2. Four Questions of Economic Geography What and how much are you going to make? Product Economy of scale The more you make of a G/S the cheaper it is to make. (Mass Production) How are you going to make it? Factors of production Where are you going to make it? site characteristics local and ubiquitous Who gets what portion of the goods and services? Who gets the product? Who gets for the profit? Who gets the benefit?

3. Factors of Production Land Site Resources Localized Ubiquitous Labor human physical input Degree of skill (unskilled v. skilled) How this requirement is changing -automation Capital all the things that are needed to provide a basic industry Parts, factories, machines, tools, Forward and Backward Linkages Entreprenuerial Skill: the ability to put the three other pieces together in a money making way

4. Alfred Weber formulated a least cost theory of industrial location which tries to explain and predict the locational pattern of the industry at a macro-scale. It emphasizes that firms seek a site of minimum transport and labor cost. Alfred Weber

5. The point for locating an industry that minimizes costs of transportation and labor requires analysis of three factors: Material Index The point of optimal transportation based on the costs of distance to the "material index" - the ratio of weight to intermediate products (raw materials) to finished product. In one scenario, the weight of the final product is less than the weight of the raw material going into making the product -- the weight losing industry. In the other, the final product is heavier than the raw materials that require transport. Usually this is a case of some ubiquitous raw material, such as water, being incorporated into the product. This is called the weight-gaining industry. Think about it: Would you place a weight gaining industry near the sales location or near the resources? Where would you place a weight losing industry? Why? Give an example.

6. Which would be the best industrial location for: Weight gaining? Weight losing? Resources Factory Market

7. Labor The labor distortion: sources of lower cost labor may justify greater transport distances and become the primary determinant in production. A. UNSKILLED LABOR –industries such as the garment industry require cheap unskilled laborers to complete activities that are not mechanized. They are often termed "ubiquitous" meaning they can be found everywhere. Its pull is due to low wages, little unionization and young employees. B. SKILLED LABOR - High tech firms, such as those located in Silicon Valley, require exceptionally skilled professionals. Skilled labor is often difficult to find. Agglomeration and deglomeration The clustering and linkages allow individual firms to enjoy both internal and external economies. (forward and backward linkages)

8. The optimal Weberian location is NOT the center of gravity [which minimizes the sum of the squares of distances], but the spatial median, which minimizes the sum of the distances. Verignon Frame:A Varignon frame is a system of weights and pulleys used by geographers to help determine optimum location. For example, the weights might represent the relative cost of transporting particular goods to or from particular locations, to help a firm decide the most cost effective site to locate a prospective production facility.

9. Industrial Model Any industry can be viewed as a system, with inputs, throughputs (or processes), outputs and feedback. Inputs: Physical and Cultural Processes or Throughputs: are the actions within the industry that change the raw materials into the finished product. For instance, all the processes needed to change pieces of wood into a chair. Outputs: can be negative or positive, although they are usually the latter. Negative outputs include waste products. The positive outputs are the finished product and the money gained from the sale of that product. Feedback: is what is put back into the system.

10. Physical Factors of Industrial Location Accessibility: The site of the new factor needs to be accessible, so that importing of raw materials and exporting of finished products is easy. Early industry had to have good access to raw materials, usually though natural routes like rivers. Nowadays access is needed to transport routes. Climate: The climate could affect where an industry locates, as it needs to attract workers to the area. This is not a particularly important factor. Land: The site of an industry is very important. Usually, flat land is the most essential thing to find. Most industries try to find areas where there is room to expand once production has become successful. Victorian industries often located in the inner city areas of towns, which didn't allow much room for expansion, but was required because the work-force could live within walking distance of the factory. Today cars have allowed industry to move to out-of-town locations as the workers can drive to the factory.

11. Physical Factors of Industrial Location Power: Initially, industry had to locate right beside its power source. Water power was used at first, and then the burning of coal produced steam power. Both sources of energy restricted where industries could locate, as they had to be beside a suitable river or near the coal field. Raw Materials: Old, heavy industry required large amounts of bulky raw materials, which were very costly to transport, and so the industry located close to them. – Newer industries are described as being footloose, as they are not tied by being near raw materials, which are smaller and easier to transport.

12. Socio-Economic Factors Capital: Very important to any industry. Companies cannot set up their chosen industry without investment of money. This may come from private sources or from the government. Communications : Probably the most important factor for new industries nowadays. Most need communications links not only to the rest of the country, but to the rest of Europe and the World. Transport routes such as the motorways, airports, railways and the ports are all things that will attract industrial location. Communications increasingly also includes access to the internet, fax and phones. All these allow industries to have a greater freedom of choice over their location. Government policy: Governments can greatly influence the location of industry, by giving tax incentives, cheap rent and other benefits to companies locating in certain areas of the country. Often these are places, which the government wants to develop economically. Government policy also lead to the closure of many of the heavy industries in the United Kingdom, such as numerous coal mines and ship building yards.

