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INDUSTRIALIZATION AND DEVELOPMENT
Economic Geography
Economic systems
include:
Capitalism (free market)
Socialism
Communism (command economy)
FOUR ECONOMIC
ACTIVITIES
Farming, mining, fishing
Primary
Secondary
Tertiary
Creating something: manufacturing
Services – selling a product or service (retail, banker)
Quaternary
Research and development (GM foods, technology)
INDUSTRIAL REVOLUTION
The confluence of
resources,
technology and
innovation. One of
the major turning
points in human
history.
Started in Britain. At
that time all the
resources necessary
were available in one
place.
A shift in power form wood to coal. The critical component
was the steam engine.
Major industrial regions of the world
today.
1
2
3
4
In a post-industrial society (USA, Western Europe), manufacturing
is declining as services expand. “the core”
MDC’S
LDC’S
NIC’S – Newly industrialized countries.
The “dragons” (tigers) of
East Asia.
Many of these countries
are experiencing
“compressed
modernity.”
South Korea, Taiwan, Singapore,
Hong Kong
Rapid economic and
political change – stable
government and
economic freedoms.
Terms: Gross domestic product -- the value and output of goods a
country produces in a year (the amount of business done.)
GDP per capita: the GDP divided by the total population.
Productivity: The value of a particular product in relation to the
labor it took to produce it.
Workers in PEDS are more productive
because of?
Value added is figured by the costs of materials and energy
from the value of the product.
Theories of Modern Development
Modernization model: based on Europe’s development, from
Britain until today. This is based on “western” ideas of
development. Western countries help poorer countries by
encouraging population control, increased food production and
take advantage of industrial technology.
Economic colonialism (neo-colonialism) : LDC’s are still
dependent on MDC’s for markets, financing, technology.
New international division of labor: Moving labor
intensive jobs to less expensive locations.
Less expensive regions USA to Mexico to
China
WORLD SYSTEMS THEORY - CORE-PERIPHERY -- EMMANUEL
WALLERSTEIN (applicable in industry, development, or
political units.)
Dependency theory: Wallerstein places the burden of global
poverty on developed countries and their exploitation of
LDC’s dating back to the colonial era.
Rostow’s Stages of Development:
Traditional:
Limited wealth,
subsistence farmers, folk
cultures
Ex: Papua New Guinea
Pre-conditions
for takeoff:
Begins when an elite group initiates
innovation economic activities. Invests
in infrastructure. Ex: Ghana, Sudan
Take-off:
Rapid growth in select fields such as
textiles. (cheap labor) ex: Mexico,
Brazil, China, India, SE Asia
Drive to
Maturity:
Age of mass
consumption.
Modern technology diffuses, rapid growth of
skilled industries. Ex: Poland, Hungary, Czech
Rebublic
Economy shifts from heavy industry to tertiary
and quaternary sector. Industry produces
consumer items. USA, Western Europe, Japan
Site and Situation
Site factors are particular to
a geographic location.
Considerations are varying costs
of land, labor, and capital, as well
as geography such as port sites
and viable land structure.
Situation factors deal
mainly with transportation.
(relative location)
Bringing in raw materials or
parts and shipping finished
goods to the consumer or
retailer.
Right to work states
Workers can’t be forced to join a union.
Auto factories are located in the central US today to maximize site
and situation costs.
Weber’s
Least Cost
Theory
Substitution
Principle
Market
labor
taxes
Purest form
deals only
with
transportation
costs
a
Input 1
b
Bulk
gaining
industry?
c
Input 2
Bulk
reducing
industry
Bulk reducing industries:
The output product is
smaller than the input.
Copper smelters, steel mills.
Bulk gaining industries:
The output is greater than the
individual inputs. Bottling,
canned goods.
Fordist Industries:
Post-Fordist Industries:
Flexible work rules, teams of
workers, workers perform
various tasks.
Traditional factory
manufacturing. Every person
has a particular job to do.
Very “top down” system. The
traditional assembly line.
Economies of scale
Company increases
output, it can buy
raw materials or
supplies in bulk,
reducing costs.
Brick and mortar industry
A traditional
business with actual
stores to conduct
trade.
Footloose
industries
Aren’t tied to a
particular location.
They have the
freedom to locate in
various places.
Locational interdepence involves the influence on a firms location
based on the location of competitors.
Agglomeration:
Deglomeration?
Break of bulk
center
Several similar industries or outlets locating
near one another. (the mall, ship channel)
Exodus of companies form an area due to
variable factors. (labor)
Where goods are
moved from one
form of
transportation to
another.
Rust Belt
Heavy industry has
been in decline for
the past 40 years.
Unions, high wages
Population in most of
the states has been
stagnant or declining.
Sun belt
Job and population growth during the
same time frame.
Right to work states, pay lower wages,
lower taxes
SEZ’s (special
economic zones)
or Entrepots
Special “economic zones” that provide tax
breaks for goods shipped in or out, or,
locations foreign factories can be built in to
take advantage of low cost local labor.
Maquiladora’s in Mexico:
Factories in northern Mexico that work as partners to USA
factories.
Goods are shipped in from a foreign country (usually the
USA), assembled, and sent back to home country or
exported.
Takes advantage of low cost Mexican labor, provides jobs for
Mexicans.
The Great
Lakes/Northeast has
traditionally been the
center of American
manufacturing.
Where have those
plants been relocating
to (if they remain in
the USA?)
Why the move?
Right to work states,
lower taxes, and
lower labor costs.
Auto parts mfgr.
Supranational organizations regarding industry and development.
European Union
NAFTA
The first economic association between peds and
pings
Friction of distance
Multi-national
corporations
(conglomerates)
Labor intensive
industries
Gross domestic product
and GDP per capita
New international division of labor
Self Sufficiency and International
models of development.
Human Development Index
end
IF YOU LEARNED ONLY FIVE THINGS REGARDING
DEVELOPMENT AND INDUSTRY (from Kaplan’s Human
Geography review book)
1. Industry is based on transportation and labor costs.
Weber's least cost theory suggests that a production
point must be located within a "triangle," with raw materials coming from at least two sources. Weight-gaining
industries must have their production point closer to the
market. Weight-reducing industries must have their
production point closer to the source of raw materials.
2. The five main means of industrial transportation are
truck, train, plane, pipeline, and ship. Each has
advantages and disadvantages for hauling raw materials
or finished products to production points and markets
around the globe.
3. Basic industries are city-forming industries, whereas
non basic industries are city serving industries. Basic
industries are the main business for which a city is
known. Detroit/automobiles, Pittsburgh/steel, San
Jose/computer chips are just three examples of basic
industries in major urban areas in the United States.
4. The main factor in determining an area's
development is the Human Development Index, which
measures life expectancy, literacy, education, and the
overall standard of living for different countries around
the world. It was developed in 1990 and has since been
used by the United Nations as the primary indicator of
countries' levels of development.
5. The core-periphery model describes regions as core,
semi-periphery, and periphery areas. It also describes
four areas, the industrial core, upward transition,
downward transition, and resource frontier. The model
can be used from a worldwide scale down to an urban
scale to analyze city zones.