whs ap human geography unit 8.1
webers least cost theory
accounted for the location of a manufacturing plant in the terms of the owners desire to maximize three categories of cost 1.cost of labor 2.transportation 3. agglomeration
fast world
are areas of the world usually the economic core that experience greater levels of connection due to high speed telecommunications and transportation of technologies
development indicator
are statistics or a collection of statistics that show a countries level of development
railroads
are the cheapest over medium distances long haul over land they take longer than trucks to load but aren't required to make daily rest stops
china and india
are very common for outsourcing and offshoring because -cheap labor -time zones america and india and china are almost 12 hours difference so when the americans go to bed the project can still be continued -efficency india already has good digital infrastructure
worker seeking jobs in the cities
as the 2nd agriculture revolution led to increases productivity on farms due to the new technology people moved from rural ares to urban areas in search of jobs.Thomas malthus described the problem of the poor this was because during his time there as the increased movement of people to the cities faster than jobs were being created
slow world
refers to the developing world that does not experience the benefits of high speed telecommunications and transportation technology
air
this is the most expensive usually reserved for small bulk high value products there is a high terminal cost
spread effect
the positive impact the transfer of capital resources and skills for the core areas to the periphery
second world
-communist/planned/command economy -cuba/north korea -old ussr
trucks
cheapest for short distances
informal economy
economic activist that do not appear in statistics
excessive agglomeration
- can lead to overcrowding higher rents and increasing cost of labor -ex. tokyo -manufacturing is always seeking cheap labor
substitution principle
- the idea that you can overcome transportation costs if you decrease land rents or labor -substituting one cost for another -some companies that chose to move and increase there travel costs will need to substitute that cost by decreasing their land rents in order to remain successful -ex. a company may choose to move their factory to china to take advantage of cheaper labor although this increases transportation costs if the offset is enough it is possible to do so
fourth world
-3rd world countries that have experienced a n economic crisis -sierra león linera somalia haiti
raw materials
-access is important today japan has few natural resources but does not have easy access -reduced cost of transporting has lessened the importance of proximity -access also needs a large highly skilled workforce -japan must import raw materials japan expanded to east asia for sources of raw materials
ubiquitous industries
-are located everywhere in proportion to the population -existing or being everywhere at the same time -ex. grocery stores. dry cleaners, gas stations, pizza parlors, =market oriented
dependency theory
-argues that the poor/periphery countries remain 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 -structulist model is the idea of circular and cumulative causation -ex. the colonial relationship created advantages for the core and disadvantages for the periphery
industrial revolution
-began in britain in the late 1700s - it marked a series of inventions that brought new sources of energy(coal0 -the textile industry had inventions such as the power loom -new machines powered by steam engines -improved transportation and communication -water pumps and railroads were also invented
availability of natural resources
-coal- source of fuel -iron ore-1709 discover coal could be made into coke which burn hotter which allows for smelting of metals -water power- giant water wheels were used to help power machines in the united states industrialization occurring along the fall line as water was needed to power the factories
containerized shipping
-decreased the cost of transportation -helps unload and load ships quicker -this innovation lowered the costs and increased flexibility it permitted manufactures to pay less attention to transportation in their lavational decision
world systems theory
-dynamic capitalist relations hegemonic power -three tier process cores peripheries and semi peripheries -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 dependent on core -semi-pheriphery has both and is a buffer between two states
power
-early industries were located near coal fields -today industries are more widely dispersed because there are other sources of power and energy can be transported rather easily -in general metal producers need to be located near electrical sources because energy is demanding -today pipelines and tankers deliver oil and natural bass to manufacturing regions throughout the world although energy supply has become less significant factor in industrial location securing energy supply is increasingly important national priority
bulk reducing industries
-ex. copper the ore is heavy so mills are located near the mines in order to reduce the bulk so the final product costs less to transport -ex. potatoes chips can increase bulk but not weight -an industry which the inputs weigh more than the final product are bulk reducing industries to minimize the transportation costs they need to be located close to the sources of inputs another -ex. to convert wood to paper is a 60% weight loss so paper mills are located near forested areas
footloose industries
-have no strong locational preference they are neither market nor resource oriented -they have more flexibility in terms of location because they are not so concerned about transportation costs -an example would be a high tech industry such as commuting or IT companies that transmit info over phone lines -are not tied to a particular location they can be easily picked up and moved -they are engaged usually in one aspect of production at a particular location so it is easy to move if costs are cheaper elsewhere
bulk gaining industries
-heavy and bulky items such as cement -you won't make cement in dallas and truck it to austin -soft drinks and beer every city any size has its own coca-cola bottling plant -water is ubiquitous with a transportation cost of 0 so you minimize cost by locating it closer to the market -the principle input of soft drink/beer is water syrup or barley is less expensive to transport
modernization theory
-holds that ldcs can develop economically if they follow a western path -was popular in the 1940s and 1960s -assumes that all countries can/will develop along the same path -goal of liberal models is to help underdeveloped countries move towards capitalism -assumes all countries will go through the same steps in developing -that economics disparities are the result of short term inefficiencies
role of infrastructure
-industrial location decisions can be influenced be influenced by the availability of supporting transportation and communication systems -ex. vietnam might have cheap labor but if they lack a part storage and communications system they will lose out
first world
-industrialized -service based economies -high quality of life -europe, north america, japan
pros and cons of tourism
-is an irritant industry -investment by the host country is sustainable -resources are diverted from local needs -tourists consume large quantities of scarce resources
core-periphery model
