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Unit VI Industrialization and Development • Krista Pedersen • Kira Levin • Amy Lindholm • Requirements to maintain moderate activity vary according to a person’s type of occupation, age, sex, and size, and climate conditions. • Example: 2350 calories as a minimum daily level • Calorie Consumption • Based on the observation that within many spatial systems sharp territorial contrasts exist in wealth, economic advancement, and growth in development between economic heartlands and outlying subordinate zones • Example: Western Europe, Japan, & U.S. • Core- Periphery Model • Classify as twin bases of the importance of off farm sales and the number of people who work in agriculture • Example: Subsistence Agriculture Agricultural Labor Force • The increasing similarity in technologies and ways of life among societies at the same level of development • Example: British colonies re-creating the textile industries from England’s Industrial Revolution • Cultural Convergence • Holds that the political and economic relationships between countries and regions of the world control and limit economic development possibilities of poorer areas • Example: colonies dependent on colonial powers • Dependency Theory • Extent to which the human and natural resources of an area or country have been brought into full productive use • Example: Modern high rise office in Chicago • Development • Common measure of technological advancement of nations because it loosely correlates with per capita income, degree of industrialization, and use of advanced technology • Example: MDCs use 10x more energy per capita than LDCs • Energy Consumption • Money the current developing country gains in international quaternary services • Example: Caribbean states to take advantage of lower wages and larger educational pool • Foreign Direct Investment • Culture’s assumptions about the differences between men and women • Example: roles in society and divisions in labor • Gender • The total value of goods and services produced within the borders of a country during a specified time period • Example: tertiary services • Gross Domestic Product (GDP) • Reports the total market value of goods and services produced within an economy within a given time period • Example: highest GNI = Northwestern Europe, North American, Australia, and New Zealand • Gross National Income • Combines purchasing power, life expectancy, and literacy • Example: reflects the programme’s conviction that the important human aspiration’s are leading a long and healthy life , education, and access to assets. Human Development Index • • • • • • • 1) traditional societies – subsistence agriculture 2) preconditions for take-off – established societies 3) take-off – resources begin to be exploited 4) drive to maturity – application of modern technology 5) age of mass consumption – above basic need 6) post-industrial – services replace industry Example: U.S. in mass consumption. Ethiopia in traditional society • “Stages of Growth” model & levels of development • Development is measured by more than economic standards though income and national wealth strongly affect the degree to which societies invest in public services • Example: education, sanitation, health services Measures of development • Major world powers control the economies of the poorer countries even though the poorer countries are now politically independent states • Example: Nigeria and France Neocolonialism • Overseas development council devised this index which seeks a value-free measure of the extent to which minimum human needs are being satisfied among the world’s countries • Example: indicates infant mortality, life expectancy, and literacy • Physical Quality of Life • Index • What money actually buys in each country • Example: bread costs $1 in the U.S. but only 50 cents in Thailand • Purchasing Power Parity • Proposed a widely cited model for economic advancement • Example: Theorized that developing countries will pass through five successive stages of growth and advancement • W. W Rostow • Contrast in range and productivity of artifacts introduced at the core and those known or employed at the periphery • Example: traditional crafts – modern technologies • Technology Gap • Placing in their own territory and under their own control the productive plants and processes marking the more advanced countries • Example: chemical plant of Bhopal is a technological transfer sought by the government of India • Technological transfer • Often applied to the developing countries as a group • Example: Sub-Saharan African countries • Third World • Provided useful framework into the political organization of space and helps understand the geography of development • Example: three-tier structure: core, periphery, and semi-periphery • World Systems Theory • When acids from all sources are washed out of the air by rain, snow, or fog • Example: described by pH factor Acid Rain • Spatial concentration of people and activities for mutual benefit • Example: industrial activities • Agglomeration • Form of savings from shared transport facilities, social