APHG Chapter 11 Core Content Review

Regarding the Industrial Revolution, What? Where? When? What was the root? What was the most important invention?

The series of technological improvements in industrial technology that transformed the process of manufacturing goods.

UK.

Late 18th century.

Technology

Steam engine

How was iron impacted by the Industrial Revolution?

Iron was the first industry to benefit from the Industrial Revolution, specifically the steam engine. Iron production had been minimal, but the steam engine allowed for ovens to remain heated, which was the primary reason it had not been largely produced.

How was coal impacted by the Industrial Revolution?

Coal was the source of energy used to operate the ovens and steam engines. Wood was the primary energy source before the Industrial Revolution, but with a growing scarcity of it in England, manufacturers turned to coal.

How was transportation impacted by the Industrial Revolution?

Transportation was vital for the diffusion of the Industrial Revolution. Canals, and later, railroads allowed for bulky raw materials (e.g iron and coal) to be brought into factories.

How were textiles impacted by the Industrial Revolution?

Textiles were originally a dispersed cottage industry, but the Industrial Revolution transformed them into a concentrated factory system. Thread was priorly spun on wheels at homes, and putters-out sold the products made. In 1768, Richard Arkwright invented a machine to untangle cotton, but it was too big to fit in homes, so they were implemented in factorie near flowing water (for power).

Write two notes of industrial development in Western Europe.

* Thrive off mass steel and iron manufacturing because of abundance of raw materials. 
* Rhine-Ruhr and Mid-Rhine are the most important Western European industrial areas because Rhine-Ruhr contains the world’s largest port, and Mid-Rhine contains Europe’s most important market. 

Write two notes of industrial development in Eastern Europe.

* Primarily specializes in natural resources such as petroleum, minerals, natural gas, iron, coal, etc, but also textiles and shipbuilding in Moscow and St. Petersburg.
* Most of Eastern Europe’s key cities and industrial areas are located in Russia. 

Write two notes of industrial development in North America.

* North American manufacturing is concentrated in the northeastern United States and southeastern Canada because of raw materials and the Great Lakes/major rivers. 
* The most major industries in this region are steel because of Appalachian coal and iron.

Write two notes of industrial development in East Asia.

* The two leading countries in Asia– China and Japan, are second and third in global manufacturing value, only behind the United States. 
* China was able to become wealthy as it is the world’s largest supplier of cheap labor, and the world’s largest market for many products (textiles, steel, and many household products). Japan became wealthy because of its initial comparative advantage, and eventual highly skilled labor.

What are situation factors?

Location factors related to the transportation of materials to and from a factory

What are site factors?

Location factors related to the costs of factors of production inside the plant, such as land, labor, and capital

How does transportation affect cost of products?

The farther the transportation, the higher the cost of products.

What is a “**bulk-reducing industry**”?

An industry in which the inputs weigh more than the final products.

Make a flowchart to illustrate how copper is an example of this

Bulky copper ore from mining —-> copper concentrate (significantly lighter) —> smelted copper (copper matte, blister copper, and anode copper) —> refined copper

How does energy play a role in the siting of copper mills?

Copper mills try to locate near electrical sources because copper production is very energy-demanding.

Apply Arizona and the rest of the US to the copper industry.

Arizona mines ⅔ of the United States’ copper, and as a result, most of the smelters and concentration mills are located in Arizona as well. However, most copper refineries are near markets on the East and West coasts.

Define iron ore

A rock or mineral from which iron can be profitably extracted

Define pig iron

The product of smelting iron ore in a furnace

Define coke

High-quality iron smelted with purified carbon made from coal.

How is the distribution of steel and iron industry influenced by coal?

The distribution of steel and iron industry are influenced by coal because it is the energy source used for the production of steel, primarily smelting the iron.

Explain why Pittsburgh was preferred for steel mills in the US.

Had iron ore and coal mines.

Explain why locations around Lake Erie were preferred for steel mills in the US.

Rich iron ore in Mesabi Range in northern Minnesota shipped across lakes and coal shipped from Appalachia.

