Chapter 13 Pages 216 239 Patterns in...

Text: Unit Six: Manufacturing and Service ActivitiesCourse: Unit Five Secondary and Tertiary Activity

Text Unit 6 / Course Unit 5 Chapter 13 . . . . . . . . . . . . . . . . Manufacturing and Service Activities

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Ascension Collegiate World Geography 3202

Chapter 13Pages... 216 ..... 239

Patterns in Manufacturing

CHAPTER OUTLINE

IntroductionA. The Manufacturing ProcessB. Types of Manufacturing Industries

Case Study # 1Case Study # 2

C. The location of Manufacturing Industries: [ Where and Why]C-1 Physical Cost FactorsC- 2 Human-Based Cost Factors

Case Study #3Case Study # 4

D. Employment Structures as Development IndicatorsE. Manufacturing Activity in Developing Countries

Case Study #5

F. Manufacturing and Environment



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Introduction:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg.216

% Access to such resources, Î soil, Ï forests, Ð fish, Ñ oil or Ò gas do not always exist in nature in a form that satisfies our needs.

% Eg. the harvesting of wheat does not meet our needs.....wheat must be processed into flour and then flour must be mixed with other goods to produce baked goods which we consume.

% Note: * The soil... as a resource... cannot satisfy our need for food. It is the product which is produced from soil which satisfies our needs.

* We convert that which is in the soil to a useful product.

% Primary Production Associated with the extraction of a resource Eg., farming, fishing mining and forestry....

Extra Material 3 it’s mainly concerned with the output of raw material 3 is directly related to Î inorganic, Ï organic, and Ð soil resourcesSix categories or sub-groups of primary activity:

1. Hunting and gathering2. Fishing3. Herding and cattle raising4. Forestry5. Mining6. Agriculture



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% Secondary Production : ( or manufacturing )Eg., *When you process an extracted resource into a useable form throughphysical labour, mechanical energy, technology.

A finished product is produced.

Extra Material:3 minerals produced by primary activity is not usually used in that

form3 secondary production or manufacturing is the process whereby a

mineral is transferred to usable goods3 usually there is a direct link, in an area, between the primary activity

and kind of manufacturing that is carried on in that area3 Ex: Australia is important for cattle and sheep raising, as a result,

factories produce leather and woolen goods. Quebec and the Atlantic provinces are noted for timber, thus we have paper, newsprint, and wood products produced.

Secondary Activity3 indirectly connected with the land that originally produced the raw

material3 it is concerned with the output of a finished product. Ex: timber is

the raw product - paper is a finished product from a raw material.

Capital goods :they are used to produce other goods. Ex: tools equipment, semi-manufactured items such as car parts

Consumer goods:sold directly to consumers. Ex: food, clothing, TVtwo sub-divisions

durable goods - those that last long timesnon-durable goods - those that last short times



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% Tertiary Activity: Services used to support the Primary and Secondary Sectors: Eg., banking, sales, investing, insurance, etc.

% Quaternary Sector: Consists of highly “Specialized” Services. Eg., Î research, Ï software design, Ð information technology (IT).

¯ Note: This chapter focuses on the Secondary Sector of the EconomyØ Looks at various types of manufacturing activities.Ù Factors affecting location of industry.Ú Related environmental issues.

A. The Manufacturing Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 216

Simple DefinitionManufacturing is the process by which raw materials or components are fabricated and assembled into finished products. Manufacturing has evolved from a relatively simple system of hand-tool production carried on within a household or workshop by individual workers into the modern factory system with its large, highly mechanized labor force.

¯ Note # 1 Familiarize yourself with the following classifications of manufacturing...1. processes involved

1-1. Conditioning1-2 Analytical1-3 Synthetic process

2. the inputs used3. the outputs produced

¯ Note # 2 The first two case studies deal with these topics% To change a raw material into a usable product one or more of the following

three processes may be used:â Conditioning Processã Analytic Processä Synthetic Process



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Ø Conditioning Process% The change to the raw material is minimalEg. Î If a tree is harvested, sawn to length, width and thickness suitable

for construction.Ï A fish is harvested, and filleted for sale.

Ù Analytic Process% If the manufacturing process breaks a raw material into smaller parts to

derive a “number” of products (reverse of synthetic)Eg., % A cow is raised for milk - processed into cheese and cream.

