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hello this is the third and last video about the secondary sector and we're

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going to focus on the third point industrial location and the

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industrial location is important because depending on the place we are located in

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our industry we will obtain more or less benefits and basically a businessman

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that is not obtaining profit obviously is not going to place the industry in

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that place so normally there are some inputs that are the things that we need

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in order to make products or goods the processes that is what we do in our

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industry and the outputs is what we are going to sell okay so all these inputs

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that are related with the industrial elements of the first video are what are going to make

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our company more or less profitable because depending on the price we will obtain more

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or less benefit this take us to the importance of location in industry so normally in class

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we click on these boxes to see that labor for example is really important

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and for example if we need a lot of cheap labor to make our products cheap

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we are going to locate our factory in places with a lot of workers for example

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Southeast Asia we also have the capital if we don't have money to invest in

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machines in the salaries of workers in the raw materials it's not going to be

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possible for us to set up an industry so the more capital the more industries we

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can create third is transport if we are far away from transport networks

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railways for example ports or highways is going to be impossible for us to have

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an industry because if we are far away from the consumers and we don't have a

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way to take our products for them that's not going to be beneficial for the

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industry. The place or the site should be flat. If we have a lot of mountains it's

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going to be very difficult and it would cost a lot of money to flatten the

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terrain. The government policy is also very important. For example, there are some

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places, some countries, in which the government reduce the taxes or the rents

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to industries. It's going to be better for the

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industry is cheaper okay so that's why many of the industries move to places

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where they don't have to pay so many taxes if we are close to the raw

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materials we are going to save money normally okay because we are going to

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save money from the transport of the raw materials to the industry if we are

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close to the market where we are going to sell our goods this is also going to

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generate more profit for the industry if we are close to sources of energy as

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well as the raw materials if we have available electricity oil gas etc this

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is going to make our industry more efficient as well and finally the

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environment for workers and normally people are willing to work in places

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with a good environment a good climate but this one probably is not the most important this is

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important only to attract people with studies that can work anywhere

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sitios planos con un gobierno que no nos pida muchos impuestos y si queremos

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gente con estudios los suyos que la industria esté puesta pues en

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california por ejemplo que tiene un buen clima

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en grecia en italia que es lo que pasa que en la actualidad el factor más

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importante es este el trabajo so these factors change a lot during time

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traditionally the industries of the first and second industrial revolution

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were close to places with abundant capital like London or Paris or Berlin

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close to raw materials like the coal mines in Asturias or sources of energy

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close to the market or to the cities close to ports and transport routes for

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example barcelona or rotterdam and with abundant low skill labor is decir mano de obra poco

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cualificada muy abundante because low skill labor normally is cheap labor okay and nowadays

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the factors are accessibility to raw materials and energy sources but accessibility means that

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maybe we can take them from another country at a very cheap price economic policies like low taxes

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and cheap labor in some countries like thailand for example and highly skilled labor in another

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center of the company that is going to be in developed countries new york san francisco paris

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Frankfurt, etc.

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So, because we have all these factors

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the main industrial areas of the world

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are located in these points

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The most important one is the Triad

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La Triada

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that are the historical industrial regions

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that are Europe

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the United States

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but mainly the Great Lakes

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ok, Los Grandes Lagos

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and Japan

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Then there are some other big centers, but they are not part of the triad, okay?

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In these places, Europe, the United States, and Japan, we have high technological industries.

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They are the centers of innovation, the workers that have studies, and we have abundant markets,

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so places to sell the products.

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The intensive labor, where we have to make the products, es decir, donde se hacen los

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products have moved due to offshoring. Offshoring is moving the centers of production to cheaper

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places like India, China, Singapore, etc.

