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Geography of International Trade

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1 Geography of International Trade
Jinan University Department of International Economics and Trade Students of Year 2001 Autumn, 2004

2 Course Description It provides an international perspective to examine how the goods and services people produce are geographically organized, and how the world economy, especially in the production and market sectors, evolves in rapid transition.

3 Theme focus: distribution & economic growth Issues discussed: Population growth, Resource depletion and Environmental degradation, Transportation and communications, World industrial regions, International business patterns.

4 Course Outline: Part I A. Introduction What is geography?
The field of geography Geography’s language – map

5 B. Population and the World Economy
Population distribution Population growth over time and space Population structure The debate on the question of whether and how population growth affects economic growth

6 C. Resources and Environment
Resources and population Renewable and nonrenewable resources Food resources Nonrenewable resources depletion Environmental degradation Growth-oriented and balance-oriented life-styles

7 D. Transportation in World Trade
Transportation – the key for understanding geographic patterns Transportation cost and its variations for different transport media (air, truck, rail, water, and pipeline) Improved transport facilities Shipping – the most important transport mode in world trade Routes and networks (shipping lanes, railroads, high-ways, pipelines)

8 Course Outline: Part II
Regional Geography Dynamic regional geography provides a strong basis for: *assessing inequalities and changing circumstances around the world; *evaluating attempts to reduce the inequalities

9 9 regions with common cultural & historic experiences
Africa South of the Sahara a tribal culture; its religions have an environmental or animistic base with Islamic or Christian overlays resulting from trade or colonization;

10 North Africa & Southwest Asia
The twin uniting cultural features of Islamic religion and Arabic language; Southern Asia Intermingling and clashes among Hindu, Islamic, and Buddhist religions and British colonial influence;

11 Eastern Asia The scene of historic civilizations in China, from which religious and linguistic influences have permeated the rest of the region, But has had less European colonial intervention than other world regions;

12 Western Europe Home of Catholic and Protestant Christianity, Home of capitalism, Home of modern industrial technology.

13 Eastern Europe, the Balkans, and the former Soviet Union
Stretch from central Europe across northern Asia, The scene of long-term clashes between the Catholic and Orthodox Christian and Islamic faiths, Overlaid and subdued for most of 20th c. by the communist political culture, Emerging again in the 1990s.

14 Anglo America Dominated by culture brought by settlers mainly from northern parts of Western Europe Latin America Dominated by culture brought by settlers mainly from southern parts of Western Europe

15 South Pacific Includes former European colonies (Australia & New Zealand, the largest), Antarctica, the uninhabited continent, is linked to it.

16 Map of the World

17 Questions Geography asks
“Where?” questions (descriptive inventory) Where are things located? What is their distribution across the surface of the earth? As an old saying holds, “If you can map it, it’s geography.” This statement is true, because one uses maps to gather, store, analyze, and present information that answers “Where?” questions.

18 “Why?” and “How?” questions (analytical approach)
Why are things located where they are? How do different things relate to one another at a specific place? How do different places relate to each other? How have geographic patterns and relationships changed over time? Questions take geography beyond mere description; A powerful approach for analyzing and explaining geographical aspects of a wide range of different kinds of problems faced by those engaged in international business.

19 What is Geography? It is concerned with place,
describes the changing pattern of places, attempts to unravel the meaning of the evolving of such patterns. It seeks to understand the physical and cultural features of places and their natural settings on the face of the earth. The spatial dimension is central to geography. It uses a distinctive language – the language of maps.

20 Table1.1 – The 6 Essential Elements and the 18 Geography Standards

21 Part VI – the most insightful and enlightening
Geography helps us to understand the world, the earth as it was, its past tense, to explore the world as it is, its present tense, and to think of the world as it might be, its future tense.

22 Geography as a synthesizing discipline
The Field of Geography Geography as a synthesizing discipline

23 Slide: Figure 1-6 The Scope of Geography
Geographers refer to knowledge and insights derived from other disciplines. Geography is in a unique position to demonstrate the relatedness of all knowledge. physical, urban, rural, social, political, and economic geographers

24 Carnegie Report on Higher Education (1991)
The world has become a more crowded, more interconnected, more volatile and more unstable place. If education cannot help students see beyond themselves and better understand the interdependent nature of our world, then each generation will remain ignorant, and its capacity to live competently and responsibly will be dangerously diminished. (p.42)

25 Geography of International Trade
within scope of Economic Geography

26 Trends in Economic Geography
Concerns: The productive use of the geographic environment – the location, productivity, and potential uses of natural resources, including mineral and oil deposits, forests, grazing lands, farmland, and favored sites, such as harbors. Such studies are vitally important to – manufacturing and service industries, marketing research, and the establishment of facilities and trade routes.

27 Commercial Geography (old name)
Developed during the era of European exploration and discovery from 15th-19th c. Purpose of Commercial Geography: Its purpose was seen by British scholar G. G. Chisholm (1899) as to stimulate intellectual interest in geographic facts relating to trade; All of his book was an inventory of commodity and trade statistics, which was a more descriptive approach than analytical one.

28 Influence of 3 major themes of Geography
Human-environmental relations flourished until 1930s Geographers then sought to explain variations in economic development in terms of environmental determinism. Climates, disease, or even the “colored races” are some of the determinants used to justify economic activities.

29 For example: (See: world map – physical feature)
Industrial countries --- stimulating climates Third World countries --- difficult climates Justification of economic backwardness in Africa, Asia, and Latin America caused by unfavorable climates that induced low levels of productivity among local people.

30 Areal differentiation
influential from the late 1930s to the late 1950s The main reaction to the period of excessive environmental determinism and its underlying preoccupation with race; Adopt the view that all geographic phenomena were unique and that theory building was of little value;

31 Its primary focus of concern was areal differentiation – differences rather than similarities – among places. The unique approach resulted in detailed descriptions of production, exchange, and consumption.

32 Areal differentiation concept led to some of the great regional writing;
Overlook the need for comparative studies. Areal differentiation dominated geography at the expense of areal integration.

33 Spatial organization ---
now the dominant approach Concerns: how space is organized by individuals and societies to suit their own designs; Provides a framework for analyzing and interpreting location decisions and spatial structures;

34 location theory and analysis:
What products and services are produced, How they are produced (i.e. with what combination of resources), Where they are produced and why there? The theme of spatial organization is particularly valuable in helping us to understand world development problems.

35 A Marvelous Planet Temperature – mild, & relatively constant
The Earth in solar system Temperature – mild, & relatively constant Plentiful supplies of clean air, fresh water, fertile soil generated endlessly and spontaneously by geological and biological cycles

36 Species populate the earth;
Rich diversity of life Species populate the earth; Organisms make up complex, interrelated, and meanwhile delightfully diverse, self-sustaining, communities; We should always remember that, in spite of the challenges and complications of life on earth, we are incredibly lucky to be here.

37 We should then ask ourselves:
What is our proper place in nature? What ought we do? What can we do to protect the irreplaceable habitat that produced and support us?

38 Understanding our Environment
We travel together, passenger on a little space ship, dependent upon its vulnerable reserves of air and soil, all committed for sour safety to its security and peace; preserved from annihilation only by the care, the work, and I will say, the love that we give to our fragile craft. Adlai Stevenson – Video: Laponia, the midnight sun

39 John Muir – American geologist
He agued that nature deserves to exist for its own sake, regardless of its usefulness to us: “The world, we are told, was made for man. A presumption that is totally unsupported by the facts…” “Nature’s object in making animals and plants might possibly be first of all the happiness of each one of them…”

40 “Why ought man to value himself as more than an infinitely small unit of the one great unit of creation?”

41 Thomas Jefferson “The earth belongs in usufruct to the living.”
Roman philosopher Lucretius said: “Life itself is given to us only in usufruct.”

42 Basic Geographic Concepts
- Location, Direction, & Distance

43 Properties of Space One-dimensional space:
a line between 2 two points; Three-dimensional space: a volume; Two-dimensional space: represented on a plane; Maps – examples of 2-dimensional space

44 Distance, Direction, Connectivity
Spatial elements of point, line, and area used to define the basic geographic concepts: distance, Direction – Northeast, Southwest, or North-Northeast… Connectivity – Shanghai is better linked to other places than Guangzhou, since SH is located at center of China and GZ in southern end of China. Shanghai has a higher degree of connectivity than Guangzhou.

45 Language of Maps Scale A map is a reducer;
The amount of reduction appears on the scale. 1/10, unit on map represents 10,000 of same units on the ground Large-scale map portrays a relatively small area in more detail; Small-scale map portrays a relatively large area in more generalized terms.

46 Coordinate system of Latitude (N-S) & Longitude (E-W)
Equator – a latitude of 0 an imaginary line of latitude that circles the globe in an east-west direction exactly halfway between the North Pole and the South Pole. dividing the globe into two equal parts: the Northern Hemisphere and the Southern Hemisphere.

47 Latitude of 30 A place at 30 of latitude lies where a line from the surface to Earth’s center intersects the plane of the equator at 30. Parallels of Latitude a circle joining the places of the same latitude at Earth’s surface – a parallel of latitude

48 North Latitude & South Latitude
45 N – the parallel 45 degrees north of the equator North Pole – 90 N; South Pole – 90 S Pinpoint locations: each degree is divided into 60 minutes (60') each minute is divided into 60 seconds (60") *show Guangzhou’s latitude Low latitude – places near the equator High latitude – places near the poles

49 Tropic of Cancer – 23.5 N parallel of latitude located 23 27' north of the Equator; marking the northernmost point at which the sun appears directly overhead. Tropic of Capricorn – 23.5 S parallel of latitude located 23 27' south of the Equator. marking the southernmost point at which the sun appears directly overhead.

50 Arctic Circle – 66.5 N parallel of latitude located approximately 66 30' north of the Equator. Portions of Alaska, Canada, Greenland, Russia, and the Arctic Ocean lie within the Arctic Circle. marks the boundary of the zone where the sun never sets during the June solstice(夏至) and never rises during the December solstice(冬至).

51 Antarctic Circle – 66.5 S parallel of latitude located approximately 66 30' south of the Equator. marks the boundary of the zone where the sun never sets during the December solstice and never rises during the June solstice. Middle Latitude places between tropic and circle lines

52 Meridian of Greenwich or
prime meridian – a longitude of 0 runs from the North Pole to the South Pole through the former Royal Observatory at Greenwich, London, England (1884). Meridians of Longitude Straight lines connecting the poles; 30 W – the meridian 30 west of the prime meridian

53 Timekeeping the world by longitudes
Earth rotates from west to east at 15 of longitude an hour. World divided into 24 time zones, each 15 of longitude (although actual boundaries of each zone are adjusted to fit country and state boundaries.)

54 Marker of time – Greenwich Mean Time (GMT) or Universal Time
The time in the 15 of longitude centered on the prime meridian GMT+8: time zone 8 hours ahead of the marker GMT-3: time zone 3 hours behind the marker International Date Line – 180 meridian Travelers crossing it from east to west lose 1 day; those going from west to east gain a day.

55 Two kinds of Location Absolute location (site)
Position in relation to a conventional grid system, i.e. the intersection of a line of longitude with a line of latitude provides a unique, or absolute, location for any place on the Earth. Relative location (situation) Position in relation to other locations. A measure of connectivity and accessibility, which usually changes over time. Concept of relative location is of greater interest to economic geographers than absolute location. **show Singapore’s location

56 Our Globe Northern Hemisphere
80% of the world’s total land area and 91% of the world’s population land hemisphere Southern Hemisphere only 20% of the land and 9% of the population water hemisphere

57 Different maps vs. Different standings
Center vs. Margin: :Core vs. Periphery Near East, Middle East, Far East Value-laden maps **Heart of Darkness – a colonist’s exploration and loot in central Africa

58 A Modern Critique of Western Colonization
Pocahontas A Modern Critique of Western Colonization

59 Natural Environment A dynamic system of interacting parts:
the solid earth, atmosphere and oceans, plants, animals and soils producing regional differences.

60 Climate of a place a long-term character of atmospheric conditions;
annual range of temperature and precipitation (rain and snow).

61 Climatic Environments - Tropics
Between the parallels of latitude at 23.5 N and 23.5 S; High temperatures throughout the year Weather systems – tropical cyclones(热带气旋): Hurricanes of North America (飓风) Typhoons of Eastern Asia (台风)

62 Variations of the Tropics –
Seasonal differences of rainfall; Equatorial Climate – Places close to Equator have rain in all year; Seasonal and Monsoon Climates – Places away from Equator but within the tropics have a marked alternation of dry and wet seasons. Monsoon – Indian subcontinent & West Africa Arid Climate Dry season becomes so long that climate becomes arid. Main tropical climates have a north-south distribution.

63 Climates of Midlatitude Lands
Between the tropics and polar circles at 66.5 N and 66.5 S Marked by seasonal temperature contrasts. Midlatitude climates have a west-east distribution – mild and moist west coasts (海洋性气候), dry interiors (大陆性干旱气候), east coasts with summer rains.

64 Interior Climate Greatest temperature contrasts in the centers of North American and Eurasian continents West Coast and East Coast Climates winds blowing from the oceans bring winter warmth and summer coolness to the coasts of Europe, Anglo America, and Asia.

65 Climates of Polar Regions
Poleward of 66.5 N and 66.5 S Extreme coldness and long dark winter

66 Earth’s Interior Earth – a multilayered planet with a hot molten core
solid inner core, liquid outer core – produces the earth’s magnetic field, lower mantle (地幔) – tremendous pressures keep the rock material from melting,

67 upper mantle – combined with the crust, forms the lithosphere(岩石圈), which makes up the earth’s plates(板块). Crust (地壳) – rigid, outermost layer of the earth Continental crust is made up mostly of granite and rocks. Oceanic crust, which forms the ocean floor, is composed mainly of basalt(玄武岩).

68 Plate Tectonics(板块构造论)
Earth’s crust is broken up into rigid plates that move independently of one another. Plates collide, forcing rock upward to form mountain systems. Plate forced downward beneath another plate is subducted(潜没), forming volcanoes and earthquakes, concentrating along plate boundaries.

69 Plate movements produce major feature of earth surface:
formation of mountain system, building of continents, opening and closing of ocean basins.

70 External Forces Atmosphere and Sea’s influence on Earth’s surface by processes of: Weathering (风化作用) Erosion (侵蚀作用) Deposition (沉积作用)

71 Relief & Landforms Relief (地势)– variations in heights of Earth’s surface caused by interaction of internal Earth forces and external influences from weather and action of the sea. Landforms(地形) naturally formed shapes that make up the earth’s surface – plains, plateaus, mountains, hills, and valleys.

72 Ecosystem

73 Ecosystems Aquatic ecosystem – marine environment & freshwater environment on land Terrestrial ecosystem  Influenced by climate, interact with the soil. Relationship between plants, animals, and their living and non-living environments. Divided into 2 main components: Abiotic elements (non-living): air, water, heat, nutrients, rock and sediments.

