term for the social and economic changes in agriculture, commerce, and manufacturing resulting from technological innovation and specialization in the late 18th c. Europe.
industry in which the production of goods and services is based in homes (not factories); specialty goods (assembled individually or in small quantities) are often produced in this manner.
industry with actual stores in which trade or retail occurs; doesn't solely exist on the internet.
industry in which the cost of transporting both raw materials and finished product is not important for the location of firms
web-based economic activities
Primary vs. secondary industrial location
(comparative- vs.)Von Thünen only had to deal with primary industries, which are obviously located adjacent to the natural resources (farming, ranching,...). Secondary industries are less dependent on resource location; they deal with more variable costs such as energy, transportation, and labor.
Ullman's conceptual frame
Edward Ullman proposed that trade was an interaction based on three phenomena
when two regions, through trade, can specifically satisfy each other's demands.
presence of a nearer opportunity diminishes the attractiveness of sites farther away.
the ease (or difficulty) in which a good may be transported from one area to another.
Least cost theory
Alfred Weber described the optimal location of a manufacturing firm in relation to the cost of transportation, labor, and advantages through agglomeration.
(bulk reducing) if the finished product costs less to transport, the firm will be located closer to the raw materials to reduce cost.
(bulk gaining) if the finished product costs more to transport, the firm will be located closer to the market to reduce cost.
losses in one area may be offset by savings in another (e.g., higher labor costs could be offset by lower taxes).
(dealt with locational interdependence) the location of industries can't be understood w/o reference to the location of other industries of like kind; two similar vendors would locate next to each other in the middle of a market area to maximize profit (or beach/street as his model suggests).
(author's name) (zone of profitability) firms will identify a zone of profitability (not just a point) where income will outpace costs.
Factors of industrial location
the numerous costs that are considered; some costs are transportation, labor, agglomeration, market, energy, terrain, climate, personal preference, the product itself, ...
Primary industrial regions
represent the strongest (and mostly the original) industrial zones (all in the Northern Hemisphere):
Eastern North America
strongest and most dominant since WWII
Western and Central Europe
oldest and highly urbanized
Russia and Ukraine
massively developed under communism (only primary region abundant in oil & natural gas)
The following statement deals with things that occurs in _______: Japan's dominance is being challenged by China (dominant in terms of low cost mass production) and the "Four Tigers" (South Korea, Hong Kong, Taiwan, and Singapore)
Secondary industrial regions
states and regions that have been intensely developing and urbanizing in recent decades; typically represent more semi-peripheral economies (e.g., Mexico, Brazil, South Africa, Egypt, India, Australia,...).
First-round industrialization (up to WWI)
England had a comparative advantage with the rest of the world (e.g., natural resources, cheap labor, ports, ...) and began industrializing with textiles; industrial pace rapidly increased and England created several break-of-bulk locations (where goods are transferred from one type of carrier to another) primarily along its port cities (e.g., London, Liverpool, ...); industrialization diffused into Western Europe and into the United States; the industrialized nations engage in imperialism, seeking out new regions for resources and markets for their goods.
Mid-twentieth century industrialization
after WWII the US became the strongest industrial nation (NAMB (North American manufacturing belt)) with the USSR as the other superpower; oil & natural gas rose to become virtually the most important resources driving the industrialized world; Japan rises to a major industrial power (initially due to its cheap labor).
Late twentieth century industrialization and beyond
the four primary industrial zones are still dominant, however, secondary industrial regions are making great strides; many developed economies have been expanding into tertiary, quaternary and quinary activities - diverting (or outsourcing) more manufacturing to other regions (e.g., China, India, Four Tigers, Thailand, Malaysia, Indonesia, Vietnam, ...).
a set of interconnected nodes without a center (e.g., financial, transportation, communication, governmental, ...) with modern [information] technology, _____ enable globalization to occur and create a higher degree of interaction and interdependence than ever before.
