Industry Chapter 11

Origin and Diffusion of the Industrial Revolution The Industrial Revolution- new social, economic, and political inventions Diffusion of the Industrial Revolution Diffusion from the iron industry Coal, engineering, transportation Diffusion from the textile industry Chemicals, food processing Diffusion from the United Kingdom Belgian, Italy, U.S. Political instability led to the slow diffusion in Europe

World Industrial Regions North America Industrialized areas in North America New England, Middle Atlantic, Mohawk Valley, Pittsburgh-Lake Erie, Western Great Lakes and St. Lawrence Valley-Ontario Peninsula Changing distribution of U.S. manufacturing Declined in N.E but grew in S.E because of cheap labor, no unions Europe Western Europe Rhine-Ruhr Valley, Mid-Rhine, U.K. and Northern Italy Eastern Europe Central Industrial District, St. Pete, Eastern Ukraine, Volga, Urals, Kuznetsk and Silesia

World Industrial Regions East Asia Most heterogeneous industrial region China has natural resources but not Japan or other E. Asian countries E. Asia used its large labor force to compete in world market Japan produced a large, skilled workforce to produce cheap, high quality products China is a major exporter of steel and textiles Japan’s concentration of industry is between Tokyo and Nagasaki China’s concentration is Hong Kong, Yangtze River (Shanghai and Wuhan) and Gulf of Bo Hai (Tianjin, Beijing and Shenyang)

Industrial Location Situation factors-transportation Location near inputs because of weigh or bulk to reduce transportation costs Copper and Steel are examples Location near markets Bulk gaining- Soft drinks, scotch, TVs, refrigerators and automobiles Single market- products are manufactured near market “Just in Time” Perishable- Bakers, milk, newspapers, Transportation choices-Ship, Rail, Truck or Air Must consider distance, load and unload, warehouses Trucks for short distance and Trains for longer distances Air is the most expensive but useful for high value packages Break of bulk points allows for multiple modes of transportation

Industrial Location Site factors-location near markets and break points more important than location near materials Land Land is cheaper outside of urban areas Industries are attracted to location near energy sources or amenities Labor Location is dependant on the amount of labor needed and cost of labor Textile industry may have multiple locations due to the type and cost of labor needed and location of input Capital The ability to borrow money greatly influences the location of industry Automobiles, Silicon Valley and LDC development Obstacles to optimum location Footloose-due to technology Corporate goal versus maximum profit

Industrial Problems Global perspective More developed countries Stagnant demand, market saturation and technology has caused demand to decrease while production increases Increased capacity through global diffusion of Industrial Revolution has led to overproduction (steel) More developed countries Trading blocs- W. Hemisphere, W. Europe and E. Asia Within these blocs, countries cooperate in trade NAFTA, European Union Disparities within trading blocs European Regional Development Fund Transnational corporations Operates factories in countries other than where the headquarters are located Japanese transnational corporation in U.S.

Industrial Problems Less developed countries Industrial development can raise the value of exports and help the country to buy products or re-invest in the country Old problems for LDCs Distance from markets- hurts global participation in markets Inadequate infrastructure- lack of transportation, communication, factories, universities New problems for LDCs Access to raw materials helps attract transnational corporations Site factors like cheap labor attract transnational corporations New international division of labor