74 Biotic elements (living):
plants and animals, divided into: Autotrophs (or producers) – 自养生物 organisms capable of converting sunlit energy into food energy by photosynthesis. Heterotrophs (or consumers) – 异自养生物 Herbivores – plant eaters Carnivores – meat eaters Omnivores – plant and meat eaters 杂食动物 Detritivores – decomposers 食腐动物  food chain / web (energy transformation)

75 World Main Ecosystems Natural Vegetation:
Plant cover developing with little or no human interference. Five Primary Vegetation Cover: Forest Grassland – Tall-Grass Prairie & Steppe (Short-Grass Prairie) Savanna – Transition between forest and grassland Desert Tundra (苔原)

76 Tropical Rainforests Amazon Rainforest Congo Basin Rainforest
Rainforests of the Malay Archipelago (群岛) and much of coastal South and Southeast Asia

77 Paradox of Rainforest –
Despite containing the world’s most luxuriant vegetation, tropical rainforests are found on some of the world’s least fertile soils due to hot, wet conditions. Fragile Rainforest Environment – Once the vegetation is removed, nutrients are quickly removed from the system creating infertile conditions, even deserts.

78 Acres Lost Each Year Annual loss of rainforest is 40 million acres, the size of England and Wales: Latin America million acres Africa million acres Asia million acres Rainforest is disappearing at the rate of an acre per second. Rainforest support up to 90% of all wildlife. Annual deforestation in 1990s was 50% higher than in 1980s. Over 200 million people live in rainforest areas.

79 Main Conflicts in Rainforest Regions
Cattle ranching South America Banana plantations Costa Rica, Coffee plantations Africa Logging All over Farming Mining South America, Asia, Africa Rubber plantations Indonesia

80 Savannas (热带稀树草原) Savanna vegetation is adapted to a strong wet-dry annual cycle; Landscape ranging from open woodlands to rich grasslands; East African Savanna Brazilian Highland Asian Monsoon Forests Ethiopian Plateau

81 Temperate Grasslands (steppe)温带草原(干草原)
European Grassland – Southeastern Europe, Russia Asian Steppe – grasses are shorter and more drought-resistant ,known as steppe, suitable for grazing. Grassland of North America – Tall-grass prairie provides rich soils suited to cultivation and cropping, now known as the heavily farmed American Corn Belt. Pampas – The tall grasslands of Uruguay and Argentina are known as the pampas.

82 Temperate Deciduous Woodland
温带落叶林地 European Deciduous Forest North American Deciduous Forest: eastern North America East Asian Deciduous Forest coastal East Asia: Patagonia Deciduous Forest a small region of Patagonia, in southern Argentina of Andes Mountains

83 Temperate Coniferous (Boreal) Forest
温带针叶林(北方生物带)(needleleaf) Siberian Taiga(针叶林) stretches across northern Asia. European Taiga European Russia and Scandinavia Northern Forest of North America

84 - Language and Religion
Human Environment - Language and Religion

85 Language A shared identity for a culture 6 official languages of UN –
Historic experiences and traditions A shared identity for a culture Québécois in Canada, Welsh in Britain, Hispanics in US 6 official languages of UN – English, French, Spanish, Russian, Arabic and Mandarin Chinese Chosen by victorious allies at end of WWII

86 Geographic Distribution of Languages
Related to major language families that developed in specific regions and diffused to others by historical events like conquest or trade

87 Indo-European family - Indian subcontinent; - Slavic languages of Eastern Europe and Russia; - Southern, Western, Northern Europe Spanish, Portuguese, English, French & Dutch Spread worldwide with colonization from 1450 Dominate the Americas and Australasia

88 Sino-Tibetan family - Languages of China, - Southeast Asian area. Semitic-Hamitic (Arabic) family - Northern Africa, - Arabian Peninsula Niger-Congo family - Africa South of the Sahara Malayan-Polynesian family - Malaysia, Indonesia, the Philippines, & South Pacific

89 Religions Transferring cultural values from one generation to the next; Generating cultural loyalties; Religious observances include special places and days.

90 4 religions claiming largest adherents
Christianity, Islam, Hinduism & Buddhism Southwest Asia – Birthplace of 3 major religions: Judaism, Christianity, and Islam. Christianity – Eastern Orthodox, Protestant, Roman Catholic; Europe, the Americas, Australasia, and Africa South of Sahara.

91 Islam – Arab world of North Africa & Southwest Asia; Central Asia; Pakistan, Bangladesh; Indonesia. Hinduism – Southern Asia Buddhism – Eastern Asia

92 Judaism smaller number of adherents, but has widespread influences, esp. in western countries. Christianity, Islam, & Buddhism can be joined by anyone in any country; often seek to extend their membership. Hinduism & Judaism Closely tied to family and region; Do not encourage conversions.

93 Religious Faith and Conflicts
Religious difference, linked to inequalities of wealth and power, may result in conflicts. Conflicts often arose after being fanned by those in power for their own ends. Some of the basic human conflicts: Christian V.S. Jews, Muslim V.S. Hindus, Christian V.S. Muslims, Muslims V.S. Jews

94 Conflicts extended: Catholic V.S. Orthodox (former Yugoslavia) Catholic V.S. Protestant (Northern Ireland) Shia V.S. Sunni Muslims (Iraq)

95 Influence of Economic Globalization
Economic globalization is accompanied by an increasing secularization based on scientific explanations of phenomena, so reducing religious influences. Attendance at religious ceremonies and observance of religious rites is decreasing.

96 Decreasing but still Significant
Science does not provide a system of values or guides to the meaning of life. Resurgence of Islamic militancy – a sign of the significance of religious difference after Cold War period of political conflicts

97 Population & Economic growth

98 Population Distribution
75% of world population live within 1000 km of the sea. 85% live in areas less than 500 m above sea-level. 85% live between 20 N – 68 N; less than 10% live in the Southern hemisphere.

99 Population Density Arithmetic density (算术密度) (where?)
The total number of people divided by total land area. Physiological density(生理密度) The number of people supported by a unit area of arable land. The higher the physiological density, the greater is the pressure that people may place on the land to produce enough food.  Insights into the relationship between population size and the availability of resources in a region.

100 The ratio of the number of farmers to the amount of arable land;
Agricultural density The ratio of the number of farmers to the amount of arable land; This measure helps explain economic differences between MDC & LDC. 2 & 3 Density: keys to understand relationship between population and resources in a region. ***see Table projection

101 Population Change Components of Population Change: Population =

102 Measures of Change Crude Birth Rate (CBR):
The total number of live births in a year for every 1000 people alive in the society. A CBR of 20 means that for every 1000 people in a country, 20 babies are born over a 1-year period. Crude Death Rate (CDR): The total number of deaths in a year for every 1000 people alive in the society.

103 Natural Increase Rate (NIR):
NIR (%) = CBR - CDR The percentage by which a population grows in a year. NIR = CBR (20) – CDR (5) = 15 per 1000 = 1.5% “Natural” means a country’s growth rate excludes migration. Doubling time – The number of years needed to double a population, assuming a constant rate of natural increase. At the current NIR of 1.5% per year, world population would double in about 50 years.

104 Population Growth This accelerating growth rate is relatively recent phenomena. Growth rates doubled , , and It is estimated that population will stabilize at around 12 billion; 95% of growth will be in LDCs.

105 Population Growth (cont’)
Large number of children have already been born in LDCs, so even if birth rate falls, population will still grow (population momentum). The biggest relative increase will be in Africa (annual rise of 3%).

106 Demographic Transition & Global Trends

107 Stage 1 – High Stationary
Both birth rate and death rate high Population fluctuates Agriculture revolution around 8000 B.C Low growth stage No country remain in this stage.

108 Stage 2 – Early expanding
Birth rate stays high Death rate falls rapidly Life expectancy increases Population grows very quickly Industrial revolution in Europe and N. America Medical revolution in Africa, Asia and Latin America after 1950s High growth stage

109 Stage 3 – Late expanding Birth rate falls
Death rate stays at low level Population growth rate rapid at first, then slows. Urbanization; education and literacy; women’s status and more employment opportunities Moderate growth stage

110 Stage 4 – Low stationary Birth rate and death rate low
Population stable or grows very slowly Low growth stage

111 Stage 5? – Low declining Low birth rate along with an ageing population leads to a declining population. close to zero growth rate or even negative growth rate

112 2 Crucial Difference in the Model
A circle completed for a country– From little or no natural increase in stage 1, to little or no natural increase in stage 4. Two crucial demographic differences underlying this process – At stage 1, the crude birth and death rates are high, while at stage 4 the rates are very low. Total population of the country is much higher in stage 4 than in stage 1.

113 Demographic Transition Model
The above model states that both a population’s mortality and fertility will decline from high to low levels as a result of social and economic development. Based on the European experience, Also used as a predictive tool to explain change in developing world.

114 An Irreversible Process
The demographic transition is a process with several stages, and every country is in one of them. The process has a beginning, middle, and end, and it is irreversible. Once a country moves from one stage of the process to the next, it does not revert to an earlier stage.

115 Global Trends of Transition
Group 1 – Africa High birth rate, increasing growth rate. Low income; Low status of women; Large rural communities; Lack of infrastructure; Child workers.

116 Group 2 – Asian/Latin America:
Declining birth rates and death rates, stabilizing growth rates. Increased urbanization and industrialization; Emancipation of women, at least in the workforce; Effective family planning measures; Compulsory education.

117 Group 3 – the West: Declining birth rates, declining death rates, falling growth rates. Ageing population; Women marrying later; Consumer society; Readily available contraception; “Selfish” society.

118 Optimum Population Theory & Population Policy

119 Optimum GDP per head Total population population Under- population
Over- population GDP per head Total population

120 Optimum Population The size of population which permits the full utilization of the natural resources of an area giving maximum per capita output and standard of living.

121 Under-population Population is too small to develop its resources effectively.

122 straining transportation systems

123 Over-population An increase in population or decrease in natural resources which leads to a decrease in standards of living for the population as a whole. Carrying capability – The maximum intensity of use which a resource can sustain without an unacceptable deterioration of living standards.

124 Population–Resource regions
Optimum population is based on combination of 3 factors: population density Resources technology Regions of the world can be classified according to population-resource ratios:

125 USA type technologically innovative; low population-resource ratios; under-population. European type high population-resource ratios;

126 India-China type technologically deficient; high population-resource ratios; overpopulation Brazil type low population-resource ratios

127 Two opposing views of the effects of population growth

128 Increased demand for food
Neo-Malthusian Population Increase Increased demand for food Less food per person Increased mortality Decreased fertility Decrease in population growth

129 Rev. Thomas Malthus (1798) “Positive Checks” – solution 1
Diseases or famines to stabilize population; “Preventative Checks” – solution 2 Moral restraints are advocated, including late marriage and celibacy until a couple can afford to support children.

130 Neo-Malthusian We are approaching or may already have surpassed the carrying capability of the earth; Birth control – the highest priority

131 Population Policy in China
China has used concept of optimum population – to stabilize its population at 1.2 billion by 2000; to reduce the population to a government-set optimum of 700 million within a century. A number of different policies initiated:

132 Great Leap Forward (1952-60, not really a “policy”)
Chinese leadership wanted industrialization at any cost. Food production ceased to be a top priority. This coupled with drought led to famine. Population dropped by 14 million. An estimated 25 million babies were not conceived or did not survive. Infant mortality rate rose to 284/1000 (today the figure is 30/1000)

133 One-child Policy (late 1970s)
‘Only children’ afforded preferential treatment in education, housing, employment. One-child families rewarded with salary bonuses. Families with two or more children lost 10% of their salaries. Compulsory sterilization and forced abortions.

134 Evaluation of Policy Fertility rate have fallen from 2.25 to 1.9
Effectiveness concentrated in the large cities of north-eastern seaboard Much foreign criticism of the government’s aggressively enforced policy One-child policy giving rise to ‘Little Emperor’ syndrome – spoilt and overweight only children Evidence of resistance, esp. in rural areas

135 Resource optimists Population increase  Increased demand for food
Improvement in technology Population growth continues unchecked

136 Resource optimists Malthus’ failure to account for scientific progress
Food supplies have increased faster than population growth over 200 years; Technological advances have increased human carrying capability more than once in our history.

137 Resource optimists People are the ultimate resource:
No evidence that population, crime, unemployment, crowding, loss of species, or any other resource limitations will worsen with population growth. Through innovation or intensification, humans can respond to increased numbers of population.

138 - Solution to Overpopulation?
The Green Revolution - Solution to Overpopulation?

139 The Problem Population growth is more rapid than the increase in food production. (e.g.…) In India, by 2000, the population reaches 1 billion people; And food production will need to increase by 40% to match demand. But much of India’s land is of limited potential.

140 The Solution? Green revolution –
MDCs’ approach of applying science and technology to increase crop productivity has been proposed for LDCs; Began in 1943; miracle rice was introduced to selected parts of Asia. Various techniques including –

141 Genetic engineering to produce Higher Yielding Varieties (HYVs,高产变种) Mechanization Pesticides Herbicides Chemical fertilizers Irrigation water

142 Miracle Rice

143 HYVs – Flagship of Green Revolution
Up to 55% of India’s crops are now HYVs; 85% of the Philippines’ crops are HYVs; 13% of Thailand’s crops are HYVs. Green Revolution – a major scientific achievement but not a panacea.

144 The Consequences of Green Revolution
Main benefit:  more food can be produced: Yields are higher; Up to three crops can be grown each year; More food should lead to less hunger; More exports create more foreign currency.

145 Many problems: Not all farmers adopt HYVs – some cannot afford the cost; As the cost rises, indebtedness increases; Rural unemployment has increased due to mechanization; LDCs are dependent on many developed countries for the inputs – new seeds, fertilizers, pesticides, herbicides being produced and controlled by multinationals.

146 Improper irrigation has led to salinisation – 20% of Pakistan’s and 25% of Central Asia’s irrigated land is affected; Soil fertility is declining as HYVs use up all the nutrients; these can be replenished by fertilizers, but this is expensive.

147 Natural Resources

148 Classification of Natural Resources
Non-renewable (stock) resources: Those ‘consumed by use’ – fossil fuels, phosphate fertilizers Those that are ‘recyclable’ – metals which can be recovered The issue is the prospect of running out of non-renewable resources – a significant concern since the 1960s and 1970s.

149 Q & A Is water renewable or non-renewable?
Is soil finite or infinite resource?

150 Renewable (flow) resources:
Those ‘not affected by human action’ i.e. continually available – solar radiation, tidal energy Those ‘affected by human action’, i.e. that can be exhausted by over-exploitation – soils, fish, forest ecosystems The issue is the danger of irreversible damage to the biosphere – a significant concern in the 1980s and 1990s.

151 Tragedy of the Commons Garret Hardin (1968), American biologist
Any commonly held resource inevitably is degraded or destroyed because the narrow self-interests of individuals tend to out-weigh public interests. Solution would be either to give coercive power to government or to privatize the resource.

152 Resource Base Resource scarcity would lead to higher prices, conservation, recycling, or substitution. Proven Reserves – Can be extracted at current prices with current technology. Conditional Reserves – not economic under prevailing conditions of technology and economics.

153 Speculative resources
might be discovered in areas of favorable geology. Hypothetical resources Likely to exist in known mining areas or oil and gas fields which have not been fully explored. Unconceived resources rocks and minerals not recognized as having commercial value but may have some future use.

154 Energy

155 Worldwide Commercial Energy Production

156 Current Energy Sources
Fossil fuels provide about 95% of all commercial energy in the world. Sustainable or renewable energy resources – solar, hydroelectric, biomass (fuel wood) and other less developed types of power production – currently provide less than 3% of world power needs. Nuclear energy provides about twice as much energy as renewable sources.

157 Producers and Consumers
Top 10 energy surplus countries Saudi Arabia, Mexico, Iran, Venezuela, Indonesia, Algeria, Kuwait, Iraq, Libya, Qatar, Nigeria, & the United Arab Emirates (UAE). Top energy consumers Japan, many western European countries, and the US.

