HGAP Unit 7 Zabadal

Proven Reserve

Supply of energy that remains in a known accessible deposit

Industrial Revolution

Began in the late 1700’s in the UK

Lowest cost form of long distance transportation

Boat

Basic Industry

An industry which mostly exports its products to outside consumers

Clustered Rural Settlement

A settlement pattern in which a number of families live close together with fields surrounding them

Cottage Industry

An industry in which materials and goods were made within a person’s home

BRICS Countries

Brazil, Russia, India, China, South Africa

Best place for services in a linear community

The Median

French long lot system

Long narrow grants of land along the river

Purpose of the French long-lot system

Division of land

Long Lots Creation

To give equal access to rivers

Example of Hinterland

Richmond TX relying on Houston TX for goods

Break-of-Bulk Point

Where transportation change is possible

Weber’s least cost theory

Describes the locations of industries

Hinterland definition

The outlying towns and small communities that rely on the city for goods and services and surrounds a city or port

Clustered Rural Settlements Definition

Farm buildings, homes, and churches close together

Agglomeration

A group of companies working together to benefit from cost reductions and efficiency

Important energy resources for development

Coal, petroleum(oil), and natural gas

Forever 21 having products made in China to sell in the US

Example of outsourcing

Main types of economies

Traditional, communism, socialism, free enterprise/capitalism

Economic base

Collection of basic industries

Site

Factors unique to a location (land, labor, capital)

World city rank of New York

Alpha++

Non-basic industries

Industries that sell their products primarily to consumers in the community

Fordist

Assembly line production, each worker has a task

Principal industrial area in Western Europe

The Rhine-Ruhr Valley

Periodic Market

Collection of individual vendors who come together to offer goods and services on a specific day

World City Ranks

Alpha, Beta, Gamma, Dependent

Rostow’s Model of Development - Second Step

Precondition for takeoff - elite group established infrastructure and invest in tech

OPEC’s Major Goal

To provide a stable oil price that brings in lots of money

Value Added

The value of a product, minus the cost of raw materials and energy

Situation Factor Example for Honda Factory

Auto Alley

4 Major Economies

Traditional, Communist, Socialist, Capitalist

Industrial Revolution Start in Europe

Proximity to markets, to raw materials, and the UK being the hearth of the Industrial Rev.

Industry percentage of the world

1%

Fair trade definition

Paying workers adequate wages

Free Enterprise

A system that allows the competitive market to determine the price of goods

Least Cost Theory

Alfred Weber

Biomass Fuel

Energy from plant material and animal waste

SEZ (Special Economic Zone)

SEZ (Special Economic Zone) is a specifically designated area within a country where business and trade laws are different from the rest of the country to encourage investment and economic activity.

What word means “break of bulk”

Entrepot

The value of the total output of goods and services produced in a country divided by the population

GDP per capita

The sum of gross value added by all resident producers in the economy

GDP per capita

Example of Alpha++ city

London

What is the central place theory used for

Explains the most profitable location that can be identified

OPEC

Organization of Petroleum Exporting Countries

What is an example of something that is not a situation factor

Land

Government provides jobs and housing

Trait of the Communist economic system

Why are recources important for development?

85% of resources we use are either Coal, Petroleum (Oil), or Natural Gas

Industrial Revolution Hearth

United Kingdom

Free Enterprise economy characteristic

Supply and demand controls the economy

SEZ zones in china

On the Eastern coast

Alpha++

World Cities

LDC financing development problem

Inability to repay loans

Neocolonialism

The use of economic, political, cultural, or other pressures to control or influence other countries, especially former dependencies

GDP

The total production of goods and services in the economy

International trade approach to development

A country should identify all but its following assets: imports to be limited

Outsourcing example

American companies having call centers in India

Industry is much more clustered than Agriculture

True

Changes of the Industrial Revolution

• Iron was now used

• wood to coal

• canals and railroads used

• textiles change from cottage industries to commercial industries

• chemical industry

• food processing industry

Why Europe?

• Proximity to raw materials (coal, iron ore)

• Proximity to markets

• UK - hearth of Industrial Revolution

• 3 major area - Rhine-Ruhr Valley, Mid-Rhine, Northern Italy

Eastern Europe

• Industry was established by Communists in the 19th/20th centuries

• Variety of resources

North America

• Industry arrived through colonization

• NE US, SE Canada

• Utilized waterways of Great Lakes and St. Lawrence Seaway

East Asia

• Advantage: large labor force

• International trade approach: focused on high quality electronics and precision instruments

Situation Factors

Transportation to and from

Site Factors

Unique characteristics of a location and are all about location - minimizing costs associated with transportation

Single-Market Manufactures

Specialized manufacturers with only one or two customers

Perishable Products

industries that must be located near the market because of the perishability of the product.

Weber’s assumptions

• Same topography

• Everyone within triangle must have same opportunity to purchase the product and same desire for it

• Transportation is equally available in triangle

• Labor is always available

• Raw materials are available and a market is known for the product

3 traditional site factors

land, labor, and capital

What is the most important site factor at the global scale?

LABOR

Labor-intensive industries

wages constitute a high percentage of expenses

Post-Fordist

The world-economy now; a more flexible set of production practices are made in different places

Critical Site Factor

Land

Capital Intensive

money, money, money

Comparative Advantage

The ability of a country, firm, or individual to produce a good or service at a lower opportunity cost than other producers 

Emerging Industrial Regions

New International Division of Labor: the selective transfer of some jobs to LDCs

Maquiladoras

(factories in Mexico) must compete with even cheaper labor in Asia—but, they have the situation advantage of location, and proximity to US markets.

Central Place Theory

is used to explain how the most profitable location can be identified.

Market Area/Hinterland

The area surrounding a service from which customers are attracted

Range

the maximum distance people are willing to travel to use a service.

Threshold

The minimum number of people needed to support the service is the threshold

Food desert

an urban or rural area where the availability of affordable, healthy, fresh food is low

Ecotourism

responsible travel to natural areas that conserves the environment, sustains the well-being of local people, and involves interpretation and education

Smart-Growth Policies

Strategies to reduce urban sprawl and promote sustainable city planning.

The Traditional Society

Almost entirely primary sector, most people in agriculture

The Takeoff

Technological innovations, industrialization begins, urbanization increases

The drive to maturity

Industries expand and rapid development of transportation infrastructure

Problems with self-sufficiency

Little incentive to improve

Benefits of self sufficiency

Spread development through all sectors

Self-Sufficiency Approach

Encourages countries to limit imports and support domestic industries to achieve economic independence

Communism

• Gov. provides job, housing, etc

• Economy struggles to grow

Socialism

• High tax

• Gov. regulates some parts of the economy

Free Enterprise

• Supple and demand controls economy

• Citizens own all business

Consumer Services

• Retail and Wholesale

• Education

• Health

• Leisure and hospitality

Business Services

• Financial

• Professional

• Transportation and information

Public Services

• Government leaders

• Military

• Police/fire/EMT

• Religious leaders

Religious reason for the origin of settlements

Burying the dead

Political reason for the origin of settlements

Protecting the group’s assets

Offshore financial services

Provide very low taxes and privacy