APHG Unit 8.1: Intro/History of Industrial and Economic Geography

Workers Seeking Jobs in Cities

As the Second Agricultural Revolution led to increased use of technology of farms, people moved from rural areas to urban areas in search of jobs. They were moving faster than jobs were being created, so many were poor. Even with the social and economic problems, the standard of living and income increased for people in industrializing countries.

Newly Industrialized Countries (NIC)

This is a term for semi-periphery countries.

Literacy Rates

This is another social development indicator. This is the percentage of the population that can read and write.

Outsourcing

To subcontract work to another company. It can be inside or outside of a country. It is used when another person, factory, business can do work cheaper or more efficiently. It buys a part/service from a third party.

Availability of Natural Resources

Topic: most industries needed access to natural resources and power.

Quaternary (definition, examples, location factors)

This economic activity involves information services, and exchange of money/goods and information. It needs access to a good telecommunications infrastructure and a suitable work force.

Secondary (definition, examples, location factors)

This economic activity involves taking the primary product and manufacturing it to add value. It needs to be accessible to the resource, a source of energy, the market, and a labor force.

Tertiary (definition, examples, location factors)

This economic activity is part of the service industry connecting producers and consumers and facilitating commerce/trade. It requires proximity to market.

Cottage Industry

A business or manufacturing activity carried on in a person's home.

Water Power (Availability of Natural Resources)

Giant water wheels were used to help power machines. In the US, industrialization occurred along fall line as water was needed to power the factories.

Iron Ore (Availability of Natural Resources)

In 1709, it was discovered that coal could be turned into Coke, which could then be used in the smelting process to produce iron. The smelting of iron became widespread in the 2nd half of the 18th C. Coke burns a lot hotter, allowing for the smelting of metals.

Search for New Markets (Effect of Increased Industrialization)

In the 1800's, the US was in the Industrial Revolution, and we were producing more than we could consume (agricultural AND manufacturing). We needed access to foreign markets, so we looked into places like China.

Infrastructure (Factors Influencing Industrial Location)

Industrial location decisions can be affected by the availability of supporting transportation and communication systems.

Tourism (Positive/Negative Effects)

It provides jobs in the formal and informal economy, it is an "irritant industry", investment by host country is substantial, resources are diverted from local needs, and tourists consume large quantities of scarce resources.

Amenity Sites

Some industries locate in places that provide these for their employees. An amenity is a feature that increases attractiveness or value, especially a piece of real estate or geographic location. It is usually not needed, but desired. Some examples are Southern California having a milder climate, and NYC having its unique culture.

Indicators of Development

Some of these are GNP, GDP, PPP, PQLI, and IMR.

Commodification

Something that had previously not been regarded as something to be bought or sold and turning it into something to be traded in a market economy. Tourism encourages this as locals look to produce and sell items indicative of their culture.

Cycles of Poverty

Study and understand the Cycles of Poverty.

Diffusion of Industrialization

The IR began in Britain in the late 1800's and diffused to the European continent. This event followed the location of coal-railroad didn't connect places and cost was high to transport the coal needed for energy.

Fertility Rate.

The average number of children a woman will have in a lifetime. It is a social development indicator.

Transportation (Factors Influencing Industrial Location)

The cost of this can affect other variables. Businesses want to minimize shipping costs as much as possible, so they choose their location according to the costs of transporting the materials and product.

Labor Intensive vs. High Wage

The first term is measured as a percentage, such as the textile industry accounts for cost of producing clothes when compared to material. The second term in measure in dollars, such as in the car industry where value is measured in parts and machinery.

New Technologies

The invention of the steam machine increased the demand for coal. It created a new source of power. Steam ships/steam-powered railroad became a main means of transportation. New tech. in the textile industry helped fuel industrialization in Britain; new/efficient ways for creating cotton were created. Railroad were used to help transport raw materials and finished goods. The first steam-powered machine was built to pump water out of mines.

Imperialism (Effect of Increased Industrialization)

The policy of extending the rule of authority of an empire/nation. This kind of expansion was seen as key to to continued industrial growth and wealth.

Gross National Product (GNP)

The total value of goods and services produced BY a country.

Gross Domestic Product (GDP)

The total value of goods and services produced WITH IN a country.