158 Energy Consumption The 20 richest countries consume nearly 80% of the natural gas; 65% of the oil; 50% of the coal produced each year. In general, higher energy use correlates with a higher standard of living. The linkage is not absolute, however…

159 Sweden, Denmark, Switzerland have higher standards of living than does the US by most measures;
but use about half as much as energy as the US does. Japan has a far lower energy consumption rate than might be expected for its industrial base and income level. Effective energy conservation programs in practice for many years.

160 Oil – Black Gold

161 Oil Reserve At present rates of production and consumption, known reserves could last for another 40 years. Nearly 2/3 of world’s reserves are found in the Middle East.

162 Percentage of world oil reserves
Middle East 62.5 Latin America 12.5 Former USSR & Eastern Europe 5.9 Africa Asia and Australasia 4.5 North America 4.2 Western Europe 1.8

163 (63.5 million barrels a day)
Oil Production (63.5 million barrels a day)

164 Oil Production OPEC countries account for a large part of world’s oil production. The Old Industrialized Countries (OICs) provide about 23% of world production, yet 80% of oil refining takes place in the triad of North-west Europe, North America, and Japan. Refineries are no longer associated with oil fields as in the early days of development.

165 Oil Consumption (65.5 million barrels a day)

166 Oil Consumption Oil consumption largely reflects levels of economic development. Consumption is mostly in the OICs (48%) and Asia and Australasia (20%); Oil consumption in OICs has relatively remained constant in recent years; Asian demand has been growing rapidly; China is expanding oil use 10% per year.

167 Middle East Oil – Geographic Implications
Critical importance of Middle East OPEC controls the price of crude oil; Increased dependency upon it by all other regions; Its increased economic and political power; An incentive for OICs to increase energy conservation or develop alternative energy; A need for political stability in Middle East.

168 Environmental Implications
Oil slicks from tankers – Torrey Canyon (1967), Exxon Valdez (1989) Braer (1993), Sea Empress (1996) Damage to coastlines, fish stocks, and communities dependent upon the sea Gulf War damage – Oil wells and storage sites can be targets for destruction, resulting in immeasurable environmental damage. ***Iraq war CCTV news clip***

169 Exxon Valdez (1989)

170 Oil refineries by Mississippi River The incidence of tumors among the population living along the waterway has earned this stretch of the river the unflattering nickname of Cancer Alley

171 HEP, tidal, wind, solar & nuclear power
Renewable Energy HEP, tidal, wind, solar & nuclear power

172 Hydroelectric Power (HEP)
A renewable form of energy that harnesses fast-flowing water with a sufficient head. HEP plants are very costly to build; Only a small number of places have a sufficient head of water.

173 Nuclear Power Advantages
A cheap, reliable, & abundant source of electricity. Plentiful supply of uranium, enough for it to be considered a renewable energy Unlike coal and oil, which have reserves estimated to last 300 years and 40 years respectively.

174 Disadvantages Uranium is a radioactive material; The nuclear power industry is faced with the hazards of waste disposal and problems of decommissioning old plants and reactors; Disasters happen, as at Chernobyl in April 1986; Rising environmental fears concerning the safety of nuclear power and nuclear testing.

175 Assignment Essay Topic –
Implications of Earth Summit in Rio de Janeiro 1992 Less than 500 words; A4 paper, 小四字体; Deadline – October 14, 2004 Reading Assignment – China’s Pollution: A Great Wall of Waste

176 Transportation & Trade
Unit 3

177 Purpose of Transportation
"The ideal transport mode would be instantaneous, free, have an unlimited capacity and always be available. It would render space obsolete. This is obviously not the case. Space is a constraint for the construction of transport networks. Transportation appears to be an economic activity different from the others. It trades space with time and thus money" (translated from [Merlin, 1992]).

178 Friction of Space Space Overcoming Human and physical constraints –
distance, time, topography and administrative divisions Jointly, they confer a friction to any movement – friction of space. Cost Distance involved and nature of what’s being transported Goal of Transportation Transform the geographical attributes of freight, people or information, from an origin to a destination, conferring them an added value in the process.

179 Economic Importance of Transportation
Transport is both a factor and a consequence of economic activities. Contributes to the value-added of goods and services; Facilitates economies of scale; Influences land (real estate) value; Participates in the geographic specialization of regions.

180 The Growing Importance of Transportation
The following contemporary trends can be identified:

181 Vehicle Use Indicators, World, 1950-2002
Source: Worldwatch Institute and BTS.

182 Growth of Demand Since the 1950s, the number of automobiles has considerably increased, especially in developed countries. This process of motorization involved a significant reduction in the number of people per automobile, from 48.2 in 1950 to 11.1 in There are consequently more vehicles per capita, which is a good indicator of potential mobility. In 2002, the global automobile fleet was estimated to be around 531 million vehicles, with an annual car production of around 40 million cars. Along with number of vehicles, the distance traveled per vehicle is also on the rise.

183 Transport and Communication Costs Indices, 1920-1990
Source: UNDP Human Development Report 1999, p. 30.

184 Reduction of Costs Transport and communications costs have considerably declined during the 20th century, notably through the application of economies of scale. In 1960, maritime transport costs were a third of their 1920 level. Air transportation costs have followed a similar trend, but over a much shorter time lapse. Air transportation boomed after the WWII with the application of significant technological improvements (such as the jet engine). Telecommunications are however the sector where costs have decreased the most. In 1990, an international phone call was on average at 1 to 5% of its 1940 cost. With fiber optic cables and decreased costs for satellite use, telecommunications are accessible throughout the world. The current mass diffusion of cell phones is likely to further decrease costs. Another significant wave innovation involves information technologies, as indicated by the excessively rapid decrease of computer costs since their initial introduction in the 1960s.

185 Transportation Network Density (in km per 100 sqr km), 2000
More than 100 km / 1002 km km / 1002 km Source: ESRI. 40-60 km / 1002 km 20-40 km / 1002 km 10-40 km / 1002 km Less than km / 1002 km

186 Expansion of Infrastructures
This map represents the density in kilometers per 100 square kilometers of two major land transportation infrastructures, roads and railways. They are obviously correlated with major population concentrations. The regions having the highest concentrations of infrastructures (shades of blue) are Western Europe, North America and Japan while shades of gray represents marginally serviced areas.

187 Transport System - 3 core concepts

188 The Transport System Nodes Networks Demand Origins Destinations
Intermediacy Terminals Locations Friction People Freight Information Flows Linkages Networks Demand

189 Transport system – a set of relationships between nodes, networks and demand.
Demand for the movement of people, freight and information is a derived function of a variety of socioeconomic activities. Nodes are the locations where movements are originating, ending and being transferred. Networks are composed of a set of linkages derived from transport infrastructures.

190 Derived Demand & Spatial Flows
What is specific to the purpose of transportation is the fulfillment of a demand for mobility as transportation obeys a derived demand. Consequently, any movement has a spatial consideration which in turn is linked to spatial flows and their patterns . Urbanization, multinational corporations, the globalization of trade and the international division of labor are all forces shaping and taking advantage of transportation at different, but often embedded, scales.

191 Spatial Flow Patterns City European Power a b c Trade d C C C
Hinterland Port Source: adapted from Tolley, R. and B. Turton (1995), p. 34. Hierarchical

192 Spatial Flow Pattern 1 International (trade) patterns
occur between nations and include entities such as trading blocks (European Union, NAFTA) or dependent territories (colonialism). These flows mainly reflects the nature of the transactional environment.

193 Spatial Flow Pattern 2 Hinterland patterns
generally occur between a service center (e.g. city or a transport terminal such as a port) and its market area. They are of regional scale and reflect the organization of markets.

194 Spatial Flow Pattern 3 Hierarchical patterns
mostly found within the industrial or commercial sectors and include distribution-related movements through a supply chain (from suppliers to customers). These flows reflects the spatial organization of distribution.

195 Dynamics of Transportation Networks and Geographical Specialization & Segregation

196 Transportation Networks and Geographical Specialization

197 Geographical Specialization
Five locations are linked by a transportation network; one hub and four feeders. Without trade (left figure), each location has to produce the goods it requires. With trade (right figure), a process of geographical specialization becomes possible. Each peripheral location can specialize in producing one good and imports what is not produced on location. The hub location can specialize at trading goods produced in the four feeder locations.

198 Specialization Linked geographical entities are able to specialize in the production of commodities they have a comparative advantage at, while importing what they do not produce. As a result, efficient transportation systems are generally linked with higher levels of regional specialization. The globalization of production clearly underlines this process as specialization occurs as long as the incurred saving in production costs are higher than the incurred transport costs.

199 Transportation Networks and Geographical Segregation

200 Geographical Segregation
Five locations are linked by a transportation network; one hub and four feeders. Without trade (left figure), each location has the same level of importance. With trade (right figure), a process of geographical segregation becomes possible. The hub location may see the convergence of movements and thus increase its importance, while the feeder locations may experience a decline. Many urban systems have been affected by such a process, as the largest cities, due to accessibility, economies of scale and agglomeration, grew faster than small and medium-sized centers.

201 Segregation Linked geographical entities may see the reinforcement of one at the expense of others, notably through economies of scale. This outcome often contradicts regional development policies aiming at providing uniform accessibility levels within a region. Geographical specialization and segregation processes often occur concomitantly.

202 Space / Time Relationships
- its change over history

203 One of the most basic relationship transportation has with space involves how much space can be overcome with a given amount of time. Transportation, notably improvements in transport systems, changes the relationship between time and space.

204 Space / Time Convergence of the World Transport System
Average speed of wagon and sail ships: 16 km/hr Average speed of trains: 100 km/hr. Average speed of steamships: 25 km/hr 1950 Average speed of airplanes: km/hr 1970 Average speed of jet planes: km/hr 1990 Numeric transmission: instantaneous

205 Historical Evolution of Transportation
- 5 Major Stages

206 Transportation in the Pre-Industrial Era (pre 1800s)
Any forms of mechanized transportation did not exist. Transport technology was mainly limited to harnessing animal labor for land transport and to sailing for maritime transport. Waterways were the most efficient transport systems available and cities next to rivers were able to trade over longer distances and maintain political, economic and cultural cohesion over a larger territory. It is not surprising to find that the first civilizations emerged along river systems for agricultural but also for trading purposes: Tigris-Euphrates, Nile, Indus, Ganges, Huang He

207 Mail Coach, Great Britain, 18th Century
Source: “A typical mail coach of the early 1800s. By this time the coach had evolved into a tremendously practical and effective vehicle in response to the bad roads of the time. The wooden body was heavily painted to make it proof against water and mud, hence the culture of 'coach painting' and building that developed as an art form. Fifty coats of paint would not be unusual. There is a high ground clearance to move over and through the potholes and ditches of the earthen roads. The front wheels are smaller than the rear set to allow for effective steering as the wheels can pass under the overhang of the carriage. The driver is high up to allow a good view and to keep out of the mud, stones and dust that gets thrown up by the horses and wheels.”

208 Early European Sailships

209 The Silk Road and the Arab Sea Routes
EUROPE Turpan Rome Gobi Desert Black Sea Caspian Sea Samarkand Kashgar Dunhuang Athens Constantinople Bukhara Taklimakan Desert Antioch Lanzhou Hamadan Merv Rey Bactra Hotan Xi’an Mediterranean Ocean Tyre Baghdad PERSIA Alexandria CHINA EGYPT Red Sea Muscat Barbaricon Calcutta Guangzhou Berenike Pacific Ocean ARABIA Sur Barygaza INDIA Muza Kané Arabian Sea Bay of Bengal South China Sea Aden Muziris Mogadishu SOMALIA Indian Ocean Malacca Atlantic Ocean Mombasa JAVA 500 Miles

210 Silk Road The Silk Road was the most enduring trade route of human history (being used for about 1,500 years). It consisted of a succession of trails followed by caravans through Central Asia, about 6,400 km in length. Travel was favored by the presence of steppes, although several arid zones had to be bypassed such as the Gobi and Takla Makan deserts. Although it is suspected that significant trade occurred about 1,000 years before, the Silk Road opened around 139 B.C. once China was unified under the Han dynasty.

211 Silk Road cont’ It started at Chang’an (Xi’an) and ended at Antioch or Constantinople (Istanbul), passing by commercial cities such as Samarkand and Kashgar. The Silk Road reached its peak during the Mongolian Empire (13th century) where China and Central Asia were controlled by Mongol Khans, which were strong proponent of trade even if they were ruthless conquerors. Since the transport capacity was limited, over long distance and often unsafe, luxury goods were the only commodities that could be traded, including silk, gold, jade, tea and spices. The Silk Road also served as a vector for the diffusion of ideas and religions (initially Buddhism and then Islam), enabling civilizations from Europe, the Middle East and Asia to interact.

212 Roman Road Network, 200 AD Atlantic Ocean Black Sea
Adriatic Sea Mediterranean Ocean 500 km Red Sea

213 Roman Road Network The Roman Road network covered most of the conquered provinces, with Rome as the focal point. Thus the saying “All roads lead to Rome”. The Mediterranean Ocean provided a central role to support trade between a network of coastal cities (Rome, Constantinople, Alexandria, Cartage, etc.). These cities were serviced by a road network permitting trade within their respective hinterlands. Little fluvial (river) transportation took place since the major pan-European rivers, the Rhine and the Danube, were military frontiers, not the core, of the Empire. The road served numerous functions, such as military movements, political control, cultural and economic (trade).

214 Grand Canal System Yellow Sea East China Sea Beijing Jizhou Luoyang
Tonghui Canal (Yuan) Yongji Canal (Sui and Yuan) Yellow Sea Old course of the Yellow River (Song) Jiao-Lai Canal (Yuan) Yongji Canal (Sui) Jizhou Canal (Yuan) Jizhou East China Sea Tongji Canal (Sui) Luoyang Kaifeng Huaiyin Bian Canal (Song) Chuzhou Yangzhou Canal (Song and Yuan) Yangzhou Jiangnan Canal (Sui, Song and Yuan) Suzhou 400 km Hangzhou

215 Early European Maritime Expeditions, 1492-1522
Early European maritime expeditions, using caravels, were dominated by Portugal and Spain in the late 15th and early 16th centuries. The main goal was to find a maritime route to Asia, which could be done by sailing east or west from Europe:

216 Early European Maritime Expeditions
Cabot (1497) Colombus ( ) 370 leagues Cape Verde Gama ( ) Magellan ( ) Treaty of Tordesillas Line (1494)

217 Eastern maritime route – Portugal
From 1481, Portuguese ships reached the Cape of Good Hope at the southernmost end of Africa. Vasco de Gama rounded the Cape of Good Hope in his expedition and reached India. He was the first European to reach Asia (India) by a maritime route. Portugal was able to trade with India without the traditional Arab intermediaries and gradually took control of all the trade routes between Europe and Pacific Asia. In 1511, Malacca, the most important commercial center in Southeast Asia, fell to the Portuguese. In 1513, Portuguese explorers reached Canton in China and were able to use Macao as a trade depot (1557). The eastern maritime trade route to Asia was thus established.