(assembly line production/Fordism) industrial arrangement of machines, equipment, and workers for continuous flow of work pieces in mass production operations, each movement of material is made as simple and short as possible. Important because it allowed for goods to be produced at a rate comparable to the demand for many of those products, made for more efficient manufacturing industries.
Global (New international) division of labor
phenomenon whereby corporations and others can draw from labor markets around the world; made possible through improvements in communication and transportation systems (resulting in time-space compression).
outsourcing (turning over production in part or in total) to another firm or business outside of the country.
Measures of development
used to distinguish LDCs from MDCs. They include GDP, literacy rate, life expectancy, caloric intake, etc.
GDP (gross domestic product)
the total value of goods and services produced in a year in a given country. The value varies greatly between MDCs and LDCs and is one of the best indicators of development.
GNP (gross national product)
similar to GDP except that includes income that people earn abroad.
GNI PPP (gross national income with purchasing power parity)
a measure of the wealth of countries that takes into account price differences between countries. Usually goods in LDCs are priced lower, so this makes the difference between LDCs and MDCs less.
HDI (human development index)
an aggregate index of development, which takes into account economic, social and demographic factors, using GDP, literacy and education, and life expectancy.
PQL (physical quality of life index)
based on literacy rate, infant mortality rate, and life expectancy at age one.
(dietary related) a percentage of daily requirement is an important index of development. People in MDCs generally consume more than 130% of their daily requirements, but most people in LDCs barely get enough to sustain themselves (e.g., Sub-Saharan Africa).
describes the pattern of distribution of the MDCs and LDCs. When the earth is viewed from the North Pole (azimuthal), the MDCs are clustered near the center of the map (core) while the LDCs are near the edges (periphery).
World Systems Theory
(Immanuel Wallerstein) illuminated by a three-tier structure (core, semi-periphery, periphery); refers to perspective that seeks to explain the dynamics of the "capitalist world economy" as a "total social system". Important because explains the power hierarchy in which powerful and wealthy "core" societies dominate and exploit weak and poor peripheral societies.
assume all countries are capable of developing economically in the same way, and 2) disparities b/w countries & regions are the result of short-term inefficiencies in local or regional markets. Walter Rostow
(Rostow's model) Traditional
(Rostow's model) Preconditions for takeoff
(Rostow's model) Takeoff
(Rostow's model) Drive to Maturity
(Rostow's model) Age of Mass Consumption
(type of model) economic disparities are the result of historically derived power relations w/in the global economic system; cannot be changed easily (misleading to assume all areas will go through the same process of development).
states that political & economic relationships b/w countries & regions control & limit the develpmental possibilities of less well-off areas (e.g., imperialism caused colonies to be _________ - this helps sustain the prosperity of dominant areas & poverty of other regions); only at later stages of development does the core have a positive impact on the periphery (grants, loans, specialized economic zones,...).
the economic control that MDCs are sometimes believed to have over LDCs. Through organizations such as the IMF, the MDCs are able to dictate precisely what LDCs economic policies are, or are able to use their economic subsidies to put LDCs industries out of business.
regions that fail to gain from national economic development.
a service industry giant, a means by which countries are seeking to develop; ______ & travel = 11% of all global jobs, and 11% of global GNP; the initial investment by the "host" country is huge (i.e. building hotels diverts money that could be used for housing, education, ...); many hotels are owned by MNCs, NOT the "host" country; affects the local economy little.
Foreign direct investment
investment in the economies of LDCs by transnational corporations based in MDCs. However, all countries are not recipients of this investment. Brazil, China and Mexico were the LDCs that received most of the investment.
process where the companies move industrial jobs to other regions (typically with cheaper labor), leaving the newly ____________ region to switch to a service economy and work through a period of high unemployment. (e.g., the US "Rustbelt"; Northeastern China).
there are over 1,000 in use in the world today; they establish Local Exchange Trading Systems (LETS) that allow members of a local community to trade services or goods in a local network separated from the formal economy (e.g., gain popularity during economic downturns - parts of Detroit today).
when one region's economic gain translates into another region's economic loss.
