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Presentation on theme: "INDUSTRY AND SERVICES Chapter 12."— Presentation transcript:


2 Where Did the Industrial Revolution Begin, and How Did It Diffuse?
Industrial Revolution: A series of inventions that brought new uses to known energy sources, new machines to improve efficiencies and enable other new inventions

3 Beginning of Industrial Revolution
Began in Great Britain in the middle to late 1700s Why Great Britain? Flow of capital Second Agricultural Revolution Mercantilism and cottage industries Resources: Coal, iron ore, and water power

4 Flow of Capital into Europe, 1775

5 Origins of the Industrial Revolution
Textiles: Liverpool, Manchester Iron: Birmingham Coal mining: Newcastle

6 Diffusion of the Industrial Revolution
Mainland Europe Early 1800s Location criteria: Proximity to coal fields Connection via water to a port Flow of capital Later Late 1800s Some regions without coal Location criteria Access to railroad

7 Diffusion of the Industrial Revolution

8 How Do Location Theories Explain Industrial Location?
Location theory: Predicting where business will or should be located, considering Variable costs Friction of distance

9 Location Models Weber’s Model Hotelling’s Model Losch’s Model
Manufacturing plants will locate where costs of transportation, labor, and agglomeration are the least Theory: Least Cost Theory Hotelling’s Model Location of an industry cannot be understood without reference to other industries of the same kind Theory: Locational Interdependence Losch’s Model Manufacturing plants choose locations where they can maximize profit Theory: Zone of Profitability

10 Least Cost Theory (1909) Alfred Weber’s model – owners of manufacturing plants seek to minimize three costs: 1) Transportation, 2) labor, and 3) agglomeration (too much can lead to high rents & wages, circulation problems) Weight-losing case: final product weighs less than raw mat.s; location = source

11 Weight-gaining case: final product weighs more (or takes more space) than raw mat.s (e.g. addition of water); location = market Some argue Weber’s model doesn’t adequately account for variations in costs over time (e.g. taxation, consumer demand) Substitution principle – decreases in certain costs can offset increases in others

12 Christaller’s Central Place Theory – Revisited
Distance affects the marketing strategies of enterprises Businesses identify one location, possess a monopoly Hexagons display a nesting pattern; Christaller’s theory is not as accurate today (diminishing specialization)

13 A third vendor complicates this (spatially)
Harold Hotelling Model (Two dimensional) Locational interdependence – the location of industries can’t be understood w/o ref. to the location of other industries of like kind Two vendors located on pts. A & C, eventually gravitate toward pt. B (moving from this pt. will only hurt profitability) A third vendor complicates this (spatially)

14 Losch’s Model: Zone of Profitability

15 Major Industrial Regions of the World Before 1950
Main determinants Near raw materials Transportation But…additional needs Goods and capital Political circumstances Economic leadership Labor costs Levels of education and training


17 Western and Central Europe

18 Major Deposits of Fossil Fuels in North America

19 Major Manufacturing Regions of North America

20 Major Manufacturing Regions of Russia

21 Major Manufacturing Regions of East Asia

22 How Has Industrial Production Changed?
Fordist : Dominant mode of mass production during the twentieth century, with production of consumer goods at a single site Post-Fordist : Current mode of production with more flexible production practices Goods not mass produced Production accelerated and dispersed around the globe Multinational companies that shift production, outsourcing it around the world

23 Time-Space Compression
Improvements in transportation and communications technologies Many places in the world more connected than ever before

24 Effects of Time-Space Compression
Just-in-time delivery Keeping just what is needed for short-term production New parts shipped quickly when needed Global division of labor: Corporations drawing from labor around the globe for different components of production

25 New Influences on the Geography of Manufacturing
Transportation Regional and global trade agreements Energy


27 Modern Production Outsourcing
Moving individual steps in the production process (of a good or a service) to a supplier, who focuses their production and offers a cost savings Offshore Outsourced work that is located outside of the country

28 Where Are the Major Industrial Belts in the World Today, and Why?
Deindustrialization A process by which companies move industrial jobs to other regions with cheaper labor Period of high unemployment in deindustrialized region Goal: Switch to a service economy Newly industrialized regions Pro–free trade laws Lax environmental regulations

29 China: Newly Industrialized Country
Major industrial growth after 1950, in 1960s State-planned Focus on: Northeast district Shanghai and Chang district Today Companies that bring production (not the whole company) Advantages Chinese labor Special economic zones (SEZs)

30 Geographical Dimensions of the Service Economy
Influences on location Information technologies Less tied to energy sources than manufacturing Market accessibility more relevant for some and less relevant for others because of telecommunications Presence of multinational corporations Quaternary and quinary economic activities

31 High-Technology Corridors
Technology corridor: An area designated by local or state government to benefit from lower taxes and high-technology infrastructure with the goal of providing high-technology jobs to the local population Technopole: An area planned for high technology with agglomeration built on a synergy among technological companies

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