Study Guide
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Chapter 12 IDs |
Extra Activities |
Industrial Revolution
Location theory Variable costs Friction of distance Theory of the Location of Industries (1909) Least cost theory Agglomeration Deglomeration Locational interdependence--Hotelling Lösch Model Primary Industrial Regions (Pre-1950s) Break-of- bulk point Fordist Post-Fordist Just-in- time delivery Global division of labor Intermodal connections Deindustrialization Primary Industrial Regions Today Out-sourced/offshore Postindustrial economy Sunbelt Technopole |
These cover chapter 12 in its entirety.
The password for the crossword answer key is "yeet"
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Chapter 12 : Key Concepts
Origins of Industrialization
The Industrial Revolution began in Britain in the 1700s. Britain had lots of natural resources, labor, and capital (from the colonies) to invest into new inventions/industries. Britain also had a good transportation system--rivers and ports--so factories could get raw materials and get their products to market. The innovations and ideas diffused from Britain into mainland Europe. Industrialization spread through the main land via natural coal seams. Port cities became larger as rivers/oceans were the main way of transportation. Once the railroad diffused into the mainland, cities that weren’t as close to raw materials were able to industrialize (examples are London or Paris). Some cities grew due to their connections. The video offers a brief summary of the industrial revolution. It touches on some of the consequences brought about by it.
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Location Theories
This is a general term for a group of theories that can be used to predict where a business should be located. In general, primary economic activities should be close to the raw materials/resources. Primary economic activities are ones that are involved in getting raw materials needed for manufacturing. Secondary economic activities (ones that deal with turning the raw material into a product) were usually located by the raw materials, but the railroad changed this. Many of the models work on the idea the company will want to maximize profit and minimize costs. Unlike the Von Thunen Model, it is much harder to predict the location of a business because more factors are involved, ex.human behavior/decision making, political/economic stuff, culture stuff, intuition, random/whim.
This is a general term for a group of theories that can be used to predict where a business should be located. In general, primary economic activities should be close to the raw materials/resources. Primary economic activities are ones that are involved in getting raw materials needed for manufacturing. Secondary economic activities (ones that deal with turning the raw material into a product) were usually located by the raw materials, but the railroad changed this. Many of the models work on the idea the company will want to maximize profit and minimize costs. Unlike the Von Thunen Model, it is much harder to predict the location of a business because more factors are involved, ex.human behavior/decision making, political/economic stuff, culture stuff, intuition, random/whim.
Important location theories to know: Weber’s Least Cost Theory, Locational Interdependence, and Losch’s Model
Weber’s Least Cost Theory: The location of the business is dependent on minimizing 3 types of costs--transportation, labor, and agglomeration. Transportation costs will be affected by what type of business it is--material oriented or market oriented. Material oriented businesses will want to locate near the raw materials; market oriented will want to locate closer to the consumers. Agglomeration occurs when lots of businesses cluster in one place. This can be beneficial, with the different businesses providing services to one another, but it can also be disadvantageous. Many businesses in one area can drive up rent, causing wages to rise. More businesses in an area can also increase competition.
Locational Interdependence: This was created by Harold Hotelling. The theory states that the location of an industry can’t be fully understood without looking at where other similar industries are located.
Losch’s Model: This model is the least formal. The main goal is to maximize profit, but Losch also considered the spatial influence of consumer demand and production costs. There is a zone that an industry wants to be in, where the profit is high and the cost is low. Businesses try to stay away from the periphery of the zone; this is where distance decay makes it unprofitable. Other businesses can move into the zone and change/affect its boundaries.
Weber’s Least Cost Theory: The location of the business is dependent on minimizing 3 types of costs--transportation, labor, and agglomeration. Transportation costs will be affected by what type of business it is--material oriented or market oriented. Material oriented businesses will want to locate near the raw materials; market oriented will want to locate closer to the consumers. Agglomeration occurs when lots of businesses cluster in one place. This can be beneficial, with the different businesses providing services to one another, but it can also be disadvantageous. Many businesses in one area can drive up rent, causing wages to rise. More businesses in an area can also increase competition.
Locational Interdependence: This was created by Harold Hotelling. The theory states that the location of an industry can’t be fully understood without looking at where other similar industries are located.
Losch’s Model: This model is the least formal. The main goal is to maximize profit, but Losch also considered the spatial influence of consumer demand and production costs. There is a zone that an industry wants to be in, where the profit is high and the cost is low. Businesses try to stay away from the periphery of the zone; this is where distance decay makes it unprofitable. Other businesses can move into the zone and change/affect its boundaries.
