Industry: Introduction and Industrial

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8 Νοε 2013 (πριν από 3 χρόνια και 11 μήνες)

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Industry: Introduction and Industrial
Revolution


Nike example: management and research
(core) vs. production (periphery)



India, China, Japan established industrial
base long before Europe


Colonialism allowed Europe to gain control of
India’s (and other places’) raw materials and
markets


Britain needed mass production to be able to
flood colonial markets with cheap goods

Industry: Industrial Revolution


First steps in Industrial Revolution:


1. Improve machinery


2. New uses for energy sources: using coal to produce
smelt iron and cast iron


James Watt and steam engine: railroads and steam
ships (gave Great Britain advantage)


Prior to railroad, manufacturing centers close to coal
fields and connected to ports


North
-
central England and major coal belt through
mainland Europe (
e.g
., Ruhr area of Germany)


Railroad expanded industrialism to London and Paris
(large markets, labor force, capital flow)


Diffusion of Industrialism


Primary Industrial Regions by 1950s


1.
North America
: started in northeast; large coal
deposits; ability to acquire overseas raw materials


2.
Russia and Ukraine
: St. Petersburg region
historically the center; after USSR, Ukraine
annexed (coal rich)


3.
East Asia
: Japan imported raw materials from
colonized Korea, Taiwan, China; Kanto Plain and
Kobe
-
Kyoto
-
Osaka

Changes in Industrial Production


Early 20
th

Century


Fordist

production: supported by political
-
economic structures and financial orders


Assembly
-
line production


Machines replaced people


Vertical integration
: same

firm owns numerous

companies in commodity chain

Changes in Industrial Production


Friction of distance
: increased time and cost
with distance (NC and furniture example)


Alfred Marshall: industrial clusters
(localization)


Alfred Weber:
Where

industries cluster


Least cost theory
: transportation, labor,
agglomeration

(cluster of support businesses)

Changes in Industrial Production


Post
-
Fordist: globalism, decreased transportation


Flexible production systems
: components are
made in different global places and brought back
together


Commodification
: goods gain a monetary value
and enter the market


Product life cycle
: changes in production of a
good over time (TV example)


Three elements of production: R&D, components
manufacturing, assembly

Global Division of Labor


Global division of labor
: R&D in core, labor in semi
-
periphery/periphery, nothing permanent


Time
-
space compression
: changes in transportation
and communication accelerated the pace of change
and made distance less of a factor


Just
-
in
-
time delivery
: inventory management; keep
enough for short
-
term production, quick shipping


Spatial fix
: movement of production based on cost
advantages (
e.g
., opening of special economic zones)


Outsourced / Offshore
: production steps outsourced
to suppliers (offshore if in foreign country)


Mass consumption still in core


Global Division of Labor


In global division of labor, greatest benefits go
to management/R&D/stockholders


Product’s
afterlife
: recycling, components,
environmental damage

Contemporary Global
Manufacturing


Transportation
: cost lowering, wider
dispersion of consumers


Availability of transportation alternatives
(
intermodal connections
)


Container innovations


Regulatory Circumstances
: international trade
organizations (WTO), free trade, anti
-
quotas,
anti
-
protectionism (Neoliberalism, special
economic zones,
etc.
)

Contemporary Global
Manufacturing


Energy
: coal to gas and oil


Dependence on foreign fuel supplies (U.S.,
Europe, Japan); use of tankers and pipelines


U.S. oil production dwarfed by consumption;
pressures for offshore drilling

New Centers of Industry


Deindustrialization in core areas has led to
new industrializing countries
(
NICs
)


East Asia
: Japan, Four Tigers (Korea, Taiwan,
Hong Kong, Singapore


Hong Kong is
break
-
of
-
bulk point
: good
transferred from mode of transport to another

New Centers of Industry


China
: planned from start of revolution


Large labor, low wages, SEZs, force attracts
international companies


Parts of China are deindustrializing (Rust
Belt), manufacturing moving to interior;
world’s largest exporter


Wider World
: BRICS (semi
-
periphery)

Deindusrialization


Led to rise in
quaternary

(finance,
administration, computer services) and
quinary

(research, higher education) industries in core
countries


Wealthier countries most successful at
postindustrial economies and still dominate
manufacturing


Rust Belts: Northeast U.S., British Midlands,
parts of Eastern Europe


Sun Belt: southern U.S., California, financial
industries, high
-
tech

New Patterns of Economic Activity


Energy and market accessibility not as important to
service industry


Tertiary services
in transportation and communication
tied to both production and consumption (but don’t
have to be close to either)


Restaurants and retail must be close to consumers


Quaternary services

in can be close to (retail banking)
or far from (technical help centers) costumers


Quinary services

near government, corporations, or
universities

New Patterns of Economic Activity


High
-
Technology Clusters: SEZ with high
-
tech
infrastructure that provides high
-
tech jobs
(Silicon Valley)


Growth pole
: cluster that attracts businesses
and spurs growth in nearby areas


Technopole
: agglomeration of tech
companies


Often near airports


Economic benefits, environmental harm

New Patterns of Economic Activity


Tourism
: transformed communities
(downtowns, ports, theme parks, beaches)


Service industry vulnerabilities:


tourism / natural disasters


jobs lost to mechanization (travel agencies /
Internet)


Globalism and global economics: decisions
made far away affect local areas (housing
crisis)