Unit 7 (AP Human Geography)

Basic Industries

ocal point of the economy for a city. -Example: Pittsburg is Steel, Detroit is Cars, Minneapolis is Milling.

Manufacturing export zone

periphery; favorable tax, regulatory & trade arrangements

Location Theory

predicting where a business will or should be located.

Distance decay

the impact of a function or activity will decline as one moves away from its point of origin.

Worker Productivity

- the value of a particular product compared to the amount of labor needed to make it. -Can be measured by the value added per worker. -The value-added in manufacturing is the gross value of the product minus the costs of raw materials and energy.

Semi-periphery

- In-between areas that exhibit both core and periphery characteristics (manufacturing centers) -Examples: Chile, China, Brazil

Capitalism

Process of letting the competitive market (who wants the most from their money) determine the price of goods. -There ARE "Have's/Have Nots" Ex: USA

Situation Factors

Relationship that a particular location has with locations around it.

Trains

Second most efficient and cost-effective form of transportation. Can haul huge loads and very fuel efficient. Think about where you live! -Drawbacks: Flexibility of routes, cannot cross oceans, geography dependent

Economy

System of production, consumption and distribution.

Sustaining Industry & Development

There are two viewpoints of economic development. -Optimistic - proposes allowing capitalistic forces the ability to enter countries and get resources to the areas that need them, at the same time profiting from their investment. -Pessimistic - view the inaccessibility of resources does not correspond to demand. -Supply can never meet demand as human population exponentially grows. -LDCs may not be able to achieve critical mass to start a cycle of economic growth. (Need demand!) -Investment is not allocated equally around the globe but rather is concentrated in a few locations. -(some areas of the world people feel the investment is not worth the high risk of investing.)

Communism

Total government control of all prices in a society, ranging from bread to utilities. -Government dictates your job and salary to determine equal distribution. Ex: N. Korea, Vietnam, former USSR

core-periphery model

are based on the observation that within many spatial systems... sharp territorial contrasts exist in between economic heartlands and outlying subordinate zones.

Structural constants of the World System Model

-(1) Capitalism - surplus accumulation through production for profit; -(2) Inter-state system - a system of unequally powerful sovereign nation states that compete for markets and resources by supporting profit-oriented production by domestic producers and through geopolitical and military competition; -(3) Core-periphery hierarchy (4) High degree of commodification - goods and services are transacted in markets,and exchange (rather than reciprocity or redistribution) is the dominant principle of economic integration.

Cyclical patterns of the world economy

-1st Phase: the Long 16th Century--1450s-1640s: -The division of labor between NW Europe and E. Europe and America began. -Core (NW Europe, esp. Britain and France), Semi-periphery (Med. Europe) and Periphery (E. Europe and Iberian America) established. -2nd Phase: 1650-1800 -British hegemony established through mercantilism. -Netherlands ousted (by war). -France resisted (Revolution and Napoleon's effort to control Europe) by war. -Mercantilism is an economic theory that holds the prosperity of a nation is dependent upon its supply of capital, and that the global volume of international trade is "unchangeable." -Economic assets or capital, are represented by bullion (gold, silver, and trade value) held by the state, which is best increased through a positive balance of trade with other nations (exports minus imports). Mercantilism suggests that the ruling government should advance these goals by playing a protectionist role in the economy; by encouraging exports and discouraging imports, notably through the use of tariffs and subsidies. -3rd Phase: 1815-1914: Industrial development -Expansion to all parts of globe to obtain raw materials and create markets. -Key role in production of what goods/labor -Russia, Japan become semi-peripheral - note role of state in getting them there -US & Germany combine core and semi-peripheral regions (again role of state). -4th phase: 1914 to present: Consolidation of industrial capitalism -Japan, W Europe, US, USSR are four core areas with separate peripheral regions to exploit. -Semi-peripheries: -US : Mexico and Brazil -W Europe: Nigeria, Kenya, S Africa -Japan: Korea and Taiwan -USSR: Certain Eastern European countries -Trends continue today! -Scientific-technical (1940-1985) -Information/Telecomm (1985-2015) -Post-IT Revolution (2015-2035?)

