Chapter 15: Industrialization and Economic Structure
Why are models used?
They are used for making predictions, understanding ho changes in one factor affect changes in other decisions.
How does the government replace jobs lost in the secondary sector?
They attempt to replace manufacturing jobs lost because of industrialization and automation with new Quaternary jobs.
Why are some workers in the secondary sector not qualified for quanternary jobs?
They do not posses the skills required for the new job.
What happened to the cost of goods?
They plummeted
What is a labor-dependent industry?
They require people with very specific skills. They want people trained in the computer or engineering.
What were the people's new jobs during the Industrial Revolution?
They toiled factories, running the machines that made textiles, steel, and other products.
What can international gov'ts offer companies?
Trade agreements like NAFTA or the European Union can change the rules of how business is conducted and thereby change locational factors.
What FOUR places has the US set up call centers?
United States, Canada, India, Philippines
Where were factories first located?
Usually built near sources of power. such as rivers or coal deposits, and near transportation routes.
What is the Industrial Revolution?
Was a set of changes in technology that dramatically increased manufacturing productivity. It reshaped how people worked and behaved, where they lived, and how related to each other spatially
Why were early mills and factories limited on where they were located?
Water power was not mobile, so they were located on streams and rivers.
What are back offices?
When a corporation decides its employees don't need a high-profile location so they can be located in much cheaper office spaces.
What is offshoring?
When companies move their back offices to other countries.
What is locational interdependence?
When the location decision for a factory if dependent upon the location of other factories.
What kind of industry is car manufacturing?
bulk-gaining
What new energy source made factory location less important?
coal
The heavier an item, the _______________ the cost of transportation.
higher
What is automation?
mechanization, companies have replaced workers with machines
What are agglomeration economics?
the spatial grouping of businesses in order to hare costs, as when several factories share the cost of building an access road to connect with a public highway
What are labor costs?
the wages and salaries of employees
Why do corporations want high profile offices?
to signal its power
What are Weber's THREE key variables?
transportation, labor, agglomeration
What THREE reasons are auto industries located north in the continental US?
weaker labor unions, generous state incentives, growing population of consumers
What FIVE things did colonies provide for their metropoles?
1. labor to extract raw materials 2. markets where manufacturers could sell finished products 3. ports where trading ships could stop to get resupplied 4. Profits to use for investing in new factories, canals, and railroads. 5. Profits to use for investing in new factories, canals, and railroads.
What is imperialism?
A policy of extending a country's political and economic power.
What is just-in-time delivery?
A system in which the inputs needed in the assembly process arrive at the assembly plant very close to to when they are needed.
What is the multiplier effect?
A term for the the potential of a job to produce additional jobs, is greater in secondary sector jobs.
What can governments offer companies?
A variety of incentives to get companies to locate their factories in specific areas.
What are front offices?
Allows executives to easily interact with executives from other nearby business institutions.
What is bulk - reducing industry?
An industry in which the inputs weighs more than the final product.
What is the least cost theory?
Attempts to predict the locations of a manufacturing site relative to the location of the resources needed to produce the product and where the final predict will be sold.
Why can call centers be located almost anywhere?
Because an office can be set up anyplace with good communication systems.
What other revolution took place during the Industrial Revolution?
Enclosure Movement
What is the hearth of the Industrial Revolution?
England
What FOUR places began the Industrial Revolution in the 1900s?
Europe, Japan, parts of China, South America
What is the linear city model?
Explains the behavior of two competing shops.
Where do bulk - gaining industries like to locate their factories?
Factories near the market.
Who developed the least cost theory?
German economist Alfred Weber
What TWO places began the Industrial Revolution in the 1800s?
Germany & United States
What are transport costs?
Getting raw materials to a factory and getting finished products to the market.
Who developed the linear city model?
Harold Hotelling's
Who developed the assembly line?
Henry Ford
What allows retail and service businesses to not relocated next to their customer base?