Footloose Industries

There have not strong locational preference-they are neither market nor resource oriented. They have more flexibility because they are not concerned with transportation costs. Basically, they can be picked up and moved. For example, computing or IT industries. Industries engaged in one aspect of production and becoming this because they just move if costs are cheaper elsewhere.

Fast World

These are areas of the world, usually the economic core, that experience greater levels of connection due to high-speed telecommunications and transportation of technologies.

Ubiquitous Industries

These are located everywhere in proportion to the population. They literally exist everywhere at the same time. They are market-oriented. Some examples are grocery stores, dry cleaners, gas stations, and pizza parlors.

Break-of-Bulk Points

These are locations that cut down on transport costs. They best example is a port (ships to trucks/trains). This makes port cities really attractive, because it majorly reduces transportation costs.

Informal Economic Activities

These include economic activities that DO NOT appear in statistics. LDCs have more of these.

Formal Economic Activities

These include economic activities that appear in official government statistics (GNP, GDP, etc.)

Location Factor for Industry

These include raw materials, labor, transportation, infrastructure, energy, environment, and political situation.

Criticisms to his Weber's Least Cost Theory

These include that there are variations in market demand, transportation costs are having less effect, labor is mobile, not unlimited, and is affected by skill, plants produce a variety of outputs, perfect competition is rare and there are benefits in agglomeration, there are government incentives, environmental conditions affect industry, and it doesn't explain today's high-tech industry, only heavy industry.

Bulk-Gaining Industries

These industries are often market-oriented. Some examples are soft drinks and beer. They gain weight with production, so they are located close to market and the inexpensive, easy-to-transport materials can be shipped to them.

Bulk-Reducing Industries

These industries are resource oriented, as they lose weight with manufacturing. The inputs weigh more than the final product, and to minimize the transportation costs, the are located close to sources. Some examples are copper, paper, and gasoline.

Dependency Ratios

These measure the percentage of a population that is either too old or too young to work.

Increased Food Supplies

They needed this to feed the increasing urban population that was working in factories. This supply came from the 2nd AR, and it helped the IR be successful.

Alfred Weber's Model of Industrial Location

This accounted for 3 factors to determine industrial location: costs of transportation and labor, and agglomeration.

Hotelling Model

This basically explains why similar businesses clump together. Everyone wants to maximize profits, so when someone that sells something similar to you, you want to sell more than them, and still make as much as you can. So, you end up very near each other, with the same selling areas, and stay because the decision to move could hurt profitability.

Excessive Agglomeration

This can lead to overcrowding, higher rents, and increasing costs of labor.

Quinary (definition, examples, location factors)

This economic activity involves high level decision making, such as research, higher education, and executive decision making. These tend to cluster because they require similar work forces, similar needs for ancillary industries, medical services need labs, and they need available investment capital.

Industrial Revolution

This event marked the transition from the use of animals and manual labor to mechanization of labor. In order for this to occur, the Agricultural Revolution had to occur since it provided a surplus of workers looking for jobs and provided labor.

Environment (Factors Influencing Industrial Location)

This factor can affect an industries location because some need for it to be specific. For example, the film industry needs a sunny climate, as does tourism, aircraft carriers need a good climate, and ski areas need snow.

Resource Oriented Industries (Factors Influencing Industrial Location)

This factor exists because access is very important today. They also need a large, highly-skilled workforce. However, the reduced cost of transporting has lessened the importance of proximity.

Labor (Factors Influencing Industrial Location)

This factor exists because labor-intensive industries such as clothing and assembling electronics require cheap labor. Labor makes up a high percentage of costs of production. Also, some industries require skilled labor, such as cars and precision instruments.

Organizational and Entrepreneurial Setting (Factors Influencing Industrial Location)

This factor is represented by political stability, friendly government, lack of corruption, and availability of capital. It is basically how the government of a country can affect where a business decides to base itself or a manufacturing plant.

Power (Factors Influencing Industrial Location)

This factor is seen as early industries being located neat coal fields. Today's industries are more widely dispersed because there are other sources of power and energy that can be transported rather easily.

Rail

This form of transportation is the cheapest over medium distances. It is a long haul over land. They take longer than trucks to load but aren't required to make daily rest stops.

