1. CHAPTER 17 LECTURE OUTLINE DISTRIBUTION & TRANSPORTATION Human Geography by Malinowski & Kaplan 17-1

2. Growth of Trade 1 Barter gave way over time to cash exchanges Today, the term trade usually means international trade Maritime trade –trade across bodies of water Trade regulations were already in place in some areas 4,000 years ago Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 17-2

3. International Trade 1 Countries have different views of trade: Autarky: A self-sufficient country Protectionism: When a country limits trade Advantages of trade: Ability to get resources or products that you wouldn’t normally have at a good price Comparative advantage: A region can produce a product with higher value than another region Competitive advantage: A detailed version of comparative advantage that considers how much of an advantage one region has over another – takes into account the mix of numerous factors – infrastructure, skilled labor, government, domestic demand, levels of domestic competition, agglomeration economies, and other items Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 17-3

4. 17-4 Figure 17B.2 Comparative Advantage Trade occurs between regions that have complimentary comparative advantages (each has an advantage in making something the other wants)

5. International Trade 2 Regional Trade Blocks (Free Trade Zones): Groups of countries that have minimal or no barriers to trade among each other Sometimes overrule state laws EU: European Union One of the first blocks Grew out of the Common Market after World War II Now includes the “Euro Zone”—common currency Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 2-5

6. International Trade 3 NAFTA: North American Free Trade Agreement Canada, Mexico and United States GATT: General Agreement on Tariffs and Trade Includes most of the world’s states Now subsumed within WTO: World Trade Organization TPP: Trans-Pacific Partnership – Newest block – NAFTA countries, Peru, Chile, Australia, and six Eastern Pacific states Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 2-6

7. Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 17-7 Figure 17A.3 Regional Trade Agreements

8. What Determines the Flow of Trade? Analogously to migration, products “want” to flow from where they are produced, across barriers, to where they will be sold for the highest price. Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 17-8 Elements of Supply Quality of raw materials Labor & Productivity Financial, Fixed, & Human Capital Entrepreneurship Elements of Supply Quality of raw materials Labor & Productivity Financial, Fixed, & Human Capital Entrepreneurship Barriers Distance Bad transportation Trade barriers Tariffs Currency Manipulation Barriers Distance Bad transportation Trade barriers Tariffs Currency Manipulation Demand Conditions Wealth Discretionary income Preferences Demand Conditions Wealth Discretionary income Preferences Flow of Trade

9. Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 2-9 International Trade 4 Barriers (protectionist policies) include Tariff: A tax a government charges to make imports more expensive Currency Manipulation: Policies a government uses to artificially decrease the value of its currency Demand Conditions (factors that increase the value of a product in a market, because people there will spend more for it) include Discretionary Income: money left over after necessities have been purchased, that people can decide how they wish to spend

10. Infrastructure and Transportation 1 Infrastructure – the permanent facilities that are necessary for a society’s basic functioning – for example sewage systems, hospitals, and gas pipelines – but not private facilities like houses and gas stations Conveyances are the machines that transport people and goods Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 17-10

11. Transportation facilities: (transportation infrastructure) – The physical pathways along which conveyances travel – Interstate Highway System: a key changes in the United States transportation infrastructure; trucks outpaced railroads Transportation systems are composed of nodes and links that form a network Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 2-11 Infrastructure and Transportation 2

12. 17-12 Figure 17D.1 A Transportation System (Network) Nodes—the places that are connected Links—the connections between nodes

13. 17-13 Figure 17E.3 Travel Times 1830 & 1857 Between 1785 and 1830—the key transportation facilities were roads and canals Between 1830 and 1857—trains replaced previous facilities, especially in the northeast --Travel time between New York and Chicago decreased from two weeks to two days

14. 17-14 Figure 17F.1 What do People Travel For? Two-thirds of travel is for business

15. 17-15 Figure 17F.2 Commuting Patterns in the U.S. The majority of travel is within the same regions

16. Retailing Christaller’s Central Place Model Stores cluster into central places Each store type needs a certain size hinterland Smaller hinterlands (gas stations) are nested in larger ones (big box store) Small towns thus have only basic businesses that have small hinterlands and large cities have nearly every type of business Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 17-16

17. 17-17 Figure 17G.2 Central Places Hinterlands in this model are the spaces around the places The largest places are in the center; the middle-sized places are on the outside; the smallest places are between them

18. US Retailing 1 Retailing is selling products to consumers Especially since World War II, retailing in the United States has changed: Retail outlets have gotten larger Retail outlets have moved to the suburbs Individual, independent outlets have been replaced by chains Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 17-18

19. US Retailing 2 Types of retail development: – Pedestrian-oriented commercial strips – Enclosed malls – Neighborhood/community centers & strips – Specialty shopping centers Mix retail with tourism – Power centers Mostly big “category killer” stores – Open-air “lifestyle” centers Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 17-19

20. Retailing in the Internet Age Non-store retailing – Traditional Door-to-door salespeople Catalogs, such as Sears- Roebuck – With improved technology niche marketing, such as Lands’ End Home shopping channels With the Internet, the rise of e-tailing and the decline of physical “brick-and-mortar” stores Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 17-20