Industrial Activity and Geographic Location - PowerPoint PPT Presentation

1 / 48
About This Presentation
Title:

Industrial Activity and Geographic Location

Description:

Industrial Activity and Geographic Location – PowerPoint PPT presentation

Number of Views:154
Avg rating:3.0/5.0
Slides: 49
Provided by: e1974
Category:

less

Transcript and Presenter's Notes

Title: Industrial Activity and Geographic Location


1
Industrial Activity and Geographic Location
2
Economic Unit Study Guide Rostows
modernization model (5 stages) Location
Theory/Harold Hotelling Wallersteins
Theory Self sufficiency and the practices of
international trade Compare and contrast the
differences that distinguish the developing from
the developed world Why are there regional
economic difference within a country? Causes of
deindustrialization - tertiary and quatenary
economic sectors Positive and negative effects
of industrialization Globalization and the
effects.
3
  • Preindustrial World
  • Industries did exist before the Ind. Rev. (e.g.
    India carpenters, textiles, silver,)
  • Ind. Rev. began in Midlands of North-Central
    England (Black Country coal fields) diffused
    eastward
  • Affected production, transportation, and
    communication (steam-engine, locomotive,
    telegraph,)
  • The Location Decision
  • Primary industries located near raw mat.s
  • Secondary industries less dependent on resource
    location

4
  • Economic models assume
  • 1) People will try to maximize their advantages
    over competitors,
  • 2) They will want to make as much profit as
    possible,
  • 3) They will take into account variable costs
    energy, transportation, labor,
  • Friction of distance the increase in time and
    cost that usually comes w/ increasing distance
  • Distance decay the impact of a function or
    activity will decline as one moves away from its
    point of origin

5
  • Key Concepts of Trans. Comm.
  • Require a specially designed and constructed
    cultural landscape (roads, TV stations,)
  • Cumulative causation e.g. investment is risky
    usually occurs in developed states
  • Trans. Comm. systems can be viewed as a surface
    or a network
  • 1) Surface Pool table move freely (high
    potential for collisions) move at limited speeds
  • 2) Network faster movement, but restricted to
    certain paths (fewer collisions)
  • We modify systems b/w both

6
  • Ullmans Conceptual Frame
  • Forms a basis for understanding the volume
    timing of the flows of goods b/w locations 3
    main concepts
  • 1) Complementarily refers to the needs of one
    region matching the products of another (copper
    from AK to manufacturing cities)
  • 2) Intervening opportunity reduces
    attractiveness of more distant locations
  • 3) Transferability refers to the ease w/ which
    products can be moved

Kennicott Copper Mine
7
  • Harold Hotelling Model (Two dimensional)
  • Locational interdependence the location of
    industries cant be understood w/o ref. to the
    location of other industries of like kind
  • Two vendors located on pts. A C, eventually
    gravitate toward pt. B (moving from this pt. will
    only hurt profitability)
  • A third vendor complicates this (spatially)

8
  • Least Cost Theory (1909)
  • Alfred Webers model owners of manufacturing
    plants seek to minimize three costs 1)
    Transportation, 2) labor, and 3) agglomeration
    (too much can lead to high rents wages,
    circulation problems)
  • Weight-losing case final product weighs less
    than raw mat.s location source

9
  • Weight-gaining case final product weighs more
    (or takes more space) than raw mat.s (e.g.
    addition of water) location market
  • Some argue Webers model doesnt adequately
    account for variations in costs over time (e.g.
    taxation, consumer demand)
  • Substitution principle decreases in certain
    costs can offset increases in others

10
  • Christallers Central Place Theory Revisited
  • Distance affects the marketing strategies of
    enterprises
  • Businesses identify one location, possess a
    monopoly
  • Hexagons display a nesting pattern Christallers
    theory is not as accurate today (diminishing
    specialization)

