UNIT VI: Economic Geography

Core-Periphery Model Core: Periphery: Semi-periphery: -developing -wealthy -industrialized -MDC’s U.S., W. Europe, Japan Periphery: -poor -unindustrialized -LDC’s -the most exploited Semi-periphery: -developing -newly industrializing (NIC) China, India, Mexico, Brazil, Russia

Wallerstein’s World-Systems Theory: global core & periphery countries

Types of Industrial Production Fordist Production: assembly-line industrial production for mass consumption (post-WW I) “Post-Fordist” Flexible Production: “post-Fordist” multi-national producers can move production sites through outsourcing (post-WW II) -role of technology?

Textiles Production: Liverpool and Manchester Iron Production: Birmingham Coal Mining: Newcastle

Why is Detroit located where it is?

U.S. Manufacturing Regions “RUST BELT”

Labor costs? outsourcing: to relocate from higher-cost locations to lower cost Why make Nike shoes in Vietnam? 3 cents per shoe…

WHO “outsources”? multinational (or transnational) corporations: research, factories, & sell products globally

McDonald’s sales in 2003 ($41 bill McDonald’s sales in 2003 ($41 bill.) greater than the GDP of Afghanistan ($21 bill.)…is this good or bad?

deindustrialization: manufacturing jobs shifting from MDC’s to developing countries The former Gautier rolling mills of Bethlehem Steel Corp. in Johnstown, PA Abandoned street in Liverpool, England

global division of labor: labor pool drawn around the world (cheaper resources & labor in the periphery countries) just-in-time delivery: short-term production & quick shipping

Supranational Organizations: 3 or more states form an alliance for: -military (NATO) -economic trade (E.U., NAFTA, WTO) -political (U.N.)

Regional Scale – The European Union

**How many points?

Location Theories Locational Theories: predicting where business locates 1. Weber’s Model 2. Hotelling’s Model

Weber’s Least-Cost Theory: transport costs (“optimum point of production”) labor costs

Hotelling’s Model (“locational interdependence”): location dependent on other businesses

agglomeration economies: clustering of firms - Silicon Valley in California (“technopole”) - Bangalore, India (Bollywood) - maquiladoras on the Mexican border (over 3,000 factories) - Export Processing Zones (EPZs); Special Economic Zones (SEZ’s)

Concepts of Development

A. Describing development world of rich & poor outdated names: 1st, 2nd, 3rd, or 4th World today: Developed---Developing---Underdeveloped or MDC---NIC---LDC geographic description: “North/South line”

The Brandt Line: distribution of MDCs & LDCs

Newly Industrialized “Pacific Rim” East Asia South East Asia

Major Manufacturing Regions of East Asia

old neighborhoods are destroyed to make room for new… Beijing, China

Four Asian Tigers South Korea Hong Kong Tiawan Singapore     Hong Kong     South Korea     Singapore     Taiwan

“Measuring’ Development Economic: “formal economy”: legal economy (measured by GDP) “informal economy”: the illegal or uncounted economy Noneconomic: Education Public Services (access to clean water; sewage) Health Services (doctors per person)

Rostow’s Economic Modernization Theory *assumes countries go through stages of development MDC’s rapid industrialization early industrializing; LDC subsistence farming

Dubai 2000

Dubai 2010