Truck

This form of transportation is the cheapest over short distances, and can be loaded and unloaded more quickly and cheaply than trains, and they have more flexibility.

Containerized Shipping (Factors Influencing Industrial Location)

This has decreased the cost of transportation by as much as 90%. However, there are some security concerns. The current volume of resources and goods shipped around the world on a daily basis could not be supported without this. It has lowered the costs, increased flexibility, and allowed manufacturers to pay less attention to transportation in their lavational decision.

Distance Decay

This idea is that the further away something is, the less effect it has. This relates to industries in that the further away a business' customer base (over transportation of raw materials) is can impact it.

Aluminum Industry

This industry is affected by the location of power because they require large amounts of energy, so they are close to cheap energy sources while many other industries are able to move away.

North/South Split

This is a line drawn on the globe that separated the MDCs from the LDCs and NICs. It shows the spatial variation of levels of development.

Human Development Index (HDI)

This is a measure of the quality of life in a country, and it is the current development indicator of choice. It takes into account life expectancy at birth, mean years of schooling for adults 25 and older, expected years of schooling for children of school-entering age, and Gross Natural Income per capita.

Physical Quality of Life Index (PQLI)

This is a measure of the quality of life in a country. It uses a scale of 0-100 to measure the basic literacy rate, infant mortality, and life expectancy at age 1.

More Developed Countries (MDC)

This is a term for core countries, and fast world countries.

Fourth World

This is a term for countries that are 3rd world countries that ave experienced an economic crisis, such as Sierra Leon, Liberia, Somalia, and Haiti.

Second World

This is a term for countries that are communist/planned/command economy. Some examples are Cuba, North Korea, and the Old USSR.

First World

This is a term for countries that are industrialized, have service-based economies, and have a high quality of life. Some examples are Europe, North America, and Japan.

Third World

This is a term for countries that are mainly agricultural and have a lot of raw materials, have a low quality of life, and have low development.

Less Developed Countries (LDC)

This is a term for periphery countries, or slow world countries.

High Technology Corridors

This is an area designated by local or state governments to benefit from lower taxes and high tech infrastructure with the goal of providing high tech jobs to a local population.

Access to Health Care, Education, Utilities, and Sanitation

This is another social development indicator. If people have more of this, they are healthier and live longer, they are more literate, and the standards of living are often higher.

Growth of Populations

This is expresses by urbanization occurring as people moved to cities to work in the factories. The AR lead to growth of IR as people moved in search of jobs. Also, the IR led to increased population growth around the world. (J curve)

Measures of Gender Inequality

This is made up of reproductive health, indices or empowerment, and labor-market participation. The role women play in a society is a big indicator of development. In LDC's, women are usually just child-bearers, while in MDC's, more have wage-paying jobs and higher education.

Infant Mortality Rate

This is number of children per 1000 that die before age 1. It is a social development indicator.

Deglomeration

This is occurring in some locations. In the US, industry is becoming more suburban. It occurs in response to excessive agglomeration. Can cause industries to become more suburban or move outside the country.

Minimize Transportation and Labor Costs

This is part of Weber's Industrial Location Theory. These costs are major impactors of industrial location. They need sites where transportation costs are lowest, where it is less expensive to bring raw materials to the point of production and distribute finished products to customers. Also, higher labor costs reduce margin for profit, so they sometimes locate based on cheaper labor.

Microcredit

This is small loans made to poor people so they can create their own businesses and make their own money.

Agglomeration (Factors Influencing Industrial Location)

This is the clustering of support industries and a labor pool, that encourages location to a certain place. For example, tech jobs in Austin due to Dell. You will find clustering where transportation is a factor.

Colonialism (Effect of Increased Industrialization)

This is the control/governing influence of a nation over a dependent country, territory, or people. Industrial powers expanded their colonial holdings and sphere of influence as they searched or more raw materials. The colony provided the raw materials and a market for manufactured goods of the colonizer.

Traditional Society

This is the first stage of the Stages of Growth model. It is characterized by limited technology and a static society. Then, transition is triggered by external influences, interests, or markets.

Drive to Maturity

This is the fourth stage of the Stages of Growth model. It is characterized by the development of a wider industrial and commercial base. Then, it changes due to the exploitation of comparative advantage in international trade.