services, public utilities, communication facilities, and the like. • Example: infrastructure • Agglomeration Economies • Contains alien substances in the sufficient amounts and concentrations to have a harmful effect on living things and humanmade objects • Example: ash from volcanic eruptions Air Pollution • Massive changes of electricity required to extract aluminum from its processed raw materials • Example: kitimat plant on the west coast of Canada • Aluminum Industry • German economic geographer developed a basic model for the location of manufacturing plants. Drew from the research of other economic geographers and began with a set of assumptions that enabled him to create his model • Alfred Weber •A model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration •Least Cost Location • Costs that change directly with the amount of production • Energy supply and labor costs • Variable costs • Dominant city in terms of its role in the global political economy. Not the world’s biggest city in terms of population or industrial output, but rather centers of strategic control of the world economy. • London, New York, Tokyo • World cities • Appearing everywhere • Ubiquitous • Business owners can juggle expenses, as long as labor, land rent, transportation, and other cost don’t all go up at one time. • If labor costs go up, they may be offset by a decline in transportation and rent costs, encouraging the owner to stay put. • Substitution Principle • The deliberate killing of a place through industrial expansion and change, so that its earlier landscape and character are destroyed. Referred to as deliberate industrial expansion. • When industries form, then the peoples’ center of life revolves around that industry • Topocide • Highly productive, based on close ties to Europe, the proximity of raw materials such as coal, iron ore, and limestone • Ontario, and southern Quebec • Eastern North American Manufacturing Region • Companies that participate not only in international trade, but also in production, manufacturing and/or sales operation in several countries • IBM, Ford, Dutch electronics • Transnational corporations • The average maximum distance people are willing to travel to purchase a good or service. Is the radius of the circle drawn to delineate a service’s market area. • People are willing to go long distances to get groceries, Laundromats, or video rentals. • Range • The size of the population required to make provision of the service economic feasible • The amount needed to support a Kroger supermarket in Dayton is about 30,000 people. • Threshold • An economic activity in which the final product weighs less than its inputs • Copper industry • Bulk-reducing industry • Makes something that gains volume or weight during production • Soft drink bottle • Bulk-gaining industry • With reference to production, to turn over in part or in total to a third party. Producing abroad parts of products for domestic use or sale. Subcontracting products of services rather than performing those activities “in house”. • American manufacturers practice this. • Outsourcing • Agreement entered into by Canada, Mexico, and the US in December 1992 and which took effect on Jan 1, 1994 to eliminate the barriers to trade in, and facilitate the cross-border of goods and services between countries. • Has worked to lower taxes • NAFTA • Specific area within a country in which tax incentives are less stringent • China has this type of zone • Special economic zone • Threatens biodiversity and marine life. Important factor in global climate change. • Freon and CFC’s contribute to this problem. • Ozone depletion • The term given to the zone in northern Mexico with factories supplying manufactured goods to the US market. The low-wage workers in the primary foreign owned factories assemble imported components and/or raw materials and then export the finished goods. • In Mexico, located directly across the border from the US. • Maquiladora • Employs vertical disintegration with larger, formerly functionally integrated firms • Plant location “just in time theory” • Explains how quickly innovations diffuse and refers to how interlinked two places are through transportation and communication technologies. • In 1492 Columbus took 37 days to sail across the Atlantic Ocean and in 1967 Glenn crossed above the Atlantic in about a quarter hour. • Time-space compression • Economies where the tertiary and quaternary sectors have grown to dominate the workforce, with smaller but highly productive secondary sectors. • Argentina and Korea have this type of economy • Post industrial economy • The tendency of an economic activity to locate close to its market; a reflection of large and variable distribution costs • When a factory is one stage in a larger manufacturing process (firms making wheels, tires, windshields, bumpers, in the assembly of automobiles) the location near the next stage of production is an obvious advantage • Market orientation • The direct, indirect, and induced consequences of change in a activity. • Total (urban) population growth thus the expansion of the labor pool and the localized market