-is fundamentally different from the modernization model because it holds that not all places can be equally wealthy in then capitalist world economy also it does not assume that socioeconomic changes will occur in the same way in all places -the world has core, periphery, semi-periphery -individuale countries need to be, viewed in the context of their place within the world economy system -what works in one locales might not work in another
deglomeration
-is occuring in some locations in the US industry is becoming more suburban -occurs in réponse to excessive agglomeration
labor
-labor intensive industries making clothing assembling electronic parts require cheap labor
demonstration effect
-local cultures adopt foreign cultural aspects that learned from tourists -largest effects on smaller, indigenous cultures adopting culture form western tourists
third world
-mainly agriculture and raw materials -low quality of life -low development
labor intensive
-means that labor makes up a high percentage of the costs of production -ex in china textile industries are_________________ 2/3rds of the world cotton thread comes from china
new technologies
-new uses for coal-steam engines -water pumps and railroads -mechanization of the textile industry -steam ships -more efficient ways of weaving cotton
sustainable development
-partnerships -conversation -renewable resources -loans to women and microcredit
organizational and entrepreneurial setting
-political stability -friendly government -lack of corruption -availability of capital ex. US/CHina availability of capital, labor force lower wages favorable tax regulations in chinas special economic zone ' zimbabwe? no because it has an unfriendly unstable government singapore-lack of corruption
amenity sites
-some industries locate in places that provide amenities for their employees
gunnar myrdel
-swedish economist -was the first to recognize that only significant initial advantages tend to be reinforced through geographic principles of agglomeration and localization -also pointed out that spiral of local growth attracts enterprising young people and investment funds from other areas
transportation
-the cost of transportation can affect other variables -port cities are attractive locations because a location here would cut down on transport costs -ex the fed ex hub is located at the airport in memphis tenessee there is clustering of other businesses who want to minimize shipping costs around it -the farther away something is transported the lower the cost per mile because firms must pay workers to load goods on or off vehicles whether it is 10 miles of 10,00 miles
environment
-the film industry requires sunny climate hollywood -aircraft manufacturer require a good climate -tourism seeks warmer climate -ski areas need snow
markets
-the importance of proximity varies but some industries are market oriented -single market manufactures- they are specialized manufactured with 1-2 customers -ex. parts for a motor vehicle they need just in time delivery parts are delivered to the assembly plant just in time to be used often times within minutes rather the months or weeks in advanced they must be close to customers near the factory in this case
distance decay
-the longer something takes to get somewhere the less the people are going to want it anymore -some industries need to keep in mind its customer base(over transportation of raw materials for example) the further away it is can impact the business
backwash
-the negative impacts on a region of the economic growth of some other migration ex. out migration equals outflow of investment -a shift of industry from developed to developing countries created industrial growth for some countries like mexico and indonesia but is directly linked to industrial decline in north america
friction of distance
-this the increases time and cost that comes with increased distance over which the commodity travels -companies may want to relocate somewhere else if they do not however they must take into consideration the cost increase that would come with the increases travel time for their product `
offshoring
-to relocate service or production to a foreign country -it shifts the location of service or production of a part to a location abroad
outsourcing
-to subcontract work to another company -is used when a another person, factory, business etc.. can do work cheaper or more efficiently
walt rostow
-was an economist who came up with the modernization model -he was concerned with how the dozens of newly independent countries in africa and asia would survive economically he looked to how the economically powerful countries had gotten to where they were
agglomeration
-when a substantial number of enterprises clusters in the same area -clustering for mutual benefit similar workforce ancillary industries attract other businesses
diffusion of industrialization
began in britain in the late 1700s and diffused to the european continent the diffusion of the industrial revolution followed the location of coal this was before railroads and the cost was high to transport
ships
cheapest over long distances cost per km is low but it is slow it has a high terminal cost and no route flexibility
market oriented
close to market
formal economy
economic activities that appear in official government statistics
search for new markets
in the late 1800s the united states was well into the industrial revolution and we were producing more than what we could consume, we needed to have access to foreign markets so we looked into places like china
high tech corridors
is an area designated by local or state government to benefit from lower taxes and high tec infrastructure with the goal of providing high tec jobs to local population
imperialism
is basically one country taking over the people and resources of another country e.x the U.S took over the philipines guam and puerto rico
black country
is the midlands of north central england some theorize it got its name because of the smoke from the ironworking foundries and forges others say the name comes from the abundance of cola in the region this is there hearth of the industrial revolution
per capita
mean per person -info given per capita is often more beneficial in determining levels of development q
economic indicators
measure data that has to do with money -gross national income -gross national product -gross domestic product -sectoral structures of an economy -primary secondary tertiary -
social indicators
measure data that has to do with peoples lives such as education health issues etc. -fertility rate -infant mortality rate -dependency ratios ' -literacy rates -access to health care education utilities sanitation
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
colonialism
the control or governing influence of a nation over a dependent country territory or people ex. england controlling the colonies before the american revolution
cumulative causation
the spiraling build up of advantages that occurs in specific geographic settings as a result of development of external economies agglomeration effects and localization of economics
growth of populations
urbanization occurs as people move to the cities to work in the factories the agricultural revolution lead to the growth of the industrial revolution as people moved in search of jobs also the industrial revolution led to increased population growth around the world
increases food supplies
was needed to feed urban populations that was working in the factories in order for the industrial revolution to be successful there was need for increased food supply which came with the 2nd agriculture revolution
demand for raw materials
with the industrial revolution came more demand for raw materials due to this there was an increase need of countries to exploit peripheral countries for the raw materials needed
