AP Human Geography: Unit 8.1 & 8.2
deglomeration
occurs in response to excessive agglomeration (in the US) businesses are moving to suburbs; businesses move to the sunbelt region because there is cheaper labor due to no unions, land is cheaper, energy costs are lower
import substitution
producing products locally that are normally imported
tourism
pros: brings money to country and creates jobs cons: changes culture; tourists are priority, not natives; changes landscape (skyscrapers)
export processing zones
areas usually in periphery countries designed to make products for export; limited/no tariffs
alfred weber's least cost theory
accounted for the location of a manufacturing plant in the terms of the owners desire to minimize three categories of cost: transportation, cost of labor, and agglomeration
bulk gaining industries
an industry in which the final product weighs less than the inputs do; example: the metal for the car weighs less than the whole car does
bulk reducing industries
an industry in which the inputs weigh more than the final product does; to minimize the transportation costs, they need to be located close to the sources of inputs; aka weight losing, resource oriented industries
special economic zones (SEZ)
areas of a country with different economic regulations designed to attract foreign investment
fast world
areas of the world, usually the economic core, that experience greater levels of connection due to high-speed telecommunications and transportation of technologies
dependency theory
argues that poor/periphery countries stay this way due to colonialism, in which terms of trade were unequal, labor remained unskilled and low-paid, and profit was extracted from colonies; development of core countries is dependent on the underdevelopment of periphery countries; imports tend to be high-value goods from the core (structuralist model)
newly industrialized countries (NIC's)
countries experiencing a transition from agriculture to manufacturing; increased population in urban centers; second world countries; semi-periphery countries
effects of increased industrialization
demands for raw materials, search for new markets, colonialism, imperialism
search for new markets
due to producing more than we could consume, there was an increased need to have access to foreign markets
market oriented industries
proximity to market is important for these types of industries; examples: single market manufacturers (automobile parts sold to make a car for only ONE person), industries that produce heavy and bulky items (cement), bulk-gaining industries (beer and soft drinks), industries that sell perishable products (bakery goods, newspapers, milk)
relocation of workforce to other areas
push/pull factors associated with economic restructuring has redistributed the labor force
economic restructuring
refers to the movement of these jobs away from the core and the resulting changes in employment
environment
this is a major factor in where businesses are located; example: ski resorts need snow, the film industry requires a sunny climate, tourism seeks a warmer climate, aircraft manufacturers require a good climate
mondernization theory
states that LDC's can develop economically if they follow a western path (liberal model)
multiplier effect
states that one basic job will create two-three nonbasic jobs (people bring their family with them)
alfred weber's assumptions
-there is an uneven distribution of resources -there are fixed locations of labor -wage rates are fixed -labor is immobile and unlimited -uniform culture, climate, and political systems -entrepreneurs minimize the cost of production -there is perfect competition and no government regulations or incentives -the cost of land, structures, equipment, and capital do not vary regionally -there is a uniform system of transportation over a flat surface -there is one finished product and one market
iron ore
In 1709 it was discovered that coal could be turned into coke (a fuel with few impurities and a high carbon content, usually made from coal); coke could then be used in the smelting process to produce metals; smelting of this type of metal to produce iron became widespread in the 2nd half of the 18th century
locational interdependence
a company moves to the location of another company so they can maximize their profits; proven by hotelling model
maquiladoras
a foreign-owned, manufacturing operation in Mexico, where factories import certain material and equipment on a duty-free and tariff-free basis for assembly, processing, or manufacturing and then export the assembled, processed and/or manufactured products, sometimes back to the raw materials' country of origin
break of bulk point
a point where goods are transferred from one mode of transportation to another for of transportation (usually smaller)
workers seeking jobs in cities
as the second agricultural revolution led to increased productivity on farms due to the new technology, people moved from rural areas to urban areas in search of jobs; thomas malthus described the problems of the poor (there was the increased movement of people to the cities faster than jobs were being created)
fertility rate
average number of children a woman will have in a lifetime
diffusion of the industrial revolution
began in britain in the late 1700's and diffused to the european continent; followed the location of coal
coal
burned cleaner and hotter than wood charcoal; the demand for it was so high, it increased in dramatic rates (from 2.54 million tons in 1700 to 224 million tons by 1900); in the 1880's it was used to generate electricity in homes and factories for the first time; *was used as a source of fuel and because of this the industrial revolution in europe spread along the coal mines*
nonbasic industries
businesses that sell to local customers; tertiary; recycle money with in the community
basic industries
businesses that sell to nonlocal customers; secondary (manufacturing and mining); generate money by sales outside of the community
excessive agglomeration
can lead to over crowding, higher rents, and an increased cost of labor
ship
carries large amounts of goods across the ocean; this is the cheapest mode of transportation
air
carries large amounts of goods; this is the quickest mode of transportation, but doesn't deliver goods to their exact, final location; this is the most expensive form of transportation; usually reserved for small-bulk, high value products; there is a high terminal cost
rail
carries less goods, but still many; can take goods closer to there exact location, but is limited because it must travel along a train track; this is the second most expensive form of transportation