that are part of agglomeration economy. • Multiplier effect • Highly productive, consists of numerous industrial areas. • Central and northern Britain, the Ruhr. • Western Europe Manufacturing Region • Industrial centers based in Moscow and has a wide variety of metal and chemical industry • Volga • Western Russia Manufacturing Region • Industrial center based in Ukraine using oil and gas. • Centered on coalfield. • Ukraine Manufacturing Region • Smaller, few industrial raw materials of its own, forced to import a lot, uses its large population to its advantage. Keeps labor cost low, and has a highly skilled labor force. Leader of computers and electronic equipment • Japan Manufacturing Region • Any activity that fulfills a human want or need and returns money to those who provide it • Types: consumer, business, and public • Services • Laws that limit the permitted uses of land and maximum density of development in a community. • Can prohibit anyone from living in basements, and upper floors. • Zoning • The new engineering profession made a huge impact on this. • Canals, railways, air, and truck. • Transportation • Water and air pollution, ozone damage, acid deposition • Environmental considerations International Division of Labor • The specialization by countries, in particular products or exports. • Example: Central America for bananas, cotton in India, or coffee in Brazil. Cumulative Causation • The spiraling build up of advantages that occur in specific geographic settings as a result of the development of external economies, agglomeration effects, and localization economies. • Example: Brazil, Peru, and Ghana subsidizing domestic industries and protecting them from outside competitors through tariffs and taxes. Deindustrialization • Involves a relative decline (and in extreme cases an absolute decline) in industrial employment in core regions as firms scale back their activities in response to lower levels of profitability. • Example: Rustbelt in 1960’s and 70’s. Fordism • Named for a president whom within the automobile industry pioneered mass production based assembly line techniques, mass consumption based on higher wages and sophisticated advertising technologies. Export Processing zone • Small areas within especially favorable investment trading conditions are created by government in order to attract export oriented individuals. These conditions include minimum levels of bureaucracy surrounding imports and exports ; the absence of foreign exchange controls ; the availability of factory space and warehousing at subsidized rents ; low tax rates; and exemption from tariffs and export duties. Infrastructure • Roads, schools, and recreational amenities. Ecotourism • Tourism that can help sustain indigenous life systems, regional cultures , arts and crafts ; and it can provide incentives for wildlife preservation, environmental protection, and the conservation of historical buildings and sights. • Example: Whale watching at Kaikoura, New Zealand. Comparative Advantage • Principle where by places and regions specialize in activities for which they have the greatest advantage in productions relative to other regions or for which they have the least disadvantage. Examples: bananas in Central America, cocoa in Ghana, palm oil in West Africa, rubber in Malaysia, or copper in Chile. Bid-Rent Theory • Different land users are prepared to pay different amounts. • Example: commercial land users want to be accessible to one another, to markets, and to workers. Economies of Scale • Cost advantages to manufactures that acquire from high volume production, since the average cost of production falls within increasing out puts. Footloose • Industry that is able to shift the location of their facility in order to take advantage of cheep labor. Industrial Revolution • A series of unrelated land intentions that led to the use of machines and animal power in the manufacturers process and transportation beginning in the 18th century. Industrial Regions • Primary industry , secondary industry, and services. • Examples: – Primary: fishing, hunting, farming – Secondary: ore into steel, fish canning – Services: transport/communications , producer, consumer Greenhouse Effect • Effect of greatly increased amounts of carbon dioxide produced by burning fossil fuels. • Example: ice masses breaking off of Antarctica due to warming temperatures. Labor-Intensive • Industries in which labor costs form a large part of the total production costs. • Example: industries that require skilled workers producing small objects such as computers, cameras, and watches. Industrial Location Theory • Fundamental principles that share and influence decisions in the location of economic activities. • Example: proximity to a specific consumer market up is almost always of importance. Break of Bulk Point • Location where a transfer among transportation modes is possible. • Example: seaports and airports. Canadian Industrial Heartland • Region with centrality to Canadian market, proximity to the great lakes, and access to inexpensive hydroelectric power from Niagara Falls. • St. Lawrence Valley-Ontario Peninsula area.