Gender Development Indexes

-A country's level of development may mask inequalities in the status of men and women. -Note: The UN has not found one country (including the United States) in which women are treated as well as men in the world. -The Gender-Related Development Index (GDI) - compares the level of development of women with that of both sexes. -Has an economic, social and demographic indicators. -The Gender Empowerment Measure (GEM) - compares the ability of women and men to participate in economic & political decision making.

Which countries have what services?

-All countries contain all types of services. -Most developed: mainly 3,4 (Switzerland) -Less developed: mainly 2,3 (Indonesia) -Least developed: mainly 1 (Madagascar) A Note on Rostow's stages of Development: -Countries undergo 5 stages of development in order. -Model does not account for factors which may cause a country to progress out of the 5 steps: -Global politics, colonialism, physical geography, war, culture, and ethnic conflicts

Economic Indicators of Development

-Basic of Economic Structure: -GDP (Gross Domestic Product): -Value of the total output of goods and services produced in a country, during a year. -Dividing the GDP by total population measures the contribution of the average individual to the country's wealth. -GNI (Gross National Income): -Total value of all goods and services produced by a country in a single year (includes domestic & international trade.) -Does NOT: 1) include informal economics; 2) reflect negative spinoffs (e.g. resource depletion, pollution, prisons...); 3) illustrate distribution of wealth. -Worker Productivity - the value of a particular product compared to the amount of labor needed to make it. -Can be measured by the value added per worker. -The value-added in manufacturing is the gross value of the product minus the costs of raw materials and energy.

Central and Western Europe

-Belgium and N. France equate high coal deposit volumes -Germany has thrived due to access to natural resourcesand river transportation.

North America

-Benefited from cheap labor (immigrants) and hydroelectric power. -Access to coal resources. -Access to seaways, trains, and ports. -Where is the Rust Belt?

The History Behind Wallerstein's Theory

-Between 1150-1300, both population as well as commerce expanded within the confines of the feudal system in Europe. -However, from 1300-1450, this expansion ceased, creating a severe economic crisis. -According to Wallerstein, the feudal crisis was likely precipitated by the interaction of the following factors: -1. Agricultural production fell or remained stagnant. This meant that the burden of peasant producers increased as the ruling class expanded. -2. The economic cycle of the feudal economy had reached its optimum level; afterwards the economy began to shrink. -3. A shift of climate conditions decreased agricultural productivity and contributed to an increase in epidemics within the population. -In the 15th century the European feudal economy suffered a crisis and was transformed into a capitalist one. -Relied upon changing of labor, industry, and European exploration! -Fostered the creation of uneven development (losers and winners) -Referred to now as a capitalist world-economy.

Losch's "Zone of Profitability" Model

-Businesses choose to locate in areas where costs are drastically minimized by income -Easy access, highly-skilled/educated labor, low labor costs, etc.

The 3 Main Types of Economic Systems

-Capitalism - Process of letting the competitive market (who wants the most from their money) determine the price of goods. -There ARE "Have's/Have Nots" Ex: USA -Socialism - Governmental control of basic items in an economy: Food, Transportation and Energy. Ex: Canada -Communism - Total government control of all prices in a society, ranging from bread to utilities. -Government dictates your job and salary to determine equal distribution. Ex: N. Korea, Vietnam, former USSR

Perishable Products

-Companies specializing in perishable products must be located in close enough proximity to their markets that the product does not spoil or become dated during transportation. -Examples -Food Products e.g. bakers and milk bottlers

Consequences of the Industrial Revolution

-Concentrated work forces in areas with natural resources. -Massive rural to urban movement, causing the rise of great cities. (Wallerstein) -Created a new working class of long hours, lower pay, degraded the artisanship of artists and potters. -New tenements were poorly built without codes and prone to criminal behaviors and poverty. -Chop shops and sweatshops set up areas with challenges to child labor laws and right-to-work laws (challenges to unionize) -Political centers became areas for banking and marketing the new industries. -Example: Paris, London, Berlin -People were no longer self-sufficient. Jobs and occupations were required for people to acquire money to trade for goods and services. -Countries are losing economic autonomy to TNCs (Transnational Corporations) and NGOs (Non-Governmental Organization) -Mega cities were located along waterways, coastlines and rail areas for movement of products. -Site include land, labor, and capital. -Situation includes... -Least cost theory (minimize transport costs, access to raw materials and market) -Break-of-bulk point (with transfer of materials to one mode of transportation to another) -Footloose industries (that are able to locate anywhere), agglomeration economies with ancillary activities (grouping of companies with corresponding services.)