% Later the cow may be slaughtered for its hide - processed into leatherand for meat (hamburger, sausage, other meat products)

% When a single resource is made into a number of products, themanufacturing process is referred to as analytic.

Ú Synthetic Process% When a number of different material are “combined” to produce a single

product - (reverse of analytic manufacturing)Eg., An electrical light bulb requires the following materials

Tungsten wire...Nitrogen gas...Glass...Metal for base

¯ Note: Ø InputsRegardless of the type of “process” used, the manufacturing system alwaysdepends on a “set of inputs”. These include

Î raw materials Ï financial investmentÐ knowledge Ñ machineryÒ land Ó buildings andÔ energy

% The inputs are all brought together at the manufacturing plant whereÎ conditioning, Ï analytic, and Ð synthetic processes occur.

í outputs:“Outputs” resulting from the processes (conditioning, analytic, synthetic)

include the ......Î finished product and Ï wastes.

Questions page 217.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . #1, 2



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B. Types of Manufacturing Industries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . page 217

A. % One way of classifying the Manufacturing industry can beÎ labour intensiveÏ capital intensiveÐ heavy industryÑ light industry

% A major cost in operating a factory is labour.

% Workers must be... Ø paid fair wages,... and Ù benefits such as holiday pay, ...î a health plan, ...Û compensation insurance etc.

% Less obvious labour costs would be workers who are not producing at theirmaximum rate (cause.... could be lack of knowledge or skill)

¯ Result% Factory owners must carefully balance ...manual labour with

...labour saving equipment.

% Industries by their very nature may be eitherâ labour-intensiveã capital-intensive

Ø Labour-Intensive -, In the jewellery industry machinery cannot perform the tasks of a

skilled craftsman., The same would be true for the Camera Industry in Japan and Germany.

Ù Capital-Intensive Industries, Some industries which were Labour-Intensive are now Capital Intensive., In Capital-Intensive Industries machines do the job of manual labour., Eg., The automobile industry: machines now weld and spray body parts., Capital-Intensive operations require heavy financial investment for the

purchasing, installing, and maintenance of equipment.



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B. % Another way of classifying manufacturing is based on the type of output .% Thus manufacturing can be classified as

Î heavy industryÏ light industry

Î Heavy Industry, not intended for consumer use, used as a means of producing or transporting other goods, Eg., shipyards - (labour and capital intensive), produces a “limited” number of “highly priced” outputs, Eg., container ships, oil tankers, fishing trawlers

Ï Light Industry, intended for the consumer (general public), outputs are not large in size, Eg., toys

Questions page 219.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . #3, 4

Case Study # 1Manufacturing Wrigley’s Gum

Important Note:

Term: Value Added

XXX ± Value added is a term used when the value of a particular resource hasincreased through manufacturing.

± Eg., The selling of paper is more profitable than the selling of the log fromwhich we process paper.

If we sell paper we have, in essence, increased the value of the log thus we have........value added to the resource (log).



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Case Study # 1Manufacturing Wrigley’s Gum

± The selection and use of natural substances for chewing has a long history. ± The ancient Greeks chewed resin from the mastic tree. ± More than 1000 years ago, the Maya of Central America chewed a sap from

the sapodilla tree called chicle. ± The indigenous peoples of northeastern North America showed settlers how to

harvest hardened sap from the spruce tree for chewing. ± In 1869, Thomas Adams of New York City began mass-producing a gum made

from chicle after he was introduced to the substance by a Mexican general.

± Today's chewing gum is the result of a complex manufacturing process. ± One of the world's largest manufacturers of this product is the Wm. Wrigley Jr.

Company.± Wrigley uses natural substitutes for chicle sap, as do most modern-day

gum manufacturers. ± The most prevalent substitute is rosin from pine trees growing in southern and

southeastern United States. ± Rosin in solid form is shipped in large quantities to Wrigley plants where it is tested

for quality. ± Next, the rosin is ground into smaller particles and poured into large kettles, where

it is melted at 116'C to produce a thick syrup-like base. ± The base is purified through highspeed centrifuges and filter machines.± The hot gum base is sent to large mixers, each of which can hold up to a tonne of

ingredients. U ± Steel blades stir the base to blend in Îsweeteners, Ïsofteners, and Ðflavourings.U ± Powdered cane and beet sugar are used to sweeten sugar gum. U ± High-intensity sweeteners, along with sorbitol and mannitol, are used

to sweeten sugar-free gum. U ± Corn syrup also serves as a sweetener, with the added function of keeping

the gum flexible. U ± Glycerin and other vegetable-oil products are used to blend the ingredients in the

base together and maintain the gum's softness.



