The structure or totality of relations of production, distribution, exchange and consumption of goods and services.
A particular area (space) usually occupied to which a group of people become attached, endowing it with meaning and significance
An area of the earth's surface, either a bounded area and or distance between two points
Framework to organize the world of space and place around us and to understand human activity at different geographic levels from local to national to global
Space, place, and scale are descriptive concepts. Representation is about how we use these concepts to describe places and phenomena
The inevitable march towards greater global integration, interconnection, and inter-dependency. "Increased flows of goods, services, money, information, and people across national and continental boundaries"
Themes of Economic Geography
1). Space and time are inseparable 2). Every place is part of a larger system of places 3). Human activity happens in physical environments 4). Culture is fundamental to economic geography 5). social relations and networks are key elements
Mode of production: Broad forms of economic organization-
The way in which human societies organize their productive activities and thereby reproduce their socioeconomic life
Mode of production: Distinguishing features-
relations between factors of production (land, resources, labor, capital, enterprise)
Economic, social, political, and geographic system characterized by private ownership of the economic means of production.
-The private sector will do the job better than the public sector -Economic liberalism (laissez-faire) -Creation of markets through supply/demand -The market will remove inefficiencies
What is the most important system of allocation under capitalism?
Where and when did capitalism begin?
Roots in Northern Italy, influenced by wealthy families; trade networks in the Mediterranean and rise of burghers. 1500s-1700s
Where and when did the industrial revolution begin?
Europe(specifically England) 1750s-1800s
a complex process that involves multiple transformations in inputs, outputs, and technologies. Replaced labor-intensive services
Inanimate sources of energy
Most of human history is marked by the use of animate energy (horses, manpower, oxen), early use of wind/water power, transition to inanimate energy sources (steam engine/coal), time-space shrinking.
converts inputs to outputs
reduces costs in transportation and production, increases revenues, productivity, and efficiency
Amount of output from a given input, increased efficiency, industrialization of agriculture, rise of the factory system.
the relation between labor skill and mechanization in the production process
Kondratiev Long Waves
Cycles of growth and decline, marked by different technologies.
What were the consequences of the industrial revolution in terms of creation of an industrial working class
long work day/weeks, exploitation of child labour, reordering of compensation structure.
What were the consequences of the industrial revolution in terms of urbanization
Technology decreases demand for agricultural workers, move to city; cities became centres of capital/labour
What were the consequences of the industrial revolution in terms of population effects
Advancements in agriculture facilitated food production, decreased infant mortality rate, increased life expectancy, rapid population growth, & urban density.
What were the consequences of the industrial revolution in terms of growth of global markets and international trade
Transport gets faster/cheaper, increased interconnectedness of places, import/export industries, spread of financial systems, banking, and investment, and little competition of early industrializers.
Reinvestment of capital to generate more profits, which are then reinvested, total capital expands each circuit
Goods and services bought and sold at a price
FP= SP + (B-D) + (I-O)/ ∆P = (CBR-CDR) + (IM-OM)
B= Births during interval; D= Deaths during interval; I = in-migration during interval; O = out-migration during interval
Natural Growth =
birth rate- death rate
Net Migration =
(in-migration) - (out-migration)
What was Thomas Malthus's basic hypothesis?
Population grew exponentially while food production grew arithmetically. Food production is linear.
Under the theories of Thomas Malthus, what is the difference between a positive check and a negative check on population growth
Technological and agricultural innovation, both the rate of population growth and food production have increased linearly, and food production has actually increased faster than the population.
What do Neo-Malthusian's believe?
They acknowledged the errors of Malthus. They believed that there were limits to growth, promoted family planning, and believed in exhaustion of nonrenewable resources.
Stage 1: Preindustrial Society
low life expectancy lead to no population growth.
Stage 2: Early Industrial Society
mortality rates drop but fertility rates remain high which leads to high population growth.
Stage 3: Late Industrial Society
crude death rate remains low and the continued lag leads to more, but slower growth.
Stage 4: Postindustrial Society
little population growth to population decline
Criticism of the demographic transition theory
Derived from the experience of the West. Applied to non-Western societies even though they may (or may not) follow this pattern.
Neoclassical Migration Model
explores the economics of migration; differences in wages powers migrations when equilibrium is reached migration stops; Labour supply increases, wages decrease and vice versa.
Neoclassical Migration Model continued
-assumes that knowledge/access to knowledge is perfect -assumes that people move freely -no moving cost
What is the difference between migration and immigration (from lecture)?
Immigration is coming into the country; emigration is leaving. Migration is just moving around, like rural to urban.
Population pyramid descriptions
A pyramid-shaped diagram illustrating the age distribution of a population: the youngest are represented by a rectangle at the base, the oldest by one at the apex
Which segment of the US labor force is most impacted by competition from foreign workers (from CBO report discussion
Impacts of low skill migration
There's an increase in unskilled labor, the cost of production is reduced, more people means more demand for products which means a larger market.
The definition of RESOURCES is:
Biological or physical substances used under specific technological and socioeconomic conditions.
The definition of RESERVES is:
resources that are known and available for economic exploitation with technology/price
The definition of PROJECTED RESERVES:
represent estimates of the quantities likely to be added to reserve because of discoveries and changes in prices and technologies projected to occur within a specified period, for example 50 years.
