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Chapter 22 Industrial Activity and Geographic Location

Chapter 22 Industrial Activity and Geographic Location. Introduction. Why Hong Kong, not Macau? Map of Hong Kong and Macau (link) Location Theory. Preindustrial world. India - textiles:best in the world, riots in British textile industry in 1721.

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Chapter 22 Industrial Activity and Geographic Location

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  1. Chapter 22 Industrial Activity and Geographic Location

  2. Introduction • Why Hong Kong, not Macau? • Map of Hong Kong and Macau (link) • Location Theory

  3. Preindustrial world • India - textiles:best in the world, riots in British textile industry in 1721. • China, Japan all had industrial base before the Industrial Revolution • European companies used colonist power to control and local raw materials and process to finish products

  4. Industrial Revolution • James Watt and others developed (not invented) steam-driven engine • coal transformed to high-carbon coke • And many other inventions.. First railroad in England, in 1825 First powered ship crossed the Atlantic in 1819 Know-how, experience and capital British influence around the world reached its peak

  5. James Watt (1736-1819) • Scottish inventor, Repairing a Newcomen Steam Engine, he devised improvements that resulted in a new type of engine (patented 1769) with a separate condensing chamber, an air pump to bring steam into the chamber, and insulated engine parts. Watt coined the term horsepower

  6. Industrial Revolution - 2 • “Black Country” in Britain - densely populated and urbanized industrial regions along the coalfields. • The eastward diffusion of the Industrial Revolution during the second half of the nineteenth century. Figure 22-1 • Industrial regions due to raw material combinations - Ruhr, Saxony, Silesia and the Donbas. • Urban Market cities - London and Paris • Figure 22-1 (link)

  7. Location Decision Primary industries Secondary industries Determined by location of resources Human behavior, d-making (cultural, political and economic), or just whim Model, model, model again? Yes!!!

  8. Weber’s “least cost theory”(German economic geographer Raw materials to the factory • Minimize Transportation cost Finished products to the market Labor cost Industries moved from Japan/Taiwan to China/Vietnam. (computers, Nike…) Agglomeration Make a big-city location more attractive Over agglomeration - high rent/labor/transport cost

  9. Industrial Location Theory • General/Special, Regional/local factors • General - transportation cost, Special - food, etc. • Regional factors - transportation, a critical determinant of regional industrial location. Local - agglomerative/deglomerative factor • He didn’t take into account the consumption over the wide area instead of a single location. • Consumer demand and production costs were taken into considerations for August Losch’s book “The economics of Location”

  10. Factors of Industrial Location • Russia - state planning directed industrial growth. Market is distorted by black market and influence of entrenched interests • First decision faced by the capitalists- move either coal to iron ores or iron ore to the coalfields. • Iron ore usually travels farthest. In commercial economics, iron ore is usually transported to the coalfields iron coal Intermediate location

  11. 1- Raw Materials • Iron ore from overseas (Venezuela, Labrador, Liberia etc.) - the reason why industrial plants in U.S. northeastern seaboards. • With limited resources, Japan expanded its dependencies to Korea and Northeast China • Strong economics allows Japanese industries purchase raw materials anywhere in the world • Core-periphery country relationship maintain the buyer and suppliers roles. Buyers usually control the market, • OPEC in 1970s - oil prices up and down due to the non-cartel member’s increased production

  12. Japan from 1950 to 1990 2 - Labor 1/40 US and Canada Taiwan S. Korea NAFTA, 1994 China Thailand Malaysia Mexico Vietnam Others 1/30

  13. NAFTA • Good or bad, judged by yourself • Agriculture import and export between US and Canada/Mexico is increasing (Do you think you’ve got more fruit choice in Wal-Mart, Bi-Lo or Kroger?) • Industrial plants closed - 9000 jobs lost in Cape Fear region (N.C) • Job loss - 0.5 million between 1993 and 2000. • Most job losses states: CA,MI,NY,TX, and OH • Hardest-hit sectors:Home audio/video,phones, appliances, motor vehicles,textiles and lumber • TN loss in motor vehicles/textiles

  14. 3 - Transportation Other factors: loading and unloading process, weight and volume of the freight Truck good for short distances Development of container systems Rail good for medium distance Ship cheapest over longest distances

  15. 4 - Infrastructure • Telephone, utilities, electricity, water supply, banks, postal and messenger services, hotels, and social services. Lack of infrastructure in regional and local scale forces China to slow down the industrialization in Pacific Rim China is still going - due to the perception of the future disadvantage Vietnam - next economic tiger on the Pacific Rim - having the infrastructure problems too. (water supply and poor transportation network)

  16. Other factors • 5 - Energy - Aluminum production Northwest and TVA locations and fertilizer production. But not that important as it was. • Political stability/taxation (Cambodia, Myanmar) • Environmental consideration - good weather in CA - film and aircraft companies

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