218 Early European Maritime Expeditions
Cabot (1497) Colombus ( ) 370 leagues Cape Verde Gama ( ) Magellan ( ) Treaty of Tordesillas Line (1494)

219 Western maritime route - Spain
Columbus tried to find the western route to Asia, but stumbled upon the Americas (in the Bahamas, Cuba and Hispaniola) in 1492. Cabot would also try to reach Asia in 1497, but unsuccessfully as the coasts of Newfoundland and Labrador were reached instead. In 1519, Magellan embarked in an expedition to find the western maritime route to Asia. He successfully reached the Pacific Ocean by rounding the southern tip of South America (1520) and by going through the strait that will later bear his name. After crossing the Pacific Ocean he was killed in 1521 in Southeast Asia. However, one of his ships made the trip back to Europe through the Cape of Good Hope and completed the first round-the-world journey in history (1522). Encouraged by this success, Spain conquered the Philippines between 1565 and 1571 and established their colonial capital at Manila. By using the isthmus of Panama(巴拿马地峡) as an overland route between the Atlantic and Pacific oceans, the western maritime route to Asia was established.

220 Colonial Trade Pattern, North Atlantic, 18th Century
1) Sugar, Molasses, Slaves 2) Flour, Meat, Lumber Tobacco, Furs, Indigo, Lumber Europe North America Sugar, Molasses, Fruits Manufactures 1 North Atlantic Ocean 2 Africa West Indies Dominant wind Slaves, Gold, Pepper South America Trade Route

221 Colonial Trade Pattern
By the early 18th century, a complex network of colonial trade was established over the North Atlantic Ocean. This network is partially the result of local conditions and of dominant wind patterns. It was discovered in the 15th century, notably after the voyages of Columbus, that there is a circular wind pattern over the North Atlantic. The eastward wind pattern, which blows on the southern part, came to be known as the trade winds since they enabled to cross the Atlantic. The westward wind pattern, blowing on the northern part, came to be known as the westerlies.

222 Colonial Trade Pattern cont’
Since sailships were highly constrained by dominant wind patterns, trade followed. Manufactured commodities were exported from Europe, some towards the African colonial centers, some towards the American colonies. This system also included the slave trade, mainly to Central and South American colonies (Brazil, West Indies). Tropical commodities (sugar, molasses) flowed to the American colonies and to Europe. North America also exported tobacco, furs, indigo (a dye) and lumber (for shipbuilding) to Europe. This system of trade collapsed in the 19th century with the introduction of steamships, the end of slavery and the independence of many of the colonies of the Americas.

223 The Industrial Revolution and Transportation (1800-1870)
Massive modifications of transport systems occurred with two major phases: the first centered along the development of canal systems; the second centered along railways. This marked a new era in the mechanization of land and maritime transport systems alike.

224 Completion of the Transcontinental Railway Between New York & San Francisco, 1869

225 Erie Canal, New York, 1829 View of Erie Canal by John William Hill, Watercolor on paper, 9 3/4 x 11 3/4 inches.

226 Lockport, Along the Erie Canal, New York, circa 1900
Source: NOBLE E. WHITFORD (1921) HISTORY OF THE BARGE CANAL OF NEW YORK STATE, Flight of locks at Lockport, where the canal descends the Niagara escarpment. Two locks of Barge canal size have replaced a tier of five old locks. At the left appears the outlet of the power-supply tunnel around the locks.

227 Clipper Ships

228 Clipper Ship “Flying Cloud”

229 Major Canals Built – 1 Year Built Name Extent 540-1320 Grand Canal
Beijing-Hangzhou (2,500 km) 11th Century Naviglio Grande Milan-Adriatic (30 km) Stecknitz Canal Elbe-Trave (11 km) Briare Canal Seine-Loire (58 km)

230 Major Canals Built – 2 Year Built Name Extent 1667-81 Canal du Midi
Garonne-Mediterranean (279 km) 1732 Ladoga canal St. Petersburg-Volga (110 km) Bridgewater Canal Worsley-Manchester (16 km) Rhine-Rhone canal Strasburg-Mulhouse-Burgundy (319 km)

231 Major Canals Built – 3 Year Built Name Extent 1810-24 North Sea canal
Amsterdam-North Sea (20 km) Erie canal Buffalo-Albany (544 km) Ludwigs kanal Main-Danube (172 km) Rhine-Marne canal Saverne gap (314 km)

232 Major Canals Built – 4 Year Built Name Extent 1859-69 Suez canal 1894
Mediterranean-Red Sea (112 km) 1894 Manchester Ship Canal Manchester-Liverpool (64 km) Kiel canal Baltic Sea-North Sea (99 km) Panama canal Atlantic Ocean-Pacific Ocean (80 km) Mittelland kanal Rhine-Elbe (320 km)

233 Emergence of Modern Transportation Systems (1870-1920)
Global maritime circulation was dramatically improved when infrastructures to reduce intercontinental distances, such as the Suez (1869) and the Panama (1914) canals were constructed.

234 Geographical Impact of the Suez Canal, 1869
EUROPE EAST ASIA Suez Canal AFRICA 10,000 KM 16,000 KM Indian Ocean

235 Geographical Impacts of the Suez Canal
Planned by the French but constructed by the British, the Suez Canal opened in 1869. It represents, along with the Panama Canal, one of the most significant maritime "shortcuts" ever built. It brought a new era of European influence in Pacific Asia by reducing the journey (blue line) from Asia to Europe by about 6,000 km (around Africa; red line). The region became commercially accessible and colonial trade expanded. Great Britain, the maritime power of the time, benefited substantially from this improved access. For instance, the Suez Canal shortened the distance on a maritime journey from London to Bombay by 41% and shortened the distance on the journey from London to Shanghai by 32%.

236 Geographical Impact of the Panama Canal, 1914
NORTH AMERICA Atlantic Ocean 8,000 KM Panama Canal Pacific Ocean SOUTH AMERICA 21,000 KM

237 Geographical Impacts of the Panama Canal
The Panama Canal, completed in 1914, considerably shortens the maritime distances between the American East and West coasts by a factor of 13,000 KM.

238 The Geographical Space of Maritime Transportation
Pacific Northwest Passage Southeast Asia Cape Horn Panama Canal Strait of Malacca Gibraltar Suez Atlantic Indian Mediterranean Good Hope

239 The Geographical Space of Maritime Transportation
Northwest Gibraltar M Suez Malacca P A I P Panama Sunda Magellan Good Hope

240 Rail systems reached a phase of maturity
This period also marked to golden era of the development of the railway transport system as railway networks expanded tremendously and became the dominant land transport mode both for passengers and freight –

241 Evolution of the Railway Network (in km), 1850-1913

242 This era also marked the first significant developments in telecommunications.
Telegraph Receiver, 1844

243 Transportation in the Fordist Era (1920-1970)
Adoption of the assembly line as the dominant form of industrial production Diffusion of the automobile, especially from the 1950s has drastically changed lifestyles and the structure of cities, notably for developed countries. It created suburbanization and expanded cities to areas larger than 100 km in diameter in some instances. The rapid diffusion of the automobile marked an increased demand for oil products and other raw materials such as steel and rubber.

244 Assembly Line of the Ford T Model, 1913

245 Ford T Coupelet, 1915 Source: Henry Ford Museum & Greenfield Village, Photo: P

246 Freight Transport With economies of scale, freight transportation was able to move low-cost bulk commodities such as minerals and grain over long distances. Oil tankers are a good example of the application of this principle to transport larger quantities of oil at a lower cost, especially after WWII. Maritime routes were expanded to include tanker routes, notably from the Middle East. In the 1960s, tanker ships of 100,000 tons became available. At the beginning of the 1980s, a ship of 550,000 tons is able to transport 3.5 millions tons of oil annually between the Persian Gulf and Western Europe.

247 Comparison between a Contemporary and Second World War Tanker
Modern VLCC (305 m) 1975 T2 Tanker (153 m) 1942

248 Air Transport The first balloon flight took place in 1783.
The first propelled flight was made in 1903 by the Wright brothers and inaugurated the era of air transportation. The 1920s and 1930s saw the expansion of regional and national air transport services in Europe and the United States with successful propeller aircrafts such as the Douglas DC-3. In 1958, the first commercial jet plane, the Boeing 707, entered in service and revolutionized international movements of passengers, marking the end of passenger transoceanic ships.

249 First Free Ascent of a Hot-air Balloon With Passengers, 1783
Source: National Air and Space Museum (2001), Smithsonian Institution (SI Neg. No. A-4691).

250 Wright Brothers First Airplane

251 Douglas DC-3

252 Boeing 707

253 Telecommunications Basic telecommunications infrastructures, such as the telephone and the radio, were mass marketed during the Fordist era.

254 Bell’s First Telephone

255 A New Context for Transportation : the Post-Fordist Era (1970-)
Telecommunications enabled growing information movements, especially for the financial and service sectors, reaching the era of individual access, portability and global coverage. After 1970 telecommunications successfully merged with information technologies – The information highway became a reality as fiber optic cables gradually replaced copper wire, multiplying the capacity to transmit information between computers. This growth was however dwarfed by the tremendous growth in processing power of computers, which are now fundamental components of economic and social activities in developed countries. A network of satellite communication was also created to support the growing exchanges of information, especially for television images.

256 Diffusion of Telecommunication Services, 1985-2002 (in millions)
Source: International Telecommunication Union & Internet Software Consortium.

257 Containers In a post-Fordist system, the fragmentation of the production, organizing an international division of work increased the quantity of freight moving at a local, regional and international scales. This in turn required increasing efforts to manage freight and reinforced the development of logistics systems. Containers, main agents of the modern international transport system, enabled an increased flexibility of freight transport, mainly by reducing transshipment costs and delays: 

258 Containers (cont’) Handling a container requires 25 times less labor than its equivalent in bulk freight. They were introduced by the American entrepreneur McLean which initially applied containerization for land transport. However, the true potential of containerization became clear when interfacing with other modes became possible, mainly between maritime, rail and road transportation. By early 1980s, container services with specialized ships (cellular containerships, first introduced in 1967) became a dominant aspect of international and regional transport systems.

259 First Containership, Ideal-X, 1956

260 Ideal-X being Loaded, 1956 Source: Unknown

261 Five Generations of Containerships
First Generation ( ) Length Draft TEU Converted Cargo Vessel 135 m 500 < 9 m Converted Tanker 200 m 800 Second Generation ( ) 1,000 – 2,500 Cellular Containership 215 m 10 m Third Generation ( ) 250 m 3,000 Panamax Class 11-12 m 290 m 4,000 Fourth Generation ( ) Post Panamax 275 – 305 m 4,000 – 5,000 11-13 m Fifth Generation (2000-?) Post Panamax Plus 5,000 – 8,000 335 m 13-14 m

262 Global Fleet of Containers, 2000 (in TEUs)
Source: UNCTAD (2000) Review of Maritime Transport, p. 81.

263 Remarkable Improvements in Air & Rail Transportation in late 1960s and early 1970s
The first commercial flight of the Boeing 747 between New York and London in 1969 marked an important landmark for international transportation (mainly for passengers). At the regional level, the emergence of high-speed train networks provided fast and efficient inter-urban services, notably in France (1981; TGV; speeds up to 300 km/hr) and in Japan (1964; Shinkansen; speeds up to 275 km/hr).

264 Boeing 747

265 TGV Train at Gare de Lyon, Paris, France
Source: Dr. Jean-Paul Rodrigue

266 Shinkansen

267 Maglev Train, Shanghai 2003 Source:

268 ULTra (Urban Light Transport) System, Cardiff, UK
Source: Advanced Transport Systems, Ltd.

269 Evolution of the Transport Technology, 1750-2000
Maritime Road Rail Air 2000 Hydrogen car Maglev Container ships Electric car Jumbo Jet TGV Super tankers Jet Plane 1950 Airfoils Highways Jet engine Helicopters Buses Bulk ships Trucks Planes 1900 Source: adapted from Williams, A. (1992) "Transport and the Future", in B.S. Hoyle and R.D. Knowles (1992) Modern Transport Geography, London: Belhaven Press, pp Liners Automobile Tramway Internal combustion engine Metro Bicycles Dirigibles Iron hulls Balloons Electric motor 1800 Steam engine Docks Omnibus Rails Locks

270 Transportation & World Economy
Technological evolution in the transport sector is linked with the phases of economic development of the world economy. Transportation and economic development are consequently interlinked as one cannot occur without the other.

271 Phases of Development of the World Economy
1970- Mode of Accumulation Economic system Mercantilism Industrial capitalism Monopoly capitalism Corporate capitalism Source of growth Trade in commodities Manufacturing Manufacturing and services Production unit Workshop Factory Multinational corporation Corporate system World-System Characteristics Space relations Trade routes Atlantic basin International Global Supply system Colonialism Colonialism / Imperialism State imperialism Corporate imperialism Hegemonic powers United Provinces, Mediterranean city states Britain Britain, USA USA

272 Reading Assignment Transportation Mode –
Maritime Transportation and Intermode Transport The World Car Industry – 3 articles (Economist)

273 Transportation Mode An Overview

274 Transport Modes Vehicles supporting the mobility of passengers, freight and information; Infrastructures supporting their movements. Each mode is characterized by a set of technical and operational attributes:

275 Roman Road (Appian Way)

276 Road Transportation Road Infrastructures –
Large consumers of space with the lowest level of physical constrains among transportation modes; Environmental constraints are significant in road construction. Road transportation – Average operational flexibility as vehicles can serve several purposes but are rarely able to move outside roads; High maintenance costs – both for the vehicles and infrastructures. Mainly linked to light industries where rapid movements of freight in small batches are the norm.

277 Car Manufacturers – Dominant Players in Global Economy
Even if the car is not an international transport mode, its diffusion has expanded global trade of vehicles, parts, raw materials and fuel. Car production, which used to be mainly concentrated in the US, Japan and Germany, has become a global industry with a few key players. This has led the growing mobility but also to congestion and waste of energy – As of the 21st century begins, the automobile accounts for about 80% of the total oil consumption in developed countries.

278 Automobile Production, United States, Japan and Germany, 1950-2000 (in millions)
Source: Worldwatch Institute.

279 Global Production per Car Manufacturer, 1996

280 Global Production per Car Manufacturer, 1999

281 Global Production per Car Manufacturer, 1996-2002
Source: International Organization of Motor Vehicle Manufacturers.

282 Road Transport Density Measures, G7 Countries, 1996
Source: US Department of Transportation, BTS, G-7 Countries: Transportation Highlights

283 The Interstate Highway System

284 Rickshaws, Jog Jakarta, Indonesia
Bicycles adapted to transport passengers, provide a low cost and flexible mode of urban transportation, notably in Southeast Asia.

285 Cycling in LDCs Cycling is to be considered an alternative to the automobile in urban areas, widely adopted in developing countries, although more for economic reasons.

286 World Bicycle Production, 1950-2001
Source: Worldwatch Institute, Vital Signs 2002 (New York: W.W. Norton & Company, 2002).

287 Share of Cycling over the Total Amount of Trips, mid 1990s
Source: Worldwatch Institute, Vital Signs 2002 (New York: W.W. Norton & Company, 2002).

288 Cycling in MDCs out of Environmental Concerns
The reduction of vehicle emissions and the impacts of infrastructures on the environment are mandatory to promote a sustainable environment in many more developed countries.

289 Rail Transportation Average level of physical constrains linked to the types of locomotives and affected by the gradient. Heavy industries are traditionally linked with rail transport systems. Containerization has improved the flexibility of rail transportation by linking it with road and maritime modes.

290 Geographical Settings of Rail Lines
Penetration Lines Local / Regional Networks Transcontinental Lines Nation A Nation B

291 Penetration Lines Their main purpose is to link a port city with its hinterland, particularly in order to access natural resources such as minerals, agricultural products and wood products. It also represented one of the initial stages of rail development, notably in the US, which later became regional networks linked by transcontinental lines. This type of system is today mainly found in developing countries (Africa and Latin America) and was partially the result of the colonial era. Transporting freight is the dominant function of this type of network, although passenger traffic can be significant.