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Well, basically, where we have the thinking heads is in Europe, the United States and

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Japan, and where the products are made is in a little cheaper country, such as the north

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Colombia and Venezuela, Brazil, Mexico, etc. Then we have the emerging countries, the countries

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that are becoming industrialized. The most important centers are the BRICS, Brazil, Russia,

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India, and the most important of them is China, that is the sea, okay, and South Africa. Then

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we also have South Korea, for example. We also have Mexico, Australia, Singapore, Hong

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Kong, and so on. What are the characteristics of these countries? They are improving their

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industries because they are close to natural resources, and the most important thing, they

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are close to cheap labor. So many industries from developed countries offshore their factories

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to these places. Finally, we have the least industrialized countries that are the

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poorest nations, like for example the African ones, that don't have capitals,

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the people can't afford to buy the products, they have bad communications,

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and what they do normally is to take their raw materials, for example their

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petrol, their gas, their gold, their copper, their bronze, etc. and they sell them to the

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industrialized countries that are going to make products with them. When we speak

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about capital here, we don't have to take only into account the money. It's also

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the machines. If they don't have machines, they can't have industry. So looking at

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the map you can see the main industrial areas of the world. In all these places

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we have some of the factors we were talking about, mainly capital, but they

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also have traditional industries and they also have abundant skilled labor,

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es decir, mano de obra cualificada, and they also have raw materials, for example in

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ukraine in the center of asia in china they have a cheap labor and most of these industries are in

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flat places so that's why in the himalayas we don't have industries and so on in europe the

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main industrial areas are these ones okay mainly this region between germany and france and the

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the Netherlands, the United Kingdom, the valley of the river Po in Italy and so

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on. All these places have skilled labor, they have capital, they have good

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communications, for example the Rhine River. They are very close to ports

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like Rome, Naples, Stockholm, Dublin and so on. And in Spain the main

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main industrial areas are Barcelona and Madrid. So in this map you can see that Madrid and

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Barcelona are the places with the most developed industries, and then connected to these places

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we have some other regions. This I can explain in Spanish, because for that it is Spain.

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Well, what happens? That here there is a transport route that connects the entire Mediterranean,

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In addition, there are important ports such as the one in Valencia, the one in Cartagena, the one in Castellón.

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So, the Mediterranean arch has developed the industry.

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Also because there is a good climate and people want to live here.

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It is a good place to develop the industry.

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Connecting Barcelona with another important industrial center, which is Bilbao,

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we have this whole area, which is the Valle del Ebro.

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then Zaragoza, for example, Pamplona, Logroño, Vitoria are developing

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by this connection and Madrid is connected intermittently with Zaragoza

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by the bird, for example, what happens is that here we have empty Spain that does not have

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industry in northern Spain as they had a lot of industrial tradition

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traditionally by the ports because it has some industry but it is

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disappearing and the rest of Spain is deindustrialized is practically

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agricultural areas andalusia castilla la mancha castilla león extremaduras

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etc. what factors explain this main there is a lot of population that was

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cheap good communications madrid barcelona for example and above all what

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what else do they have capital to invest in industry but if we compare

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our large industrial areas with the german would be secondary areas in

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in this place you have an explanation of these factors if you want to take a look

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in this slide there is a good explanation and because of the factors that I explained

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we're going to have different industrial landscapes in the world the traditional

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ones are the mining areas las minas the ports and rivers and the urban areas

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That is, cities, ports and mines.

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And nowadays we have the Chinese industry that is highly polluting,

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the industrial parks, los polígonos industriales,

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and the technological parks, los parques tecnológicos.

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These ones have disappeared in places like Europe or the United States,

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and right now they have services.

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The industrial parks normally are surrounding cities,

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they are not inside the cities, and they are large spaces like this one, for example, in which they

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have a lot of industrial units, naves industriales, and services like restaurants, good transport

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networks, for example, aquí tenéis un ferrocarril y hay también una autovía, etc. Normally, the type

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of industry is the light industries. If we want to have heavy industries, they are going to be

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farther away from the city and closer to the raw materials then the technological parts like this

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one in alabama are spaces in which most of the people are going to have a higher education so

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the the we are going to be looking for skilled labor and that's why these high-tech industries

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are located near universities labs technological centers and the best

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example is Silicon Valley okay if you don't know what Silicon Valley is is