If the business is virtual.
What allowed people to live further away from cities?
Improvements intra-urban transportation, such as trains, cars, and trucks, allowed cities to spread out farther from the downtown core.
Why do companies outsource?
In order to lower costs or just focus on their core business.
What is assembly line?
In which an item moves from worker to worker, with each worker performing the same task repeatedly.
What is the substitution principle?
In which businesses seek to maximize profit by substituting one factor of production for another.
What is outsourcing?
Is contracting work out to non company employees or other companies.
What is the quaternary sector?
Is the knowledge-based sector that includes research and development, business consulting, financial services, education, public administration, and software development.
What did the assembly line change about products?
It allowed companies to produce more standardized products more rapidly and with less-skilled workers than ever before.
What did Weber not differentiate?
It didn't differentiate among different types of labor.
Why is just-in-time delivery system used?
It reduces expensive storage costs and avoids tying up money in inventory
Where did displaced farmers go during the Industrial Revolution?
Moved to towns and cities, causing an explosion in urban populations everywhere industrialization occurred.
What is the refinement of Weber's theory?
Not all industries make decisions the same.
What got overwhelmed with the growth of cities?
Old systems for handling human waster, burying the dead, and cleaning up horse manure.
What do models recognize?
Patterns in making decisions.
What is the cottage industry?
People would weave cloth and make products in their home
What caused death rates to double within cities?
Pollution from people burning wood and coal to heat their homes and run factories.
What is bulk-gaining industry?
Produce products that are heavier when they finish.
What did machine power replace?
Replaced human and animal power.
What did citizens demand of their governments?
Stronger government action to build sewers, regulate cemeteries, and to protect public health.
What is Fordism?
System of mass production that Henry Ford developed (assembly line).
What did August Losch argue?
That higher expenses for transportation, labor, or raw materials were justifiable if they resulted in higher profits.
How did city buildings change?
The development of elevators, stronger and more affordable steel, and techniques to construct stronger foundation combined to allow for taller buildings.
What is the primary sector?
The economic sector in which natural resources are extracted. Ex.-farming, mining, fishing, forestry. Dominated the economy until the Civil War.
What is the secondary sector?
The economic sector in which natural resources are processed. ex.- manufacturing, building. Significant labor growth in 1840s to 1960s.
What is the tertiary sector?
The economic sector in which services are provided rather than working with natural resources. Ex.- marketing, banking, design. Most people in the U.S. labor forces today. Also known as the service sector
Why are aluminum factories built near power sources and not near mineral deposits?
The energy demands are so high that factories are built in close proximity to major sources of abundant, cheap power.
Where are car manufacturers located?
Close to where the greatest number of customers live.
What can local governments offer companies?
Communities commonly provide incentives such as tax breaks and low-interest loans to attract companies.
What is an energy-dependent industry?
Companies build plants near abundant sources of energy (ex. aluminum)
How did Fordism change manufacturing?
Companies gradually modified the assembly line process to produce more varied products.
Where do companies like to locate processing plants in bulk-reducing industries?
Companies try to locate processing plants near the source of raw materials
What is the quinary sector?
Consists of the highest levels of decision-making and includes the top officials in various level of government and business. A decision made by a country's president or senior advisors or by corporate executives can affect millions of people.
What is Post - Fordism?
Changing the workforce to machines and having workers who don't lose their jobs trained to do more than one job, so they can rotate among a few different workstations during a day.
What THREE countries are known for their aluminum production?
China, Canada, & Iceland
What US company outsources and offshores?
Boeing
Besides a movie, what is footloose?
Businesses that can pack up and leave for a new location quickly and easily.
What is the locational triangle?
The market for a good is at on location and the resources needed to make the good are obtained at two other locations.
When did the Industrial Revolution begin?
The mid-1700s
What shrank in industrial countries?
The primary sector
What is the risk of just-in-time delivery?
The products running short