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

Thoughts on the Core-Periphery Model

-Core has continued to develop and industrialize by drawing resources from the periphery. -Colonial era: Directly from the countries -Modern era: Through purchase from the countries -Thus leaving the developing countries without the means or the resources to develop. -Creating what is known as the "North-South Gap" developed countries lie above the equator, less developed or developing below the equator. -Exceptions being South Africa, Australia, New Zealand -Brandt Line (line at 30 N) -Dependency theory - idea that neocolonialism is responsible for resources to continue to flow from the less developed periphery to the industrialized core. -Political & economic relationships between 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) -Elite Class prospers at the expense of feeding lower classes.

Stage 4 -- Drive to Maturity

-Dominated by early tertiary level economic activity: -The economy is diversifying into new areas. (International trade) -Technological innovation is providing a diverse range of investment opportunities. -The economy is producing a wide range of goods and services and there is less reliance on imports.

Stage 5 - High Mass Consumption

-Dominated by late tertiary level economic activity: -The economy is geared towards mass consumption. The consumer durable industries flourish. -The service sector becomes increasingly dominant.

Stage 1 -- Traditional Society

-Dominated by primary level economic activity: -The economy is dominated by subsistence activity where output is consumed by producers rather than traded. -Any trade is carried out by barter where goods are exchanged directly for other goods. -Agriculture is the most important industry and production is labor intensive using only limited quantities of capital. -Resource allocation is determined very much by traditional methods of production. -Limited technology, static society

-Stage 3 -- Take Off

-Dominated by secondary level economic activity: -Industrialization increases, with workers switching from the agricultural sector to the manufacturing sector. -Growth is concentrated in a few regions of the country and in one or two manufacturing industries. -The level of investment reaches over 10% of GNP. -Physical infrastructure: roads, railways -The economic transitions are accompanied by the evolution of new political and social institutions that support the industrialization. -Both political & social elites -the growth is self-sustaining as investment leads to increasing incomes in turn generating more savings to finance further investment.

How the marketplace is organized

-Economic activity may be classified into various categories, according to purpose. -When considering business ownership the classifications public & private are typically used. -Also classified according to what type of economic good is produced. (primary, secondary, tertiary, quaternary)

Aspects of Economic Models

-Economic models assume... -1) People will try to maximize their advantages over competitors, -2) They will want to make maximum profit as possible, -3) They will minimize 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.

What is an Economy?

-Economy: System of production, consumption and distribution. -Divided into 5 levels. -Has developed and 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 with the growth of suburban areas -(e.g. malls, edge cities, etc...)

Social Indicators of Development

-Education and Literacy - the higher the level of development, the greater the quantity and quality of education. -Education is measured by two factors: -Student to teacher ratio (Why is this important?) -literacy rate. (Why is this important?) Note: Literacy Rate: Percentage of a country's people who can read and write. -Health and Welfare - Health of a population is influenced by Diet. (Agriculture - Remember Unit 4!) -Also, factors include the access to health care and public assistance.

multiplier effect.

-Expansion of the economic base as a result of the basic and non-basic industries located there.

Wallerstein's World Systems Theory

-Explains the world as an interdependent system of countries, meaning countries do not interact as a fight over resources (separate nation-states), but within a capitalist context. -The Role and economic status of nations is how they play a part (work force) in the global economy, namely through the International Division of Labor. -Core focuses on higher level services (capital intensive), whereas the periphery focuses on lower level services (labor intensive). -Large urban areas serve as World Cities to serve the economic needs of the Core. -Core areas use resources of the periphery to continue their success. The semi-periphery are gaining in development, but lack the political importance of the core countries. -Interaction between countries will continue based upon how people can produce goods for profit. Thus, as a dynamic system, countries can gain or lose ground over time! -Any country that reigns in capital production is referred to as the hegemon!