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± The most popular flavourings added are spearmint and peppermint. ± Extracts for these flavours come from plants grown on farms in the United States. ± All these ingredients have to be added to the gum base in the right amounts at the

right time according to Wrigley's protected formula.

± The blended base has the appearance and texture of stiff bread dough.± When this process is completed, the base is sent through a series of rollers

onto belts, forming a thin, wide ribbon. ± Each pair of rollers reduces the thickness of the gum. ± To keep the gum from sticking and to improve flavour, the continuous band of

gum is dusted with powdered sugar or a sugar substitute. ± Grooves are then pressed into this thin sheet to form rectangles.

± The next step in gum manufacturing is waiting for the sheet to season. ± As the gum cools, temperature and humidity are carefully controlled to ensure a

quality product. ± When the right amount of time for seasoning has elapsed, the ribbon of gum is

broken into sticks. ± A packaging machine wraps these sticks, first in wax or aluminum coated paper,

and then again in a paper bearing the gum's trade label and other pertinentinformation.

± Sets of wrapped sticks are gathered into packages by machine. ± In the final automated packaging step, packages of gum are collected into boxes

or clear plastic multi-pack bags. ± The packed product is placed on a conveyor belt for inspection.

± Each box of Wrigley's gum bears a quality assurance date, and Wrigley will replace any product that is not sold by the date shown.

± As is true of all manufacturing, the Wrigley operation is complex and requires great care in its implementation.

Ø ± In order to ensure a profit, the company must control the costs of Îingredients, Ïlabour, Ðland, Ñtaxes, and Òequipment.

Ù ± Secondly, it must continuously monitor the gum-making process, checking that quality standards are met at every stage.

± The potential for profit is also affected at the output end, where product benefits are identified and cleverly communicated to consumers, thereby helping sustainand increase consumer demand for the product.



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± Profitable manufacturing operations not only benefit the manufacturing company they also help form a strong economy.

± This larger benefit is related to the margin between the Øcost of inputs and processes on the one hand, and the Ùvalue of the output on the other.

XXX ± To the extent that the output's value exceeds the costs of production, value has been added to the resources used.

± When a country exports the manufactured product, the value added contributes to national revenue.

XXX ± We have seen this principle at work in our case study of tree harvesting in Malaysia(see pages 167-68). Because the selling price of unprocessed logs is less than that of processed wood products made from logs, such as mouldings, joinery, and furniture, the Malaysian government has been developing domestic wood-products manufacturing industries to benefit from the value added atexport.

XXX ± Moreover, by processing timber before export, more jobs are created in Malaysia.

Questions page 220.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . #5, 6, 7, 8, 9

Case Study # 2Making Steel World Wide

± Metals are basic to the everyday needs of consumers. ± Of all the metals available for human use, steel is among the cheapest and

most useful for the manufacture of products ranging from thumbtacks to luxury ocean liners.

YY ± One of the materials required to make steel is iron (see Figure 13.4). ± When iron ore is mined, it is not ready to be processed into steel because it

contains many impurities. ± The iron ore is usually semi-processed at the mine site to remove much of the

parent rock, and then crushed into pellets and particles.



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(Step 1)± The pelletized iron concentrate can then serve as one of the inputs for the

production of steel

YY ± Recycled metal also serve as an input. ± Countries that have a metals recycling program will use scrap iron and steel

recovered from such junked products as automobiles, railway tracks, and steel containers.

(Step 2)± After inputs are transported to the steel manufacturing plant,

(Step 3)± iron pellets are turned into liquid in a blast furnace

± waste material produced by burning is removed in the form of slag.

(Step 4)± The molten . “pig” iron is mixed with scrap iron and steel in super-heated basic

oxygen furnaces to remove excess carbon and other unwanted substances.

(Step 5)± Other material are added to strengthen the steel.

(Step 5 & 6)± The liquid steel must then be cast into blocks, called ingots, weighing up to

300 tonnes each

(Step 7)± The ingots are usually not shaped immediately into finished forms, such as

engine parts and consumer products (although objects such as railroad rails and construction bolts and beams are occasionally produced at this stage).

