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Industry and Economic development. Types of Industry. Primary: Extraction: renewable vs. nonrenewable Secondary: Manufacturing Tertiary:Distribution of goods, services and information Quaternary: Services required by producers Quinary:Research, upper level management, commodifcation.

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Types of industry
Types of Industry

  • Primary: Extraction: renewable vs. nonrenewable

  • Secondary: Manufacturing

  • Tertiary:Distribution of goods, services and information

  • Quaternary: Services required by producers

  • Quinary:Research, upper level management, commodifcation


Issues
Issues:

  • Specialization of places

  • Comparative advantage.

    • lower production costs, cheaper raw materials, etc.

    • places with favorable growing conditions and inexpensive labor.

    • Silicon Valley:

      • specializes in technology innovation

        • highly skilled labor, creative entrepreneurs, and ready supply of investment capital  

  • Transportation

    • Complementarity

    • intervening opportunity

    • transferability


Agglomeration vs deglomeration
Agglomeration vs. Deglomeration

  • Agglomeration

    • the concentration of enterprises in a locale

    • a cluster of activities create enough demand for support services in a particular place (for example, temporary workers, restaurants, legal advisors, or specialist engineers). 

    • activities needing access to information and control tend to concentrate

    • an infrastructure of cultural institutes such as school, hospitals, and services reach a certain level so new and divergent investment is attracted to the area


Agglomeration vs deglomeration1
Agglomeration vs. Deglomeration

  • Deglomeration

    • de-concentration due to technological change or increased costs of continued clustering

    • occurs when too many activities, perhaps of the wrong type, are too close together. 

    • Traffic congestion, pollution, labor shortages, capital shortages, supply shortages caused by local demand, increased land prices, and a general decay of infrastructure because of the intense use of the infrastructure

    • cause some enterprises to move out of the traditional centers


Example new york
Example: New York

  • New York= U.S. economic core

    • Manhattan/ Wall street address gave status to businesses

    • Being in the “center of things” helped businesses grow

    • Infrastructure and supporting businesses already in place

  • However-

    • Sky-high rent, major traffic issues, and other problems of downtown life

    • Businesses move out of NYC for space, lower rent, higher standard of living for employees, etc.


Core vs periphery
Core vs. Periphery

  • Core = regions with concentrations of employment, capital, and economic control. (within a country or globally)

  • On a regional scale, develop through agglomeration

    • backward linkages- with firms that provide supplies for the company

    • forward linkages- with retailers, ad agencies, transporters, etc.

    • and support industries (housing, food, schools, etc.)

    • profits = re-invested into infrastructure developments or to develop new forms of technology which could launch new industrial expansion.


Global economic models
Global Economic Models

  • Structuralists

    • believe that the growth of the core is only possible through the systematic underdevelopment of the periphery.

    • Wallerstein's world systems model

    • Dependency model

  • Liberalists

    • All countries are on the same trajectory, passing through stages as they develop.

    • All countries are capable of progression along that trajectory

    • Rostow’s modernization model


Industry and economic development

Rostow’s model of Economic Development

  • Traditional

  • Preconditions of Take off

  • Take off

  • Drive to maturity

  • High mass consumption


Critiquing rostow s model
Critiquing Rostow’s Model

  • Developmentalism vs. Sustainable Development

    • “high mass consumption” for all?

  • Dependence on MDCs and their markets.

    • Undue influence on many global policies, including those of the U.N. and World Bank.

  • Market Stagnation:

    • the MDCs have limited population growth.

    • Markets grow slowly

    • Undervalues the obstacles and competitive disadvantages faced by LDCs and former colonies

      • Those involved in primary resource production, especially


Location of mdcs and ldcs
Location of MDCs and LDCs

Development generally reflects a North-South split in the world.


Mapping the core periphery model
Mapping the Core-periphery model

  • Choose factors of development

    • IMR, TFR, literacy, GNP, etc.

  • Compare regions to determine statistical “breaks.”

  • Then, determine what is ‘definition’ of development (according to factors) and categorize world regions accordingly

    • Keeping in mind notable exceptions

    • Can use 2, 3, or 4 categories

      • Core- Periphery

      • Core- Semiperiphery- Periphery

      • Most Developed- More developed- Less Developed- Least Developed

  • Color code a map, creating a key, etc.

  • Justify factors and categories


International development
International Development

  • United Nations - formed in 1945 to promote peace. 189 current members.

  • World Bank - financial assistance and loans. Owned by 189 United Nations members.

  • International Monetary Fund - arm of U.N. that surveys and oversees international money exchange to prevent monetary crises. Also provides loans and training to help countries with balance of payment problems.

  • Non-Governmental Organizations (NGOs) - World Watch, Human Rights Watch, World Commission on Dams, Grameen Bank, Kiva.org, many others.


Deindustrialization
Deindustrialization

  • industrial activity is unevenly located through space

    • diffusion

    • fixed costs

  • Industries seek to maximize profit and minimize cost

    • higher amenity values, low rates of unionization, government contracts, and availability of sites

      • Drew investment away from the locations with high fixed costs.

    • New International Division of Labor


Gravity model
Gravity Model

  • larger places attract people, ideas, and commodities more than smaller places and places closer together have a greater attraction

  • relative strength of a bond between two places

    • multiplying the population of city A by the population of city B and dividing the product by the distance between the two cities squared.


Examples
Examples:

  • New York and L.A.: 52.9 million

  • El Paso and Tucson: 8 million

  • El Paso and L.A.: 21 million

  • Created to anticipate migration streams

  • Can also be used for traffic/ interaction

  • Time- Space compression

    • Use functional distance (flight time?)


Material world

Chart to fill out for material world posters.

I usually have them analyze 3-5 pictures each.

Material World

Students also write an essay, answering a number of questions related to material vs. non-material culture and globalization.



Links
Links

  • http://www.bized.co.uk/educators/16-19/economics/development/lesson/poverty.htm

  • http://www.pbs.org/wgbh/nova/worldbalance/material.html