because of that
- and that's the end of the video thank you so much for watching please subscribe and like the video let's take this videos
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