truck
carries smaller amounts of goods; delivers goods to their final destination; can travel to a more exact location because there are no limitations as to where it can go; this is the second cheapest form of transportation
second world
communist/planned/command economy (cuba, north korea, old USSR)
hotelling model
companies and industries will move to locations where they can maximize their profits (companies that provide the same goods tend to end up side by side)
international division of labor
core: research and development, high level management, specialized manufacturing semi-periphery: in between core and periphery periphery: low wage manufacturing, getting raw materials
wallerstein's world system theory
dynamic capitalist relations and hegemonic power; the core processes generate wealth because they require higher levels of education, more sophisticated technologies, higher wages, and benefits; peripheral processes require little education, lower technologies, lower wages, and are dependent on core; semi-periphery has both and is a buffer between the two states
organizational and entrepreneurial setting
favorable setting if the location has: political stability, friendly government, lack of corruption, and availability of capital
international trade organizations
foreign products that enter countries have taxes placed on them to protect local products; international trade organizations remove or reduce the tariffs; the result is that foreign products are now often as cheap as locally made products; tariff free/reduced trade among members; movement of intensive labor/low wage manufacturing jobs; production will often move to countries w/in a trade union that has the cheapest labor; this comes at the expense of manufacturing jobs in more developed area; the consumer gets a cheaper product examples: EU (movement of manufacturing to eastern europe); NAFTA (movement of manufacturing to mexico); ASEAN; MERCOSUR
power
general metal processors (such as copper) also try to be located near economical electrical sources (because energy is demanding) or negotiate a favorable rate with power companies; today pipelines and tankers deliver oil and natural gas to manufacturing regions throughout the world; although this has become a less significant factor in industrial location, securing this supply is increasingly important national priority.
water power
giant water wheels were used to help power machines; in the united states, industrialization occurred along the fall line as this resource was needed to power the factories
minimize labor costs
higher costs reduce the margin for profit, thus a factory might do better farther from raw materials and market if paying less for working employees made up for the added transport
transitional stage
increased specialization generates surpluses for trading; 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 (LDC's)
role of infrastructure
industrial location decisions can be influenced by the availability of supporting transportation and communication systems
take off
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; the economic transitions are accompanied by the evolution of new political and social institutions that support the industrialization; the growth is self-sustaining as investment leads to increasing incomes in turn generating more savings to finance further investment (NIC's)
first world
industrialized, service based economies, high quality life (europe, north america, japan)
ubiquitous industries
industries that are located where they are due to the population
footloose industries
industries that have no strong locational preference; neither market nor resource oriented; not concerned about transportation costs; example: high tech industry (computing or IT industries) that transmit information over phone lines
free trade zones
international port areas where goods are handled without tariffs and minimal interference from customs authoraties
less developed countries (LDC's)
lacks technological advancement; most jobs in the primary level of economic activity; third world countries; periphery countries; slow world countries
third world
mainly agriculture and raw materials, low quality life, low development
decline in jobs in manufacturing regions
manufacturing jobs in core countries have moved, following cheap labor
per capita
means "per person"; information given per capita is often more beneficial in determining levels of development
labor intensive industries
means that labor makes up a high percentage of the costs of production; requires cheap labor; in east asia manufacturing is always moving towards cheap labor; the textile industry is an example of this
economic indicators of development
measure data that has to do with money; gross national income, gross domestic product, gross national product, GINI index
dependency ratio
measure the percentage of a population that is either too old or too young to work
GINI index (income distribution)
measures income distribution or the gap between the rich and poor in a country; a perfect ranking would be zero meaning wealth was distributed 100% evenly in a country; no country in the world will have GINI index of zero; the closer to zero, the more balanced income levels are in a country
social indicators of development
meaure data that has to do with people's lives; fertility rates, infant mortality rates, dependency theory, literacy rates; access to health care, education, utilities, and sanitation
demonstration effect
natives adapt foreign cultures to make tourists feel more "at home"
resource oriented industries
needs access to raw materials (though reduced cost of transporting has lessened the importance of proximity); also needs a large, highly skilled workforce
infant mortality rate (IMR)
number of children per 1000 that die before the age of one
factors influencing industrial location
resource oriented industries, bulk-reducing industries, power, labor, market oriented industries, bulk-gaining industries, transportation, containerized shipping, organizational and entrepreneurial setting, excessive agglomeration/deglomeration, environment, amenity sites
commodification
selling something that wasn't originally for sale (hawaiian hula dance)
amenity sites
some industries locate in places that provide a feature that increases attractiveness or value (especially a piece of real estate or geographic location; usually not needed but desired); example: southern california has a milder climate, rocky mountains are good for recreation, new york city is good for culture
aluminum industry