The definition of MINERAL is:
a naturally occurring inorganic substance in the earth's crust.
Which of the following is an example of a non-renewable resource that is depleted as it is used?
Fossil Fuels and minerals
Which of the following is an example of a point source of pollution?
municipal waste treatment plants and industrial facilities
Which of the following is an example of a non-point source of pollution?
agricultural and urban runoff and contaminated groundwater discharges
What is the maximum population that can be supported by available resources?
What is tragedy of the commons?
Metaphor for situations in which natural resource depletion occurs because: - Individual and collective interest do not coincide - No individual or institution has the power to ensure they do
Carrying capacity and maximum sustainable yield:
Carrying capacity pertains to the number of a species that an environment can sustain, considering the limiting factors at play. Maximum sustainable yield is the maximum level at which a natural resource can be routinely exploited without long-term depletion.
What is the biggest single item in international trade?
Fixed versus liquid capital:
Fixed capital uses specific value for example machines, equipment, and buildings. Liquid capital are the profits, savings, loans, bonds, etc.
Capital intensification - example, under the process of capital intensification, what substitution occurs?
High proportion of capital is used relative to amount of labor; using technology to replace human labor.
How is labor similar to/ different from other commodities?
Labor is the only sentient factor. It emerges into market through society; has demand/supply and can be bought with capital.
Emphasizes transportation costs, and industrial location decisions. Producers choose optimal location to minimize cost and maximize profit, means the demand for a product is infinite at a given price.
Division of labor:
The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.
Economies of scale - example, increasing scale generally ________ the unit cost of inputs in firms.
Increasing scale generally lowers the unit cost of inputs in firms; cost savings derived from producing goods in largest volumes; spreading fixed costs over higher quantity of outputs.
Vertical integration - example, A vertically integrated oil company includes which of the following activities?
firm controls more processes up and down the production process
Horizontal integration - example, What happens when a firm becomes horizontally integrated?
firm controls an increasingly large market share of a given niche in a particular industry
Diversification - example, What happens when a company pursues a strategy of diversification?
Firm enters a different product market from the one in which it has traditionally been engaged.
Agglomeration economies - example, When firms within related industries cluster together in order to lower unit costs for all firms, this refers to:
Benefits gained by firms clustering near other firms as it reduces transportation costs of inputs, outputs, access to specialized labor information and/or infrastructure.
What is a commodity?
Goods and services that are produced for sale on a market for profit, most in capitalism.
What is exchange versus use value of a commodity?
• Value - the actual price on the commodity/the amount of use to the consumer • Exchange value (quantitative) - how much the commodity is worth compared to other commodities
Global commodity chains:
-Network of labor and production processes whose end result is a finished commodity -Help to define location of poverty/wealth in world
What are the four dimensions of commodity chains and an example of each?
What is the most common type of organization structure in most U.S. food companies?
The bulk and perishability of milk cause dairy farms in the U.S. to locate in a specific location. Where?
Closer to the cities where the milk would be sold the most.
According to Ester Boserup, what usually accompanied the transition from one form of agriculture to another?
1. increased population density 2. improved tools 3. improved transportation 4. more labor specialization
Value added by manufacturing:
Adding value to raw materials produces wealth.
International division of labor:
The term was coined by theorists seeking to explain the spatial shift of manufacturing industries from advanced capitalist countries to developing countries—an ongoing geographic reorganization of production, which finds its origins in ideas about a global division of labor.
Factors which underlie the decline in manufacturing in the developed world:
1. cost of wages in developed countries. 2. high pensions 3. capital intensification 4. shortages of human capital and high transportation costs
Characteristics of the intra-firm networks/ internal division of labor in an MNC versus inter-firm networks/ external divisions of labor?
•Intrafirm: direct ownership •Interfirm: joint ventures, subcontracting, franchise
Key strategies of production chain configuration and coordination
•Internalized: activities within the legal and organization boundaries of an MNC. •Externalized: relationships between firms (markets)
What is Fordism?
The system of industrial production attributed to Henry Ford, who pioneered the moving assembly line and a specialized division of labor in factories that mass produced goods cheaply and profitably.
What is Post-Fordism?
Also called flexible production, the type of production that emerged in the late twentieth century characterized by automated production, just-in-time inventory systems, and the capacity to produce goods profitably in small quantities, offsetting the advantages formerly generated by economies of scale.
Where is the North American Manufacturing Belt?
In the United States and Canada. Consists of ⅓ of population; ⅔ of manufacturing employ; ½ of output.
Because the barriers to entry into the steel industry are high, the steel industry has generally been..?
Major steel producing countries now include:
China, Japan, and Russia
What are services?
Production and consumption of inputs and outputs.
Concentration of corporate power (New York, London, Hong Kong, etc.)
Rising levels of productivity through development of new technologies( capital intensification) frees up workers to move to another sector.
foreign direct investment: investment by individual/TNC from one country into another.
Forces driving service growth:
tech shifted jobs
Financial centers and services:
•Essential elements of economic societies •Broadly encompasses banking (commercial/investment), savings/loans, insurance (commodification of risk)