I.                   Industry: Geographic Factors
             Site Factors: physical features that relate to the cost of production and transport (the beach)
             Situation Factors: features of the surrounding area that are related to the cost of production and transport (Teddy, the competitor)
             Basic Industry: main focus of a regionâs economy (Detroit = Cars, LA = film, SF = Tech, DC = Gov)
             Non-Basic Industry: businesses that support the work of the basic industry (Steel, electronics, etc, that support making Cars) (Food and shops that support people or gov)
             Multiplier Effect: how the previous two operate to grow the economy with non basic and basic industries
II.                 Fixed and Variable Costs:
             Fixed: costs that do not fluctuate ex: rent                      Â
Variable:Â costs that fluctuate, ex: energy bill, tips
III.               Transportation Systems
             Modern manufacturing tries to compress time and space (decrease time and distance obstacles) (Friction of distance) (the longer you are in a car, the more chances you can be in a car crash)
             Greater distance and weight = more cost; how to overcome?
Trucks: high mobility and flexibility; high fuel cost and wear and tear
Trains: low mobility and flexibility; very efficient over long distances; dependent on break of bulk points (cargo must be loaded and unloaded at different transportation)
Airplanes: fast, flexible, high cost, and limited weight carrying
Pipelines: great for fluids; bad for everything else
Ships:Â low cost; slow; need port (most bulk)
IV: Location of Industry
             Agglomeration: clustering of similar businesses that can provide assistance and efficient labor and skill management (ex: Los Angeles, Detroit, NYC, San Fran, Orlando, Vegas). Cumulative causation is the continued growth due to agglomeration
             Deglomeration: the market becomes too saturated with similar businesses
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V.               Weberâs Least Cost Theory: The location of a factory is dependent on
1)Â Â Â Â Â raw materials cost (least expensive; least control)
2) labor cost (most expensive)
3) transportation cost. (most under your control)
             Weight Gaining (ex: cars): finished good weighs more than raw materials; located closer to market
             Weight Reducing (ex: potato chips): raw materials weigh more than finished goods; located closer to materials
V.                 Foreign Production of Goods
             Outsourcing is a controversial part of the increasing Globalized economy.  Many manufacturing jobs have left richer countries to go to poorer ones; Why?
                            Ex: Maquiladoras = factories just inside Mexico that make goods for US and Canadian markets; big increase since NAFTA was passed (1994)
Footloose Industries do not have a strong preference for being in a certain location; ex: high-tech, textiles
VI: Main Global Industrial Zones
1)Â Â Â Â Â North America:Â Â
a.      Ontario, CAN (Toronto; Ottawa, Montreal)
b.      NE USA (Boston-DC) Â
c.      Eastern and Western Great Lakes (Rust Belt);
d.       SE I-85 (NC, SC, GA),
e.      Seattle-Portland; SF Bay Region; LA/SD;Â
f.       Northern Mexico and Mexico City
2)Â Â Â Â Â Russia and Ukraine
3)Â Â Â Â Â Western Europe (Britain, France, Germany)
4)Â Â Â Â Â China: export processing zones and special economic zones (SEZs)
a.      Beijing Zone
b.      Shanghai Zone
c.      Hong Kong Zone
5)Â Â Â Â Â Japan:Â Kanto Plain (Osaka, Kyoto, Tokyo)
6)Â Â Â Â Â âAsian Tigersâ:Â S. Korea, Taiwan, Singapore, Hong Kong
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VII:Â Economic Development: Measurements and Theories
             Measures of Development:      Â
                            Gross Domestic Product (GDP)/Per Capita
                            Life Expectancy
                            Education Levels
                            HDI (Human Development Index; UN 1990)
                            GDI (Gender Development Index)
VIII: Types of Jobs: Economic Sectors   Â
             Primary = extraction and harvesting of natural resources (ex: farming, fishing, mining)
             Secondary = processing raw materials into manufactured goods (industrial production)
             Tertiary = service-based economic activity (ex: sales, customer service, teachers)