11
  • August Lösch
  • Profit-maximization firms will identify a zone
    of profitability (not just a point)
  • Other businesses can come in and change the
    configuration of that zone
  • Agglomeration can give the entire area a
    competitive advantage

12
  • Factors of Industrial Location
  • Raw Materials-e.g. Japan has few, but grew into
    an ind. giant b/c of skilled labor low wages
  • Labor-e.g. 1994 wages in Shanghais Pudong
    dist. 1/40 Japan, 1/30 Taiwan
  • Infrastructure-banks, transportation,
    communication, social services,

Open-air laundry in Mumbai, India
13
Resources and RegionsThe Global Distributionof
Industry
14
  • Four Primary Industrial Regions
  • Eastern North America (largest)
  • Western Central Europe
  • Russia Ukraine
  • Eastern Asia (fastest growing)
  • Industrialization Through WWI
  • Britain - enormous comparative advantage
  • Industrialization expanded along coal deposits
    N. France Belgium N-C Germany NW
    Czechoslovakia S. Poland
  • Colonialism supplied Europe w/ raw mat.s
  • Ind. Rev. diffused (exp.) from core regions

15
(No Transcript)
16
  • North America only serious rival to Eur.
  • New York great relative location, major
    break-of-bulk (e.g. ship-to-rail) port
  • N. Am. benefited from nat. resources, trans.
    networks, capital, and labor
  • Most of the rest of the world lagged far behind
    (exceptions Ukraine, Australia,)
  • Mid-Twentieth Century Industrialization
  • Oil natural gas played a key role (U.S. is very
    dependent on foreign sources today)
  • U.S. emerged as the worlds preeminent power
    (escaped destruction of WWI)
  • American Manufacturing Belt - NE

17
  • Late Twentieth Century and Beyond
  • Four Tigers South Korea (Seoul), Taiwan
    (Taipei), Hong Kong, Singapore (industrial
    powers)
  • China rapidly growing in influence
  • Japan is losing its dominance

Pusan, South Korea
18
  • N. Hemisphere Ind. Zone U.S. Europe Former
    USSR E. Asia
  • Secondary Regions Mexico, Brazil, S. Africa,
    Egypt, India, Australia,

19
Concepts of Development
20
  • Economic Activities (revisited)
  • Primary ext. Secondary manufacturing
  • Tertiary service (trans., sales, education,)
  • Quaternary exchange or application of info.,
    knowledge, or capital (finance, insurance real
    estate (FIRE activities), legal services,)
  • Quinary higher order, specialized knowledge or
    skill (scientific research, high management)
  • Relationship b/w industrialization and urban
    location changed over time
  • First industries were rural (e.g. water-powered)
  • Mass production factories of early 1900s were
    urban based (e.g. cheap labor)
  • Expansion of tertiary, quaternary, quinary
    activities closely associated w/ growth of
    suburban areas (e.g. malls, edge cities,)

21
  • Agglomeration (revisited)
  • Occurs when certain conditions are met
  • 1) When a cluster of activities create enough
    demand for support services
  • 2) Activities needing access to information
    control tend to concentrate (e.g. face-to-face is
    better, no matter how rapid other forms of comm.
    are (e-mail, phone,))
  • 3) When cultural institutions (schools,
    hospitals,) are attracted to the area
  • Deglomeration too many activities (of the wrong
    type) traffic, pollution, capital shortages,
    inc. land prices,

22
  • GNP (Gross National Product)
  • Total value of all goods and services produced by
    a country in a single year (includes domestic
    international)
  • Does NOT 1) include informal econ. 2) reflect
    negative spinoffs (e.g. resource depletion,
    pollution, prisons,), 3) illustrate distribution
    of wealth (UAE gt15,000 p.c.)
  • Alternative measures 1) Occupational structure,
    2) Productivity per worker, 3) Consumption of
    energy per person, 4) Trans. comm. facilities
    per person, 5) Dependency (young old) ratio, 6)
    social indicator rates (e.g. literacy, inf.
    mortality)

