Chapter 11: Industry By Andrea Yazbeck

Key Issue 1: Where Did Industry Originate? Industry: the manufacturing of goods in a factory When it began in the U.K. in the 1700s it began a process of change called the Industrial Revolution. The root of the Industrial Revolution was technology, that changed how goods were manufactured. Before the Industrial Revolution people were involved in home based manufacturing called the cottage industry system. As the I.R. grew more important inventions were created such as the Steam Engine (James Watt, 1769)

Key Issue 1: Where Did Industry Originate? (continued) Diffusion From Iron Industry: -Benefitted from invention of steam engine, it provided a practical way to keep ovens (used to make iron) stay constantly heated. -Iron then promoted the coal industry and then the engineering profession and that promoted transportation. -William Hedley demonstrated in 1812 that the steam locomotive could run on rails if the wheels had rims. Diffusion From Textile Industry: -Richard Arkwright improved the process of spinning yarn -Like iron, transformed from home based enterprises -Because the cotton cloth had to be bleached and dyed before it was made in to clothing the chemical industry grew. The chemical industry then helped promote food processing. Because workers who could not grow food or obtain fresh produce required preserved food. Diffusion from United Kingdom: -UK produced more then half the worlds cotton fabric and iron and mined 2/3 of its coal. Their production systems far outpaced the rest of the world. Then the IR diffused east word through Europe and westward across the ocean to North America.

Key Issue 2: Where Is Industry Distributed? Four Regions: Eastern North America, Northwestern Europe, Eastern Europe, and East Asia. North America: Compromises 5% of land area of these countries (U.S. Canada) but contains 1/3 of the population and 2/3 of the manufacturing output. Industrialized areas are New England, Middle Atlantic, Mohawk Valley, Pittsburgh-Lake Erie, Western Great Lakes, St. Lawrence Valley-Ontario Peninsula Europe: West industrialized areas are Rhine-Ruhr Valley, Mid-Rhine, UK and Northern Italy. East areas are Central, St. Petersburg, Eastern Ukraine, The Volga, The Ural, Kuznetsk Industrial districts and Silesia. East Asia: Most heterogeneous industrial region. Japan is one of the worlds wealthiest countries and china the most populous country.

Key Issue 3: Why Do Industries Have Different Distributions? Situation Factors involve transporting materials to and from a factory. Firm wants to minimize cost. Location near Inputs- If the weight and bulk of any one input is particularly great , the firm may locate near the source of that input to reduce transportation costs. Some examples are the copper and steel industries. They are bulk-reducing industries. Which is an economic activity in which the final product weighs less than its inputs. Location near Markets- The cost of transporting goods to consumers is a critical location factor for three types of industries :bulk-gaining, single-market, and perishable.

Key Issue 3; Situation Factors -A bulk-gaining industry makes something that gains volume or weight during production (soft drink bottling) -Single Market Manufacturers make products sold primarily in one location, so they cluster near their markets. (New York clothing stores) -Perishable products need to be delivered to consumers as rapidly as possible so they must be located near their markets. (dairy products) One last thing that companies have to decide is how they are going to transport their goods. They have to decide if it would be cheaper to ship something by rail, ship, air or truck. They also need to have a good break-of-bulk point, which is a location where transfer among transportation modes is possible and preferably inexpensive.

Key Issue 3: Why Do Industries Have Different Distributions Key Issue 3: Why Do Industries Have Different Distributions? (continued) Site Factors result from unique characteristics of a location. Land, labor and capital are factors that create a unique location. Land-Modern factories are more likely to be in suburban or rural areas because of the large amount of space. Also because the land would be cheaper. Labor- A labor-intensive industry is one in which labor cost is a high percentage of expense. For instance textile industries are examples of labor intensive industries the require less skilled, low-cost workers. Skilled workers are more likely to live in MDCs because of better education. While LDCs will tend to have less skilled workers because of cheap labor costs. -Fordist Production: worker is assigned one specific task to perform repeatedly. -Post Fordist Production: flexible work rules, Such as assigning a team of workers to perform a variety of tasks

Key Issue 3; Site Factors Capital-manufacturers need to borrow money to establish new factories and expand existing ones. - For example the motor vehicle industry started in Michigan due to that fact that there were many banks willing to loan money. - In Silicon Valley, California there were many banks willing to loan to technology companies and communication firms.

Key Issue 4: Why Do Industries Face Problems? Industrial Problems From A Global Perspective -Most basic problem on a global scale is a gap between the world demand for products and the world capacity to supply them. -And a higher industrial capacity has resulted in the desire by individual countries to maintain their production despite a global overcapacity.

Key Issue 4: Why Do Industries Face Problems? (continued) Industrial Problems in MDCs -Trading Blocs are groups of countries that cooperate trade. The three most important are the Western Hemisphere, Western Europe and East Asia. The problem with trading blocs is they sometime cause competition between countries and some trading blocs make trade barriers to restrict other regions from competing effectively. Another problem within trading blocs is in some regions industries are concentrated and sparse elsewhere.

Key Issue 4: Why Do Industries Face Problems? (continued) Industrial Problems in LDCs -Older problems in include distance from markets and inadequate modes of transportation, communication and equipment, tools and machines. Also a lack of trained employees. -Newer problems include a lack of raw material access and site factors. Transnational corporations use the New international division of labor which is the transfer of some types of jobs ,especially those requiring low paid, less skilled workers, from more developed countries to less developed countries

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