292 Local / Regional Networks
They are servicing high density population areas of developed countries with the goal to support massive shipment of freight and passengers. Regions with the highest rail density are Western Europe, the Northeastern part of North America and Japan.

293 Transcontinental Lines
These lines were mainly established for territorial conquest and the establishment of a national sovereignty. The most relevant examples are in the United States, Canada, Russia and Australia, which have built rail systems of this scale. Today, transcontinental rail lines are being established to attenuate the discontinuity of maritime transportation by transporting containers. They are a chain in the global intermodal transport system.

294 2 Main Transcontinental Bridges (or Landbridges)
In Euro-Asia & North America

295 The world’s longest continuous train route from Moscow to Vladivostok, Trans-Siberian Railway cross 7 time zones and cover more than 9,300 kilometers (more than 5,779 miles), constructed from 1891 to 1904.

296 Trans-America Railway

297 Nature of Rail Transport
Rail transportation is characterized by a high level of economic and territorial control since most rail companies are operating in situation of monopoly, as in Europe, or oligopoly, as in North America. Operating a rail system involves using regular (scheduled), but rigid, services.

298 World Rail Passenger Traffic, 1980-2002
Source: International Union of Railways,

299 World Rail Freight Traffic, 1997-2002
Source: International Union of Railways,

300 Domestic Rail Passenger Travel and Freight Activity, G7 Countries, 1996
Source: US Department of Transportation, BTS, G-7 Countries: Transportation Highlights

301 Geographical Differences in the economic preference of rail transportation among MDCs
Rail freight dominates in the US and Canada while passengers are a residual function. This is mainly related to the geographical scale of their respective rail systems along with a preference on road and air transportation for inter-urban passenger movements. This confer an advantage for the flow of rail freight as it is uninterrupted by passenger flows. Western Europe and Japan have a reverse situation where rail transportation tends to be dominated by passengers. As a result, rail freight flows are often marginalized and constrained to use the system during the night.

302 Development of High Speed Train to Improve Rail Popularity, Europe and Japan, 1965-2000
Source: International Union of Railways,

303 “Whosoever commands the sea commands trade;
Whosoever commands the trade of the world commands the riches of the world, and consequently the world itself.” Sir Walter Raleigh (c1610).

304 International Seaborne Trade and Exports of Goods, 1955-2001
Source: Worldwatch Institute. United Nations, Review of Maritime Transport.

305 Maritime Transportation and International Trade
The growth of maritime transportation is strongly correlated with the growth of international trade: From about 800 million tons loaded in 1955, maritime traffic has almost reached 6 billion tons in 2000. Major fluctuations in export values in the 1970s and 1980s were mainly linked with oil price variations. More recently, the development of containerized maritime transportation was linked to a growing trade of value-added commodities.

306 Maritime Activities Divided in 2 Major Categories:
Interior Waterways: Western Europe, the Volga / Don system, St. Lawrence / Great Lakes system, the Mississippi and its tributaries, the Amazon, the Panama / Paraguay, the interior China.

307 Fluvial Transport System, Lower Yangtze Delta
Nanjing Changzhou Wuxi Suzhou Shanghai

308 Transcontinental Waterways:
The Atlantic Ocean – Very important maritime space  78% of the global trade; 68% of its value; 75% of the maritime trade. Trade over the Pacific has experienced very strong growth: - Dependence of developed countries for energy, minerals and agricultural products: - Increased importance of large maritime companies as well as a division of labor and capital in the maritime industry. - Markets, technology and capital are provided by developed countries and labor by developing countries.

309 Maritime Routes and Strategic Locations

310 Capacity of Key Strategic Passages
Standard Capacity Depth TEU Panamax 65,000 dwt 12 meters (40 feet) 4,000 Suez-max 120,000 dwt 16 meters (58 feet) 12,000 Malacca-max 300,000 dwt 21 meters (68 feet) 18,000

311 Oil Transited at Major Strategic Locations, 2001
Source: Energy Information Administration, World Oil Transit Chokepoints.

312 Panama Canal: Gatun Locks (Atlantic Ocean access)

313 Panama Canal: Miraflores Locks (Pacific Ocean access)

314 Containership on the Suez Canal

315 Suez Canal "For over 80 years the Canal was essentially a foreign enclave. The Suez Canal Company, which owned and operated the Canal was an Egyptian cooperation, but practically all the share capital was held abroad. Foreigners controlled the board of directors and constituted the great bulk of the managerial and technical staff. Only a fraction of the profits went to Egypt. In 1949, the Suez Canal Company concluded an agreement with the Egyptian Government establishing new conditions of administration more favorable to the country, including an increased share of the profits and a provision enlarging the countries representation on the board of directors." "Presumably the agreement of 1949 would forever satisfy the Egyptians. However, in 1956 the Nasser regime seized control of the canal and claimed its sovereign right to govern its use. Thus the Suez canal remains to this day, a national treasure to the Egyptian people, making the country millions of dollars daily."

316 Shipping Lanes and Strategic Passages in the Middle East
Bosporus Turkey Iran Iraq Pakistan Suez Hormuz 3 PG Egypt 2 1 Saudi Arabia Oman Red Sea Yemen Bab el-Mandab 1) United Arab Emirates 2) Qatar 3) Kuwait Indian Ocean PG: Persian Gulf

317 Shipping Lanes and Strategic Passages in Pacific Asia
Tsugaru Japan Hormuz China Pacific Ocean India Malacca South China Sea Makassar Indonesia Indian Ocean Sunda Lombok

318 The Strait of Malacca Malaysia South China Sea Malaysia Indonesia
Pacific Ocean Gulf of Thailand Thailand Indian Ocean Strait of Malacca South China Sea Malaysia Malaysia Singapore Indonesia Indian Ocean Indonesia Strait of Sunda

319 Port of Singapore increasingly specialized in container traffic

320 The Dardanelles and Bosporus Passages
Greece Black Sea Turkey Bosporus Istanbul Marmara Denizi Dardanelles Turkey Mediterranean Ocean

321 Maritime Transportation
High terminal costs Port infrastructures are among the most expensive to build, maintain and improve. High inventory costs linked to heavy industries more than any other mode, e.g. steel and petrochemical facilities adjacent to port sites

322 Types of Maritime Routes
Port-to-Port Pendulum Round-the-World

323 Port-to-port. Involves a more or less regular service between two ports, often moving back and forth, but very likely the flow of freight is unidirectional. This system has the disadvantage of offering limited connectivity and mainly represents movements of raw materials, notably oil and minerals, between zones of extraction and industrial regions. Pendulum. Involves a regular itinerary between a sequence of ports, often serviced by geographical proximity. A set of ports along one seaboard are serviced and then an ocean is crossed and the process is repeated along another seaboard. This is notably the case between Western Europe and the Eastern Seaboard of the United States. This type of route is more characterizing cargo, notably containerized cargo. Round-the-World. Involves servicing continuously a sequence of ports, often in both directions, so that sequence enables a round trip around the world. A limited amount of ports per continent are serviced. This type of maritime route strictly concerns container shipping.

324 Evergreen Round-the-World Route, Westbound

325 Round-the-world routes
Introduced in 1984 by the Taiwanese container shipped Evergreen. This route takes about 69 days and is serviced by about 104,000 TEUs ships in each direction (Westbound and Eastbound). Each port was thus called twice a week. However, by early 2002 this service was replaced by two pendulum services offering higher service frequencies: North Europe, North and Central America and East Asia; North Europe, Asia and the Pacific North West

326 Pendulum Route: OOCL Container Services on the North Atlantic, 1997

327 Pendulum Route: OOCL Container Services on the North Atlantic, 1997
The Hong Kong based shipper Orient Overseas Container Line (OOCL) maintains several pendulum services over the North Atlantic. The North Atlantic Express (NAX) routes are such examples where two maritime facades are linked by pendulum services: The NAX-1 route linked US North Atlantic ports (Boston, New York and Norfolk) with Western European ports (Le Havre, Rotterdam, Bremenhaven and Felixstowe). The NAX-2 route focused on US South Atlantic ports (Savannah, Jacksonville, Houston and Miami).

328 Maritime Enclaves and Accessibility
Less than 700 km More than 700 km Maritime Enclave

329 Maritime Enclaves Not every territory has a direct access to the ocean. Maritime enclaves are such countries that have difficulties to undertake maritime trade since they are not part of an oceanic domain of maritime circulation. Every continent, except North America has maritime enclaves. Major enclaves include Bolivia, Switzerland, Austria, and Mongolia. This requires agreements with neighboring countries to have access to a port facility through a road, a rail line or through a river.

330 Maritime Enclaves cont’
However, being an enclave does not necessarily imply an exclusion from international trade, but substantially higher transport costs which may impair economic development. Landlocked countries have transport costs which are on average 50% higher than countries that are not. The median landlocked country has less than 40% of the trade volume of the median coastal country.

331 Maritime freight is usually considered in two categories:
Bulk cargo – 散装货/统装货 Refers to freight, both dry or liquid, that is not packaged such as minerals (oil, coal, iron ore) and grains. It often requires the use of specialized ships such as oil tankers as well as specialized transshipment and storage facilities. Conventionally, this cargo has a single origin, destination and client. It is also prone to economies of scale.

332 Break-bulk cargo – 杂散货 Refers to general cargo that has been packaged in some way with the use of bags, boxes or drums. This cargo tends to have numerous origins, destinations and clients. Before containerization, economies of scale were difficult to achieve with break-bulk cargo. Maritime shipping is dominated by bulk cargo, which roughly accounted for 72.6% of all the ton-miles shipped in 2000. But the share of break-bulk cargo is increasing steadily, mainly because of containerization.

333 The maritime shipping industry offers two major types of services:
Charter services (also known as Tramp)租船业务: a maritime company rents a ship for a specific purpose, commonly between a specific port of origin and destination. notably used in the case of bulk cargo, mainly petroleum, iron ore, grain or coal, often requiring specialized cargo ships.

334 Liner shipping services 班轮运输业务:
Involves a regular scheduled shipping service often calling several ports along a pendulum route. To insure reliability, frequency and a specific level of service, many ships can be allocated to a single route. These shipping services are available to any freight importer of exporter, implying that the cargo being carried on any given ship belongs to different interests. A growing share of liner services is containerized.

335 Governments Intervention in the Maritime Transportation
Governments have intervened, often massively, in the maritime sector to fulfill different goals such as economic development, national defense, prestige, and the protection of the national industry. Cabotage (沿海航行权/国内海运权) regulations have been one of the privileged measures to protect the national maritime transportation industry.

336 Cabotage and Pendulum Service

337 Since many container shipping services have a pendulum structure, cabotage imposes some restrictions on these services: A pendulum service must be specifically structured in order not to infringe national cabotage laws that prevents a foreign maritime company to carry freight between domestic ports. For instance, in a pendulum service D-A-B-C-D, a maritime company registered in country 2 has the right to unload or load freight at ports A, B or C in country 1 as long as this freight is coming from or bound to a foreign port (port D in this case). Moving freight from port A to port B or C would not be permitted since it would be considered cabotage. That same maritime company would however be able to carry freight between ports D, E and F (cabotage) since it is registered in country 2.

338 Flags of Convenience 方便旗/方便船籍/权益船籍
The maritime industry is now more deregulated than before because of technical changes, mainly containerization, and open registry ships operating under flags of convenience. By 1998, about 46% of the ships and about 62% of the global tonnage was registered under a flag of convenience.

339 Tonnage by Country of Registry, 2003

340 The usage of a flag of convenience refers to a national owner choosing to register one or more vessels in another nation in order to avoid higher regulatory and manning costs. The above graph shows that the countries having the largest registered fleets are offering flags of convenience (Panama, Liberia, Greece, Malta, Cyprus and the Bahamas) have very lax regulations. Ship registry is a source of additional income for these governments. Even the landlocked country of Mongolia is offering ship registry services.

341 Air Transportation Air routes: Practically unlimited;
Denser over the North Atlantic, inside North America and Europe and over the North Pacific. Air transport constraints: Including the site (a commercial plane needs about 3,300 meters of track for landing and take off), the climate, fog and aerial currents. Air activities are linked to the tertiary sectors, notably finance and tourism that require movements of people. More recently, air transportation has been accommodating growing quantities of high value freight.

342 World’s 10 Largest Passengers Airlines, 2000 (in 1,000 passengers)
Source: IATA, World Air Transport Statistics

343 World’s 10 Largest Freight Airlines, 2000 (in 1,000 tons)
Source: IATA, World Air Transport Statistics

344 Pipelines Pipeline routes are practically unlimited.
The longest gas pipeline links Alberta to Sarnia (Canada), which is 2,911 km in length. The longest oil pipeline is the Transiberian, extending over 9,344 km to Western Europe from the Russian arctic oilfields in eastern Siberia. Pipeline construction costs vary according to the diameter and increase proportionally with the distance and with the viscosity of fluids (from gas to oil). Pipeline terminals are very important since they correspond to refineries and harbors.

345 Globalization and International Trade Patterns
A Macro View

346 Trade and the Global Economy


348 Economic Rationale of Trade
The economic benefits of international or regional trade are numerous. Without trade, each unit must produce a set of basic goods to satisfy the requirements of the national economy. In the above example, four countries are each producing four different goods. National markets tend to be small, impairing the potential economies of scale leading to higher prices and often monopolistic or oligolopolistic situations. Product diversity also tends to be limited because of the market size and standards (such as safety or component size) may even be different. With trade, competition increases and a redistribution of production often takes place as comparative advantages are being exploited. In the above example, the outcome of trade liberalization involves a specialization of production of one good in each country and the trade of other goods between them. Greater economies of scale that are achieved through specialization result in lower prices. A situation of interdependencies is thus created.

349 Major Global Trade Routes, 1400-1800
Baltic Western Europe Central Asia North America China Hormuz Mexico Havana India Canton Pacific Ocean Caribbean West Africa Aden Manila Pacific Ocean East Africa Aceh Malacca Indian Ocean Southeast Asia Peru Brazil Atlantic Ocean Trade Route Dominant Capital Flow

350 Major Global Trade Routes
From 15th to 19th century a pattern of global trade flows emerged: China, India and Southeast Asia have been for centuries the origin of trade flows mainly involving luxury goods (spices, silk, tea, porcelain, etc.). This involved a positive flow of capital as their trading partners did not have much to offer in exchange except cash (silver). This pattern would last until the 19th century when India was incorporated in the British Empire, the Chinese trade fell in the hands of Western powers (England, France, US) and Southeast Asia was colonized (Dutch, English, French and Spain). The colonial involvement of Western European countries, starting in the 16th century, created new trade flows as well as insuring European control on existing ones (especially the Asia trade). Spain and Portugal, the first European maritime powers, controlled much of the global flows in the 16th century through a system of colonial exploitation. Much capital thus flowed back to Europe.

351 Economic Integration and Interdependencies
International trade consequently demonstrates the extent of globalization with increased spatial interdependencies between elements of the global economy and consequently their level of integration. Interdependencies imply numerous relationships where exchanges of capital, goods, raw materials and services are established between regions of the world. Trade has also been facilitated by growing levels of economic integration that have been established by processes such as the European Union or the North American Free Trade Agreement.

