Created by: Ben Thornton Marcus Mitchell

Key Questions Industrial Revolution Location Theory - Weber’sWeber’s - Hotelling’sHotelling’s - Losch’sLosch’s Major Industrial Regions Production Process Deindustrialized Regions China’s Industry Service Economy Bibliography

 Where did the Industrial Revolution begin, and how did it diffuse?  How do location theories explain industrial location?  How has industrial production changed?  Where are the main industrial belts in the world today and why?  What is the service economy, and where are services concentrated?

Key Question Where did the Industrial revolution begin and how did it diffuse?

Industrial production existed before Industrial revolution. Cottage industries and community workshops. Indian goods. Riots of Caused the colonial period. European takeover of Industry.

1. European Products were in high demand. 2. Industrial Revolution brought -New uses for energy sources. -New, efficient machines -New inventions 3. Colonial capital flow. 4. Funded trials and machines.

James Watt improved the Steam Engine These improvements took many decades. Matthew Boulton financed his experiments.

More things made of Iron – Iron Smelting Pouring molten iron into molds More uniform parts and more iron machines. USA – Henry Bessemer First cast iron bridge was in 1779.

Uses of New Inventions:  Pump Water out of Mines  Spin spools of thread  Power Looms  Create the Locomotive  Iron Railroad Tracks  Steam engine-powered ships.

Increased British influence. Old cities close to resources and ports. Railroad spread this out. Spread cities away from coalfields and ports.

Followed same spatial criteria. Industry flowed into North European Lowland A major belt of coal fields. High economic activity

Industry moved to urban areas London and Paris Both had little resources,so little industry. Both also had: A ready labor force Place to distribute goods Paris and London became Industrial hubs

Key Question How do locations theories explain Industrial Location?

Primary Activities are where resources are. Transportation and communication changed this. Relies on location theory. Can be affected by variable costs. Friction of distance theory – Farther away you ship the higher costs.

Alfred Weber Location for Secondary Manufacturing Theory of the Location of Industry (1909) Eliminated labor mobility and wage rates. Least cost theory Owner minimizing cost of: Transportation Labor Agglomeration

Harold Hotelling Locational Interdependence Ice cream vendors were used in theory. Each vendor competing for customers.

August Losch Maximize profit during locational analysis. He looked at customer demand and production costs. Businesses aim for the middle of the profit margins.

Western and Central Europe

North America

The American Manufacturing Belt

The Former Soviet Union

East Asia The Japanese Manufacturing Belt

Key Question How has Industrial Production Changed?

Production Process The Fordist production plan was pioneered by Henry Ford and suggested that production be done in a mass assembly line. Currently the world economy is in a post- Fordist system where goods are not mass produced and are dispersed around the globe

Time-space-compression This is the notion that some places in the world are more connected through communication and transportation than others. This has altered the division of labor by expanding the distance to a point of consumption

Economic Locations Most multinational corporations have moved to areas where taxes are low and labor is cheap. Research activities are located in the core where high education and access to technology are normal

Television The television production industry has the three elements of design, component manufacture, and assembly. The main manufacture and assembly of television has been moved offshore from the originating country

Influences on Geography of Manufacturing The newest influences on the geography of manufacturing include intermodal transportation, regional and world trade agreements, and energy availability.

Intermodal Transportation Efficient transportation systems enable manufacturers to purchase raw materials from distant sources and distribute finished products to widely dispersed populations

Regional and World Trade Agreements World trade agreements have set up quotas where imported goods can be produced. The World Trade Organization is pursuing a free trade which would severely affect the world economy.

Energy availability Fossil fuels dominate the energy use for corporations During the Industrial Revolution power plants were established near coal fields but now the plants stray away from oil rigs because of pipelines and tankers

Key Question Where are the Major Industrial Belts in the World Today and Why?

Countries are turning into a service economy through deindustrialization United States and Europe have large deindustrialized regions Politics, laws, capital flow, and labor availability are changed by deindustrialization

East Asia became the major industrial region after World War Two. The Pacific Rim has become a major industrial belt in the world today

China’s industrialization was encouraged by communists in 1949 China attracts companies with its low wages, tax regulations, and large cheap labor forces.

Northeast China is the heartland of industry – The second largest industry region in China is Shanghai which has contributed more to the world economy. China is steadily shifting their industry from the shores into its interior Most of China’s industry is either outsourced or offshore

Key Question What is the Service Economy, and Where are Services Concentrated?

Service industries developed when inflation began to rise. This crushed Fordist order and company changed the way they operate and the service economy was developed. Service industries employ more workers than primary and secondary industries combined.

In the midst of the early decades of the 20 th century tertiary industries were rapidly growing – Quaternary and quinary sectors grew over the course of the last three decades Mechanization, growth of technology.

Service Economy Over 75% of the world total manufactured goods output comes from east Asia, western Russia and Ukraine, west Europe, and North America Deindustrialization can only be obtained in areas that had industry

Sunbelt The Sunbelt is the southern region of the U.S.A. stretching from the Southeast to the Southwest The warm climate and local laws welcome companies to the Sunbelt The Sunbelt varies from steel, iron, cotton, and tobacco.

Influences on Location Advances in telecommunications and transportation have lessened the impact of market accessibility “back-offices” are where companies respond to costumers and other companies and stray away from a company’s headquarters

In many places there are areas of high technology industries. These areas are called technopoles. These can be found all over the world and are owned by the technology companies such as AOL, Telecom, and MCI. Most of these firms are multinational companies.