Unit 7 GEO

Industrial Revolution

A social and economic shift caused by the dramatic increase of manufacturing productivity. 

• Began in Britain in 1700s 

• Characterized by introduction of power-driven machines to replace hand tools

fordism

 A means of mass production based on the assembly line method. 

• In early 20th century, Henry Ford developed assembly line method in which an item is moved from worker to worker, with each worker performing the same task repeatedly 

  • Produced more standardized products more rapidly and with less-skilled workers 

post fordism

A production system in which companies have replaced workers with machines to allow for faster and varied production. 

• With use of computers and increased automation, every product coming off an assembly line can be customized (ex. cars of different colors) 

• Although expensive to install, machines often save a company money in the long run (can work 24/7 without breaks or vacations, produce consistent, high quality work)

deindustrialization

 A reduction in the size of the manufacturing industry and industrial capacity of a place. 

• Experienced by more developed countries 

  • Production outsourced to less developed countries 

• Industry replaced by growth in the service sector 

Least Cost Theory

• Developed 1909 by German economist Alfred Weber 

• Theory that attempts to predict the location of manufacturing relative to the location of necessary raw materials and the market

• Explains the geographic distribution of economic industrial activities

Key Idea

Factory owners need to balance three factors when deciding where to open a factory: transportation costs, labor costs & agglomeration 

assumptions of least cost theory

• The area is an isotropic plane (flat, featureless, quality and price of all land is the same)

• The population is homogeneous (culture, needs, skills, etc.)

• Labor is immobile and unlimited

• Markets have unlimited demand and perfect competition 

• Products are shipped to a single market 

• Transportation costs are determined by weight of the items and distance they will be shipped

• Companies produce only one type of product 

the locational triangle

• The market is found at one location and the resources to make the product are obtained at two others. The three points make up the locational triangle.

• Where the factory is located within the triangle depends on the weight of the materials 

  • If neither raw material loses weight during processing, the company has no advantage in locating near either 

  • If one material loses weight when processed, the company can save money by placing factory closer to the other (heavier) resource

  • If both materials lose weight during processing, the factory can be located between the two sources 

agglomeration

The spatial grouping of businesses in order to share costs. 

• Can assist each other through shared talent pool of workers, services, and facilities

• Ex. When several factories share   the cost of building an access road  to connect them with a highway

Weber argued companies should minimize  transportation  and labor costs and maximize agglomeration. 

criticisms of weber’s theory

assumption: The area is an isotropic plain

reality: Isotropic plains rarely ever exist; mountains, rivers, urban areas, etc. can impact location decisions

assumption: Labor is fixed and unlimited

reality: Labor is relatively mobile; labor is not unlimited (especially skilled labor)

assumption: Populations are homogenous (culture, training, needs, etc.)

reality: Populations are heterogeneous, with different needs (demands) and different levels of training and education

Assumption: One product  is produced for a single market

Reality: Companies often sell multiple products and to more than one market

Assumption: Markets have unlimited demand, perfect competition

Reality: Perfect competition conditions rarely exist; demand is not unlimited, especially if there is lots of competition

Assumption: Raw materials are found only in certain locations

Reality: Raw materials are often available in many locations.

Assumption: Transportation costs are determined by the distance of travel and weight of items

Reality: Cost per mile may decrease as the distance increases; space-time compression can reduce overall cost of transportation

Assumption: Location of factories is based on economic considerations only

Reality: Emotional factors (history, tradition), personal preference of owners (convenient commute, etc.) can influence location of factory

Break of Bulk Point

 A location where goods are transferred from one means of transportation to another.

• Ex. ports, airports, depots, etc. 

• Break of bulk points are often centers of industry as they allow businesses to save on transportation costs

globalization

Growing interdependence of the world’s economies, cultures, and population due to trade, investment, and transportation & communications technologies.

• Integration of national economies into the international economy through trade and foreign direct investment  

economic sectors

Primary: extraction of natural resources (Farming, mining, fishing, etc.)

Secondary: Processing resources into products (Manufacturing, construction)

Tertiary: Selling and transporting products (Marketing, retail, design, etc)

Quaternary: Research and transfer of knowledge (Education, IT, banking, etc.)

Quinary: Highest level of decision making (CEOs, judges, politicians, etc.)

Gross National Income

measure of the worth of what is produced within a country plus income received from investments outside the country in a year

Gini Coefficient

a measurement of the distribution of income within a population

• Values range between 0-1 

  • 0 means everyone’s income is same

  • Higher the number, higher the degree of inequality 

In general, developing countries have the highest income inequality and highly developed countries have lower income inequality

Rostow’s Stages of Economic Growth

A development model proposed by economist Walt Rostow in 1960 that describes the shift from traditional to modern forms of society. 