352 Economic Integration and Interdependencies
Interdependent Groups of Nations Independent Nations G1 a a h h b b g g c f d d c e f e G2

353 Impacts of Integration Processes on Networks and Flows
Before Integration After Integration International border Network Flows

354 Impacts of Integration Processes on Networks and Flows
Prior to integration processes, the development of national transportation networks supporting national flows was privileged. Transborder linkages and flows tended to be not well developed. Integration obviously promotes transborder flows, which may be accompanied by the development of new linkages to support them. The Canadian / American border is a good example of the impacts of economic integration (NAFTA) on transborder trade flows, with the north / south component growing substantially.

355 Levels of Economic Integration
Political Union Common government Common currency, harmonized tax rates, common monetary and fiscal policy: EU (partial) Economic Union Level of integration Common Market Factors of production move freely between members Customs Union Common external tariffs Free Trade Free trade between members: NAFTA, Mercosur, ASEAN (partial) Complexity

356 Major Economic Blocs, 2000

357 World Trade Flows The liberalization of trade, as confirmed by the implementation of the World Trade Organization, has given a strong impetus and a positive trend in the growth rate of world trade and industrial production. This can be further exemplified by the amount of world trade flows since the last decade where trade within regions accounts for a greater share of total trade than trade between regions.

358 World Trade Flows, 2001 (billion $US)
255 Western Europe (1,677) 195 188 252 North America (391) 312 376 Asia / Pacific (722) 207 Source: WTO. 333 205 96 Rest of the World (285) 174 287

359 Trade by Major Economic Bloc
Source: WTO.

360 World Trade Flows, 2001 (billion $US)
The last three decades have seen important modifications in international trading flows: The bulk of international trade occurs within economic blocs, especially the European Union and NAFTA; Other significant flows are between Asia / Pacific and the North America (esp. US), between Europe and North America, between Europe and Asia / Pacific. For several reasons, such as geographical proximity (Eastern Europe), energy (Middle East) and colonial (Africa), the European Union has significant trading linkages with the "rest of the world".

361 World’s 10 Largest Exporters and Importers, 2002
Source: WTO.

362 World’s 10 Largest Exporters and Importers, 2002
The above graph underlines two geographical aspects of international trade: Market size. Imports are a good indicator of the size of a national market as well as the flows of merchandises servicing the needs of an economy. The United States, Germany and Japan are the world's largest importers and consequently the world's largest economies. The integration of China to the global economy has been accompanied by a growing level of participation to trade both in absolute and relative terms, making China the 7th largest exporter in 2000 and the 5th largest in 2002. Trade imbalances. Some countries, notably the United States, France, the United Kingdom and Hong Kong, have significant trading deficits. This aspect is dominantly linked with service-oriented economies that have experienced a relocation of labor-intensive production activities to lower costs locations. On the other hand, countries having a positive trading balance tend to be export-oriented with a level of dependency on international markets. Germany, Japan, Canada and China are within this category.

363 Geography of International Trade
The graph also reveals a dominance of a small number of countries, mainly in North America and Western Europe: The United States, Germany and Japan account for about 30% of all global trade (28.5% of exports and 32.1% of imports); G7 countries account for 45.7% of all global exports and for 49.0% of all imports; A growing share is being accounted by the developing countries of Asia, with China accounting for the most significant growth. Those geographical and economic changes are also reflected over trans-oceanic trade with Trans-Pacific trade growing faster than Trans-Atlantic trade.

364 Trade by Ocean, 1995 Source: UNCTAD.

365 Share of Asia in World Trade, 1980-2002
Source: WTO.

366 Share of Asia in World Trade
Over the last 20 years, the contribution of Asia to global trade has increased substantially, notably its exports. From about 16% of global exports in 1980, this share climbed to about 27% in 2000. This trend can partially be explained by substantial investments that went into new export-oriented production facilities using the advantages of low production costs, notably in terms of labor. The gap between exports and imports have also substantially increased, especially since 1997 when currency devaluations made the region more competitive.

367 Value of Chinese Exports and Received FDI, 1983-2002 (Billions of $US)
Source: WTO.

368 Value of Chinese Exports and Received FDI
China has experienced a fast integration to the global economy and has become one of the world's leading manufacturing center. This integration was accelerated through foreign direct investments, bringing capital, technology and access to foreign markets. FDIs boomed in the early 1990s to stabilize in the early 21st century. The outcome was an export-oriented manufacturing structure, centered around development zones, and a spectacular growth of exports in the late 1990s that endured in the early 21st century. By 2002, China was the world's 6th largest trader. This FDI / export growth synergy substantially increased the demand for international transportation and port development along the Chinese coast.

369 FDI going on par with international trade
Trade flows of merchandises have also been accompanied by a substantial growth in foreign direct investments. There is thus a remarkable reallocation of direct foreign investment following changes in comparative advantages around the world.

370 Global Inflows of Foreign Direct Investments, 1991-2001 (in millions of $US)
Source: UNCTAD.

371 Changes in Global Trade Flows
Before 1970 After 1970 Developed Countries Developed Countries Developing Countries Developing Countries Industrial Pole Flows of merchandises Flows of raw materials

372 Changes in Global Trade Flows
Prior to the 1970s, global trade flows were dominated by three major poles, North America, Western Europe and Japan. A dichotomy was observed between developed and developing countries as raw materials were flowing north and finished goods were flowing south. This situation can mainly been explained by differences in levels of development as well as by a the domination of the majority of developing countries by colonial powers. From the 1970s, this situation changed as industrial development took place in many developing countries in Latin America (Mexico), Southeast Asia (Malaysia, Thailand, Indonesia) and East Asia (China, South Korea, Taiwan). Many industrial processes which initially took place in developed countries, were relocated in new locations offering lower production costs, namely because of cheaper labor. Consequently, global trade flows are now characterized by significant flows of merchandises from developing to developed countries.

373 Global Exports of Merchandise, 1963-2000
Source: WTO.

374 Global Exports of Merchandises, 1963-2000
Conventionally, international trade was dominated by raw materials such as iron ore, oil and wheat. Over the last few decades, manufactured products have taken a growing share of international trade: While they accounted for 53.2% of all exports in 1963, this share climbed to 74.9% in 2000. Several factors can be associated to this change – Technological innovations in the transport sector have enabled a fast and efficient handling of manufactured goods. Containers are a good example of this trend. The globalization of production is increasing trade of manufactured goods with a fragmentation of consumption and production functions.

375 Major changes occurred in the organization of production
Noticeable increase in the division of labor concerning the design, planning and assembly in the manufacturing process of world economies. Interlocking partnerships in the structure of manufacturing have increased the trade of parts and the supply of production equipment around the world: One-third of all trade takes place among parent companies and their foreign affiliates.

376 International Standards
A part of this dynamism of production organization resides in the adoption of standards, a process which began in the late 19th century to promote mass production. It permitted the rapid development of many sectors of activity, including railways, electricity, the automobile and the telecommunication industry more recently (Internet, Electronic Data Interchange – EDI). In the realm of globalization of economic activities, the International Standards Organization developed the ISO norms that serve as comparison between various enterprises around the world. These norms are applicable to the manufacturing and services industries and are a necessary tool for growth.

377 Trends in International Standards by Technical Fields, 1980-1990

378 Trends in International Standards by Technical Field
The constant quest of certified quality by ISO generates a domino effect: If an enterprise fulfills ISO norms, obviously the competitors in the same sector will attempt to reach the same level of quality. As a result ISO standards are increasing. This situation affects all economies as major public and private contractors and purchasers around the world require that their suppliers fulfill the ISO norms of quality.

379 Contemporary Production Systems
A Micro View

380 Elements of an Economic System
Production (supply) Production factors Labor Manufacturing Regulation Circulation Distribution Land Capital Manufacturing: Transformation of materials into finished and intermediate goods. Regulation: The way the production system is controlled and regulated. Mostly the role of the government. Circulation: Activities that connects parts of the production system. Include transport and communications. Distribution: Activities making goods and services available to the consumer. Retailing. Consumption (demand)

381 Production & Consumption
Production and consumption are the two core components of economic systems and are both interrelated through the conventional supply / demand relationship. Basic economic rationale underlines that what is being consumed has to be produced and what is being produced has to be consumed. Any disequilibrium between the amount being produced and the amount being consumed can be considered as a market failure: On one hand, insufficient production involves shortages and price increases, while on the other, overproduction involves waste, storage and price reduction.

382 Main Production Systems
The increasing capacity and efficiency of international and regional transportation systems has led to a decrease of the friction of distance and a spatial segregation of production. Consequently, the spatial distribution of production systems is integrated to the spatial distribution of transport systems. Among the main sectors of integration between transportation and production systems are:

383 Agricultural production systems
They include fertilizers and equipment as inputs and cereal, vegetable and animal production as outputs. Several transportation modes are used for this production system, including railcars, trucks and grain ships. For perishable foods, modes often have to be adapted to these specific constraints. Ports are playing an important role as points of warehousing and transshipment of agricultural commodities such as grain.

384 Energy production systems
Include the transport of energy products (oil, coal, natural gas, etc.) from their sources to their transformation and consumption places. Linked to massive movements of bulk raw materials, notably by railway and maritime modes, but also by pipeline when possible.

385 Metal production systems
Similar to energy production systems, these systems include the transport of minerals from the extraction sites, but also of metals towards industrial sectors using them (shipbuilding, car making, etc.).

386 Chemical production systems
Include several branches such as petrochemicals and fertilizers. This production system has linkages with the energy and agricultural sectors, since it is at the same time a customer and a supplier.

387 Wood and paper production systems
Include the collection over vast forest zones, namely Canada, Northern Europe, South America and Southeast Asia, towards production centers of pulp and paper and then to consumption markets.

388 Construction industry
Implies movements of materials such as cement, sand, bricks and lumber.

389 Manufacturing industry
Involves a very diversified set of movements of finished and semi-finished goods between several origins and destinations. It increasingly leans on containers.

390 Themes in Manufacturing in MDCs
A number of themes are influencing the location and distribution of manufacturing industry in most developed countries in the 1990s. These include rationalization and restructuring, internationalization, just-in-time and flexible production, environmental issues, and urban-rural shift.

391 Rationalization & Restructuring
Rationalization and restructuring involves the drive to improve competitiveness and productivity. This often means reducing workforces, closing inefficient plants, and changing the way products are made. Unilever’s manufacturing base in Britain was rationalized from 13 factories down to 4 between 1973 and 1989.

392 Internationalization & Globalization
Internationalization represents the global expansion of a company: It starts from a point where a company begins to export from its home base; through overseas location of branch plants, to overcome trade barriers and benefits from cheap labor; to a point where a company finally decides to rationalize its global location in areas of comparative, competitive, or strategic advantage, with concentration of activities in the best locations.

393 Just-In-Time & Flexible Production
The essence of JIT is a reduction of stored parts by arranging the provision of parts when they are needed to go into a ‘parent item’, with delivery on the same day or even every hour. This suggests a shift from Fordist (mass production) to Toyotist (lean production) methods. Lean production is more flexible.

394 Environmental Issues During the past 3 decades environmental issues have become an increasingly important part of industrial decision-making. One result is that polluting industries migrate to peripheral or developing world locations.

395 Urban-Rural Shift There has been an urban-rural shift of industry over the last 40 years. A number of explanations have been suggested: Planning policies – regional policy, new towns, and green belts have encouraged rural shift; Counter-urbanization – industries follow the middle class workforce who have moved to small towns and villages;

396 Urban-Rural Shift cont’
Non-unionized labor – Rural areas do not have a history of industrial action like some urban industrial areas; Transportation costs – Advances in transport technology and telecommunications have eroded the advantages of cities;

397 Urban-Rural Shift cont’
Constrained location theory (shortage of industrial land in cities): Greenfield sites – rural areas offer new purpose-built sites; Availability of sites – small towns and rural areas have more land available; Size of sites – rural areas can accommodate large industrial estates; Land prices – land prices are lower in rural areas because of less competition; Better environment – rural areas offer a better working environment.

398 Post-industrial Society
In the period since WWII, western European countries have entered a new industrial phase. The characteristics of this post-industrial society are: A shift away from agriculture and manufacturing industries toward service industries; The growing importance of large, multinational corporations; A spatial division of labor within the growing economies of South-east Asia; The decline of the older ‘smokestack’ industries.

399 Deindustrialization One of the results of post-industrial change has been deindustrialization. Deindustrialization is the long-term absolute decline in the manufacturing sector with respect to jobs and production. The more mature industries like textiles, iron and steel, and shipbuilding are most likely to deindustrialize. The results can be plant closure, job losses, and regional decline.

400 Regional Geography Africa South of the Sahara
North Africa & Southwest Asia Southern Asia Eastern Asia Western Europe Eastern Europe, the Balkans, and the former Soviet Union Anglo America Latin America South Pacific

401 Core / Periphery Division of the World
Semi-Periphery Core

402 Explaining Inequalities in Development
- Different theories

403 Rostow’s Model of Development
In 1950s, Walter Rostow, US economist, defined the process of development of an economy on the basis of the historic experience of Western countries. His model is a useful starting point in describing and understanding levels of development.

404 Traditional Subsistence Economy
Traditional economies based on subsistence agriculture and rigid social stratification of feudal social system involved little trade and experience little or no growth: Struggling to balance food production and population growth: Low level of population growth (stage 1 of demographic transition model – DTM) This stage is no longer present in the developed world.

405 Preconditions for take-off
Trading economies bloomed by 14th century and a major leap forward (“takeoff”) occurred: External links are developed; Resources are increasingly exploited, often by colonial countries or by multinational companies; The country begins to develop an urban system (often with primate cities), a transport infrastructure; Inequality between the growing core and the underdeveloped periphery begins to grow. The population continues to increase (stage 2 of the DTM) This level has disappeared from developed countries.

406 Take-off to maturity (sustained growth)
The economy expands rapidly, esp. with manufacturing exports; Regional inequalities intensify because of multiplier effects; This growth can be “natural” (as in the case of most countries in the developed world), “forced” (as in the former socialist countries of Eastern Europe), or planned (as in the Newly Industrializing Countries).

407 The drive to maturity Diversification of the economy;
The development of the service industry (health, education, welfare, etc.); Growth spreads to other sectors and to other regions in the country; Population growth begins to slow down and stabilize (late stage 3 or early stage 4). Ireland, Greece, Spain, Portugal and etc. are at this level.

408 The age of high-mass consumption
Advanced urban industrial systems, with high production and consumption of consumer goods, such as kitchen equipment (white goods) and electronic home entertainment equipment. Population growth slows considerably (stage 4). UK, Germany, etc. characterize this level.

409 Formula for Modernization
The sequence of stages – through primary, secondary, and tertiary economic sectors – that occurred in the countries of Western Europe and Anglo America in the 19th and 20th century (150 years taken) was seen by Rostow as a formula for modernization: The recipe of an automatic progression in development through economic sectors proved partially effective: Japan rose to join the most affluent countries only after reconstruction funded by the US following WWII; South Korea took an even shorter time with huge foreign investments in early 1950s; Other countries that attempted to apply this wisdom did not produce the same results and some found it difficult to start.

410 Defects of Rostow’s Model
It is anglo-centric, based on experience of North America and West Europe – The circumstances of mid-20th C. were different from those of mid-19th C.: When Western Europe and Anglo America experienced the economic growth that made them the most affluent parts of the worlds, they dominated the world politically and could draw in cheap food and raw materials; The newly independent countries after 1945 had to work within a global system in which the world core countries and their multinational companies were already the dominant influences in markets and in the setting of trading terms.

