Chapter 22 Industrial Activity and Geographic Location.
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Transcript of Chapter 22 Industrial Activity and Geographic Location.
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Chapter 22 Industrial Activity and Geographic Location
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Introduction
Why Hong Kong, not Macau?
Map of Hong Kong and Macau (link)
Location Theory
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Preindustrial world
India - textiles:best in the world, riots in British textile industry in 1721.
China, Japan all had industrial base before the Industrial Revolution
European companies used colonist power to control and local raw materials and process to finish products
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Industrial RevolutionJames Watt and others developed (not invented) steam-driven engine
coal transformed to high-carbon coke
And many other inventions..
First railroad in England,
in 1825
First powered shipcrossed the Atlantic
in 1819
British influence around the world reached its peak
Know-how, experience and capital
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James Watt (1736-1819)
Scottish inventor, Repairing a Newcomen Steam Engine, he devised improvements that resulted in a new type of engine (patented 1769) with a separate condensing chamber, an air pump to bring steam into the chamber, and insulated engine parts. Watt coined the term horsepower
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Industrial Revolution - 2
“Black Country” in Britain - densely populated and urbanized industrial regions along the coalfields.
The eastward diffusion of the Industrial Revolution during the second half of the nineteenth century. Figure 22-1
Industrial regions due to raw material combinations - Ruhr, Saxony, Silesia and the Donbas.
Urban Market cities - London and Paris
Figure 22-1 (link)
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Location Decision
Primary industries
Determined by locationof resources
Secondary industries
Human behavior, d-making (cultural, political and economic), or just whim
Model, model, model again?Yes!!!
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Weber’s “least cost theory”(German economic geographer
Minimize
Transportationcost
Raw materials to the factory
Finished products to the market
Laborcost Industries moved from Japan/Taiwan to
China/Vietnam. (computers, Nike…)
Agglomeration Make a big-city location more attractive
Over agglomeration - high rent/labor/transport cost
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Industrial Location Theory
General/Special, Regional/local factors
General - transportation cost, Special - food, etc.
Regional factors - transportation, a critical determinant of regional industrial location. Local - agglomerative/deglomerative factor
He didn’t take into account the consumption over the wide area instead of a single location.
Consumer demand and production costs were taken into considerations for August Losch’s book “The economics of Location”
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Factors of Industrial LocationRussia - state planning directed industrial growth. Market is distorted by black market and influence of entrenched interests
First decision faced by the capitalists- move either coal to iron ores or iron ore to the coalfields.
Iron ore usually travels farthest. In commercial economics, iron ore is usually transported to the coalfields
coal iron
Intermediatelocation
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1- Raw MaterialsIron ore from overseas (Venezuela, Labrador, Liberia etc.) - the reason why industrial plants in U.S. northeastern seaboards.
With limited resources, Japan expanded its dependencies to Korea and Northeast China
Strong economics allows Japanese industries purchase raw materials anywhere in the world
Core-periphery country relationship maintain the buyer and suppliers roles. Buyers usually control the market,
OPEC in 1970s - oil prices up and down due to the non-cartel member’s increased production
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2 - LaborJapan from 1950 to 1990
Taiwan S. Korea
China Thailand Malaysia
Vietnam Others
US and Canada
Mexico
NAFTA, 1994
1/40
1/30
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NAFTAGood or bad, judged by yourself
Agriculture import and export between US and Canada/Mexico is increasing (Do you think you’ve got more fruit choice in Wal-Mart, Bi-Lo or Kroger?)
Industrial plants closed - 9000 jobs lost in Cape Fear region (N.C)
Job loss - 0.5 million between 1993 and 2000.
Most job losses states: CA,MI,NY,TX, and OH
Hardest-hit sectors:Home audio/video,phones, appliances, motor vehicles,textiles and lumber
TN loss in motor vehicles/textiles
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3 - Transportation
Development ofcontainer systems
Truck good for short distances
Shipcheapest over longest distances
Rail good formedium distance
Other factors:loading and unloadingprocess, weight and volumeof the freight
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4 - InfrastructureTelephone, utilities, electricity, water supply, banks, postal and messenger services, hotels, and social services.
Lack of infrastructure in regional and local scale forces China to slow down the industrialization in Pacific Rim
China is still going - due to the perception of the future disadvantage
Vietnam - next economic tiger on the Pacific Rim - having the infrastructure problems too. (water supply and poor transportation network)
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Other factors5 - Energy - Aluminum production Northwest and TVA locations and fertilizer production. But not that important as it was.
Political stability/taxation (Cambodia, Myanmar)
Environmental consideration - good weather in CA - film and aircraft companies