UNIT VI: Economic Geography

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

Types of Industrial Production Fordist Production: Fordist Production: assembly-line industrial production for mass consumption (post-WW I) “Post-Fordist” Flexible Production: “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

U.S. Manufacturing Regions “RUST BELT”

Labor costs? outsourcing 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

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

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

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A. Describing development 1.world of rich & poor outdated names: 1 st, 2 nd, 3 rd, or 4th World today: Developed---Developing--- Underdeveloped or MDC---NIC---LDC geographic description: “North/South line”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

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

“Measuring’ Development Economic: “formal economy”: “formal economy”: legal economy (measured by GDP) “informal economy”: “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 subsistence farming early industrializing; LDC rapid industrialization MDC’s