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where we have Apple Amazon all the technological industries of the United

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States the heavy industries as I told you they are going to be near raw

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materials and far away from the habitats of people because they pollute a lot

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This is Silicon Valley, so if you take a look you can see all the companies that

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are located in this place. And finally, what we have to see is that in the 20th

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century, since the third industrial revolution started more or less, the

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industrial centers of Europe have been deindustrialized, which means that they

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were abandoned and replaced by the tertiary sector that is the main

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activity in the developed countries nowadays. Many people lost their jobs,

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some places were abandoned completely and what some cities like Madrid or New

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York have been doing is the industrial reconversion of these spaces, for example

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creating parks like the High Line of New York or commercial centers and centers

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of services like the Matadero in Madrid. Why is this happening? Because we are

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consuming a lot of products anyway the industries offshore relocated their industries in emerging

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areas as i told you before because they are cheaper okay so from europe north america japan

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and so on they relocated they offshore their industries to other places the reasons are that

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the labor cost is lower and the people don't have the same working rights so they are going to work

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for more time. Look the working conditions in the workshop of Santa in China. These people

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are breathing this polluted air of the painting and they will die very early. But because

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there are no good working conditions and it's cheaper, we move the factories there. Another

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reason is the economic support. In these countries it's very cheap to produce. The taxes are

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very low. Pagan muy pocos impuestos. And the third one, fewer environmental demands. If

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they pollute, there is no problem. Es decir, es más barato porque la gente está siendo

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explotada. Es más barato porque tienen que pagar menos impuestos. Y es más barato porque

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si contaminan, no se les ponen multas. All of this happens following a process. The first

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thing is the concentration, la desconcentración, of the industries. So traditionally in a factory,

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if the factory was making cars, all the pieces of the car were made in the factory. Right now

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it's not like that. What is happening is that there are different factories making the different

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parts of the product. Then we have the second, desestructuring or desestructuración. That is

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the second step of the first one, is to separate the production process in different factories,

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but not in the same country. Around the world, where we have the cheaper prices, vamos, que si

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es más barato construir motores en Taiwán, se construyen en Taiwán. Si es más barato construir

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ruedas en indonesia se hacen en indonesia cada fábrica va a estar en una parte del mundo

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and all of this is related with the concept i told you before is offshoring en español

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deslocalización industrial so the companies move the production or the factories to places that

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are cheaper which countries are losing the industrial centers europe the united states

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and Japan and right now China, South Korea, Brazil, Mexico and other countries mainly in

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Southeast Asia are the countries that are having big industries. In this picture you have an

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example of Dell. Bueno, los ordenadores de Dell, que no sé si os suenan. Aquí tenéis todas las

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fábricas de Dell para fabricar un ordenador, que está relacionado con los tres conceptos

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as I said before, the concentration, the structuring, and offshoring.

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And here, in this map, you have the situation.

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So, we have the TRIAD, North America, Europe, and Japan,

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and Australia and New Zealand that are connected,

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and they are offshoring their industries into emerging regions

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like Turkey, Egypt, Argentina, Mexico, South Asia, and so on.

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The curious thing is that, for example, from China or India,

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they are offshoring industries to even cheaper places like Pakistan, Bangladesh, Thailand, and so on.

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So if we have to answer the double-use questions about this,

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the place is from rich countries to emerging countries.

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The reason why is because they can pollute and they have cheap labor.

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Who is doing it? The big multinationals that control the economy.

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when is this happening during the third industrial revolution and how is this happening

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outsourcing or offshoring the companies to all different places the consequences in developed

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countries i'm going to speak about positive and negative the unemployment for example increase

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es decir en españa por ejemplo se ha perdido mucho empleo por culpa de esto porque zara se ha

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llevado sus fábricas a otros sitios.

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Decreasing of jobs in other sectors.

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Mainly the

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tertiary sector. Vamos, la sociedad española

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por ejemplo, casi todo el mundo trabaja en el sector

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terciario. Increased

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consumption due to lower prices.