             Quaternary = creation and distribution of knowledge (tech; research; finance; medicine)
             Quinary = management of the other 4 areas (executives, politicians, CEOS)Â
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Country A = Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
P = 85%, S = 10%, TQQ = 5%
Country B =Â Â
P = 2%, S = 10 %, TQQ = 88%Â
Country C=Â Â Â Â Â
P = 15%, S = 45%, TQQ =Â 40%
VIX: Theories of Economic Development (Capitalist vs Socialist)
A)     Immanuel Wallersteinâs World Systems Theory (Dependency Model) (Liberal Approach)
             3-Level Global Hierarchy
1)     Core: USA, W. Europe, Japan, (most developed, MDC)
a.      They ârig the systemâ and exploitâŚ
2)Â Â Â Â Â Semi-Periphery: China, India, Latin Amer (developing)
a.      Exploited by Core, but also exploited periphery
3)Â Â Â Â Â Periphery: Africa (least developed)Â
a.      Exploited by 1 and 2
The Core-Periphery Model can be used at smaller scales to look at economic differences within countries and regions (ex: USA, Core: Coasts, Semi-Periphery: Great Lakes, Periphery: Appalachia
Solution:Â Â Wealth transfers and fairer trade deals
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B)Â Â Â Â Â Walt Rostowâs Model âLadderâ of Development (Conservative Approach)
             Societies progress through 5 Stages of Development
1)Â Â Â Â Â Traditional Society =Â most jobs are primary
a.      Poorest developing nations (Niger, South Sudan, Laos)
2)Â Â Â Â Â Preconditions for takeoff = transitional phase to early industrialization
a.      Nigeria, Kenya, Bangladesh, Guatemala
3)Â Â Â Â Â Takeoff = rapid growth; agriculture changes to large-scale and industrial, huge industrial/tech growth, most jobs in the secondary sector, but growth in tertiary sector
a.      China, India, Vietnam, Brazil
4)Â Â Â Â Â Drive to maturity = rapid tech growth;Â jobs moving out of secondary
a.      Russia, Poland, Saudi Arabia
5)Â Â Â Â Â Mass Consumption = most jobs are in TQQ sectors;Â high energy and tech use; outsourcing of industry and increased automation
a.      USA, Japan, Australia, South Korea
X: Global Resource Land Use
Oil:Â Most important energy resource
             OPEC: Organization of Petroleum Exporting Countries
The Cartel of developing nations was formed in 1960 with large oil reserves, mainly from the Middle East, but now includes some African states and Venezuela. Try and control supply and demand (seta price for oil)
Main Producers: USA, Saudi Arabia, Russia, Iran
Main Consumers: USA, China, EU
Natural Gas:Â heating cold regions
Main Producer: Russia, Canada, USA
Main Consumers: EU, USA
Coal: a cheap energy source but very polluting
             Main Producers: China, India, USA
             Main Consumers: China, India, USA
Forestry and Timber: building resource
             Main Producer: Canada, Russia, USA, Brazil, China
             Main Consumer:  China, USA
Fishing:Â food resource
             Main producer: China, Indonesia, India, Vietnam
             Main Consumer: China, Vietnam, Japan, USA
Alternative Energy Producers:
Hydroelectric: China, Canada, Brazil, USA
Solar: China, USA, Japan, Germany
Wind: China, USA, Germany, India
Nuclear:Â USA, France, China, Russia
Biomass: (high use in developing countries)
Geothermal: USA, Indonesia, Philippines
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Pollution:Â Â China, USA, India, Russia
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XI: Globalization:
             The term began to be used in the late 1990s and early 2000s to describe the rapid changes due to technology in the interconnectedness of the global community.
3 Main Forms:
1)     Economic: outsourcing and offshoring of production and services. Tech makes it easier, more efficient, and faster (eliminates the friction of distance)
2)Â Â Â Â Â Political:Â Supranationalism and increased multilateral organizations
3)Â Â Â Â Â Cultural:Â mass migration and immigration, and the internet connect more people to more places (McDonaldization)
Costs:
             Rise in pollution
             Rise in reactionary nationalism
             Loss of some jobs in richer nations
             Rise in energy use
             Rise in environmental degradation
Benefits:
             Rise in wealth in developing states
             Rise in life expectancy
             Rise in literacy and education
             Increased gender rights
             Increased democracy
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