break of bulk points

badwaterreflectiveUrban and Civil

Nov 29, 2013 (3 years and 9 months ago)

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Industry and
Economic
Development

AP Human Geography

Keys to Economic and Industrial
Development


Some countries develop faster than other
countries


Some urban areas develop faster than other
urban areas


Why? Several reasons for economic success
and failure of countries/urban areas


Industrialization is a major component


Economic Systems are another important
factor

Economic Systems


Capitalism


the competitive market determines
the price of goods. Winners and losers and those
in poverty are ignored. Poverty is a huge debated
issue in capitalist countries


Socialism


government control of basic items.
Provides no incentive to work because
gov’t

provides social security for citizens


Communism


total government control of all
prices in society. No incentives to succeed,
gov’t

dictates profession based on assessment
of skills


Economic Success Factors


Environmentally Friendly Activities


can’t put
factories in middle of city to pollute water and air


citizens will complain, fines, etc.


Political Support


local politicians are important
to have on your side


Societal Acceptance


you must sell a product
that citizens approve of


Economic Support Base


worker training and
experience, also capital investment in buildings
and large equipment/vehicles

Geographic Factors


Geographic Factors contribute to industrial development in some
countries and keep others reliant on their agricultural sectors in
other countries.


Site Factors


internal characteristics of a place based on physical
features


Physical Characteristics


Situation Factors


relationship that a particular location has with
the location around it


Pittsburgh


ideal for steel because iron ore and coal come from
region


Detroit


ideal for cars, can export via Great Lakes and St. Lawrence
River w/ access to Atlantic


Basic Industries


focal point of the economy for a city


Nonbasic

Industries


secondary businesses that sprout up after the
city has established its basic industry


Industrial Factors


Industrial Factors are probably most important
in determining overall success of country’s
economy


Industrial Costs


Variable costs


fluctuate based on volume of the
order, businesses prefer this to encourage
customers to buy more (usually the more you buy,
the less the price)


Fixed costs


do not fluctuate based on the
quantity ordered


Transportation Systems


Transportation Systems


need low cost forms to ensure product gets to
market quickly


Time space compression


effort to increase the efficiency of time in the
delivery process by diminishing distance obstacles


Five Primary Forms of Industrial Transportation:


Trucks


highly mobile, efficient but can have weather delays and use fossil
fuels and have high maintenance costs


Trains


efficient, cost effective and can haul immense amounts long distances
but have inflexible routes and have
break of bulk points
where cargo
unloaded from one form of transportation to another


Airplanes


fastest way to transport, flexible routes but most expensive and
low fuel efficiency and weather delays


Pipelines


efficient for moving gas/liquid, safe but limited products and
expensive to build


Ships


most energy efficient, but slowest method, break of bulk points add
costs and weather dependent


Location of Industry


Agglomeration


centralization of features of an
industry for the mutual benefit of the industry as
a whole (shopping malls)


Manufacturing/Warehouse Locations


industrial
parks provide companies with tax breaks to
locate their plants at particular locations for
shared services


Cumulative Causation


continued growth due to
positive aspects of the principle


Deglomeration



market has become saturated
with a particular industry


Industrial Revolution


Industrial Revolution


mid 1600s, England,
allowed for more mechanization, speeding up
production process and allowing quantity and
quality to improve, major invention steam
engine


Weber’s Least Cost Theory


Alfred Weber


German economist, socialist in 20
th

century


described industrial location


Theory


company building an industrial plant needs to take
into consideration the source of raw materials and the
market for the product


Triangular


base consists of two raw materials necessary
for the production of the product


Weight Gaining Industry


finished product weighs more than
the raw materials


industrial production point needs to be
located closer to market to minimize transportation costs
associated w/ heavy product


Weight Reducing Industry


raw materials weigh more than the
finished product


industrial production point will need to be
located closer to raw materials (potato chips)


Foreign Production of Goods


Maquiladoras



industrial plants located in Mexico that produce good using relatively inexpensive
labor and then sell the products in the US for more profit than if the products were made in the US


Outsourcing


jobs from the US to less developed countries where companies can pay employees
pennies on the dollar


New International Divisions of Labor


global division of labor, 1960s, outsourcing jobs from more
developed to less developed countries to take advantage of cheaper labor costs


loss of
manufacturing jobs in developed countries and increase of employment opportunities in less
developed countries


Footloose Industry


company with no allegiance or ties to a country or location, therefore can
move its primary locations at will


done for tax purposes


Transnational Corporations


large companies that have offices or divisions around the world


Ubiquitous


product is available to consumers at any time and at any location around the world


International Division of Labor


individuals can specialize in their individual production


their
speed, efficiency, and quality increase thereby reducing costs


Fordism



each person on the assembly line doing a specific task to speed up the overall process
of production


Labor Intensive


agriculture, textiles


Sweatshops


poor working conditions


Manufacturing Exports


global economy of commerce, products being imported from Asia and less
developed countries

Global Industrial Zones


NE US/SE Canada


Russia/Ukraine


Central/Western Europe


East Asia


Treaty Ports


international ports that must be kept open for
international trade because of signing a treaty


Export processing zones


export goods made in China efficiently


Special Economic Zone


foreign companies locate their headquarters


Entrepots



areas where trade goods are brought to be reloaded onto
other forms of transportation


Four Asia Tigers (Dragons)