• Assumed all countries wanted to and would modernize, albeit at different speeds

• Saw economic development as linear progression to modernity through five stages of development

• Different conditions/levels of investment required for a country to move from one stage to the next 

stage 1: traditional society

economy: Dependent on primary sector activities for subsistence

Technology: Limited technology (labor-intensive agriculture)

trade: Limited trade (local/regional) based on the barter system

society: Lack of class or individual mobility; tradition prioritized and change viewed negatively 

stage 2: pre-condition for takeoff

 

Economy	Shift to commercial agriculture
Technology	Increasing spread of technology & advances in existing technology (irrigation, canals, etc.)
Trade	Increasing specialization generates agricultural surplus for trading; expanded trade due to expanded infrastructure
Society	Start of individual social mobility

stage 3: takeoff

 

Economy	Industrialization increases, workers shift from agriculture to manufacturing
Technology	Technological breakthroughs tied to industrialization; openness to innovation
Trade	International trade expands
Society	Beginning of urbanization; evolution of new political and social institutions to support industrialization; further class stratification

Stage 4: drive to maturity

 

Economy	Economy diversifies; existing industries expand and new ones established quickly
Technology	Improved energy, transportation, communication systems; innovation provides diverse range of investment opportunities
Trade	Economy producing wide range of goods and services and less reliance needed on imports
Society	Large-scale investment in social infrastructure (schools, universities, hospitals, etc.) enables increased social mobility

Stage 5: high mass consumption

 

Economy	Service sector becomes increasingly dominant; economy geared towards mass consumption
Technology	Advanced communication and transportation technologies
Trade	Reliant on countries in earlier stages for raw materials; dominance of trade hierarchy
Society	Desire to create egalitarian society; consumers have disposable income to spend on luxury goods

criticisms of Rostow’s model

• Development not always linear

• Does not account for differences that could hinder development (size, population, resources, location, etc.) 

• Model based on western countries - doesn’t work for non-capitalist or undemocratic states   

• Assumes everyone could eventually lead life of high consumption but does not account for sustainability  

• Fails to acknowledge that most countries in stage 5 got there through exploitation and those not there yet don’t have the same opportunities

Wallerstein’s World Systems Theory

An alternative view to Rostow’s model proposed by historian Immanuel Wallerstein in the 1970s that included political and economic elements and proposed that countries do not exist in isolation, but are part of an interdependent system.

• Argued that international trade led to creation of capitalist world economy in which a system based on wealth and power extends beyond individual states

Countries of the world are all part of   an interconnected economic system

• Countries categorized according to influence: core (most dominant), semi-periphery, periphery (least dominant) 

  • System needs countries of  each category to work

Countries can change categories, though it isn’t easy

core countries

The most economically and politically dominant countries that receive goods and raw materials from the periphery and semi-periphery.

• Benefit from and hold power over periphery and semi-periphery 

• Dominate the tertiary sector

• Became dominant through colonialism and stay dominant through neocolonialism

• Ex. US, UK, Japan, Germany, etc. 

semi-periphery countries

Middle-income countries that receive raw materials from the periphery and provide the core with goods and services it used to provide for itself.

• Mix of characteristics of the core and the periphery

• Dominates the secondary sector 

• Exploits the periphery and is exploited by the core

• Ex. India, Mexico, Brazil, China, Russia, South Africa, etc.

periphery countries

Least-developed countries that provide the core and semi-periphery with inexpensive raw materials, labor, and agricultural production.

• Most jobs in primary sector 

• Receives jobs but little profit from manufacturing

• Are typically former colonies

• Ex. Afghanistan, Zimbabwe, Peru, etc.

dependency theory

Resources flow from the periphery to the core, enriching the core at the expense of the periphery. 

• Core depends on periphery for labor and raw materials 

  • Buys raw materials, pays for cheap labor, and sells goods for high profits 

• Periphery depends on core for goods 

  • Pays high prices for goods  which prevents them from developing further

criticism of wallerstein’s model

• Somewhat outdated - based on industrial production but many countries are postindustrial 

• Limited practical use - suggests that countries can change their position but doesn’t say how 

• Fails to recognize role of NGOs, private charitable groups or foreign investment  in development

• Doesn’t acknowledge that trade is asymmetrical - periphery is dependent on few trade relationships but core can source materials from many countries

UN Sustainable Development Goals

A set of 17 goals devised by the UN in 2015 to build on and go beyond the Millenium Development Goals and build a better, and more sustainable future for everyone.

• AKA “the Global Goals” 

• Aimed to be accomplished by 2030

• Connected to UN Development Program’s strategic plan  

ecotourism

Tourism involving responsible travel to natural areas, conserving the environment, and supporting the local population. 

• Generates $77 billion every year, mostly in developing countries

• Aims: protect environment for future use, respect people/culture of the area, provide long term economic benefits to locals