Ullman's 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. -Example: 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.

Why Situation and Site Factors

-Geographers attempt to explain why one location may prove more profitable for a factory than others. -Companies ordinarily face two geographic costs. -Situation factors - costs associated with the established transportation networks accessible from a specific place. -Site factors - costs resulting from the unique characteristics of a location.

Women as Professionals

-Half or more of professional and technical workers are women in most MDCs and some LDCs, such as Brazil, but only a small proportion are women in most LDCs. -More than one-third of top administrators are women in North America and some other MDCs and LDCs, but 20% or fewer top administrators are women in many other countries.

-Stage 2 -- Transitional Stage (the preconditions for takeoff)

-Increased specialization generates surpluses for trading. -Commercial agriculture. -There is an emergence of a transport infrastructure to support trade. -As incomes, savings and investment grow entrepreneurs emerge. -External trade also occurs concentrating on primary products.

Rise of Colonialism and Imperialism

-Investors in industry sought out more raw materials and new markets.

What is Produced: Quaternary

-Is service based like the tertiary sector, but it entails the use of high technology to produce, retrieve, store and distribute information. -Research & Development (R&D) -Using computers to develop information- processing software. -Using computers to analyze city traffic flows to provide information on suitable locations for new businesses.

What is Produced: Tertiary

-Known as the service industry -provides services to the general population & to businesses -In 2005, over 70% of Americans worked here -Examples include retail/wholesale sales, entertainment, education, health care, tourism, garages

Demographic Indicators of Development

-Life expectancy , Infant Mortality Rate, Natural Increase Rate, and Crude Birth Rate.

Weber's Least Cost Theory of Industrial Location

-Location Theory - predicting where a business will or should be located. -Location of an industry is dependent on economic, political, cultural features as well as whim. -Location Theory Considers: -Variable costs-energy, transportation costs & labor costs -Alfred Weber, (1868-1958) a German economists, published Theory of the Location of Industries in 1909. His theory was the industrial equivalent of the Von Thunen Model. -Manufacturing plants will locate where costs are the least. -Three Categories of Costs: -Transportation- *most important cost*-usually the best site is where cost to transport raw material and finished product is the lowest -Labor-high labor costs reduce profit-location where there is a supply of cheap, non-union labor may offset transportation costs -Agglomeration- (clustering of an industry) when a group of industries cluster for mutual benefit-shared services, facilities, etc.-costs can be lower - examples - Hollywood, Silicon Valley, NY/Wall Street (Finance Firms), Car Manufacturers

Harold Hotelling's Locational Theory

-Locational Interdependence - businesses will max sales by locating in the territory of their competition to steal consumers and profit

Why England as the Hearth of the Industrial Revolution?

-Machines replaced direct human labor and new sources of inanimate energy were tapped. -Resources -Oak Forests for Furnaces -Coal deposits for industrial fuel to replace water/steam -Refined Coal (Large rural to urban movement of unskilled laborers for extractive industries) -Lack of War (geographically isolated from turmoil in mainland Europe) -Transport Infrastructure (Canals, Roadways and steam engine transport ships) -Labor (for mining and factory work, with a growing population relatively protected against many infectious diseases from the east -Assembly Line Manuf. (Fostered working class areas centralized around coal fields such as Liverpool and Manchester.) -Iron making techniques (Surplus of talented individuals to refine coke process to have mass produced steel available for building materials for industry) -Market Expansion (colonies and the naval fleets to find new markets)

Russia & the Ukraine

-Massive access to raw materials and natural resources.