± Rather, ingots are usually roughed into booms, billets, and slabs to be used as inputs for factories making precision steel products.



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XXX ± Because the steel industry forms the backbone of the manufacturing sector, its productivity is often regarded as a key to a region's economic success, serving as an indicator of how well the economy is doing as a whole.

± For example, a decline in a country's steel production that results from a drop in the demand for cars indicates a downturned economy.

Questions page 223.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . # 10, 11, 12, 13

C. The locations of Manufacturing Industries....Where and Why. . . . . . . . . . . . . . . . Pg. 223

% Manufacturing industries tend to be highly concentrated in a small number of regions.

% Most areas have little or no manufacturing.

% What conditions determine where manufacturing is located????

% Cost is the most important% Manufacturing industries tend to exist in economically feasible sites% Two factors affecting cost are:

C-1 Physical FactorsC-2 Human-Based FactorsC-3 Socio-Economic Factors

(C-1) Physical cost factors: (site factors). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.3.1% Three types of physical cost factors must be considered

(1) Factories need to locate near the source of the raw material.÷ This cuts down on transportation cost (heavy.....logs)÷ Eg..... paper mills locate near forested areas.

(2) Land on which the factory is located should be÷ inexpensive to purchase or rent÷ reasonably flat and ÷ well drained÷ soil should be dense enough to support the factory



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(3) Located where energy can be supplied economically÷ During the industrial revolution coal was the main source of energy

thus factories set up near coal mines.÷ With the development of hydro and nuclear power .... this power can

be transferred over great distances......this means that proximity to an energy source is not a major concern for factoriespowered by electricity.

C-2 Human-based cost factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1) Labour: Factories (both labour and capital intensive) may require a large poolof workers.... thus when new factories are set up.... owners must makedecisions about wage levels and employment benefits as they seek tocontrol costs.

(2) Capital: (money)÷ Some economists do not think it is a major factor in determining the

location of an industry. (money can be transferred from place toplace)

÷ Others believe the availability of Capital is important. Companies mayset up where governments offer incentives. Such as..... no or lowtaxes, interest-free loans, loan guarantees or wage subsidies. (These are usually offered by government in order to createemployment in economically depressed areas)

(3) Building of industrial estates or parks:÷ These are zoned areas located near urban areas....eg.{St. John’s}÷ These areas provide many things for industry. Such as

(1) land for plants (2) parking space (3) access to public transitsystems.(4) electrical supplies (5) water (6) sewage services (7) latest in technological linkage systems. (8) ample roadstructures to allow for ease of movement

÷ Governments may develop industrial parks to attract manufacturingplants to areas. (Parks and all they have to offer are... incentives for theindustrial sector)



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(4) Market for the outputs of products:÷Whether a manufacturing operation “should” locate near the resource

or near the market is influenced by what is happening during themanufacturing process.

÷Resource-oriented industries: (Source of the resource)This occurs where we need to decrease bulky items and makethem more cost efficient when moving. ( eg. Semi processeditems) Iron Ore would be very costly to move but more costefficient if it were semi-processed. [Weight - loss accompaniesvalue-gain]

÷Market-oriented industries:Occasionally it is cheaper to ship individual ingredients... and thencombine the ingredients to produce a product ... than it is tocombine the ingredients and then transport them.Eg., Soft drink requires several ingredients - water being a majorone. Why ship water when we can obtain it at the manufacturingsite near the market and eliminate the cost of transportation????

Note: These patterns [tendencies] may not be as strongand may change over time if

ì transportation costs go downí governments offer subsidies etc.

÷Agglomerating Tendency:÷Factories may sometimes be located far from the resource

or from the market.÷Factories which produce “related” products tend to locate near

each other for mutual advantage.÷Eg., ì An automobile factory may set up near a steel mill

í Manufacturers of tires may set up near a car manufacturingplant



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C-3 Socio-Economic Factors include:.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226

1. Political 2. legal and 3. safety concerns

÷Factories may avoid locations where government regulations restrict what they do (e.g, government regulations on low pollution levels)

÷Or if companies have to pay extra costs such as grants to aboriginal groups forthe use of the land.

÷Or in areas of high crime rates (Companies may need to protect property and employees)

÷Industries may be attracted to areas which exhibit good health, education and recreation facilities.