Explain why locations around southern Lake Michigan were preferred for steel mills in the US.

Higher demand for more iron than coal, so mills moved closer to the Mesabi Range to minimize transportation costs.

Explain why the East and West Coast were preferred for steel mills in the US.

Markets, changes in transportation costs, increase in iron from other countries, and widely available scrap iron in metropolitan areas.  

Current production - Why are the newest steel mills (minimills) beginning to move closer to

markets and away from inputs?

Minimills are cheaper than integrated mills to build and operate, and scrap metal is widely available near markets.

What is a “***bulk-gaining industry***”?

An industry that makes something that gains volume or weight during production.

Give three examples of bulk-gaining industries.

1. Fabricated metals


2. Beverages


3. Single-market manufacturers

What are fabricated metals?

Metals and previously manufactured products brought together to create a more complex product

Why are fabricated metals bulk-gaining?

Fabricated metals have a higher volume than their individual parts and metals.

Give some examples of fabricated metals.

Televisions, refrigerators, and air conditioners.

Where is auto-alley?  Why there?

Auto-alley is between Michigan and Alabama because it is near the most major consumers.

Why is beverage production bulk-gaining?

Empty cans and bottles are shipped, then filled with the beverage and shipped. Water–the main ingredient in these beverages is bulky to transport.

Give some examples of beverage production.

Soft drinks (Coca-Cola and Pepsico) and beer.

Why isn’t wine and whiskey bottled near the market, like beer and soft drinks?

Wine and whiskey aren’t bottled near the market like beer and soft drinks because they are worth more and don’t need to be mass produced, and their higher prices can cover the transportation costs.

What are single-market manufacturers?

Specialized manufacturers with only one or two customers

Why are single-market manufacturers are bulk-gaining?

Single-market manufacturers tend to locate as close as possible to their customers because their products tend to be bulky when built (the example used in the textbook of seats for cars).

What are examples of single-market manufacturers?

Producers for motor vehicle parts.

What is just-in-time?  How does it impact parts makers?

When products are created and delivered exactly when they need to be used. It impacts parts makers as it dictates that they build their factories next to their customers of final assembly plants.

Explain what perishable products are.

Products that must be delivered to consumers as rapidly as possible.

Why are perishable products bulk-gaining?

Perishable products must be made near the market.

What are some examples of perishable products?

Milk, bakery products, and newspapers.

What products does the book describe as not perishable?

Frozen, canned, and preserved food products.

Why might truck transportation be chosen by manufacturers?

Efficient short-distance travel.

Why might train transportation be chosen by manufacturers?

Don’t require daily rest stops like trucks, so usually good for longer distances.

Why might boat transportation be chosen by manufacturers?

The cheapest mode of transportation per kilometer.

Why might air transportation be chosen by manufacturers?

Fast delivery of products.

What is a break-of-bulk point?

A location where transfer among transportation modes is possible.

What happens to costs at break-of-bulk points?

Costs rise each time products are transferred between modes.

How has containerization changed the process?  Why is containerization so important in modern times?

Containerization has facilitated transfer of packages between modes. Containerization has been important because it allows for quick transfer.

Give two examples of important break-of-bulk points.

Seaports and airports.

What are the three production cost factors associated with the site of an industry? (Memorize them.)

Land, labor, and capital

In order, which countries and regions have the most manufacturing jobs?  Include ratios.

China has the most with ¼ of the world’s manufacturing job, then India with ⅕, and all MDCs combined with ⅕.

The average developed country’s wage is?  In LDCs? What other components of compensation are included?

The average wage of manufacturing workers in MDCs is $20/hour and less than $5 an hour for LDCs.

Health care, retirement pensions, and other benefits.

Labor accounts for around 5 percent of the cost of manufacturing a car.  Does this mean that motor vehicle manufacturing is a labor-intensive industry?  Explain.

Most of the value of cars is accounted for by its expensive parts and machinery used, not labor. Labor accounts for a large portion of costs of labor-intensive industries.

Define textile

A fabric made by weaving.

What type of labor do textiles use?

