Chapter 22 Industrial Activity and Geographic Location

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Chapter 22 Industrial Activity and Geographic
Location
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Introduction

• Why Hong Kong, not Macau?
• Map of Hong Kong and Macau (link)
• Location Theory

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Preindustrial world

• India - textilesbest in the world, riots in
  British textile industry in 1721.
• China, Japan all had industrial base before the
  Industrial Revolution
• European companies used colonist power to control
  and local raw materials and process to finish
  products

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Industrial Revolution

• James Watt and others developed (not invented)
  steam-driven engine
• coal transformed to high-carbon coke
• And many other inventions..

First railroad in England, in 1825
First powered ship crossed the Atlantic in 1819
Know-how, experience and capital
British influence around the world reached its
peak
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James Watt (1736-1819)

• Scottish inventor, Repairing a Newcomen Steam
  Engine, he devised improvements that resulted in
  a new type of engine (patented 1769) with a
  separate condensing chamber, an air pump to bring
  steam into the chamber, and insulated engine
  parts. Watt coined the term horsepower

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Industrial Revolution - 2

• Black Country in Britain - densely populated
  and urbanized industrial regions along the
  coalfields.
• The eastward diffusion of the Industrial
  Revolution during the second half of the
  nineteenth century. Figure 22-1
• Industrial regions due to raw material
  combinations - Ruhr, Saxony, Silesia and the
  Donbas.
• Urban Market cities - London and Paris
• Figure 22-1 (link)

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Location Decision
Primary industries
Secondary industries
Determined by location of resources
Human behavior, d-making (cultural, political and
economic), or just whim
Model, model, model again? Yes!!!
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Webers least cost theory(German economic
geographer

• Minimize

Raw materials to the factory
Transportation cost
Finished products to the market
Labor cost
Industries moved from Japan/Taiwan
to China/Vietnam. (computers, Nike)
Agglomeration
Make a big-city location more attractive
Over agglomeration - high rent/labor/transport
cost
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Industrial Location Theory

• General/Special, Regional/local factors
• General - transportation cost, Special - food,
  etc.
• Regional factors - transportation, a critical
  determinant of regional industrial location.
  Local - agglomerative/deglomerative factor
• He didnt take into account the consumption over
  the wide area instead of a single location.
• Consumer demand and production costs were taken
  into considerations for August Loschs book The
  economics of Location

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Factors of Industrial Location

• Russia - state planning directed industrial
  growth. Market is distorted by black market and
  influence of entrenched interests
• First decision faced by the capitalists- move
  either coal to iron ores or iron ore to the
  coalfields.
• Iron ore usually travels farthest. In commercial
  economics, iron ore is usually transported to the
  coalfields

iron
coal
Intermediate location
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1- Raw Materials

• Iron ore from overseas (Venezuela, Labrador,
  Liberia etc.) - the reason why industrial plants
  in U.S. northeastern seaboards.
• With limited resources, Japan expanded its
  dependencies to Korea and Northeast China
• Strong economics allows Japanese industries
  purchase raw materials anywhere in the world
• Core-periphery country relationship maintain the
  buyer and suppliers roles. Buyers usually
  control the market,
• OPEC in 1970s - oil prices up and down due to the
  non-cartel members increased production

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2 - Labor
Japan from 1950 to 1990
1/40
US and Canada
Taiwan
S. Korea
NAFTA, 1994
China
Thailand
Malaysia
Mexico
Vietnam
Others
1/30
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NAFTA

• Good or bad, judged by yourself
• Agriculture import and export between US and
  Canada/Mexico is increasing (Do you think youve
  got more fruit choice in Wal-Mart, Bi-Lo or
  Kroger?)
• Industrial plants closed - 9000 jobs lost in Cape
  Fear region (N.C)
• Job loss - 0.5 million between 1993 and 2000.
• Most job losses states CA,MI,NY,TX, and OH
• Hardest-hit sectorsHome audio/video,phones,
  appliances, motor vehicles,textiles and lumber
• TN loss in motor vehicles/textiles

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3 - Transportation
Other factors loading and unloading process,
weight and volume of the freight
Truck good for short distances
Development of container systems
Rail good for medium distance
Ship cheapest over longest distances
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4 - Infrastructure

• Telephone, utilities, electricity, water supply,
  banks, postal and messenger services, hotels, and
  social services.

Lack of infrastructure in regional and local
scale forces China to slow down the
industrialization in Pacific Rim
China is still going - due to the perception of
the future disadvantage
Vietnam - next economic tiger on the Pacific Rim
- having the infrastructure problems too. (water
supply and poor transportation network)
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Other factors

• 5 - Energy - Aluminum production Northwest and
  TVA locations and fertilizer production. But not
  that important as it was.
• Political stability/taxation (Cambodia, Myanmar)
• Environmental consideration - good weather in CA
  - film and aircraft companies