Hong Kong, South Korea, Taiwan, and
Singapore


Complementary


both sides benefit


Two Views of Economic Development


Optimistic Viewpoint


allowing capitalistic forces the
ability to enter countries and get resources to the areas
that need them, at the same time profiting from their
investments


Pessimistic Viewpoint


inaccessibility of resources as a
serious challenge and addresses three primary concerns


Distribution of resources doesn’t correspond to demand for
them


Less developed countries may not be able to achieve critical
mass to start a cycle of economic growth


Investment is not allocated equally around the globe but rather
is concentrated in only a few locations


Foreign Direct Investment


a company located in one
country enters the economy of another country

Ways to Describe Development


Development


continued progress of a society in all areas (demographics,
economics, social, etc)


Human Development Index


Pakistani economist,
Mahbub

ul

Haq



characteristics of development affect all members of the human race
regardless of culture


Life Expectancy


how long you live, relatively high is 60
-
70, women live longer
than men


Biologically stronger? Young men engage in high risk behaviors? Men have more stress?


Literacy


percentage of population that can fluently read and write, ability to
use language to communicate


Developed 99%, many African countries less than 30%
-

huge stress on
gov’t

-

low
skilled labor inhibits economic growth


Education system is key


Education


workers are more productive, increases productivity of society as
a whole


Brain drain


talented youth in less developed countries receive scholarships to schools
outside the country and don’t come back to initiate development in the area


Standard of Living


measure of wealth or enjoyment that one experiences


Ways to Describe Development


Physical Quality of Life Index


David Morris developed
instead of gross domestic product, puts factors of
Human Development Index on a scale from 0
-
100


Determine the literacy rate for country


Subtract infant mortality rate from 166 and multiply the
result by 0.625. this is the indexed infant mortality rate


Subtract 42 from the life expectancy and multiply the
result by 2.7. this is the indexed life expectancy rate


Add together the literacy rate, indexed infant mortality
rate, and life expectancy rate and divide that sum by 3


Economic Data Indicators


Ways to Describe Development


Economic Data Indicators


GNP and GDP


Gross Domestic Product


selling value, or market
price, of all the goods and services produced within a
particular country’s borders, typically in a given year


Gross National Product


value of the goods and
services produced by that country’s companies,
usually within a year


Gross Domestic Product Per Capita


total amount of
goods and services produced in a country divided by
the total population of that country


end result is the
average person’s production in their country for a
particular year



Ways to Describe Development


Economic Sectors


where the majority of people
work in their economy


Primary Economic Sectors


basic activities


farming,
industries extract resources from the earth (timber,
fishing, minerals, soil, etc)


Secondary Economic Sectors


use materials from
primary industries to manufacture a product for
purchase


Tertiary Economic Sectors


sell the products from the
secondary economic sectors and provide services


Ways to Describe Development


Expendable income


amount of money left over
after all the bills have been paid


Technology gap


some people have more
technology than others, some people know how
to use it while others do not


Technology Transfer Process


amount of time
that it takes a new technology to leave the
laboratory and arrive on shelves for citizens to
purchase


Raw materials


who owns the rights to and the
profit from raw materials

Ways to Describe Development


Demographic Statistics


can determine
whether a country is more developed or less
developed


Gender Balance


equal opportunities for women
and men to succeed


Birth Rate


less developed countries have a much
higher birth rate that more developed countries


Additional Development Theories


World Systems Theory


Immanuel
Wallerstein
, coined phrases in
analysis


Core Areas


more developed countries, which use the resources of
the periphery to continue their success


Periphery Areas


less developed countries, lack of investment by the
more developed countries continues to keep these countries in
poverty


Semi
-
Periphery Areas


gaining in development and have some of the
benchmarks of success but are still lacking the political importance
associated with the core countries


World Cities


major urban centers serve the core area based upon
their financial and cultural importance in their areas


Dependency Theory


some countries are allowing themselves to
remain in poverty as a whole to obtain some other type of economic
power, usually for an elite class


leadership hording economic
resources for themselves while majority of the population is struggling


Additional Development Theories


Core Periphery Model




Industrial core


where the majority of manufacturing
or industrial activities of a nation or a city are located


Upward transition


gaining jobs and attracting
industry, business incentives may include tax breaks
and agglomeration


Downward transition


companies are leaving,
unemployment rates are high


Resource frontier


provide the majority of resources
for the industrial core



Growth Models of Development


Rostow’s

Model of Development


Walt Whitman
Rostow

(Take Off Model)


Traditional society


majority of workforce is involved in
primary sector of economy
-

farming


Preconditions for takeoff/transitional stage


material
conditions improve (transportation, infrastructure, etc)


Takeoff


companies become involved in manufacturing
sectors


Drive to maturity


technology now being diffused and
integrated into all areas of manufacturing sector


Age of mass consumption


workers become highly skilled
in their professions and are using their strengths for the
overall benefit of the economy


Growth Models of Development


Richard Nolan’s Stages of Growth Model


Initiation


technology is used sparingly and primarily for data
processing


Contagion


technology begins to spread


Control


management is more frustrated w/ use of technology
because employees don’t necessarily have the training or hardware to
maximize their productivity with new software


Integration


users have come to terms w/ technology and found
practical uses for it


Data Administration


technology is used mostly in the collection and
storage of data


Maturity


new uses for technology are being integrated into the
workplace


Neocolonialism


less developed countries are still economically
dependent upon the more developed countries