some metallurgical industries (ex: Aluminum) require large amounts of energy (20% of the cost) so they will continue to be close to cheap energy sources; the united arab emirates is planning the worlds largest aluminum plant
sustainable development
states that progress should not take place at the expense of future generations; partnerships, conservation, renewable resources, and loans to women and microcredit (such as the Grameen Village Bank in Bangladesh)
development indicator
statistics or a collection of statistics that show a country's level of development
new technologies
steam engine (which increased the demand of coal), mechanization of the textile industry (new technologies in the textile industry helped fuel industrialization in britain), water pumps and railroads (steam locomotives were used to help transport raw materials and finished goods)
agglomeration
the clustering of support industries and a labor pool; this can encourage location to a certain place; example: the high tech corridor is an area designated by local or state government to benefit from lower taxes and high tech infrastructure with the goal of providing high tech jobs to local population; you will find clustering where transportation is a factor
colonialism
the control or governing influence of a nation over a dependent country, territory, or people who would provide the raw materials and a market for manufactured goods for the colonizer
transportation
the cost of delivering items can be affected by other variables; port cities are attractive locations because a location here would cut down on the costs of delivering the items (break-of-bulk points)
slow world
the developing world that does not experience the benefits of high-speed telecommunications and transportation technology
drive to maturity
the economy is diversifying into new areas; 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 (highly-advanced NIC's or MDC's)
traditional socitey
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 (LDC's)
high mass consumption
the economy is geared towards mass consumption; the customer durable industries flourish; the service sector becomes increasingly dominant (MDC's)
globalization
the expansion and intensification of linkages and flows of capital, people, goods, ideas, and culture across national borders
growth of populations
the industrial revolution led to increased population growth around the world; urbanization occurs as people move to the cities to work in the factories; the agricultural revolution led to the growth of the industrial revolution as people moved in search of jobs
black country
the midlands of north central england; some theorize it got it's name because of the smoke from the ironworking foundries and forges; others say the name comes from the abundance of coal in the region; this is the hearth of the industrial revolution
rostow's stages of growth
the model that shows how countries pass through the five stages of economic development
industrial revolution
the movement in which machines changed people's way of life as well as their methods of manufacture; began in the late 1700s in britain (mostly in the black country); started with the textile industry
imperialism
the policy of extending the rule or authority of an empire or nation over foreign countries, or of acquiring and holding colonies and dependencies; seen as the key to continued industrial growth and wealth
gender inequality
the role women play in a society is a huge indicator of development; women in LDCs are typically non-wage earning child bearers; in MDCs, a much greater number of women have wage paying jobs and higher education levels; reproductive health, indices of empowerment, and labor-market participation are all measures of this
minimize transportation costs
the site chosen must entail the lowest possible cost of moving raw materials to the factory and finished products to the market; weber suggested that sites where these costs are lowest is the place where it would be least expensive to bring raw materials to the point of production and distribute finished products to consumers
fourth world
third world countries that have experienced an economic crisis (sierra leon, liberia, somalia, haiti)
containerized shipping
this innovation lowered the costs and increased flexibility; all goods are placed in the same size container which dramatically increases the speed of loading them onto/taking them off the ship; all boats have the same size slots for these containers so no special ships are needed
core-periphery model
this model is fundamentally different from the modernization model because it states that not all places can be equally wealthy in the capitalist world economy; also it does not assume that socioeconomic changes will occur in the same way in all places
offshoring
to relocate production or service to a foreign country;
outsourcing
to subcontract work to another company; can be within or outside of the country
gross national income (GNI)
total amount of income earned by *all* residents of a country
gross national product (GNP)
total value of goods and services produced *by* a country
gross domestic product (GDP)
total value of goods and services produced *with in* a country
diffusion of industry outside the core
unskilled manufacturing jobs follow the cheapest labor; core to semi-periphery to periphery (example: USA, mexico, guatemala)
neocolonialism
using economic power to influence other countries; seen as a subversive version of colonialism; core countries aren't actually using population or the military to control the periphery but they are so economically intertwined that, in reality, the periphery is "controlled"
more developed countries (MDC's)
very technologically advanced; most jobs in the tertiary level of economic activity; first world countries; fast world countries; core countries
increased food supplies
was needed to feed the increasing urban population that was working in the factories; needed in order for the industrial revolution to be successful; came with the second agricultural revolution
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; all manufactures need office equipment; the presence of one or more producers in a large city satisfies this need; thus, agglomeration makes location attractive
demand for raw materials
with the industrial revolution came more of a demand of materials to make an increased amount of products
gender issues in export processing zones
women are often exploited; women are paid less than men, women complain less, women are less likely to form labor unions, and they have a higher manual dexterity
