GG102 Lecture 10: October 29
Document Summary
Why do industries locate where they do: every production location has a specific cost profile: labor cost raw materials cost transportation cost consequence: industry searches for least-cost location. Cost of land: commercial buildings construction: ten times more in 905 donut area than in 416 area. Role of gov"t: taxes, subsidies, zoning. Other aspects: external economies (access to services, agglomeration economies (lawyers, lunch, agglomeration diseconomies (congestion, parking fees, cachet (416 area, lifestyle, amenities. When proximity to resources does not matter when there is no physical product to be transported. When labor has to be neither skilled nor local (telework) Many of the service industries" of the postindustrial societies are at least to some degree footloose. Globalization global trade more than tripled since 1980 direct foreign investment grew almost tenfold in canada: more than a third of all business revenues are tied to transnational companies. Consequences: much higher degree of global integration.