23
(No Transcript)
24
  • Core-Periphery (revisited)
  • World Systems Theory(Immanuel Wallerstein)
  • Core-periphery link canexist at many scales
    w/in a region (Los Angeles is a core of S. Cal.),
    w/in a country (Johannesburg is a core of S.
    Afr), global (Japan is a core of E. Asia)
  • North-South Line (W. German Chancellor Brandt)
    map of economic development in 1960s (1st world
    (US, Eur, Japan) market economies dominating the
    3rd world, w/ 2nd world (USSR China)
    traveling down a state-planned economic path)

25
Per Capita GNPs



S. Afr. - 3,310
Haiti - 410
S. Korea - 8,600
Pakistan - 470
U.S. - 29,240
Japan - 32,350
Egypt - 1,290
26
  • GDP/GNP vs. GNI PPP
  • GDP/GNP Gross Domestic/Nat. Product
  • GNI PPP Gross National Income w/ purchasing
    power parity (allow cross-country comparisons of
    economic aggregates on the basis of physical
    levels of output, free of price and exchange rate
    distortions)

Country (2000) GDP ( bn) GNI PPP ( bn)
Nepal 5.5 31.6
India 457 2,375
China 1,080 4,951
Japan 4,842 3,436
U.S. 9,837 9,601
27
  • Models of Development
  • Liberal 1) Assume all countries are capable of
    developing economically in the same way, and 2)
    disparities b/w countries regions are the
    result of short-term inefficiencies in local or
    regional markets
  • Structuralist Economic disparities are the
    result of historically derived power relations
    w/in the global economic system cannot be
    changed easily (misleading to assume all areas
    will go through the same process of development)

28
  • Modernization Model (a liberal model)
  • Walt Rostow 1960s 5 stages
  • 1) The Traditional Society high in agr.
    (subsistence), high of national wealth spent on
    non-productive areas (military, religion)
  • 2) Preconditions for Take-Off Educated elite
    influence pop. to invest in tech.
    infrastructure inc. in openness production
  • 3) Take-Off Industrial Rev urbanization,
    industrialization, but still some trad. areas
  • 4) Drive to Maturity Tech. diffuses, ind.
    specialization, modernization occurs in core
  • 5) Age of Mass Consumption high incomes,
    widespread prod., majority in service sector

29
Walt Rostows Modernization Model Selected
countries up to 1960
30
  • Dependency Theory (structuralist)
  • Political economic relationships b/w countries
    regions control limit the developmental
    possibilities of less well-off areas (e.g.
    imperialism caused colonies to be dependent
    this helps sustain the prosperity of dominant
    areas poverty of other regions)
  • Only at later stages of development does the core
    have a positive impact on the periphery (grants,
    loans, special economic zones,)

31
  • Conditions for Core Development
  • Core regions w/ concentrations of employment,
    capital economic control develops w/
    agglomeration
  • Attract new investment through
  • Backward linkages supply firms w/ components
    services
  • Forward linkages help firms find uses markets
    for their products
  • Ancillary industries firms providing services
    for other corporations
  • Investment into infrastructure technology

32
Images of New York City
33
  • Conditions in the Periphery (revisited)
  • High rates of birth, death, infant mortality,
    illiteracy, malnutrition, incidence of disease,
    rural populations, overcrowding in urban areas
  • Womens workloads are often heavier than mens,
    landholdings are often fragmented (w/ poor
    harvesting tech.), soil erosion is commonplace,
    families often in debt,
  • A countrys core may illustrate progress, but
    often differs greatly w/ most areas

34
Images of Lagos, Nigeria
35
Deindustrialization and the Rise of the Service
Sector
36
Deindustrialization and the Rise of the Service
Sector
37
  • New International Division of Labor
  • Periphery regions are dependent on core for
    manufacturing jobs, likewise
  • Core TNCs are dependent on periphery for cheap
    labor, fewer environmental regulations, and
    expanding markets