Two Perspectives on Development

-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)

W.W. Rostow: 5 Stages of Development Model

-Modernization Model (a "liberal" model) -Walt Whitman Rostow - 1960s; -The development cycle is initiated by investment in a takeoff industry that allows the country to grow a comparative advantage, which sparks greater economic gain that eventually diffused throughout the country's economy. -Consumers will save and invest personal wealth to improve their situation, causes exponential growth! -Drawbacks: does not identify cultural and historical difference in development trajectories based upon the Western World. -Stage 1 -- Traditional Society -Dominated by primary level economic activity: -The economy is dominated by subsistence activity where output is consumed by producers rather than traded. -Any trade is carried out by barter where goods are exchanged directly for other goods. -Agriculture is the most important industry and production is labor intensive using only limited quantities of capital. -Resource allocation is determined very much by traditional methods of production. -Limited technology, static society -Stage 2 -- Transitional Stage (the preconditions for takeoff) -Increased specialization generates surpluses for trading. -Commercial agriculture. -There is an emergence of a transport infrastructure to support trade. -As incomes, savings and investment grow entrepreneurs emerge. -External trade also occurs concentrating on primary products. -Stage 3 -- Take Off -Dominated by secondary level economic activity: -Industrialization increases, with workers switching from the agricultural sector to the manufacturing sector. -Growth is concentrated in a few regions of the country and in one or two manufacturing industries. -The level of investment reaches over 10% of GNP. -Physical infrastructure: roads, railways -The economic transitions are accompanied by the evolution of new political and social institutions that support the industrialization. -Both political & social elites -the growth is self-sustaining as investment leads to increasing incomes in turn generating more savings to finance further investment. -Stage 4 -- Drive to Maturity -Dominated by early tertiary level economic activity: -The economy is diversifying into new areas. (International trade) -Technological innovation is providing a diverse range of investment opportunities. -The economy is producing a wide range of goods and services and there is less reliance on imports. -Stage 5 - High Mass Consumption -Dominated by late tertiary level economic activity: -The economy is geared towards mass consumption. The consumer durable industries flourish. -The service sector becomes increasingly dominant.

Transportation Systems

-One of the most important fixtures of industry as products have larger markets -The heavier and the longer something is transported, the greater the cost. -Occurs throughout the process: -raw materials, factory, wholesaler, market, consumer. -Time-Space Compression is significant in industry which is accomplished by technology. -Increase the efficiency of time in the delivery process by diminishing distance obstacles. -Example: EMAIL! -Distance is still a factor in the transportation cost of finished products. -Example: Distance Decay and the Friction of Distance!

Child Labor

-One result of industrialization was the commoditization of labor -Factory owners looking at their human labor as commodities (objects for trade) -Modern examples can be seen in sweat-shops. -Child labor was common in the textile industry, which was transformed in the Industrial Revolution.

Conditions in the Periphery

-Poor Demographic Outcomes: High rates of birth, death, infant mortality, illiteracy, malnutrition, incidence of disease, rural populations, overcrowding in urban areas. -Women's workloads are often heavier than men's, landholdings are often fragmented (w/ poor harvesting tech.), soil erosion is commonplace, families often in debt,... -A country's core may illustrate "progress", but often differs greatly with most areas...

Bulk-Gaining Industries

-Production of a product that gains volume or weight during its production. Plants typically located near market to reduce the costs of transportation. -Examples -Fabrication of parts and machinery from steel and other metals. -Plants where beverages are bottled.

Principles of location

-Raw materials -Labor supply and cost -Processing costs -Markets -Transport costs -Government policies -Human behavior

Geographic Factors of Industry

-Site Factors - internal characteristics of a place based upon its physical features.

Geographic Factors of Industry

-Situation Factors - Relationship that a particular location has with locations around it. -Basic Industries: focal point of the economy for a city. -Example: Pittsburg is Steel, Detroit is Cars, Minneapolis is Milling. -Nonbasic Industries: secondary businesses that sprout up after the city has already established its basic industry. -Example: Non basic industries include construction and ancillary activities. -All these together form the multiplier effect. -Expansion of the economic base as a result of the basic and non-basic industries located there. -Vice versa: Closing of major basic industries affects non-basic industries.

Why Are Situation and Site Factors Important?

