Location Location Decision Transportation Additional Factors Industry & Location Location Location Decision Transportation Additional Factors

Industrial Revolution Revolution in power & transportation Steam engine Location no longer contingent on running water Cheaper power = production increased Goods, ideas, humans were transported Stable governments/economies Modern industry increased, inequality at global, national, and regional scales increased with it

Industrial Revolution Hearth Fig. 11-3: The Industrial Revolution originated in areas of northern England and southern Scotland. Factories often clustered near coalfields.

Rapid diffusion of industrialization moved eastward some regions developed because of vast quantities of raw materials (Saxony, Ruhr, Silesia) others developed as centers of urban markets (Paris and London)

Economic Geographic Models Assume: 1- People will try to maximize their advantages over competitors 2- They will want to make as much profit as possible 3- They will take into account variable costs – energy, transportation, labor Primary industries: location is determining factor Secondary industries: less dependent on resource location- raw materials can be transported if necessary Friction of distance: the increase in time and cost that usually comes w/ increasing distance Distance decay: the impact of a function or activity will decline as one moves away from its point of origin

Manufacturing Centers in Eastern Europe and Russia Fig. 11-5: Major manufacturing centers are clustered in southern Poland, European Russia, and the Ukraine. Other centers were developed east of the Urals.

Transportation and Location Bulk Reducing Industries: Economic activity in which the final product weighs LESS than its inputs or has less volume than its inputs. Copper, steel, other metals Cotton/linen Soy/corn/vegetable oil Bulk Gaining Industries: Economic activity in which the final product weighs MORE than its inputs or has greater volume. Beer/soft drink bottling Fabricated goods (TVS, refrigerators, Washing machines) Cars

Weber’s Least-Cost Theory (1909) Least Cost Theory- location of industry took into consideration Transportation: site chosen has lowest possible cost of moving raw materials to factory or finished products to market Labor: higher wages = lower profit margin- How much education/training is needed? Further away with cheap labor > added transportation Agglomeration: substantial # of enterprises cluster in one area- they benefit each other through shared talents, services, facilities (too much can lead to high rents & wages, circulation problems)

Manufacturing Centers in East Asia Fig. 11-7: Many industries in China are clustered in three centers near the east coast. In Japan, production is clustered along the southeast coast.

Copper Mine in Arizona The Lavender Pit Copper Mine in Bisbee, Arizona operated between 1951 and 1974.

Site and Situation Factors Result from the unique characteristics of a location Land, labor, and capital are the three traditional production factors Is it LABOR INTENSIVE? Climate, topography, recreational activities, cost of living, and suitability for construction New businesses need investors Situation A firm seeks a location that minimizes the cost of transporting inputs to the factory and to the consumers Proximity to inputs (copper and steel) Proximity to markets (pop) Perishable products

Labor Cost per Hour MDCs and LDCs Fig. 11-22: Hourly wages can be under $1 in many LDCs compared to well over $10 in many MDCs.

U.S. Clothing Production 1994 - 2005 Fig. 11-23: The percent of U.S. made clothing has declined sharply since the 1990s while imports have increased.

Hotelling’s Beach Locational interdependence: industries can’t be understood without reference to the location of other like industries Only one variable: Maximize sales Vendors will agglomerate to enlarge their markets Eventually people sought a ZONE of profitability

Distance Decay- decreases profits Distance Decay- decreases profits August Lösch Profit-maximization: firms will identify a zone of profitability (not just a point) Other businesses can come in and change the configuration of that zone – negative of agglomeration Agglomeration can give the entire area a competitive advantage – positive b/c image will lead people to come from distant places to acquire products being sold

Chevrolet Assembly Plants, 1955 Fig. 11-12a: In 1955, GM assembled identical Chevrolets at ten final assembly plants located near major population centers.

Chevrolet Assembly Plants, 2007 Fig. 11-12b: In 2007, GM was producing a wider variety of vehicles, and production of various models was spread through the interior of the country.

Motor Vehicle Parts Plants Fig. 11-13: U.S.-owned parts plants are clustered near the main final assembly plants. Foreign-owned plants tend to be located further south, where labor unions are weaker.

Deindustrialization of the developed world Labor and land costs increase- pushing manufacturing and industry to other parts of the world Singapore, Hong Kong, Taiwan, India, Brazil, Mexico, Guangdong Province