Textiles require less-skilled, low-cost labor.

List 3 facts you consider most important about the TEXTILE INDUSTRY worldwide.  Be certain to discuss synthetics and labor

1. Synthetic fibers comprise ¾ thread production and falls under 2 categories– true and regenerated. Nylon was the first true synthetic fiber, invented in 1937 using petroleum. Polyester is the leading true synthetic now. The first regenerated synthetic fiber was rayon, which was made using cellulose in wood pulp.

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2. Spinning and weaving labor most commonly occurs in LDCs. China and India lead this industry despite their distance from North America and Europe because of low labor costs that account for the additional transportation costs.

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3. Most of the assembly (sewing) occurs in MDCs because most consumers of assembled products are in MDCs.

Why did early factories locate inside cities?  Provide the site and situation factors.

Early factories located inside cities because of the combination of site and situation factors. The situation factors were proximity to markets and shipping convenience by rail. The site factors were proximity to large amounts of labor and sources of capital.

Why are contemporary factories not located in cities.  Provide the site and situation factors that benefit the industries.

Contemporary factories aren’t located in cities because production is more efficient in one-story buildings. Site factors that benefit the industries are abundant and cheaper land. Situation factors that benefit the industries are they facilitate delivery of both inputs and outputs.

What were the site and situation factors that applied in Honda’s selection of its factory? (p. 353)

The situation factors applied in Honda’s factory selection are minimizing the cost of shipping finished vehicles primarily, but also the cost of shipping inputs. The site factors applied in Honda’s factory selection are rural location (land) and large amounts of labor not competing with other assembly plants (labor).

Where were factories located prior to the Industrial Revolution?

Near rivers and close to forests because wood and water were the two primary energy sources.

What changed during the Industrial Revolution to move the factories?

The dominance of coal during the Industrial Revolution caused factories to move near coalfields.

Take notes on the aluminum industry and how electricity plays a role in making the product.

In order to separate aluminum from bauxite ore, it takes a large amount of electricity. Electricity can be generated by coal, oil, natural gas, running, water, nuclear fuel, and in some cases, solar energy and wind power. Industries must pay for electricity per kilowatt from utility companies, but tend to receive lower rates than typical home consumers. Aluminum typically uses hydroelectric power and factories are located near dams for cheap, large amounts of it. The oldest aluminum production plant that is still operating today was built in Massena, New York by a dam linking St. Lawrence and Grasse rivers in 1902. The company that owns it, Alcoa, is the world’s largest producer of aluminum.

What are different forms of ***capital***?

The different forms of capital are loans, venture capitalism, and inheritance (usually less relevant than the other two). 

Why did the US motor vehicle industry concentrate in Michigan in early 20th century?

The US motor vehicle industry concentrated in Michigan in the early 20th century because financial banks there were more willing to lend money to the industry than the eastern banks.

Explain why high tech companies settled in Silicon Valley.  Provide all factors __**(be specific)**__ Include a description of the relationship between capital and the computer industry in California.

High tech companies settled in Silicon Valley mainly because of capital availability, but also skilled labor accessibility. Silicon Valley bank lenders have been willing to lend money to new software and communication firms unlike many other lenders. ⅔ of high-tech industries fail, but Silicon Valley financial institutions have lent money to engineers so they can buy the software, communications, and networks necessary for startup. 

What are the challenges for companies in LDCs with capital?

Challenges for companies in LDCs is borrowing money because companies have small amounts of money, so they must seek loans from banks in MDCs.

Explain what occurred with regard to manufacturing between 1950-2009.  What locations were affected?

Northeastern United States lost 6 million manufacturing jobs, primarily in New York and New Jersey.

What were the challenges in the South after the Civil War?  How did the South solve some of these challenges (be specific)?

The South was behind on industrialization after the Civil War and didn’t have adequate infrastructure to stimulate industrialization. Their road and rail networks were underdeveloped and electricity wasn’t ubiquitous. The South solved these problems by having the Tennessee Valley Authority bring electricity to the rural South, constructing roads in previously inaccessible areas, and creating air conditioning to make the temperature bearable.

