Post on 13-Apr-2017
From Industrialization to the New Service Economy
AP Human Geography - Damon - April 2017
Container Ship Bringing Goods from Asia to U.S.
Infosys Headquarters in Bangalore, India
What Does This Graph Illustrate?
What changes have taken place in MDCs?
LDCs? When? Why?
Industrial RevolutionA. 1700’s - 1800’sB. Began in UK, diffused to Europe, later to U.S.
and rest of worldC. Manual (hand) labor replaced by machines
– New energy source: burn coal steam– New machines produced textiles (fabrics) & iron– Trade expanded - new canals, roads, railroads &
ships helped transportD. Early industrial locations were based on:
access to capital ($), coal fields and ports
World Coal Deposits
Location TheoryA. Weber’s Least Cost Theory: industry locates
where costs are lowest1. Transportation
–Bulk losing industry: if raw materials are bulkier than end product, locate close to raw materials–Bulk gaining industry: if end product is bulkier than raw materials, locate close to market (consumers)
2. Labor–Unskilled: found everywhere–Skilled: more difficult to find
3. Agglomeration: cluster together with similar industries to lower common costs
Location Theory: Hotelling
Locational interdependence: Location of Industry A depends on location of Industry B
Goal is profit maximization
Locations of Industrial Regions Pre-1950
Western and Central Europe
North America
Manufacturing Belt - now called “Rust Belt”
Russia
East Asia
The 4 Asian Tigers•Focus on exports & industrialization led to rapid economic growth from 1960’s to 1990’s
•Today:
• Hong Kong & Singapore = financial centers
• South Korea & Taiwan = global manufacturing hubs
•All have educated populations & high savings rates
South Korea, Taiwan, Hong Kong, Singapore
BRICS: Brazil, Russia, India, China, South Africa
Large, fast-growing economies, significantinfluence on regional affairs
MINTs: Mexico, Indonesia, Nigeria, Turkey
Fordist vs. Post-Fordist Style Production
A. Fordist: production of goods at a single location
B. Post-Fordist: production dispersed around the globe
Time-Space CompressionTime and space are
compressed by increasing connectivity (advances in
communication & transportation)
DeindustrializationIndustries move or close
Deindustrialized region must reinvent itself and work through a period of high unemployment
Ex.: Bethlehem, PA
Closed steel manufacturing
facility to become multi-million dollar
casino!
From the Rust Belt to the Sunbelt
Sunbelt Has Gained Jobs Due To Relatively Low Labor Costs and Taxes
Read about the Sunbelt:http://geography.about.com/od/specificplacesofinterest/a/sunbelt.htm
Why The Sunbelt?“Industries such as aerospace, defense and oil boomed in the Sun Belt as companies took advantage of the low involvement of labor unions in the south .. and enjoyed the proximity to many U.S. military installations … The oil industry helped propel many southern states such as Texas and Louisiana forward … tourism exploded in Florida and southern California … high tech and new economy industries have been major drivers of growth in California and Texas as well as many other parts of the Sun Belt …
2011 FRQ
Outsourcing and Offshoring
• Outsourcing: moving individual steps of the production process to an outside supplier (subcontracting)
• Offshoring: moving individual steps in the production process out of the home country
Tholon’s Top Cities for Outsourcing
What regional trends and patterns do you see in this data?
China’s Locational Advantage: Manufacturing
Special Economic Zones (SEZs):Regions with special government policies promoting
manufacturing for export
Busiest Ports of Call for Container Ships
What regional trends and patterns do you see in this data?
What does this tell us about development?
Manufacturing Beyond China
“… growing labor supply, improved productivity, increasing affluence, more attention to education and training, increasingly integrated free trade area and economic community …”
“The Race to the Bottom”
A phrase used to describe the idea that companies are always looking for the cheapest labor. The location of cheap labor can change over time.
India’s Locational Advantage: Services
Populous, motivated, educated, English-speaking, wired to the world …
High Tech Corridors and Technopoles:Centers of R & D, High Tech
Manufacturing
Example: Silicon Valley, California (San Jose) Many more here: http://en.wikipedia.org/wiki/List_of_technology_centers
2013 FRQ
Learn more about technopoles http://en.wikipedia.org/wiki/Technopole
The iPhone EconomyClick this link to learn about the “iPhone Economy”:
http://www.nytimes.com/interactive/2012/01/20/business/the-iphone-economy.html
What is the “iPhone economy” and what global and U.S. economic changes does it reflect?