411 Defects of Rostow’s Model
It is aspatial and does not look at variations within a country: Usually there are great disparities in the levels of development between different regions in the economy – Rostow’s model fails to pick this out.

412 Dependency Theory – a valid critique of Modernization
During 1960s and 1970s, the countries of the Soviet bloc and China denounced western approaches to development by emphasizing that the world economic system itself causes some places to be more underdeveloped than others: The prosperity of the core countries is based on transfers of wealth from the peripheral countries; The core countries exploit the peripheral countries by making them dependent on core markets.

413 “the development of underdevelopment”
Andre Frank (1971) described the effect of capitalist development on many countries as ‘the development of underdevelopment’: The problem of poor countries is not that they lack the resources, technical know-how, modern institutions, or cultural developments that lead to development, but that they are being exploited by capitalist countries.

414 Inadequacy of Dependency theory
Dependency theory – more development in one place necessarily involves less elsewhere. It provides few hints as to how peripheral countries may attain core status; they are locked into dependency: The prospect of working class revolutions breaking out in the capitalist world was never realized; Both the authoritarian embodiment of communist ideas and the breakup of the Soviet Union in 1991 made that very unlikely.

415 Modern Colonialism Much of the basis of dependency arose out of earlier political colonialism. A modern form of colonialism is less political and more economic, but has similar results of causing differences between rich and poor by exploiting cheap labor in peripheral countries: A new international division of labor resulted from the growth of multinational corporations (MNCs) and their establishment of production units in peripheral countries. MNCs take advantages of cheap labor around the world through technical developments, such as the containerized transportation of goods and easy communications links that reduce other production costs.

416 Myrdal’s Model of Cumulative Causation 循环累积因果效应
The core-periphery model, based on the workd of Gunnar Myrdal, adopts a spatial outcome. Myrdal argued that, over time, economic forces increase regional inequalities rather than reduce them. He believed that development was caused by:

417 Initial comparative advantages 先天相对优势/禀赋
e.g. resources such as location, minerals, or labor. These create the initial stimulus for an industry to develop in a particular location; In turn, a process of cumulative causation (multiplier effect,循环累积因果效应) occurs as acquired advantages (后天优势,such as improvements in infrastructure, skilled workforce, and increased tax revenues) are developed and reinforce the area’s reputation; Thereby attracting further investment, ensuring that it grows and stays ahead of other regions.

418 Increased spatial interaction
i.e. skilled workers, investment, new technologies, and new developments gravitate to the growing area, the core; While the peripheral areas are inundated by manufactured goods from the core (the backwash effect,回波效应), preventing the development of a local manufacturing base. As the core expands it may stimulate surrounding areas to develop due to increased consumer demand (the spread effect,扩散效应).

419 3 major stages identified in Myrdal’s model:
A traditional, pre-industrial stage, with few regional disparities (Rostow’s stage 1); A stage of increased disparities caused by multiplier and backwash effects as the countries industrializes (Rostow’s stage 2 and 3); A stage of reduced regional inequalities as spread effects occur (Rostow’s stages 4 and 5).

420 Myrdal’s ideas in regional planning
Myrdal’s ideas have been used extensively in regional planning. In particular, they have been used in growth pole policies: places or districts favored by their location, resources, labor, or market access are economically more attractive and are therefore developed by planners to form natural growth poles, expanding faster than other districts.

421 Africa South of Sahara - Extreme Periphery

422 Sahara Desert A physical break that interrupts continuous settlements;
An economic and cultural break between the Arab-speaking Muslim countries along the Mediterranean Sea and the rest of Africa.

423 Extreme Periphery The cradle of the human species
The poorest of the 9 major world regions: Civil wars, famine the least integrated into the world economic system; the least able to take advantage of prospects for increasing its status within that system; Most countries depend on external aids.

424 Natural Environment Dominant tropical climates – plenty of sunshine but suffering from a lack of water or from uncertain rains: Tropical arid Sahara and Namibia deserts; Equatorial climatic environment in Zaire River basin in Central Africa; restricted by the presence of high plateau in Eastern Africa; Monsoon climatic environment along the coast areas of Western Africa with contrasting wet and dry seasons; Tropical climatic environments with seasonal rains prevalent in most of this region;

425 African Landscapes The Rift Valleys crossing Eastern Africa from north to south and the associated groups of volcanic mountains along the red sea; The Ethiopian Highlands; Mount Kilimanjaro (5895m) and Mount Kenya in Eastern Africa are the highest mountains in Africa; The Cameroon Highlands on the Nigeria-Cameroon border.

426 Central Africa Burundi Cameroon Central Africa Republic Chad Congo
Equatorial Guinea Gabon Rwanda Zaire

427 Economic Development Small amounts of minerals produced:
Southern Zaire – one of the world’s major copper mining regions; Gabon possesses the world’s largest unexploited iron ore deposit. Shortage of energy sources Poor development of commercial agriculture; most farming is for subsistence Small population and small internal markets Lack of internal transportation Low level of external investment Manufacturing industries poorly developed

428 Western Africa coastal countries:
Benin, Ivory Coast, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mauritania, Nigeria, Senegal, Sierra Leone, Togo Landlocked countries: Burkina Faso, Mali, Niger The most populous subregion – 40% of the total of Africa South of Sahara; The first area in Africa to be penetrated by slave traders from 15th century;

429 Economic Development Agriculture remains main source of employment and income for most countries; Commercial agriculture has been developed in coastal countries (palm oil, cacao, rubber, tropical fruits, rice and coffee: Ivory Coast is the 2nd largest producer of rubber in Africa, after Nigeria. Liberia is also major producer of rubber.

430 Economic Development cont’
Mining resources: Guinea has 1/3 of the world’s reserves of high-grade bauxite(铝土矿) and is the world second largest producer. Ghana also has bauxite mining linked to local smelting of aluminum – a major output for Ghana. Nigeria is now a major world producer of oil and its products – representing 90% of its exports

431 Eastern Africa Strategic significance increased after the opening of the Suez Canal in 1869. Countries - Djibouti, Eritrea, Ethiopia, Kenya, Somalia, Tanzania and Uganda Economies marked by a lack of mineral resources and a greater dependence on farm products. Ethiopia, Somalia and Tanzania are among the poorest 6 in Africa. Kenya has experienced most economic development and has a diversified economy based on agriculture, tourism and service industry.

432 Southern Africa Countries:
Angola, Botswana, Lesotho, Madagascar, Malawi, Mozambique, Namibia, South Africa, Swaziland, Zambia and Zimbabwe. Civil wars devastated Angola and Mozambique; South Africa was isolated by its apartheid policy and sanctions over a crucial period. Still the subregion has the potential for leading the rest of Africa into sustainable human development: Over 1/3 of Africa’s rail mileage; 20% of population of Africa South of Sahara, but produces over 50% of the total GDP, largely because of the economic dominance of the Republic of South Africa.

433 Republic of South Africa – “engine” of Southern Africa
1/3 of Southern Africa’s population 3/4 of Southern Africa’s GDP Through its ports (Cape Town, Durban and Port Elizabeth), the other countries are mostly linked to the rest of the world. In 1994, South Africa joined Southern Africa Development Conference (SADC) which aimed to strengthen trade links and regional cooperation.

434 Economic Development Mining dominates the economies of Angola, Botswana, Namibia, South Africa, Zambia and Zimbabwe: South Africa – the world’s top producer of platinum and one of the major producer of gold and diamonds. --- 40% of world’s gold reserves; --- 68% of world’s platinum reserves – strategic importance in aerospace constructions and in pollution control (catalytic converters) --- together with chrome铬, manganese錳, vanadium钒, minerals make up 2/3 of the country’s exports.

435 Economic Development cont’
Namibia – world’s major producers of uranium; Botswana – diamonds make up 80% of its exports; Zambia – a major world producer of copper

436 North Africa and Southwest Asia
- In the Middle

437 Physical and Human Junctions
“In the middle” politically and economically – Located in the middle of four other major world regions – Africa, Western Europe, Eastern Europe and Central Asia: Global chokepoints with the world’s trade routes – Strait of Gibraltar, Dardanelles and Bosporus, Suez Canal, Strait of Hormuz 2/3 of world’s oil reserves under the lands bordering the Persian Gulf – a great concern to major world users in core countries of Anglo America, Western Europe and Japan.

438 Physical and Human Junctions
“In the middle” culturally – A source for the diffusion of ideas and people: Dominance of the Islamic religion and Arabic languages Exception of Turkey and Iran speaking Kurdish, Turkish and Persian languages, and Israel with both distinct Hebrew language and Judaism religion.

439 Natural Environment Common features:
Dry climates, water shortages, and natural resource of oil. Major river valleys – world’s earliest civilizations: Tigris-Euphrates River system supplying water to Turkey, Syria, and Iraq; Nile River system supplies water to Sudan and Egypt

440 North Africa Closest to Europe; many past political ties and present economic links are northward: Morocco and Tunisia retain close ties with France and strong links to European markets; Libya sells much of its oil to Italy; Algeria Dominance of Islamic religion and Arabic as the official language The Atlas mountains dominates the northern parts of Morocco, Algeria, and Tunisia.

441 Economic Development Phosphate exports are significant to Algeria and Tunisia, but particularly so to Morocco (half exports to EU). Oil and natural gas dominate the economies and exports of Algeria and Libya (supplying a quarter of EU’s oil and natural gas), both of which are also major world producers with refining and petrochemical industries.

442 Nile Valley- Egypt and Sudan
the largest Arab country in population; Control over Suez Canal, Sinai Peninsula and the land route from Africa into Southwest Asia; Aswan Dam completed in 1964 aims to secure its water supply to support farming expansion and industrial power supplies. World major exporter of cotton Sudan – Cotton and sugar are its major exports.

443 Arab Southwest Asia The heart of the Arab world consists of the Arabian Peninsula, the fertile crescent from the Tigris-Euphrates Basin to the Lebanon coast. 11 countries – Bahrain, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates (UAE) and Yemen. Mecca and Medina – the world centers of Islamic religion and Muslim pilgrimage Sunni and Shia – the main ethnic distinctions between groups holding contrasting Islamic beliefs Israel among Strongly Muslim Countries

444 Economic Development A major economic contrast between oil-rich countries and those producing little or no oil – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE sit on huge oil reserves, have small populations and rely on immigrant labor. Lebanon, Jordan, and Yemen have more available labor and some capacity for agriculture. Iraq and Syria have both oil revenues, significant water resources and agriculture, and large labor forces.

445 Israel, Gaza, and West Bank
Israel – a major anomaly in the region, being both non-Arab and non-Muslim An economic development level similar to Southern Europe, with diversified structure: Self-sufficient in food, apart from grains; Manufactures make up 44% of exports, including diamonds, machinery, military equipment, and chemicals, mostly based around Tel Aviv and Haifa. From 1990s became a major center and leader of high technology development in telecommunications, electronic printing, diagnostic imaging systems for medicine, and data communications.

446 Turkey and Iran, the Northern Tier
Overwhelmingly Islamic in religion, Arabic is replaced by the Turkish and Persian languages. Different countries: Iran’s Muslims belong to the Shia group; Turkey’s are of the Sunni group; Oil income for Iran and water resources for Turkey.

447 - Periphery with Some Promise
Southern Asia - Periphery with Some Promise

448 Indian Subcontinent The India Peninsular and its north rimmed by the Himalayan mountain ranges Southern Asia consists of countries: India, Pakistan, Bangladesh, Afghanistan, Myanmar (Burma), Nepal, Bhutan & Sri Lanka

449 Poor region; High density
The world’s 2nd poorest region after Africa South of the Sahara Total population of 1,200 million people (1/5 of world population) The largest number of very poor people 22% of the world’s population live on only 4.3% of the land and produce only 1.4% of world GDP.

450 Better Prospects Malnutrition but no famines for decades;
Wars between India and Pakistan yet not disrupted economic progress; Major examples of economic growth – The farming region of northwest India, The high-tech region around Bangalore in southern India. Legacy of infrastructure as the basis of further development

451 Coexistence of New & Old
New high technology – Nuclear power plants, nuclear bombs, electronics and software research, aerospace (aircraft and satellites) Urban poverty and subsistence farming Contrast of university graduates and low literacy rate among the rest people Old religious issues e.g. bride-burning, demolishing buildings of other religions Feudal land ownership in Pakistan, ethnic violence in Sri Lanka, & a military dictatorship in Myanmar – holding back economic development.

452 Diverse Cultures Ancient civilization along the Indus River Valley
Hindu and Buddhist religions flourished in the isolated ages Battle for supremacy between Buddhism and Brahman Hinduism, which ousted Buddhism and established its caste system. Muslims dominated the region after 12th c. British Indian Empire became the dominant force after mid-18th c.

453 Colonial Impacts Portuguese explorer Vasco da Gama arrived at India in 1498 – the new route to get Indian products (cotton, cloth, rice) to Europe without traveling through the Muslim countries in Southwest Asia. The Portuguese and Dutch soon established trading stations around the coasts of Southern Asia.

454 British Indian Empire During 17th century, the British ousted their Portuguese and Dutch rivals: established East India Company in former Portuguese port of Bombay, built a new port in Madras, began trading with the populous Bengal area around Modern Calcutta. In 1857, the British government took full political control of Southern Asia, which became the British Indian Empire; the East India Company was abolished.

455 British Imperial Rule A strong core-periphery relationship established between the industrial ‘mother country’ and its raw-material-producing colonies during 19th century. British rule’s massive effects on the geography of the peninsula: Cotton was grown in the Indus and Upper Ganges River basin; Cities of Calcutta, Bombay, Madras, and Delhi grew as the foci linking internal communications with overseas trade; Rice-growing in the south of Burma and port of Rangoon (now Yangon) built to export rice; Plantations of tea, rubber, and coconuts set up in Ceylon (now Sri Lanka), traditional rice crop ignored, relying on import of rice.

456 Natural Environment Contrasts between high mountains and broad plains; between hot dry and hot wet seasons typical of Monsoon Climate. Tropical cyclones occur in the Bay of Bengal in summer, flooding the Ganges-Brahmaputra(即中国境内的雅鲁藏布江) Delta in Bangladesh. Himalayan Mountains with its peak Mount Everest (8,848m) Indus, Ganges and Brahmaputra River systems

457 India – locally dominant presence
Diversifying economy with farming decreasing and manufacturing increasing; A watershed year 1991– 1947 – 1991: inward-looking economy avoided close links with the core countries and multinational corporations, but established mutually beneficial trade with Soviet bloc; After 1991, economy in crisis after much of its trade with Soviet bloc counties ended, encouraged by the West to open borders to trade and to export; FDI and export rose quickly.

458 Green Revolution High-yielding varieties of wheat and rice introduced in 1966 as part of Indian agricultural policy; Up to early 1990s, India became the world’s 4th largest wheat producer and 3rd largest exporter of rice (after US and Thailand).

459 Commercial Crops Tea continues to be an important plantation crop in northeastern India; its marketing in still controlled by the multinational corporations which process, package, and distribute the tea in core countries. Jute is a commercial fiber crop on western margins of the Ganges-Brahmaputra Delta.

460 Diverse Manufacturing
Mineral resources of iron ore, bauxite (world’s 5th largest reserves), aluminum; Large-scale, heavy industrial sector of steelworks, chemical works, and alumina works. Car and vehicle assembly – India’s major parts of manufacturing diversity, with links to major multinationals like GM, Ford, Chrysler, Volvo, Hyundai, and Volkswagen. Textiles retain a major part in its manufacturing – textiles and garments make up 1/4th of its exports. Modern high-tech industry is increasing its presence around Bangalore (班加罗尔) with main new industries like electronics, computer engineering, software and services, telecommunications, aeronautics, and machine tools. Bangalore became India’s first “electronic city” in the 1980s.

