Unit 6: Economic Geo Review

Human Development Index

economics (GDP per capita), social (literacy rate & level of education), and demographic factors (life expectancy)

Motor Vehicles per Capita

Industrial Regions

• Industrial Rev. began in England

Major Manufacturing Regions of East

Asia

Balanced Growth

• through Self-Sufficiency• A country should spread investment as

equally as possible across all sectors of its economy and in all regions. – Incomes in rural areas keep pace with urban

incomes– Businesses remain independent of foreign

corporations– Limit imports through tariffs and quotas

• Liberal Models by definition– Rostow’s Model– All countries are capable of development– All countries follow the same model of

development • For countries that have developed in modern times

– only China has followed THE model of development

– Economic disparities are a result of short term inefficiencies in local or regional market forces

International Trade Approach

• Some countries have switched from self-sufficiency approach to international trade

International Trade Approach

• World Trade Organization (1995) works to reduce barriers to international trade by– Negotiate reductions in trade restrictions,

such as quotas & tariffs– Enforces trade agreements

IMF:• Lends to countries with balance

of payments problems• Pushes for economic reforms• Reports on policies in member statesWorld Bank:• Aims to help development by advising and

lending – with many conditions• Countries encouraged to lift import and export

barriers, cut subsidies and remove price controls

Models of Development

• Structuralist Models– Dependency Theory– Regional disparities are a structural feature of

the global economy • Neo-Colonialism

– Things have come to be organized or structured in a certain way and cannot be changed easily

– Old method of industrializing is no longer possible because other factors have changed

Wallerstein’s World Systems Theory

Core Processes that incorporate higher

levels of education, higher salaries, and more technology

* Generate more wealth in the world economy

Semi-periphery Places where core and periphery

processes are both occurring. Places that are exploited by the core but then exploit the periphery.

* Serves as a buffer between core and periphery

Periphery Processes that incorporate lower

levels of education, lower salaries, and less technology

* Generate less wealth in the world economy

Four Dragons

• Aka Four Tigers or Gang of Four• S. Korea, Singapore, Taiwan, and Hong

Kong• Lacked natural resources• Strongly influenced by Japan’s success• Concentrated on handful of manufactured

goods• Low labor costs• Entrepot - sell to MDCs

Millennium Development Goals

• Adopted by world leaders in the year 2000 and set to be achieved by 2015, the Millennium Development Goals (MDGs) provide concrete, numerical benchmarks for tackling extreme poverty in its many dimensions.

The MDGs also provide a framework for the entire international community to work together towards a common end – making sure that human development reaches everyone, everywhere. If these goals are achieved, world poverty will be cut by half, tens of millions of lives will be saved, and billions more people will have the opportunity to benefit from the global economy.

Millennium Development GoalsThe eight MDGs break down into 21 quantifiable targets that are measured by 60 indicators.

• Goal 1: Eradicate extreme poverty and hunger • Goal 2: Achieve universal primary education • Goal 3: Promote gender equality and empower women • Goal 4: Reduce child mortality • Goal 5: Improve maternal health • Goal 6: Combat HIV/AIDS, malaria and other diseases • Goal 7: Ensure environmental sustainability • Goal 8: Develop a Global Partnership for Development

http://www.undp.org/mdg/basics.shtml

• All industries want to maximize profits by minimizing costs so if choose locations based on– Energy– Labor– Transportation– Or Footloose

Location Models

Weber’s Model

Manufacturing plants will locate where costs are the least (least cost theory)

Theory:

Least Cost Theory

Costs: Transportation, Labor, Agglomeration

Hotelling’s Model

Location of an industry cannot be understood without reference to other industries of the same kind.

Theory:

Locational interdependence

Losch’s Model

Manufacturing plants choose locations where they can maximize profit.

Theory:

Zone of Profitability

Alfred Weber’s model – owners of manufacturing plants seek to minimize costs through:

• 1) Transportation, and• 2) labor• 3) agglomeration

– Weight-losing / weight-gaining

Least Cost Theory

Hotelling’s Model• Harold Hotelling (1895-1973)• Locational Interdependence• Originally locate near customers – but will gravitate

to each other to maximize profits• The costs for some customers will be greater if the

2 sellers cluster – further to walk. Also fewer customers aware of service. But can’t move for fear of losing customers.

Changing Markets

• Outsourcing

• New international division of labor– Moving industry to low-cost labor

• Just-in-time Delivery

• Post-Fordist system – more flexible, less mass produced (time-space compression)

• deindustrialization

• Break of bulk points

• Informal economy

• High-tech corridors

• agglomeration