Explain the role right-to-work laws play in the decision and what is the effect on workers and unions?

Right-to-work laws enticed many manufacturers to come to the South. Right-to-work laws make it so companies may not have a closed shop, which means that workers may not unionize.

Create a flowchart to depict WHERE and WHY the US textile industry has moved historically.

Northeast (European immigrants provide cheap labor and were willing to weave and sew for extensive hours in sweatshops) —> Southeast (Lower wage rates and workers had minimal interest in forming unions. Products could reach markets using the highway system)

Give three reasons why an executive might locate an industry in a “less-than-optimum” location.

Cheap labor, right-to-work laws, and large, cheap land available

How is the diffusion of manufacturing different in Western Europe than in the US?

The diffusion of manufacturing is different in Western Europe than in the US because European government policies have encouraged this movement.

Give two reasons for which governments (particularly in Europe) are willing to subsidize manufacturing to keep them operating in the face of declining demand.

1. Reduce the lag in Southern and Eastern European countries


2. Minimize job losses in core industrial areas

What countries make up Central Europe and why is the area attractive to manufacturers?

The countries that make up Central Europe are Poland, Czech Republic, and Hungary. This area has cheaper labor in comparison to Western Europe, and has close proximity to the wealthy Western Europe market.

What are the two principal assets China has in attracting manufacturing?

The largest supply of cheap labor and the world’s largest market for many products.

What did China do In the 1990s to increase manufacturing?

In the 1990s, China implemented policy changes that allowed transnational corporations to open labor-intensive factories.

Where have manufacturers clustered in China and why?

Manufacturers have clustered along the east coast (near Guangdong/Hong Kong, Yangtze River Valley, and Gulf of Bo Hai) because it contains ½ of China’s wealth, ¾ of its foreign investment, and ⅚ of its foreign trade.

Define outsourcing

Turning over much of the responsibility for production to independent suppliers. 

Explain how outsourcing impacts transnational corporations.

Outsourcing benefits transnational corporations because it allows for cheaper labor (due to the difference in wages between LDCs and MDCs) and consequently, higher profits.

How has globalization affected *maquiladora*? (think question)

Globalization has affected maquiladora because they are located as close to the United States as possible without leaving Mexico. In this example, the transnational corporation that owns the maquiladoras uses Mexico for cheap labor in order to have the highest profits in the worldwide market. This has diffused American industries into Mexico, which they have allowed because it is foreign investment.

How does outsourcing differ from vertical integration?  Use the iPhone for an example.

Outsourcing differs from vertical integration because vertical integration is when companies create and supply all of their own parts, while outsourcing allocates this task to independent companies. If Apple created all of the parts for the iPhone (chip, screen, camera, etc.), it would be considered vertical integration. Apple’s current strategy of having China make many of its parts to then put together is an example of outsourcing. 

Define Fordist.

Factories assign each worker one task to perform repeatedly.

Define Post-Fordist.

A more flexible production approach that places workers in teams, addresses problems through consensus, and nobody gets special treatment regardless of if they are higher up.

What are the rules of post-Fordist lean production?

Teams, problem-solving, and leveling.

What is an example of a highly-skilled industry?

Computer manufacturing

What three states is computer manufacturing concentrated in? and why?

Computer manufacturing is concentrated in Texas and California because of access to skilled workers from the universities nearby in each location–University of Texas in Austin, Texas and Bay Area colleges in California.

Write some bullet points describing just in time manufacturing.  Include how “acts of God” can affect the delivery.

* Just in time manufacturing refers to inputs arriving at factories exactly when they are needed.
* Mainly occurs when shipping parts/raw materials for fabricated products
* Suppliers of parts and materials must locate by their customers.
* Just in time delivery saves money in wasted inventory, which can additionally save money by having smaller factories.
* A problem with just-in-time delivery is not having backup stock to cushion two issues:
* Labor unrest (strikes)
* Acts of God (natural hazards typically, but terrorist attack as well)
* Weather occurrences can close highways or damage factories. Terrorist attacks have caused closed border crossing.