38
  • New International Division of Labor
  • Periphery regions are dependent on core for
    manufacturing jobs, likewise
  • Core TNCs are dependent on periphery for cheap
    labor, fewer environmental regulations, and
    expanding markets

39
  • Deindustrialization
  • Regions with high labor costs old technology
    may experience deind. (core countries,
    Rustbelt) as new tech. can be more cheaply
    appropriated elsewere
  • US Sunbelt drew investment away from NE b/c of
    lower rates of unionization, higher amenity
    values (i.e. place), govt contracts,

40
  • Deindustrialization
  • Regions with high labor costs old technology
    may experience deind. (core countries,
    Rustbelt) as new tech. can be more cheaply
    appropriated elsewere
  • US Sunbelt drew investment away from NE b/c of
    lower rates of unionization, higher amenity
    values (i.e. place), govt contracts,

41
  • Specialized Economic Zones area w/in a country
    in which tax incentives fewer enviro.
    regulations attract foreign business/investment
  • Manufacturing export zone periphery favorable
    tax, regulatory trade arrangements
  • High technology corridors core network of
    research, development tech. enterprises

42
A maquiladora in Mexico
A technopole Silicon Valley
43
  • OECD - Organisation for Economic Co-operation and
    Development
  • Forum where govts work together to address
    economic, social and environmental challenges
  • Born after World War II to coordinate the
    Marshall Plan today has 30 member countries
    (which produce gt 2/3 worlds goods services),
    w/ more than 70 developing and transition
    economies working w/ them
  • Membership is limited only by a country's
    commitment to 1) a market economy, and 2) a
    pluralistic democracy

44
OECD Member Countries
Countries/Economies Engaged in Working
Relationships with the OECD
  • OECD Sometimes accused of neo-colonialism
    (entrenchment of the colonial order (trade
    investment) under a new (non-pol.) guise) some
    countries have a high of their GNP being
    allocated to payment of interest on accumulated
    foreign debts

45
  • World Cities John Friedmann (1980s)
  • Dominant in terms of their global-political
    economy centers of control of the world economy,
    not the largest in terms of pop. or ind.
  • Examples N.Y.C., London, Tokyo, Sao Paolo,

46
  • Tourism A Service Industry Giant
  • Some countries have made agriculture their main
    priority, others industry, and others,
  • Tourism travel 11 of all global jobs, and
    11 of global GNP (4 trillion/yr.)
  • Investment by host country is huge i.e.
    building hotels diverts money that could be used
    for housing, education,
  • Many hotels are owned by MNCs, NOT the host
    country, affects local economy little
  • A fast-growing industry as people are traveling
    more, however congestion at tourist sites is a
    rising problem (i.e. usually need a reservation
    for a campsite in Yellowstone in the summer)

47
  • Tourism A Service Industry Giant
  • Some countries have made agriculture their main
    priority, others industry, and others,
  • Tourism travel 11 of all global jobs, and
    11 of global GNP (4 trillion/yr.)
  • Investment by host country is huge i.e.
    building hotels diverts money that could be used
    for housing, education,
  • Many hotels are owned by MNCs, NOT the host
    country, affects local economy little
  • A fast-growing industry as people are traveling
    more, however congestion at tourist sites is a
    rising problem (i.e. usually need a reservation
    for a campsite in Yellowstone in the summer)

48
  • Time-Space Compression
  • Refers to the social and psychological effects of
    living in a technologically advanced world
  • Time-space convergence refers to the greatly
    accelerated movement of goods, ideas, and
    information during the 20th c. made possible by
    tech. innovations in in transportation
    communication
  • Transition from Fordist ind. system to a faster,
    more flexible system that has opened new markets
    brought places closer together
  • World Wide Web - no accurate estimates of its
    economic impact, but it is growing
Write a Comment
User Comments (0)
About PowerShow.com