-Situation Factors: Proximity to Inputs -The farther something is transported, the higher the costs, so a manufacturer tries to locate its factory as close as possible to its inputs and markets. -Proximity to Input: optimal plant location is near the input. -Raw material transportation costs > transportation costs of product to consumer -Bulk-reducing Industry: Because inputs weigh more than the final products, plant location is near market to reduce transportation costs. -Proximity to Market: optimal plant location is near the market. -Raw material transportation costs < transportation costs of product to consumer -Situation Factors: Proximity to Markets -Critical locational factor for three types of industries. -Bulk-Gaining Industries -Production of a product that gains volume or weight during its production. Plants typically located near market to reduce the costs of transportation. -Examples -Fabrication of parts and machinery from steel and other metals. -Plants where beverages are bottled. -Single-Market Manufacturers -Specialized manufacturers with only one or two customers. -Optimal location for factories is often in close proximity to the customers. -Examples -Producers of specialized components attached to clothing e.g. buttons, zippers, or pins. -Makers of parts for motor vehicles. -Perishable Products -Companies specializing in perishable products must be located in close enough proximity to their markets that the product does not spoil or become dated during transportation. -Examples -Food Products e.g. bakers and milk bottlers -Time Sensitive Products e.g. printed newspapers

Quinary Sector

-Some economists further subdivide the quaternary sector into the quinary sector, which includes the highest levels of decision making in a society or economy. This sector includes top executives or officials in such fields as government, science, universities, nonprofits, health care, culture, and the media. It may also include police and fire departments, which are public services as opposed to for-profit enterprises. -Economists sometimes also include domestic activities (duties performed in the home by a family member or dependent) in the quinary sector. These activities, such as child care or housekeeping, are typically not measured by monetary amounts but contribute to the economy by providing services for free that would otherwise be paid for.

Ships

Most energy-efficient means of transportation, by far, more than trains. The average cost per distance traveled is the lowest of all 5 types of transportation. -Drawbacks: Need access to waterways, very slow, weather dependent, pirates

The Four Asian Tigers

-Sometimes called the Four Asian Dragons are Hong Kong, South Korea, Taiwan and Singapore. -Each is experiencing rapid economic growth: exports post World War II for high-tech products. -Each have used an "Asian model of economic success": Inexpensive production of goods and their export and trade to world markets. -They all have access to world class ports. -They have a developed and educated workforce - Highly skilled -Manufacture low-quality textiles, toys and electronics. -Win-win situation: complementary process, employment for them, and low cost items for consumers. -Known as NICs : New Industrial Countries -"Baby Tigers" are Malaysia, Vietnam, the Philippines and Thailand -The four Asian Tigers along with China and Japan are known as the Pacific Rim Economic region.

Single-Market Manufacturers

-Specialized manufacturers with only one or two customers. -Optimal location for factories is often in close proximity to the customers. -Examples -Producers of specialized components attached to clothing e.g. buttons, zippers, or pins. -Makers of parts for motor vehicles.

How Development is Ranked: HDI

-The Human Development Index (HDI), created by the UN recognizes that a country's level of development is a function of three factors: -economic, social and demographic. -To create the HDI the UN selects an economic factor (GDP), two social factors (literacy rate and education), & a single demographic factor (life expectancy.) -The highest is 1.0 or 100%. -The UN has calculated this index each year since 1990. -The US was 10th in 2005, due to lower scores in education (high school drop out rate) and life expectancy (inadequate health care for low-income people.)

Diffusion of the Industrial Revolution

-The Industrial Revolution spread Westward throughout Europe. -By 1825, industrialization had spread to North America. -Locations that were successful had access to plentiful raw resources (COAL) became factory centers. -What other country uses coal to this day as its primary source of fuel? -US: Ohio and Pennsylvania -USSR: Ukraine -Germany: Ruhr region

What is Produced: Secondary

-This group is involved in the processing of finished products from primary industries -All of manufacturing, processing, and construction lies within this sector -This includes all factories—those that refine metals, produce furniture, or pack farm products such as meat.

What is Produced: Primary

-This involves the extraction or harvesting of resources directly from the Earth -Includes the production of raw material and basic foods. -Examples include farming, mining and logging. (They do not process the products at all rather send it off to factories to make a profit).

GNI (Gross National Income):

-Total value of all goods and services produced by a country in a single year (includes domestic & international trade.) -Does NOT: 1) include informal economics; 2) reflect negative spinoffs (e.g. resource depletion, pollution, prisons...); 3) illustrate distribution of wealth.

