Human Geography Jerome D. Fellmann Mark Bjelland Arthur Getis Judith Getis

Human Geography Chapter 9 Livelihood And Economy: From Blue Collar to Gold Collar Insert Figure 9.6 here © Getty RF

Human Geography 11e Components of the Space Economy Concepts and Controls Market Equilibrium

Human Geography 11e Secondary Activities: Gives form utility to the products of primary industry through manufacturing efforts Involved in material processing and goods production Movable, rather than spatially tied Locational decision involves the weighting of the locational “pulls” of a number of cost considerations and profit prospects

Human Geography 11e Secondary Activities: Manufacturing Locational Decisions in Manufacturing –Principles of location –Raw materials –Power supply –Labor –Market –Transportation Transportation and location

Human Geography 11e Industrial Location Theories Least-cost theory Locational interdependence theory Profit-maximization approaches Other locational considerations and controls

Human Geography 11e Industrial Location Theories Least-Cost Theory –Based on the work of Alfred Weber ( ) –Explains the optimum of a manufacturing establishment based on minimizing three basic expenses: Relative transport costs Labor costs Agglomeration costs –Agglomeration refers to the clustering of productive activities for mutual advantage –Weber concluded that transport costs are the major consideration determining location

Human Geography 11e Industrial Location Theories Least-Cost Theory –The optimum location will be found where the costs of transporting raw materials to the factory and finished goods to the market are at their lowest Insert figure 9.10

Human Geography 11e Least-Cost Theory Assumptions –Isotropic plain –Single product to a single market –Raw materials from two or more sources –Labor infinitely available but immobile –Transportation routes are not fixed but connect places by a straight line

Human Geography 11e Locational Interdependence Theory Variable revenue analysis Competitive locations in a linear market

Human Geography 11e Profit-Maximization Approaches Spatial margin of profitability Satisficing locations Price sensitivity (elasticity of demand) will encourage industrial dispersion

Human Geography 11e Other Locational Considerations and Controls Agglomeration economies Just-in-time and flexible production Comparative advantage Outsourcing Offshoring Imposed considerations Transnational corporations

Human Geography 11e World Manufacturing Patterns and Trends Anglo America Western and Central Europe Eastern Europe Eastern Asia

Human Geography 11e High-Tech Patterns Impacts of high-tech industries Agglomerating forces Contributors to production Insert figure 9.23

Human Geography 11e Tertiary and Beyond Services Business and labor specializations that provide services to the primary and secondary sectors, to the general community, and to the individual Tertiary –Lower-level services largely related to day- to-day needs of people and to the usual range of functions found in smaller towns and cities

Human Geography 11e Tertiary and Beyond Service activities are by definition market oriented Retailers and personal service providers tend to locate where market density is greatest and multiple service demands are concentrated Quaternary -Information, administration, and “knowledge” -Dependent on communication -Dispersion has been facilitated by electronic digital processing and telecommunication transfer of data

Human Geography 11e Quaternary and Quinary Activities Quaternary –An advanced form of services involving specialized knowledge, technical skills, communication ability, or administrative competence –Transportability of these activities means that many of them can be spatially isolated from their client base Quinary –“Gold Collar” professions –Special and highly paid skills of top business executives, government officials, research scientists, financial, and legal consultants

Human Geography 11e Services in World Trade Impact in international trade flows Impact in economic interdependence Foreign direct investment (FDI)