13. Socio-Economic Factors Labor Supply: Very important to old, labor-intensive industries. This is why many of them located in the inner cities, so that there was a huge pool of potential workers close by. With the growth in car ownership, and industries becoming more mechanized labor supply is not such an important factor for most industries. However, some industries rely on it. – Many of the quaternary industries in the UK are found near the university towns of Oxford and Cambridge, as they wants to attract skilled, knowledgeable graduates for their industry. Markets: Access to markets is vital, and this ties in with the section on communications. In the last 19 th Century the market for most industries would be fairly local. Into the 20 th century the market widened with improved transport technology. Now, the market for many companies is a global one

14. NIC’s There are a number of countries around the world that can be accurately described as Newly Industrialised Countries (NIC's). – An increasing exporter to the world market, usually by copying existing products and then re-producing them for a much cheaper price. – Rapid growth in the manufacturing sector, which results in far more exports and a rapidly rising GDP. The Three Stages

15. Traditional society: Most industry is labor intensive, concentrating on small cottage-style traditional industries, using local raw materials. Examples could include food processing or textile manufacture. Often, the majority of people are still in the primary sector, doing things such as farming. There is little technology and most people have very little money. Most products are imported from abroad, meaning that the country is relying on other for many of its needs. Where would you find these areas in World Systems Theory?

16. Import substitution industries: The country decides to promote its own industries. New companies copy products from well-known companies, and then make them for a far cheaper price. The country operates a strict regime of trade tariffs and high taxes for any similar products being imported into the country. This is aimed at protecting their own companies whilst they grow. Example industries are car manufacture, computer manufacture and the manufacture of other electrical goods, such as hi-fi's.

17. Export orientated industries: Once the new companies have become established in their own country they are unleashed upon the world market. These industries are now capital intensive, using high technology and aimed at making a big profit. The GDP of the country starts to rocket, often growing at well over 5% per year, which is an amazing rate. The country is now described as being an NIC. South Korea is one of the countries in south-east Asia described as being part of the Tiger Economies. The others are Taiwan, Singapore and Hong Kong. What do geographers call the loci for exporting these goods? Give a physical location for most of these sites.

18. Multi-national or Trans-national companies are ones which locate their factories throughout the world. This gives them many benefits, such as access to the world market, cheap labor, cheaper production costs, and therefore greater profits. The headquarters of the company remains in its original country, usually one of the most developed countries in the world, such as the UK or USA. They then have factories throughout the world, which either make parts or entire finished products for the company to sell on the world market. Most of the largest multi-national companies are oil companies such as BP and Exxon (Esso), as well car companies (for example, Ford, Toyota, Nissan and Volkswagen). Other well-known companies such as Coca-Cola, IBM and Sony are also defined as being multi-national. Multi-national companies locate around the world for their own benefit - in other words - to make as much money as possible. They bring with them both advantages and disadvantages for the country that plays host to them.

19. Multi-national or Trans-national Companies Investment: Advantages: The companies bring much needed money into the country. Although most of their profits do return to the company's country of origin, the local economy does benefit. Disadvantages: The wages paid to local workers are often low and some companies have been accused of exploiting the local workforce rather than benefiting it. There are often tax incentives for these companies to locate in countries in the Developing World. This added to the fact that they take most of their profits out of the country, means that the actual economic benefit to the country could be minimal. Technology: Advantages: The companies help the development of the country by bringing in technology and knowledge that the host country does not possess. Disadvantages: Unless the company actively participates in a program to educate local companies in the new technologies, the country's industry will not really benefit. Multi-national companies might be worried by sharing too much information, as they could find themselves with increased competition from local companies.

20. Multi-national or Trans-national Companies Transport Advantages: The new companies often help to improve transport links around the area. Disadvantages: The transport links that do receive financial help from the multi-nationals often only serve the direct routes and needs of that company, not the wider area as well. Employment Advantages: They create jobs for the local population. Disadvantages: Often the jobs are highly skilled and so the company brings in their own people to do them. Also, the technological nature of many of these companies means that there aren't as many jobs as there might have been.

21. Multi-national or Trans-national Companies Growth poles Advantages: The new multi-national companies act as growth poles for other similar companies. They could encourage more companies to locate in that country once they see the benefits that it brings. Disadvantages: Only a limited range of companies find that moving to a Developing World location is beneficial. They will only move there if it makes economic sense for the country. They do not consider the potential benefits to the host country. Environment/Safety Advantages: Companies bring with them the technology and expertise to reduce harmful pollution and create a safe working environment. Disadvantages: Many multi-national companies have very poor records on pollution and worker safety. They have been accused of trying to cut corners with both safety and pollution in order to keep costs down. What would be another term you could use for “growth poles”?