Three Categories of Costs

-Transportation- *most important cost*-usually the best site is where cost to transport raw material and finished product is the lowest -Labor-high labor costs reduce profit-location where there is a supply of cheap, non-union labor may offset transportation costs -Agglomeration- (clustering of an industry) when a group of industries cluster for mutual benefit-shared services, facilities, etc.-costs can be lower -examples - Hollywood, Silicon Valley, NY/Wall Street (Finance Firms), Car Manufacturers

South and East Asia

-Treaty Ports; int'l ports kept open for global trade by signing a treaty. -These areas are also export processing zones, to allow the export of goods from (namely China) Asia more efficient. (Set up via Outsourcing from MDCs) -China has set up SEZ's -Specialized Economic Zones: areas within a country in which tax incentives & fewer environmental regulations attract foreign business/investment to locate their headquarters. -China also has 3 industrial parks or zones. (Beijing, Shanghai and Hong Kong -Manufacturing export zone - periphery; favorable tax, regulatory & trade arrangements

Types of Transportation

-Truck - First and most popular means of transport. Mobile and very efficient where there are roads. Most used method in the modern world. -Drawbacks: Weather, Traffic, Fuel, geography dependent, maintenance costs -Trains - Second most efficient and cost-effective form of transportation. Can haul huge loads and very fuel efficient. Think about where you live! -Drawbacks: Flexibility of routes, cannot cross oceans, geography dependent -Airplanes - Fastest way to get products to market. Flexible in routes, as well as remote access, but is the most expensive form of transportation despite accessibility. -Drawbacks: Very expensive due to fuel, infrastructure, security, weather delays -Pipelines - Highly efficient way of moving gas or liquid products from one region to another. Very safe form of transport for long-term supply. -Drawbacks: Expensive to build, limited to liquid or gas, hard to move once constructed. Not useful for ethanol based fuels (remember Unit 7!) -Ships - Most energy-efficient means of transportation, by far, more than trains. The average cost per distance traveled is the lowest of all 5 types of transportation. -Drawbacks: Need access to waterways, very slow, weather dependent, pirates

GDP (Gross Domestic Product):

-Value of the total output of goods and services produced in a country, during a year. -Dividing the GDP by total population measures the contribution of the average individual to the country's wealth.

Wallerstein: Conclusions

-Wallerstein singled out "production for sale in a market in which the object is to realize the maximum profit" as the essential feature of a capitalist world-economy. -"In such a system production is constantly expanded as long as further production is profitable, and men constantly innovate new ways of producing things that will expand the profit margin." -Strengths: it does accurately reflect the structure of the Earth system over the past 500 years. -Weaknesses: it does not explain how and why the transformation occurred when and where it did. -Similar to the core-periphery model: proposes areas that are core (economic base) and a periphery. -Core-Periphery developed in the 15th century as Europeans began to explore and control the globe.

Core-Periphery Model

-Wallerstein's World Systems Theory-core-periphery model : are based on the observation that within many spatial systems... sharp territorial contrasts exist in between economic heartlands and outlying subordinate zones. -Are based on Four Factors: -Industrial Core: majority of the industrial activity is located. -Upward Transition: gaining jobs, attracting industry (South) -Downward Transition: companies leave, unemployment rises (Detroit) -Resource Frontier: provides resources for the industrial core. -Core - More Developed Countries(economically dominant) -Examples: United States, Western Europe -Semi-periphery - In-between areas that exhibit both core and periphery characteristics (manufacturing centers) -Examples: Chile, China, Brazil -Periphery - Less Developed Countries (less influence) -Examples: Sub-Saharan Africa, Oceania

What is Produced: Industry Types

-When looking at what is actually produced for us, it is important to distinguish between the main types of industries -Primary -Secondary -Tertiary -Quaternary -Quinary

Business Ownership: Public Sector

-composed of organizations that are owned and operated by the government (federal, provincial, or municipal governments, depending on where you live). -educational bodies, health care bodies, police and prison services, and local and central government bodies and their departments

Business Ownership: Private Sector

-usually composed of organizations that are privately owned and not part of the government. -corporations (both profit and non-profit), partnerships, and charities. -retail stores, credit unions, & local businesses will operate in the private sector.