OECD (Organisation for Economic Co-operation and Development)
born after World War II to coordinate the Marshall Plan; today has 30 member countries (which produce > 2/3 world's goods & services), w/ more than 70 developing and transition economies working w/ them; sometimes accused of neo-colonialism (entrenchment of the colonial order (trade & investment) under a new economic (non-political) guise).
NGO (Non-governmental Organization)
organizations that have created a web of global development networks in response to top-down (governmental) decision making dominated by the core (e.g., World Bank, WTO (World Trade Organization), IMF (International Monetary Fund)).The goal of ___s is to have peripheral countries partake in participatory development (locals should be engaged in deciding what development for them is and how it should be achieved); this is seen as counterhegemonic (hegemons are nations that dominate other nations - economically, politically, culturally, ...).
export processing zone in northern Mexico with factories supplying manufactured goods to the US market; primarily foreign-owned factories that assemble imported components (or raw materials) and export finished goods.
High technology corridor
technopole or center of high-tech manufactoring and information based quaternay industry
World Cities (Friedman)
Time-space compression & time-space convergence
Standard of living
refers to the quality and quantity of goods and services available to people and the way they are distributed within a population
expansion of economic, political, and cultural processes to a global scale and impact; these processes transcend state boundaries.
process by which people in a local place alter regional, national, and global processes; "think globally, act locally"; can refer to a business strategy for MNCs (multinational corporations) to build local roots.
laid the groundwork for today's globalized networks; physical process of a state putting its government in charge of a foreign place to gain control of its people and resources.
process through which something is given monetary value
transformation of an area of a city into an area attractive to residents and tourists alike in terms of economic activity (spaces of consumption such as Riverfront in Ft. Lauderdale, Times Square, ...).
popular culture tends to create a more similar and homogenous cultural landscape; many criticize that globalization has promoted this and has reduced the distinctiveness of the world in general.
process by which specific regions acquire characteristics that differentiate them from others within the same country; certain economic activities may dominate in particular regions.
notion that what happens at the global scale has a direct effect on what happens at the local scale, and vice versa; the result of a modern and globalized world.
ownership by the same firm of a number of companies that exist along a variety of points on a commodity chain (e.g., Perdue Farms).
ownership by the same firm of a number of companies that exist at the same point on a commodity chain (e.g., PepsiCo owns Gatorade, Frito-Lay, Quaker, ... YUM! owns Taco Bell, KFC, A&W, ...).
is the cross promotion of vertically integrated goods & services (e.g., Frontierland Fries - hosted by McDonald's and Mickey's PhilharMagic - presented by Kodak ... at the Magic Kingdom).
people or companies who control access to information (e.g., CNN, Fox News, Al-Jazeera, ...).
capitalist economy based on the division of labor in which the prices of goods and services are determined in a free enterprise system set by supply and demand.
economic system that incorporates a mixture of private and government ownership or control, or a mixture of capitalism and socialism.
communist economic system in which a central government determines the price of goods and services, controls the factors of production and makes all decisions about their use and about the distribution of income (e.g., the Soviet Union). In the 1980's and 90's the communist governments presiding over planned economies began deregulating and moving toward market based economies today most economies are market or mixed economies, except those in Cuba or North Korea.
refugee seeking shelter and protection in one state from another state.
economic activity that is neither taxed nor monitored by a government (not included in GNP as the formal economy is); examples are the black market, illegal drug trade, odd jobs or work done "under the table", and remittances (money migrants send back to family and friends in their home countries).
(")The End of Geography(")
hypothetical situation in which place and territory are unimportant because global superhighways of information transcend place (e.g., internet, weblogs (blogs - over 112 million as of 2008!), cell phones, ...) ... however, people continue to recognize territories and create places.