Chapter 11 Service and Industry Topics

==Deindustrialization==

]]Define]]

Deindustrialization is when companies move industrial jobs to other regions

{{Example{{

Great Lakes

The manufacturing belt in the Great Lakes region turned to the rust belt as secondary industrial activity was moved to the Sunbelt and Northwest

Deindustrialization in the Great Lakes regions happened because of

cheaper labor in the South (less skilled workers or less strong unions)
looser labor and environmental regulations in the South
decreased global demand for goods (Marshall Plan - as other places industrialized, U.S. factories shut down because they weren’t needed)
- Europe, SE Asia, E Asia, Japan, China, Singapore, Taiwan, S. Korea
more machines in the G.L. region leading to less need for workers

https://www.youtube.com/watch?v=HfASWPpeZLE

Youngstown

Deindustrialization also occurred in Youngstown, Ohio

https://www.youtube.com/watch?v=IKuGNt1w0tA

After the steel mill closed in the 1970s, it turned into a brownfield

abandoned homes
80% pop decrease
lost 40,000 jobs
1/4 of Idora neighborhood vacant
137 homes there demolished
8.8% unemployment
$30k homes

In turn, Youngstown redeveloped

rebuilt as a college town
- switch to tertiary activity
attract tech startup
400 new jobs
3D printing

}}Effects}}

The deindustrialized region switches to tertiary economic activities, works through unemployment, and may see brownfields

However, new industrial belts are created

Brownfields are sites of abandoned factories and vacant resident homes

old, torn down, vacant, residents lose jobs and move, environmental concerns, new people move in → crime

<<Locational Criteria<<

388-394 in textbook

Site features
- Land
- Labor
- Capital
Situation features
- In relation to other places
Variable costs
- Energy
- Transportation
- Resources
- Friction of distance: increased distance = increased time and costs

Industrialization’s heath was in Great Britain because of locational criteria

rivers, port city, ocean access, coal, highways
regional/global trade, colony resources
high wages incentivized the switch to machines

==Weber’s Least Cost Theory==

]]Costs]]

Transportation - the lowest possible cost of:

raw materials to the factory
finished products to the market

Labor

high labor reduces profits, so a factory might do better with cheap labor

Agglomeration

shared talents, services, and facilities

{{Bulk Gaining{{

The finished product weighs more than resources (beer, computers)

Because the resources are lighter, they are cheaper to transport and the finished product will be more expensive to transport

The factory will be closer to the market than the resources so the heavy finished products don’t have to travel far

}}Bulk Reducing}}

The finished product weighs less than resources (copper, paper)

Because the finished products are lighter, they are cheaper to transport and the resources will be more expensive to transport

The factory will be closer to the resources than the market so the heavy resources don’t have to travel far

==Economic Sectors==

]]Primary]]

Getting raw materials

Growing chickens, planting trees, fishing, lumber, coal mining

{{Secondary{{

Processing raw materials into finished products

Manufacturing, construction, processing

}}Tertiary}}

Activities or services that move, sell, or trade products

Retain and wholesale trade, bank teller, carpet cleaners, fast food workers, teachers, urban planners, hairdressers
Producer- services performed for corporations
- Finance, insurance, real estate, legal, accounting
Consumer- services performed for individuals
- Entertainment, tourism, restaurants, education, health care

Geography based on market access rather than energy

Quaternary

Information creation and transfer (a subset of tertiary)

information, research, management investment analysts, university reseachesers

Quinary

Highest level of decision-making (a subset of tertiary)

legislative, presidential cabinet, high-level government work

Tourism

Tourism- travel taken for recreation rather than business.
- Most important tertiary activity
- World’s largest private industry in jobs and total value generated.
- 10 % world’s GDP
- Half of world’s poorest 50 countries, leading service export sector.