>>>>>>The next two case studies reflect on the factors affecting the location of industry.

Questions page 226 - 227. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . # 14, 15, 16, 17

Case Study # 3Human and Physical Factors in Japan’s Car Industry

P Japan's industrial power today, exceeded only by that of the United States, is in sharp contrast to its economic status during the late 1940s.

P At this time, the country was still reeling from the effects of massive bombing suffered during the Second World War.

P Major manufacturing complexes and transportation systems, along with some key cities, were almost completely destroyed by this bombing.

P Japan's recovery from the devastation wrought by war, and its subsequent rise toeconomic superpower status, is all the more striking given the fact that Japan



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UU has limited resources to support a manufacturing sector. Ø P It has to import nearly all the oil, coal, natural gas, and iron ore it uses. Ù P Four-fifths of the country is mountainous, allowing little room for industrial

expansion and population growth. Ú P Moreover, Japan is quite isolated geographically, it is not close to any of the

huge markets of major industrialized countries.Û Japan's crowded conditions naturally also affect agricultural activity, only about

15 per cent of the land is available for agriculture, and each farmer cultivates an average of only 1.2 ha.

Ü P Yet Japan is self-sufficient in the production of rice, its chief food staple.

P It is in its manufacturing achievements, however, that Japan's success is most remarkable.

P From economic obscurity in the middle of the twentieth century, Japan has risen UU to become one of the world's leading producers of steel, ships, cars, and

high technology products. ¯ P Economic growth began after the war, when Japan received foreign aid and

investment with which to replace old and damaged machinery and to purchasemore technologically advanced equipment.

5.3.5 P Î Labour costs were low, and Japanese workers were known for their Ï strong work ethic, ...Ð company loyalty,... and Ñ willingness to acquire the skills needed for complex work tasks.

P Although the country is broken up into a number of islands, its irregular coastlineprovides excellent sites for deep, sheltered harbours.

P Japan invested heavily in the building of a modern road-and-rail network, as well as in the development of a fleet of ships; this transportation network facilitatedboth the import of raw materials and the export of finished products.

P Japan's largely middle-class population of about 126 million has a high demand for cars.

P Japan's car industry, in addition to meeting this demand, exports large quantities ofcars to international markets.

UU P One of the major centers of Japanese car manufacturing, the coastal city ofHiroshima, has combined its physical and human characteristics to create a thriving agglomeration of industry.



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P Hiroshima is located in the far south of Honshu Island, on a river delta at the head of a bay on the sheltered Seto Naikai ("Island Sea").

P This sea is deep enough to accommodate large ships, which it has been doing forseveral decades.

P In the early part of the century, it had a thriving shipyard and shipbuilding industry, as well as engineering firms to design factories.

P These activities created a manufacturing oriented labour force, which would serve Hiroshima well.

UU P Today, with a population of 1.2 million, Hiroshima has a highly skilled labour forceemployed in Î assembling cars; Ï making tires, Ð paints, Ñ glass, and Ò steel;and producing components such as Ó fuel pumps, Ô head lamps, and Õ hoses.

UU P Many Hiroshimans are also employed in Î research-and-development (R&D) firms,Ï designing and Ð engineering Ñ advanced computer and Ò robotics systems for use in cars and car manufacture.

UU P Complementary firms provide services such as Î marketing, Ï accounting, and Ð long-term planning.

P Mazda, the largest car manufacturer in Hiroshima, has integrated with many ofthese smaller firms.

P Hiroshima's wide range of human expertise results in cars that are sold throughout the world.

P As a major port, Hiroshima has the modern infrastructure to export cars to worldmarkets, as well as import the raw steel, coal, oil, and semi-processed materialneeded for car manufacturing.

Case Study # 4HUMAN FACTORS IN NEBRASKA’S MANUFACTURING CLIMATE

Strong work ethic / high productivity / low absenteeism / low turnover rate / high trainability

Questions page 228 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . # 18, 19, 20, 21

D. Employment Structures as Development Indicators:.. . . . . . . . . . . . . . . . . . . . pg. 230

% Not all individuals enjoy the same quality of life, some people are better off than others.

% Not all countries enjoy the same level of economic development????? % What causes countries to have differing levels of economic development?



