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An important industrial center has developed in California. As early as 1906, the aircraft industry settled in the San Diego / Los Angeles area, and from 1913 the film industry (Hollywood) too. The processing of products from California’s agriculture was and is of great importance. A significant sub-region that is characterized by locations for the aviation industry and electronics as well as internet services is Silicon Valley, south of San Francisco, which has developed into a leading economic region after 1940 (cf. 214.2). Decisive location factors were initially the establishment of military facilities from 1940, the settlement of the aircraft company Lockheed and the opening of the industrial park of Stanford University after 1950. Due to the close cooperation between Stanford University and industry, Silicon Valley developed into an international center of innovation Technologies with numerous new companies. In addition to electronics, the region has established itself as a location for market-defining global players in the areas of communication technology, software and internet services (e.g. Google).
ECONOMIC POWER USA
The rise of the USA to a global economic power, which began in the late 19th century, was favored by a number of factors. The rich natural resources as well as the climatic and landscape diversity played an important role. The stable democratic system and favorable framework conditions for the economy and companies were just as beneficial as the positive attitude of Americans towards work and success. Numerous groundbreaking inventions and the close association of research, industry and production are further driving forces behind the success.
Significant impulses have come from the North American Free Trade Area (NAFTA) in recent years. After the USA and Canada had been almost free of customs duties since 1989, when NAFTA came into force on January 1, 1994, another important step towards trade liberalization between the USA, Canada and Mexico was taken. Since then, there has been an above-average increase in the exchange of goods between the participating countries. Numerous US companies have set up production facilities across the Mexican border in order to take advantage of cost advantages and thus be able to supply the world market. In the so-called maquiladora industry, delivered preliminary products are processed into end products; However, it is also heavily criticized because of poor working conditions and low wages. Steps towards trade liberalization in the Pacific and transatlantic regions – comparable to NAFTA – are being largely driven by the USA. For more information about the continent of North America, please check historyaah.com.