WORLD GEOGRAPHY December 2, 2014

Today Unit 9 (Industry and Service – Economic Geography)

Unit 9 – Industry and Services Aspects to be examined: - Industrial Revolution (origins and diffusion) - Location theories and industrialization - Changes of industrial production - Modern industrial belts - Service economy

Flow of Capital into Europe, 1775

Industrial Revolution - Origins - Textiles: Liverpool, Manchester - Iron: Birmingham - Coal mining: Newcastle

Diffusion of the Industrial Revolution Mainland Europe: Early 1800s Location criteria: - Proximity to coal fields - Connection via water to a port - Flow of capital

Diffusion of the Industrial Revolution Later: Late 1800s Some regions without coal Location criteria: - Access to railroad - Flow of capital

Diffusion of the Industrial Revolution

Location Theories: Explaining Industrial Location Weber’s Model Manufacturing plants will locate where costs of transportation, labor, and agglomeration are the least Theory: Least Cost Theory Hotelling’s Model Location of an industry cannot be understood without reference to other industries of the same kind Theory: Locational Interdependence Losch’s Model Manufacturing plants choose locations where they can maximize profit Theory: Zone of Profitability

Location Theories: Weber’s Model Least Cost Theory Manufacturing plants will locate to places with lowest costs of: - transportation - labor - agglomeration

Location Theories: Weber’s Model Least Cost Theory Transportation: - the site chosen must ensure lowest possible cost of: a) moving raw materials to the factory b) finished products from the site to the market - Most important aspect, according to Weber

Location Theories: Weber’s Model Least Cost Theory Labor: - higher labor costs reduce profits, thus, a factory may be better served located farther from raw materials and the marketplace is cheap labor is available. (e.g. China, S-E Asia today)

Location Theories: Weber’s Model Least Cost Theory Agglomeration: - When a large number of enterprises cluster (agglomerate) in the same area (often a city) - Can provide assistance to each other through shared talents, services, facilities. E.g. accounting

Location Theories: Hotelling’s Model Locational Interdependence Location of an industry cannot be understood without reference to other industries of the same kind. E.g. ice cream salesmen on a beach

Location Theories: Losch’s Model Zone of Profitability Manufacturing plants choose locations where they can maximize profits

Major World Industrial Regions Before 1950 Main determinants: - Near raw materials - Transportation

Major World Industrial Regions Before 1950 However, additional needs: - Goods and capital - Political circumstances - Economic leadership - Labor costs - Levels of education and training

Flow of Capital into Europe, 1775

Major World Industrial Regions - Western & Central Europe - Eastern North America - Russia and Ukraine - Eastern Asia  Each region tends to have one or more core areas of industrial development

Diffusion of the Industrial Revolution

Western and Central Europe 50% of all goods entering Europe through Rotterdam and Amsterdam

Major deposits of fossil fuels in North America

Major manufacturing regions of NA In north east, U.S. industries located along the coast for iron import agglomeration

Major manufacturing regions of NA New York: -break-of bulk point

Major manufacturing regions of NA Today: deindustrialization “the rust belt”

Major manufacturing regions of Russia

Major Manufacturing Regions of E. Asia Kanto Plain: Japan’s main industrial region - Almost 100% need for imported oil in Japan

How Industrial Production Has Changed Fordist : Dominant mode of mass production during the twentieth century, with production of consumer goods at a single site  Major focus was on the assembly line

How Industrial Production Has Changed Post-Fordist : Current mode of production with more flexible production practices. - Goods not mass produced - Production accelerated and dispersed around the globe - Multinational companies that shift production, outsourcing it around the world  Global Division of Labor

Time-Space Compression Improvements in transportation and communications technologies (distance is much less important) Many places in the world more connected than ever before

Next Class - Finish Unit 9 - Introduce Unit 10 (Human Environment)