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XXX % Economists seem to agree on the fact that a countries level of economic development is linked with its ability to change from an agriculturally based economy to a manufacturing based economy.

XXX % This level or extent of change from agriculture to manufacture is reflected in a set of statistics called “employment structure”. (Fig. 13.11 / pg,231)

Employment Structure:% Employment structure specifies the percentage of a country’s labour force engaged

in each of the four economic sectorsØ. PrimaryÙ. SecondaryÚ. TertiaryÛ. Quaternary

% Eg., If half of a country’s labour force consists of fishers, loggers, miners andfarmers then the country’s employment structure would include a figure of 50% employment in the primary sector.

% It is thought that economic development is dependent on high levels of activity in XXX the non-primary sectors. Employment structures are then, good indicators

of country’s economic development.

% See figure 13.11. . . . . . . . . . . . . . Employment Structures for selected countries.

???? Can we use employment structures to predict standard of living.???? Can we say that a country with the majority of its workers in the primary sector

has a low standard of living.

Standard of Living???? How do we measure standard of living

Some economists use per capita GNP (Gross National Product) GNP is the total value of all the goods and services produced in a

country in a given year.Per Capita GNP is calculated when the total value of the goods and

services are divided by the total population.The higher the Per Capital GNP the higher the standard of living



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Disadvantages of Per Capital GNPØ If the wealth is not evenly distributed.... (wealth in the hands of a few)Ù Quality of life is difficult to measure in terms of dollars.

(country could have a high standard of living but high crime rate)

Some economists prefer to use a standard of living which is related to Ø health care ( in terms of life expectancy)Ù education (% of people who can read)Ú communications (number of people per telephone)

See fig. 13.13 page 232 (compare with 13.11)



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Extra MaterialThree way to measure the standard of living in a country are:

1. Nutritional density- amount of suitable farmland is directly related to a country’s well-being - found by calculating the number of people per square unit of arable land

exceptions:- Kuwait - imports much of its food but is extremely rich in oil reserves

(high standard of living)- Bangladesh - large areas of arable land for growing rice however standard of

living is low2. Gross National Product [GNP]

- add together the total value of all goods and services produced in a county in one year

- limitations:a) it only looks at the abundance of mineral wealth. It doesn’t take into account such intangible things as quality of air, crime rate and access to cultural activitiesb) GNP doesn’t relate total wealth to total population.

Ex: - Bangladesh has a population of approximately 92million

- Singapore has a population of approximately 2.5 million - both countries have an GNP of 9 billion US dollars

- Bangladesh’s population is thirty eight times as greatas Singapore - Do they both have the same standard of living?

3. Per capita GNP- used to compare wealth with 2 or more countries- GNP is divided by the population

Ex: - Bangladesh has a per capita GNP or $100 dollars per person - Singapore has a per capita GNP of $3,810 dollars per person

- problem - doesn’t show how evenly wealth is distributed. Ex: Austria has a per capita GNP of $9,000+ dollars andSaudi Arabia also has a per capita of $9,000+ dollars

-Saudi Arabia has more people living below the poverty line than Austria, thus Austria’s wealth is more evenly distributed

among its people.



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Questions page 232 - 233 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . # 22, 23, 24, 25, 26, 27, 28

E. Manufacturing Activities in Developing Countries. . . . . . . . . . . . . . . . . . . . . . pg. 233 % In order to develop a strong manufacturing sector and thus advance a countries

economic development, a wide range of resources must be present.% Less developed countries generally lack these resources and % as a result low numbers of people are employed in this sector

(especially in steel making).

IMPORTANT:% Several reasons why manufacturing may not develop in underdeveloped countries

Ø If a natural resource is lackingÙ If human resources are lacking complex skills (or appropriate skills)

(unskilled labour pools or few management skills)Ú If capital resources are low (this leads to little infrastructure)

(infrastructure is needed for the extraction and transportation of materials)

% Problems with development exists if there is a link between natural resources (soil fertility) and manufacturing development.

% Poor soils may not produce the excess crops needed to generate the money to provide the capital for manufacturing development.