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Vamos, como es mucho más barato,

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por ejemplo en esta foto tenéis el

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Primark, prendas

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a 8 euros, pues la gente gasta

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mucho más, y al gastar mucho más

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la economía

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se mueve más. And progressive

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dependence on the import of industrial

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products means that if we have a situation like the coronavirus, we are going to lack

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products, es decir, van a desaparecer muchos productos del mercado porque si dejan de enviar

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los productos de China, por ejemplo, nosotros no los podemos fabricar, es lo que nos pasó

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con las mascarillas, ¿vale? In the emerging countries that are the recipients of these

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factories, there is more jobs, the economy grows, the problem is that there is more pollution

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bad working conditions, and even though the country is developed, the people are not gaining

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a good quality of life.

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This is the map that we saw before, and if we have to talk about the Spanish industry,

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that is the last point of the unit, we have to say that the Spanish industry is not really

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important nowadays, only in Catalonia, Madrid, Valencia, Andalucía, and the Basque Country,

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País Vasco. But in the rest of the autonomous communities, we have more primary sector and

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tertiary sector. The Ebro valley is very important especially for Zaragoza, La Rioja and Navarra

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as I told you before. And the main problem is that they are taking most of the production,

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these regions, and the rest of the regions are being abandoned. As I told you in the

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map before, these are the main industrial regions and they are the ones that employ

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more people. Problems of

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Spain is that we can't

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compete with the emerging

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countries because our salaries are better.

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The productivity

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is very low.

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And we have to invest a lot

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of...

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Esto lo explico en español.

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Y más demás sí.

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Que es investigación,

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desarrollo e innovación.

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Y no hemos invertido lo suficiente.

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Dependemos demasiado

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de las patentes extranjeras.

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What does it mean? That foreign industries are the ones that have the most of the innovations and we have to pay them for the patents if we want to use them.

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Therefore, our industry is inferior.

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Also, we do not have energy because we do not have oil or coal.

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Therefore, here we have another problem.

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And since the 2008 crisis, our industry, which was based mainly on construction, has fallen into a pit.

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Because people do not have money to buy a house.

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The possible solutions are to invest more money in innovation, development and research,

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which unfortunately we are not doing enough. Invest in education, if you invest more

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in education, in technology, in mathematics, in physics, etc., then surely we could have more

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innovation in Spain. Invest in renewables so as not to depend on the energy they give us from

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Saudi Arabia, for example, or from Libya, have our own energy and promote

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by the state the economic recovery, that is to say that the government, since

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we have a mixed economy, intervene more in industry, give more

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help. What happens is that now the government does not have money for almost anything, we are in

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a complicated situation. This does not mean that we do not have

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large multinationals in Spain, for example Inditex is the most important

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important, it is worth knowing it because it is the one of all the stores that we have in the

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Zara, Stradivarius, Massimo Dutti, Pull&Bear, etc., etc. but we have more, what happens is that the

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majority are either banks, for example Bank Inter, which is in the IBEX, Santander, CaixaBank, etc. or

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energy companies such as Iberdrola, Repsol, Naturgy. What happens with these great multinationals?

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because if they are of energy and we do not produce our own energy, it generates some problems,

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but then we have few different companies, well, we have telephone companies, for example,

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which belong to the state in large part, etc. So, well, summarizing the factors of

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localización industrial que os he explicado antes van a significar que los grandes centros de

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producción industrial como europa eeuu y japón estén perdiendo sus industrias que se marchan

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a lugares en los que la producción es más barata y lo que se queda en estos centros sobre todo es

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como he dicho antes las cabezas pensantes los centros de desarrollo de investigación y de

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innovation is worth and in Spain the industry does not develop well for several reasons, for example

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because our land is not flat, we have a very rough terrain with many mountains, bad

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transport networks and little capital to invest and at present because there is a lack of innovation

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and development for our industry to develop, it is worth and we have enough problems and that is why

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we have so much for this is the last video so if you have doubts write to me and I leave you with the questions