INDUSTRIALIZATION AND DEVELOPMENT

Economic Geography

Economic systems include:

Capitalism (free market) Socialism

Communism (command economy)

FOUR ECONOMIC ACTIVITIES

Primary

Secondary

Tertiary

Quaternary

Farming, mining, fishing

Creating something: manufacturing

Services – selling a product or service (retail, banker)

Research and development (GM foods, technology)

INDUSTRIAL REVOLUTION

The confluence of resources, technology and innovation. One of the major turning points in human history.

Started in Britain. At that time all the resources necessary were available.

A shift in power form wood to coal. The critical component was the steam engine.

Major industrial regions of the world today.

1 23 4

In a post-industrial society (USA, Western Europe), manufacturing is declining as services expand. “the core”

MDC’S LDC’S

NIC’S – Newly industrialized countries.

The “dragons” (tigers) of East Asia.

South Korea, Taiwan, Singapore, Hong Kong

Many of these countries are experiencing “compressed modernity.”

Rapid economic and political change – stable government and economic freedoms.

Terms: Gross domestic product -- the value and output of goods a country produces in a year (the amount of business done.)

GDP per capita: the GDP divided by the total population.

Productivity: The value of a particular product in relation to the labor it took to produce it.

Workers in PEDS are more productive because of?

Value added is figured by the costs of materials and energy from the value of the product.

Theories of Modern Development

Modernization model: based on Europe’s development, from Britain until today. This is based on “western” ideas of development.

Dependency theory: places the burden of global poverty on developed countries and their exploitation of LDC’s dating back to the colonial era.

Economic colonialism (neo-colonialism) : LDC’s are still dependent on MDC’s for markets, financing, technology.

Modernization Theory: Rostow’s Stages of Development:

Traditional: Limited wealth, subsistence farmers, folk cultures

Pre-conditions for takeoff:

Begins when an elite group initiates innovation economic activities. Invests in infrastructure.

Take-off: Rapid growth in select fields such as textiles. (cheap labor)

Drive to Maturity:

Modern technology diffuses, rapid growth of skilled industries.

Age of mass consumption.

Economy shifts from heavy industry to tertiary and quaternary sector. Industry produces consumer items.

Site and Situation

Site factors are particular to a geographic location.

Considerations are varying costs of land, labor, and capital, as well as geography such as port sites and viable land structure.

Situation factors deal mainly with transportation.(relative location)

Bringing in raw materials or parts and shipping finished goods to the consumer or retailer.

Auto factories are located in the central US today to maximize site and situation costs.

Right to work states

Bulk reducing industries:

The output product is smaller than the input. Copper smelters, steel mills.

Bulk gaining industries:

The output is greater than the individual inputs. Bottling, canned goods.

Fordist Industries: Traditional factory manufacturing. Every person has a particular job to do. Very “top down” system. The traditional assembly line.

Post-Fordist Industries:

Flexible work rules, teams of workers, workers perform various tasks.

Webers Least Cost Theory

Raw materials

marketslabor

Where you place your location depends on several variables. Those variables may change over time.

The substitution principle states that the benefits of one input could outweigh the negatives of another.

Based on transportation costs

Locational interdepence involves the influence on a firms location based on the location of competitors.

Agglomeration: Several similar industries or outlets locating near one another. (the mall, ship channel)

Deglomeration? Exodus of companies form an area due to variable factors. (labor)

WORLD SYSTEMS THEORY - CORE-PERIPHERY -- EMMANUEL WALLERSTEIN (applicable in industry, development, or political units.)

SEZ’s or Entrepots Special “economic zones” that provide tax breaks for goods shipped in or out, or, locations foreign factories can be built in to take advantage of low cost local labor.

Maquiladora’s in Mexico:

Factories in northern Mexico that work as partners to USA factories.

Goods are shipped in from a foreign country (usually the USA), assembled, and sent back home country or exported.

Takes advantage of low cost Mexican labor, provides jobs for Mexicans.

Supranational organizations regarding industry and development.

European Union

NAFTA

Multi-national corporations (conglomerates)

Labor intensive industries

Break of bulk center

Friction of distance

New international division of labor

Footloose industry

The first economic association between peds and pings

end

Self Sufficiency and International models of development.

Human Development Index