Other drawbacks / or in addition to those aboveÑ Colonial powers (eg., Great Britain, France, Germany)

% Colonial powers hindered the development of manufacturing sector of their colonies.% Colonial powers used their colonies as a source of raw material.% Colonial policies discourage manufacturing in colonies. {only meant competition}% As a result of the colonies lacked the experience and the infrastructure needed to

build a successful manufacturing operation.% Raw material were shipped to the colonial power, processed and shipped back

to the colony for sale to the colonists.Ò Developing countries today ... [Selling to local people]

% Today things are changing and manufacturing in developing countries has begun to evolve.

% Even with todays trend in manufacturing there is still a vast difference betweenmanufacturing activities of developed countries and developing countries.

% Developing countries see low level manufacturing in some communities ....few products are manufactured for export ....many are manufactured for



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sale directly to their own people. {manufacturing for local sale}{countries need to export goods}

Ó Multinational Corporations and Manufacturing% Eg., Exxon oil, IBM, Sony, Ford Motors, Bata Shoe Company% These are large wealthy enterprises which operate in more than one country.% Headquarters are located in developed countries.% They are usually given total freedom in developing countries in exchange for

employment of local people.

Advantages:% These companies provide manufacturing skills which may be used in the

development of other industries.XXX % Multiplier effect

% Companies who employ large numbers of workers create the need for even more jobs.

% These jobs are in the service sector, jobs such as sales clerks, teachers, hotel workers, gas-station attendants, etc.

% Multinational companies (branches) also increase export levels of developing countries. {countries need to export goods}

Disadvantages:% Companies are allowed to operate with few or no restrictions % Environmental pollution is often the result % Waste from factories very often goes unnoticed because governments lack the

capability and inclination (knowledge) to monitor the situation% Decisions made by companies are likely not in the best interest of the workers% Workers are paid low wages compared to developed countries% Unsanitary and unsafe conditions exist in factories% Foreign companies do not reinvest in the host country

..... this money goes to shareholders living in developed countries

XXX *Note: Some see this type of attitude as colonialism of today.



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Questions page 235 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . # 29, 30

Case Study # 5When Children Do Not Play

E. Manufacturing and the Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg.237

% Manufacturing involves the bringing together of materials (inputs) to be processed into products (outputs)

% Outputs not only include the finished product but also the “waste product”eg., Î carbon dioxide,... Ï sulphur,... nitrogen, ...Ð chlorofluorocarbon (CFCs)

% Waste products sometimes damage the environment

Î Think...........”Carbon Dioxide”

Carbon Dioxide

% Carbon is present in the atmosphere as Carbon Dioxide ( 1% of atmosphere)% Carbon Dioxide acts like a glass% Carbon Dioxide allows solar heat to reach the earth......then prevents it from

escaping (greenhouse)

????? What happens if we increase Carbon Dioxide in the atmosphere Increased Carbon Dioxide ± increased heat ± Global warning.

% How fast this is occurring is unknown by scientists but they agree that it is inevitable% Computer simulations lead scientists to predict that doubling the carbon dioxide

will have different effects in different areas.Ø some areas will become drierÙ other areas will become wetter

% These differences may be accounted for by global air movement

% See fig. 13.16 page 237 - Computer SimulationNote: Prairies ûtemperature increases

ûit becomes a drier area (disadvantage)



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Sahara ûtemperature increasesûit becomes wetter (advantage)

Ï Think.........Sulphur and Nitrogen

% These are emissions caused by factories burning fossil fuels.% Sulphur is also released when we refine oil into gasoline, jet fuel, motor oil, etc.% These emissions create acids which find their way back to earth as Acid Rain% Some results of Acid rain are

Ø infertile soilÙ low crop yieldÚ poor root development in treesÛ trees loose their needles and are less resistant to disease and frostÜ acidity in lakes and streams kill fishÝ corrosion of many old buildings and monumentsÞ increase in respiratory disease and death rate

(Intensified the problems) ( Asthma, Emphysema)

Ð Think ........Chlorofluorocarbons (CFCs)% These are produced during the production of refrigerants, aerosols, solvents and

agents needed to create foam.% When CFCs are released, chlorine atoms are freed by ultraviolet radiation in

the stratosphere.�� Chlorine destroys the “ozone molecules” which shields the earth against ultraviolet

radiation (UV)% An increase in UV radiation destroys plant and animal life both on the

land and in the oceans. ... (remember phytoplankton ch. 12)% UV radiation has been linked to skin cancer in humans.

Questions page 238 - 239 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . # 31, 32, 33,

Chapter 13 Pages 216 239 Patterns in...

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