Globalization is the increased flows of activity that make people, items, and places more connected and interdependent, and borders less important. It allows products to be assembled in different places among the world at a price that achieves allocative efficiency. Raw materials might be shipped to a different place to be manufactured into parts, the parts are shipped to another place to be assembled, the assembled goods are shipped to various different places to be sold. Because it is possible to ship items from and to different parts of the world at a low cost, it is possible for companies to move their factories to places where site factors are more favorable to them ( Cheaper labor, less labor rights, less labor union influence, less environmental regulation). In bulk reducing industries, factories tend to be located in sites closer to the raw material. Factories that were located in situations where it is closer to the consumers (Northwestern Europe and Northeastern America) are moved towards places where labor is cheaper and labor union has less power(South and West America and Peripheral parts in Europe). The site for manufacturing, in terms of closeness to the markets becomes less important as transportation cost decreases. Situation factors become a more important factor in determining the location of since transportation is easier and cheaper.