461 Major Cities and Ports The main geographic concentration of manufacturing in India is around Bombay, which is India’s main trading and financial center. Calcutta remains the headquarters of jute(黄麻) manufacturing.

462 Bangladesh and Pakistan
From partitioning in 1947 until their separation in 1971, Bangladesh and Pakistan formed a single country. They share much of the same cultural heritage as the Republic of India. They also remain largely agricultural, although Pakistan has a long-established cotton textile industry. Karachi, Pakistan’s largest port; Islamabad(伊斯兰堡), its capital. Dhaka, Bangladesh’s capital.

463 Mountain and Island Rim
Afghanistan(Kabul,喀布尔), Nepal (Kathmandu,加德满都), Bhutan (Thimphu,廷布), and Myanmar (Yangon,仰光) are mountainous countries on the northern margins of Southern Asia. They have restricted involvement in the world economic system and most of them have been subject to wars and political tensions. Sri Lanka (Clolombo,科伦坡) and the Maldives (马累) produce plantation crops and fish for sale on world markets.

464 Eastern Asia From Periphery to Core

465 A Major World Significance
Huge population, resources, and economic production – 1/3 of world’s population on 1/10 of world’s land Contrasts in geographic and economic diversity: between empty desert and mountain areas and world’s highest densities of urban and rural populations between richer countries and poor regions

466 Pacific Rim East Asia – the hub of the evolving regional phenomenon the Pacific Rim, diminishing the contrast between Japan and its neighbors: Japan – the leader in East Asia’s Pacific Rim development; South Korea challenges Japan on international markets; China remains the colossus of east Asia.

467 Progress from periphery to core
Japan rose to the core from 1950 to 1970s Asian dragons into semi-periphery and almost into the core – South Korea, Singapore, HK, Taiwan Little tigers following behind – Thailand, Malaysia, Indonesia, & the Philippines China more integrated into world economy

468 Natural Environment Equatorial climatic environment:
Malaysia, Indonesia, and the southern parts of the Philippines Monsoon climatic environment: The northern Philippines, Indochina mainland, and southern China Northeastern coastal China, the Koreas,& Japan Midlatitude continental interior climatic environment The western parts of China and the whole country of Mongolia (Gobi Desert)

469 Major Rivers The Mekong – the Danube of Southeast Asia - flows from southern China (澜沧江) and through the 5 countries of Indochina to its delta in Vietnam. Northern Vietnam has the Red River. In China the three major rivers are the longest in the region: from north to south they are the Huang He (Yellow), the Chang Jiang (Yangtze), and the Xi Jiang (Pearl).

470 Country Boundaries Boundary disputes:
disputes between Thailand and its neighbors in the south; between China and Russia in the north; the Spratly Islands in the South China Sea are claimed by all the surrounding countries, including Taiwan, but mainly by China and Vietnam. Buffer states between the major powers: Mongolia along the boundary between China and Russia. The Koreas and Taiwan have experienced fluctuating dominance by China and Japan.

471 China’s Geography of Development
Rostow’s development model in use – A traditional society engages mainly in subsistence farming, is locked in a rigid social structure, and resists technological change; In 2nd stage, preconditions for takeoff, progressive leaders move the country toward greater flexibility, openness and diversification. Workers move from farming to manufacturing, and transport improves; Takeoff stage – the country experiences industrialization – sustained growth takes hold, industrial urbanization proceeds, and technological and mass-production breakthroughs occur. Drive to maturity stage brings sophisticated industrial specialization and increasing international trade.

472 Core-periphery Contrast within China
In china, takeoff condition (stage 3) exist in much of the Pacific Rim: The most fertile land lies along the Pacific, where China has a history of contact with foreign countries, where is most open to the world. But other major areas of the vast country remain in stage 1 or 2.

473 Japan Four Main Islands: Hokkaido, Honshu, Shikoku, Kyushu Hokkaido
Hilly with poor accessibility; Manufacturing – wood processing, shipbuilding, oil refinery Tourism expanding – Sapporo (1972 Winter Olympics)

474 Honshu Northern Honshu – leading rice producer; fishing; forestry Central Honshu – heart of population and economy Kanto Plain :Tokyo (financial center), Kawasaki (川崎center of heavy industry), & Yokohama (横滨biggest port) around the Tokyo Bay Southern Honshu – Kansai District: Industrial ports of Kyoto, Osaka, Kobe(神户) on Osaka Bay

475 Economic Development Agriculture remains a significant sector of the economy because of government subsidies and tariff protection. Manufacturing is the basis of modern Japanese growth: First developed by importing cheap raw materials and exporting manufactured goods – Heavy industries along the Pacific coast of Japan – steelmaking, petrol chemicals, shipbuilding Diversified into automaking and high-tech goods. Service industry in retailing and financial sectors: Tokyo – world’s 2nd largest financial center

476 Countries of China’s Buffer Zone
South Korea, North Korea, Hong Kong, Macao, Mongolia, and Taiwan. The 3 wealthier regions of HK, South Korea, and Taiwan saw rapid economic growth (the latter two received aid and trading status from US to resist the advance of communism). Mongolia and North Korea received aid from the Soviet Union (ended in 1989) and were excluded from trade with western core countries.

477 Mongolia A steppe- and desert-dominated vacuum between the world’s most powerful countries: It seized independence in 1911 while China was in revolutionary chaos; In 1920s, it became a People’s Republic on the Soviet model, with the Soviets guided its development for 70 years; Political changes began, with Mongolian alphabet reinstated, and rising nationalism and democratic reforms.

478 South Korea Its industrialization was based on local raw materials, plentiful and capable labor, ready overseas markets (esp. US), and continuing foreign assistance. Its growth resulted from state capitalism rather than free-enterprise capitalism, but with impressive results: It managed to sustain rapid growth, which by late 1980s placed itself among the world’s top 10 trading powers. The world’s largest shipbuilding nation; Automobile, iron and steel, and chemical industries are thriving. Seoul – the anchor of huge industrial complex; Pusan – the center of its 2nd largest manufacturing zone; Kwangju – the center of 3rd industrial area.

479 Southeastern Asia Brunei, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. This subregion was influenced by Chinese expansionism in the past, succumbed to Western colonial expansion, and are now increasing influenced by Japanese investment and Chinese economic activities. Their private economies are today largely controlled by minority groups of Chinese merchants and industrialists.

480 Overseas Chinese In Southeast Asia
Southeastern China – the source of Chinese emigrants to Southeast Asia over the past 6 centuries. The Chinese had become an influential class of middlemen and controlled more commerce toward the end of colonial rule. During WWII and post-colonial period, Chinese in this region were persecuted and excluded. This region today contain 30 million Chinese (over half of world total overseas Chinese) and many have become successful. Overseas Chinese invested heavily in the special economic zones and open cities in mainland china, playing a large part in stimulating the economic growth there.

481 Colonial Influences The region’s incorporation into world economic system began with the European intrusions: The Dutch took Indonesia – Dutch East India Company; The Spanish took the Philippines – the only largely Christian country in Eastern Asia; The US took control of it from end of 19th century; The British took the Malay States; Brunei and Singapore became independent from the states in 1950s and 60s. The French took Indochina (now Cambodia, Laos and Vietnam).

482 Economic Development Contrast of the mainly noncommunist ASEAN countries and the communist countries (Cambodia, Laos and Vietnam): By late 1980s, ASEAN began liberalizing trade among themselves and admitted Vietnam in 1995. Singapore (smallest, no natural resources, but richest), the regional hub, stands out in this subregion with its strategic control over Malacca Strait, its port facilities, and a well-educated population.

483 Agriculture: Rice production affected by Green Revolution;
Cash crops plantations established under colonial regimes; Malaysia – world’s largest producer of palm oil and large producer of rubber; Indonesia – coffee, spices, tea, rubber and oil palm constitute 13% of its exports The Philippines – coconut, sugarcane, pineapples, bananas and coffee make up 16% of its exports. Timber production of Malaysia and Indonesia dominates world markets of tropical rain forest products.

484 Mining: Manufacturing:
Indonesia – major oil producer and world’s major tin producer; Malaysia – world’s largest tin producer; Brunei – oil rich country Manufacturing: All the countries in Southeastern Asia are switching to export-oriented manufacturing industries with their governments playing involved roles in industrial and trading policy.

485 Western Europe First World Core

486 Small but Habitable Continent
Europe is more a peninsula of a massive Eurasian land mass than a free-standing continent, even though convention marks Europe as one of the world’s continents; In terms of political, economic, and social significance, however, it is very much a continent. In Europe from the Air, German scholar Salvador Madariaga writes that the continent has a “landscape of quality, not of quantity, rich in nuances and tensions…where humanity has achieved clear definition not only in the individual but also in the nations.”

487 Western Civilization Western civilization refers to the values, practices, and achievements that had roots in ancient Greece, Rome, Mesopotamia, and Palestine; that subsequently flowered in Europe. Among the core conceptions of modern western civilization are strong commitments to education, experimental science, technological progress, economic development, democratic representative government, and explicit protection of individual rights and liberties. Experiments in communism, socialism, and fascism during the 20th century were also witnessed here.

488 Current Status 19th century – the first world economic core
20th century – even losing dominance to the US, the former Soviet Union, and Japan, the region remain among the world’s most affluent: In the 1990s the countries of Western Europe account for over 40% of world trade.

489 Historical Position & Influences
Worldwide spread of its culture and political systems: Languages of Spanish, Portuguese, French, English, and Dutch spread to the Americas, Africa, Asia, and Australia; Roman Catholic and Protestant varieties of the Christian religion became established on a world basis. Democratic political systems or state capitalism took hold in some countries on gaining independence from European colonial powers – the basis of both systems originated in Western Europe.

490 Maritime Orientation & Geographic Exploration
The Vikings from Northern Europe in 9th century invaded the British Isles and colonized Iceland and reached as far as Greenland. Roman influence continued in south Europe, cities like Genoa and Venice developed trading links with the Arab world and northern Europe: Marco Polo traveled across Asia to China in 13th century. Overseas expansion initiated in 15th c. by Portugal and Spain (Vasco da Gama, Christopher Columbus); the Dutch in 17th c.; British empire in 19th c.

491 Industrial Revolution’s Mark on Regional Geography
Expansion of urban industrial centers (textile, steel, heavy engineering & chemical industries) on coalfields in Britain, northern France, Belgium, and the Ruhr area of Germany, with devastating effects on local environments; Worldwide trading and colonial expansion resulted in the development of huge port facilities along the estuaries of major European rivers: Along the Thames River below London; Along the lower Rhine River in the Netherlands around Rotterdam; Industrial ports of Glasgow and Liverpool (Britain); Marseilles (France); Antwerp (Belgium); Bremen and Hamburg on the Elbe river (Germany).

492 Post War Era Reconstruction Period:
Through Marshall Plan, the US helped to reconstruct the destroyed cities and transportation links and revive the economies of Europe. Europe was open to investment by the growing multinational corporations, first largely by American parentage. Japan targeted Britain for the largest part of its overseas investment by 1980s.

493 New Industries in mid-20th Century
The older, heavy industries located on coalfields in Western Europe, were replaced by motor vehicles, consumer goods, and light engineering products around the expanding consumer markets of major cities and in new regions. Primary and secondary industries gave way to new service industries that further increased the emphasis on urbanization.

494 Regional Contrasts in Western Europe
The wealthiest and most economically active Manchester-Milan axis; The poorest marginal areas are its western, northern and southern margins, including Brittany (France), Northern Ireland, Wales, northern England, Republic of Ireland, Scotland, Portugal, and southern Italy. Regional policies adopted to reduce geographic differences in living standards and employment opportunities; EC regional policy took over regional policies from 1970s and invested hugely in infrastructure construction in the lagging regions.

495 Moving toward a Postindustrial Society
Two Features marking its human geography – Geographic Inertia: Although new industrial areas grew at places more suited to the needs of developing technologies and industries, production continued in the older areas, of which original locational advantages were reinforced as agglomeration economies(聚合经济). Deindustrialization: In which the numbers of jobs in manufacturing fell rapidly and old factories became derelict when older industrial areas suffered from decline.

496 Natural Environment Geologic Varieties:
Ancient shield areas around the Baltic Sea – Northwestern highlands; Uplands of central Europe; Mountains of the Alps (its peak – Mont Blanc); Lowland plains around the North Sea. Midlatitude West Coast Climates: Oceanic atmospheric influences affecting the whole region; Southern variant – Mediterranean climate.

497 Long Coastlines & Navigable Rivers
Peninsulas: Scandinavia, Denmark & Brittany in north; Iberia, Italy & Greece in south. Oceans: The Baltic, North, Mediterranean, Adriatic and Aegean Seas. Rivers: The Rhine (longest, busiest in Europe) and Elbe Rivers in Germany; The Rhone, Seine, & Loire Rivers in France; The Thames River in England; The Po River in Italy

498 Subregion – Industrial Heartland
Countries – Belgium, France, Germany, Luxembourg, the Netherlands, the Republic of Ireland and the UK. Significance: 60% of the region’s population; Cradle of Mercantile and industrial capitalism; British Empire in 19th century; Germany dominates in early 20th century and regained its power in late 20th century despite defeats in two world wars.

499 Major Industries Automobile industry Aerospace industry:
Cooperative manufacture of Airbus – Toulouse as its final assembly place Electronics Philip (Netherlands) & Thomson (France) Pharmaceuticals led by Germany and Switzerland

500 Subregion – Northern Europe
Countries – Denmark, Finland, Norway & Sweden, together with former colonies of Denmark in Greenland and Iceland. Demark remains a major agricultural country; Sweden has agriculture in the south, while the north has major timber and iron-mining industries – Sweden has one of world’s great deposits of high-grade iron ore; Finland is another major wood-producing country; Norway has fishing and shipping industries. Oil and gas reserves beneath the North Sea brought new wealth to Norway from the 1970s.

501 Major Cities and Ports Oslo of Norway – capital and major port.
Reykjavik – capital of Iceland. Copenhagen of Denmark – entrepot in history, now a major service and manufacturing center Stockholm, Sweden’s capital and manufacturing center; Goteborg, another industrial center. A diversity of manufacturing enterprises in central Sweden in the zone between Stockholm and Goteborg includes stainless steel products, ships, automobiles, electronics, furniture, and glassware. Helsinki, capital and center of metal, machinery, and shipbuilding industries; Oulu, (奥卢)has become the center of high-tech manufacturing, and based around the Nokia mobile telephone factory.

502 Subregion – Alpine Europe
Austria & Switzerland – landlocked, and dominated by the Alps. Switzerland developed strong manufacturing industries (watchmaking industry , pharmaceuticals, precision machinery, and instruments), significant financial institutions, and a major tourist industry. Zurich (the largest city, major banking & finance center) Basel – the main industrial cities Bern (伯尔尼,capital) Geneva is the home of a number of United Nations agencies and other international organizations

503 Mediterranean Europe The poorest in the region – Italy, Greece, Portugal, and Spain Northern Italy with major cities of Turin, Milan and Genoa, is the only part as prosperous as other parts of western Europe. After their incorporation in the EU in 1980s, they are now developing their manufacturing and service industries, and all rely heavily on income from tourism.

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