define the negative multiplier effect/ spiral of decline:
a downward spiral or cycle where economic conditions produce less spending and less incentive for businesses to invest --> therefore reducing opportunities
describe the location of the Rust Belt within the USA:
located in the NorthEast of the USA, including the states of Ohio, Indiana and Michigan, and cities such as Detroit, Chicago and FortWayne
why is this region known as the Rust Belt?
due to the decline in metalmanufacturing. It was once the world's biggest heavy industrial region with coal (mined locally in the Appalachian Mountains, steel (using ion ore from Michigan) and engineering. Its decline has been continuous since the 1950's
which factors have caused the Rust Belt to develop?
overseas companies (e.g. in China) produce cheaper coal and steel
mining companies have mechanised to cut costs
lower wage costs in the South East USA led to the relocation of the steel and car industries --> 80,000 jobs lost in Michigan, while 90,000 gained in Alabama, Tennessee, Virginia and Texas