Factory in the Ruhr region of Germany
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Diffusion of Industry
This concerns the primary industrial regions before the 1950s. Before the 1950s, the main locational costs were the transportation of raw materials and the shipping of finished products. Manufacturing places were close to natural resources/raw materials and had access to port cities or were connected to port cities via river or railway. The 4 primary industrial regions (pre-1950s) are: Western and Central Europe Eastern North America Russia and Ukraine Eastern Asia You can read pg. 390-398 in the book, and that goes further in depth as to why these areas are considered primary industrial regions. |
Fordist vs. Post-Fordist
Fordist and Post-Fordist describe the way things were mass produced. Fordist, named for Henry Ford, refers to assembly line means of production. In the Fordist economy raw materials were brought to the factory and turned into the products. A more complex product, like a car, was built all at one plant. Companies needed to locate near raw materials and routes of transportation (trains, rivers). Companies also would locate in urban areas due to the availability of labor and proximity to capital and markets. The main cost factor was transportation. The Post-Fordist economy is the modern day economy. There is lots of outsourcing, as labor costs shift to become the dominant cost factor. Instead of all the components of a car being made in one large factory, they are made around the world and shipped to a factory to be assembled. The Post-Fordist economy has given rise to multinational companies, who can shift production from site to site and dramatically alter the local economies of peripheral and semi-peripheral countries. Countries’ economies are more closely tied together, for example a fluctuation in the US stock market may have profound effects on the London stock market. Countries and companies in general are now more closely tied together--think about how some products are almost universal now (Coke). The location of businesses in relation to transportation is not as important because of all the connections. A short article which discusses other negative effects of outsourcing (besides the typical unemployment problem). Talks about other costs to the business that aren't always reflected/discussed.
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Discusses the reasons a company might what to outsource, provides a brief history of outsourcing. Brings up data which purports outsourcing is a net job creator for the country outsourcing. It is an interesting article, and good to get some different information on a subject that tends to only be portrayed poorly.
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Global Division of Labor
This refers to how labor is distributed around the world. Usually intense manual labor is found in peripheral and semi-peripheral countries. This is because the wages in these countries are low, in essence cheap labor. These countries often don’t have access to sophisticated machinery to produce things like computer chips, so companies use them to produce the components of things like computer chips. The final product is then assembled in a core country. Products that require hi-tech machinery are usually made in the core. To make these products, the employees need a higher level of education and access to good equipment (which is why these products are made in the core). This division of labor (between peripheral/semi-peripheral and core) has changed the roles of economic sectors in different countries. Peripheral and semi-peripheral countries have large secondary economic activity sectors, while core countries large tertiary economic activity sectors.
This refers to how labor is distributed around the world. Usually intense manual labor is found in peripheral and semi-peripheral countries. This is because the wages in these countries are low, in essence cheap labor. These countries often don’t have access to sophisticated machinery to produce things like computer chips, so companies use them to produce the components of things like computer chips. The final product is then assembled in a core country. Products that require hi-tech machinery are usually made in the core. To make these products, the employees need a higher level of education and access to good equipment (which is why these products are made in the core). This division of labor (between peripheral/semi-peripheral and core) has changed the roles of economic sectors in different countries. Peripheral and semi-peripheral countries have large secondary economic activity sectors, while core countries large tertiary economic activity sectors.
Deindustrialization
This occurs when all the primary/secondary industry relocates to a cheaper place and the main economic activities must switch to being tertiary (or something that isn’t primary/secondary). This has happened in America’s Rust Belt. In its heyday it was a large manufacturing area with prominent cities such as Detroit, Cleveland, and Pittsburg. As the world economy shifted towards a Post-Fordist model, these areas experienced a steady decline. Outsourcing hit hard, and the people were moving away (Sunbelt Phenomenon). This has not only happened in America, it’s happened in England and China. A picture of the Packard factory in Detroit. Packard was a car company that is no longer in business. |
Primary Industrial Regions Today
These are in Asia. The book only talks about China, and how during the Communist period production was increased. China has what are called Special Economic Zones (特区). These areas have laws which make them attractive for foreign investment. These regions are mainly for heavy industry. It is also important to note that there are the Four Asian Tigers (this is not talked about in the book and was on the test). The four tigers are Taiwan, South Korea, Hong Kong, and Singapore. These countries make hi-tech products; they are not known for heavy manufacturing. Each has developed relatively recently, and looked to Japan as a model for developing their own hi-tech manufacturing. A blog post written by a student. It summarizes commonalities between the four countries. They discuss the pros/cons of using them as a model of development; this is not as important to take away, but know that they developed differently (not according to Rostow's model).
Much like the above link, this focuses on one Asian Tiger and how it developed. Major take away is that it did not develop in the "normal" way.
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