Review of Industry Labor vs. Capital Heavy vs. light

Labour vs Capital Intensive VS.

Heavy vs. Light Industry

Section Review Which type of industry requires a lot of person hours to produce the product? Which type of industry requires a lot of machinery to produce the product? Which type of industry produces a product intended for the everyday consumer? Which type of industry Produces a product that is used by other industry? Is the pop industry heavy or light industry?

Section Review Which type of industry requires a lot of person hours to produce the product? LABOR INTENSIVE Which type of industry requires a lot of machinery to produce the product? Which type of industry produces a product intended for the everyday consumer? Which type of industry Produces a product that is used by other industry? Is the pop industry heavy or light industry?

Section Review Which type of industry requires a lot of person hours to produce the product? LABOR INTENSIVE Which type of industry requires a lot of machinery to produce the product? CAPITAL INTENSIVE Which type of industry produces a product intended for the everyday consumer? Which type of industry Produces a product that is used by other industry? Is the pop industry heavy or light industry?

Section Review Which type of industry requires a lot of person hours to produce the product? LABOR INTENSIVE Which type of industry requires a lot of machinery to produce the product? CAPITAL INTENSIVE Which type of industry produces a product intended for the everyday consumer? LIGHT INDUSTRY Which type of industry Produces a product that is used by other industry? Is the pop industry heavy or light industry?

Section Review Which type of industry requires a lot of person hours to produce the product? LABOR INTENSIVE Which type of industry requires a lot of machinery to produce the product? CAPITAL INTENSIVE Which type of industry produces a product intended for the everyday consumer? LIGHT INDUSTRY Which type of industry Produces a product that is used by other industry? HEAVY INDUSTRY Is the pop industry heavy or light industry?

Section Review Which type of industry requires a lot of person hours to produce the product? LABOR INTENSIVE Which type of industry requires a lot of machinery to produce the product? CAPITAL INTENSIVE Which type of industry produces a product intended for the everyday consumer? LIGHT INDUSTRY Which type of industry Produces a product that is used by other industry? HEAVY INDUSTRY Is the pop industry heavy or light industry? LIGHT

World Geo 3200/3202 April 2011

Outcomes Examine the influence that site conditions and situation may have on the location of an industry. (a) Compare the terms resource-oriented industry and market- oriented industry. (k) Analyze the influence of weight-gain and weight-loss production on the location of an industry. (a) Describe the advantages of the agglomerating tendency. (k) Identify the characteristics of a labour force that make it attractive to industry. (k) Explain how government subsidies on transportation influence the location of a given industry. (k) Draw conclusions about patterns in the distribution of highly industrialized areas on the earth’s surface. (a)

Introduction This section looks at the factors that determine the location of industries. For example Industries that rely on heavy raw materials are located close to the raw resource & are referred to as resources oriented industries. While the last section looked at ways of classifying industries this is yet another way industries can be classified.

Factors Affecting Location of Industry A. Site/physical Factors B. Human-based Cost Factors C. Government Influence

A. Site/Physical Cost Factors Three major factors of site (physical location) Proximity to raw material. Heavier & bulkier the raw material the closer the industry will be located to reduce transportation costs. Land: price, level, good drainages, dense well-settled soil Energy: not as important a factor today due to our ability to transport power long distances.

Resource Oriented Industry Industries that are located close to the resource because it is to heavy/bulky to transport Communities frequently spring up around resource industries. Labrador City, Churchill Falls, Grand Falls-Windsor and Bonavista are good examples. Can you think of other examples?

B. Human-based Cost Factors Market Oriented Industry Market vs. Resource Oriented Industries Agglomerating Tendency Industrial Parks Labor force characteristics that attract business

Market Oriented Industry Industries that are located close to the market because the product is expensive to transport. The resources are not bulky or expensive to transport. The Soft drink industry is a good example.

Market Oriented vs. Resource Oriented As we examine the influence of “weight gain” & “weight loss” on the location of industry we see that if the product weight is greater (weight gain) than the input resources it is located near market. Conversely if product weight is less (weight loss) than the input resources it is located near resource.

Agglomerating Tendency Agglomerating tendency refers to the tendency for factories producing related products to locate close to each other for mutual benefit. Ex. Car factory & tire factory. How does each benefit by being located close to each other?

Industrial Parks Industrial parks provide many advantages for a business. Existing infrastructure of roads, on & off ramps to highways, large lots, sewer, ample electricity, & close location to related industries make industrial parks attractive for manufacturing businesses. Donovan’s Business Park, Mt. Pearl, is a local example. It is the major truck terminal for the region & the province

Industrial Parks

Labor Force Characteristics that Attract Business Wages expected: lower wages in some developing countries like Mexico, and the Philippines attract manufacturers Training: highly skilled labourers can attract businesses that require welders, mechanics, carpenters etc. Benefits (EI, Pensions etc): lower costs of employment insurance, pensions, etc. can attract business just as easily as low wages. Availability: a high unemployment rate might attract business, especially if large numbers of workers are required.

C.Government Influence 1. Transportation subsidies affect the location of industry. Subsidies allow businesses to locate farther from the resource. Subsidies allow governments to encourage industry in rural areas. Examples: ice breakers in Botwood; roads in Labrador; cost of coastal transportation in Labrador; cost of crossing the Gulf.

Government Influence 2.Tax breaks affect the location of Industry. Provinces like Newfoundland have attempted to attract business by offering tax breaks. The company obtains a financial break while the province gets the advantage of putting people to work.

Industry Location: The Global Picture Look at figure 13.6 on page 223 of your text book. The highly industrialized areas on the earth's surface are concentrated in 4 definite regions: North America Western Europe Japan Australia Do you see any other patterns?

5.3 Review Which type of industry is located close to the resource? RESOURCE ORIENTED Which type of industry is located close to the market ? MARKET ORIENTED Are weight gain industries market oriented or resource oriented? MARKET ORIENTED Are weight loss industries market oriented or resource oriented? RESOURCE ORIENTED

5.3 Review Proximity to resource is one physical factor of site that affects the location of industry. What is another physical factor affecting location of manufacturing industry? COST / FLATTNESS / GOOD DRAINAGE/ STABLE What term is given to the phenomenon that related businesses tend to locate close to each other? AGGLOMERATING TENDANCY Name two ways government can influence the location of industry. TRANSPORTATION SUBSIDIES & TAX BREAKS

5.3 Review What name is given to sites in a community that are good for industry because of existing infrastructure of roads, on ramps and off ramps to highways, large lots, sewer, ample electricity, and close location to related industries. INDUSTRIAL PARK Name the four regions of the world that are highly industrialized with high wages. NORTH AMERICA, WESTERN EUROPE, AUSTRALIA, JAPAN

Case Study Read the case study "Human and physical factors in Japan's Car Industry" on pages Complete questions #18 & 19 on page 228 of your text book.