chapter 22 industrial activity and geographic location l.
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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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Presentation Transcript
introduction
Introduction
  • Why Hong Kong, not Macau?
  • Map of Hong Kong and Macau (link)
  • Location Theory
preindustrial world
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
industrial revolution
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

james watt 1736 1819
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
industrial revolution 2
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)
location decision
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!!!

weber s least cost theory german economic geographer
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

industrial location theory
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”
factors of industrial location
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

1 raw materials
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
2 labor

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

nafta
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
3 transportation
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

4 infrastructure
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)

other factors
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