Income Distribution (GINI Index)

This is the gap between the rich and poor in a country. The GINI index would be zero is wealth was 100% evenly distributed. The closer to zero, the more balanced income levels are in a country. Also, it doesn't show if a country is rich or poor.

Demonstration Effect

This is the idea that local cultures adopt foreign cultural aspects that learned from tourists. There are larger effects on smaller indigenous cultures adopting culture from Western tourists.

Substitution Principle

This is the idea that you can overcome transportation costs if you decrease land rents or labor; substituting one cost for another. Some companies that choose to move and increase travel costs need to substitute that cost by decreasing land rents to remain successful.

Friction of Distance

This is the increased time and cost that comes with increased distance over which the commodity must travel. Companies that may want to relocate have to consider the cost increase that would come with the increased travel time for their product.

High Mass Consumption

This is the last stage of the Stages of Growth model. It is characterized by exactly as it is called: High Mass Consumption.

Black Country

This is the midlands of North Central England. It might have got it's name from the smoke from the iron foundries/forges, or from the abundance of coal in the region. It is the hearth of the Industrial Revolution.

Transitional Stage/Preconditions to Takeoff

This is the second stage of the Stages of Growth model. It is characterized by commercial exploitation of agriculture and extractive industry. Then, change is triggered by the installation of infrastructure and the emergence of the social of political elite.

Take Off

This is the third stage of the Stages of Growth model. It is characterized by the development of a manufacturing sector. Then, change is triggered when the investment in manufacturing exceeds 10% of national income and there is development of social, economic, and political institutions.

Gross National Income (GNI)

This is the total income earned by ALL residents of a country.

Interlocking Factors of Development

This is when countries show sustained economic growth are able to put all of these together successfully. The factors are population, natural resource, capital formation, technological innovations.

Primary (definition, examples, location factors)

This kind of economic activity is harvesting/extracting raw materials. Some examples are agriculture, ranching, fishing, forestry, and mining. It needs to be located close to the resource.

Per Capita

This means "per person". It is often included after GDP, GNI, or GNP, and it is often more beneficial in determining levels of development.

Ship

This mode of transportation is the cheapest over long distances, and the cost per km is low, but it is slow. It has a high terminal cost and no route flexibility.

Air

This mode of transportation is the most expensive. It is usually reserved for small-bulk, high value products, and there is a high terminal cost.

Rowstow's Stages of Economic Growth

This model said that LDCs can develop economically is they follow a Western path. It assumes all countries can/will develop along the same path.

Slow World

This refers to the developing world that does not experience the benefits of high-speed telecommunications and transportation technology.

Sectoral Structures of an Economy

This refers to what percentage of a population is employed in primary, secondary, or tertiary economic activities. The fewer people employed in primary activities and the more employed in tertiary activities, the more developed a country is likely to be.

Grameen Village Bank

This was the organization from the Pennies a Day video that helped Bangladeshis earn money and raise their standard of living. It was given to rural citizens, mostly women.

Coal (Availability of Natural Resources)

This was used as a source of fuel, and because of it, the IR in Europe spread along mines of it. In 1700 it was discovered that this burned cleaner and hotter than wood charcoal. The demand was so high it increased in dramatic rates, and it the 1880's it was used to generate electricity for the first time.

Offshoring

To RElOCATE service or production to a foreign country.

Ships, Rail, Trucks, Air

What is the order of cheapest transportation, from cheapest to most expensive?

Locational Interdependence

When a decision to locate a business is based on where another business is.

Maximize Agglomeration Economies

When a substantial number of enterprises cluster in the same area; they can provide assistance to each other through shared talents, services, and facilities.

Market-Oriented Industries (Factors Influencing Industrial Location)

While this factor can vary, some industries need to be close to the market. Single-market manufacturers are specialized manufacturers with only a few customers. Some examples are parts for a car, where they need the parts "just in time" for them to be used. Other industries that need this factor are heavy/bulky items (cement), bulk-gaining industries (soft drinks, beer), and perishable products (bakeries, milk, bottles, and newspapers).

Demands for Raw Materials (Effect of Increased Industrialization)

With the Industrial Revolution came this. Due to this, there was an increase need of countries to exploit peripheral countries for what they need.