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

Industrial Regions of the World

1. Central and Western Europe -Belgium and N. France equate high coal deposit volumes -Germany has thrived due to access to natural resources and river transportation. 2. North America -Benefited from cheap labor (immigrants) and hydroelectric power. -Access to coal resources. -Access to seaways, trains, and ports. -Where is the Rust Belt? 3. Russia & the Ukraine -Massive access to raw materials and natural resources. 4. South and East Asia -Treaty Ports; int'l ports kept open for global trade by signing a treaty. -These areas are also export processing zones, to allow the export of goods from (namely China) Asia more efficient. (Set up via Outsourcing from MDCs) -China has set up SEZ's -Specialized Economic Zones: areas within a country in which tax incentives & fewer environmental regulations attract foreign business/investment to locate their headquarters. -China also has 3 industrial parks or zones. (Beijing, Shanghai and Hong Kong -Manufacturing export zone - periphery; favorable tax, regulatory & trade arrangements

Nolan's Stages of Growth Model

Describes individual companies' adaptation of technology to be competitive in the economy. -1) Initiation stage - technology is used sparingly. -2) Contagion stage - technology spreads. -3) Control stage - management is frustrated because of lack of training with new technology. -4) Integration stage - users have come to terms with technology and have found practical uses for it. -5) Data Administration stage - technology is used in the collection and storage of data. -6) Maturity stage - new uses for technology are being integrated into the workplace to advance beyond competitors

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)

Airplanes

Fastest way to get products to market. Flexible in routes, as well as remote access, but is the most expensive form of transportation despite accessibility. -Drawbacks: Very expensive due to fuel, infrastructure, security, weather delays

Truck

First and most popular means of transport. Mobile and very efficient where there are roads. Most used method in the modern world. -Drawbacks: Weather, Traffic, Fuel, geography dependent, maintenance costs

Socialism

Governmental control of basic items in an economy: Food, Transportation and Energy. Ex: Canada

Poor Demographic Outcomes:

High rates of birth, death, infant mortality, illiteracy, malnutrition, incidence of disease, rural populations, overcrowding in urban areas.

Pipelines

Highly efficient way of moving gas or liquid products from one region to another. Very safe form of transport for long-term supply. -Drawbacks: Expensive to build, limited to liquid or gas, hard to move once constructed. Not useful for ethanol based fuels (remember Unit 7!)

Periphery

Less Developed Countries (less influence) -Examples: Sub-Saharan Africa, Oceania

Core

More Developed Countries(economically dominant) -Examples: United States, Western Europe

-Women's workload

are often heavier than men's, landholdings are often fragmented (w/ poor harvesting tech.), soil erosion is commonplace, families often in debt,... -A country's core may illustrate "progress", but often differs greatly with most areas...

Specialized Economic Zones

areas within a country in which tax incentives & fewer environmental regulations attract foreign business/investment to locate their headquarters.

The Gender Empowerment Measure (GEM)

compares the ability of women and men to participate in economic & political decision making.

The Gender-Related Development Index (GDI)

compares the level of development of women with that of both sexes.

Situation factors

costs associated with the established transportation networks accessible from a specific place.

Site factors

costs resulting from the unique characteristics of a location.

Dependency theory

idea that neocolonialism is responsible for resources to continue to flow from the less developed periphery to the industrialized core. -Political & economic relationships between 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) -Elite Class prospers at the expense of feeding lower classes.

Site Factors

internal characteristics of a place based upon its physical features.

Optimistic

proposes allowing capitalistic forces the ability to enter countries and get resources to the areas that need them, at the same time profiting from their investment.

Nonbasic Industries

secondary businesses that sprout up after the city has already established its basic industry. -Example: Non basic industries include construction and ancillary activities.

Friction of distance

the increase in time and cost that usually comes w/ increasing distance.

Pessimistic

view the inaccessibility of resources does not correspond to demand. -Supply can never meet demand as human population exponentially grows. -LDCs may not be able to achieve critical mass to start a cycle of economic growth. (Need demand!) -Investment is not allocated equally around the globe but rather is concentrated in a few locations. -(some areas of the world people feel the investment is not worth the high risk of investing.)