Barron’s Human Geography AP Unit 7

Footloose industryindustry in which the cost of transporting both raw materials and finished product is not important for the location of firms
Primary vs. secondary industrial location(comparative- vs.)Von Th√ľnen only had to deal with primary industries, which are obviously located adjacent to the natural resources (farming, ranching,…). Secondary industries are less dependent on resource location; they deal with more variable costs such as energy, transportation, and labor.
Ullman’s conceptual frameEdward Ullman proposed that trade was an interaction based on three phenomena
Least cost theoryAlfred Weber described the optimal location of a manufacturing firm in relation to the cost of transportation, labor, and advantages through agglomeration.
Weight-losing case(bulk reducing) if the finished product costs less to transport, the firm will be located closer to the raw materials to reduce cost.
Weight-gaining case(bulk gaining) if the finished product costs more to transport, the firm will be located closer to the market to reduce cost.
Substitution principlelosses in one area may be offset by savings in another (e.g., higher labor costs could be offset by lower taxes).
Hotelling’s model(dealt with locational interdependence) the location of industries can't be understood w/o reference to the location of other industries of like kind; two similar vendors would locate next to each other in the middle of a market area to maximize profit (or beach/street as his model suggests).
Losch(author’s name) (zone of profitability) firms will identify a zone of profitability (not just a point) where income will outpace costs.
Factors of industrial locationthe numerous costs that are considered; some costs are transportation, labor, agglomeration, market, energy, terrain, climate, personal preference, the product itself, …
Primary industrial regionsrepresent the strongest (and mostly the original) industrial zones (all in the Northern Hemisphere):
Eastern AsiaThe following statement deals with things that occurs in _______: Japan’s dominance is being challenged by China (dominant in terms of low cost mass production) and the “Four Tigers” (South Korea, Hong Kong, Taiwan, and Singapore)
Secondary industrial regionsstates and regions that have been intensely developing and urbanizing in recent decades; typically represent more semi-peripheral economies (e.g., Mexico, Brazil, South Africa, Egypt, India, Australia,…).
First-round industrialization (up to WWI)England had a comparative advantage with the rest of the world (e.g., natural resources, cheap labor, ports, …) and began industrializing with textiles; industrial pace rapidly increased and England created several break-of-bulk locations (where goods are transferred from one type of carrier to another) primarily along its port cities (e.g., London, Liverpool, …); industrialization diffused into Western Europe and into the United States; the industrialized nations engage in imperialism, seeking out new regions for resources and markets for their goods.
Mid-twentieth century industrializationafter WWII the US became the strongest industrial nation (NAMB (North American manufacturing belt)) with the USSR as the other superpower; oil & natural gas rose to become virtually the most important resources driving the industrialized world; Japan rises to a major industrial power (initially due to its cheap labor).
Late twentieth century industrialization and beyondthe four primary industrial zones are still dominant, however, secondary industrial regions are making great strides; many developed economies have been expanding into tertiary, quaternary and quinary activities – diverting (or outsourcing) more manufacturing to other regions (e.g., China, India, Four Tigers, Thailand, Malaysia, Indonesia, Vietnam, …).
Networka set of interconnected nodes without a center (e.g., financial, transportation, communication, governmental, …) with modern [information] technology, _____ enable globalization to occur and create a higher degree of interaction and interdependence than ever before.
Mass production(assembly line production/Fordism) industrial arrangement of machines, equipment, and workers for continuous flow of work pieces in mass production operations, each movement of material is made as simple and short as possible. Important because it allowed for goods to be produced at a rate comparable to the demand for many of those products, made for more efficient manufacturing industries.
Lean productionjust-in-time delivery
Global (New international) division of laborphenomenon whereby corporations and others can draw from labor markets around the world; made possible through improvements in communication and transportation systems (resulting in time-space compression).
Offshoringoutsourcing (turning over production in part or in total) to another firm or business outside of the country.
Measures of developmentused to distinguish LDCs from MDCs. They include GDP, literacy rate, life expectancy, caloric intake, etc.
GDP (gross domestic product)the total value of goods and services produced in a year in a given country. The value varies greatly between MDCs and LDCs and is one of the best indicators of development.
GNP (gross national product)similar to GDP except that includes income that people earn abroad.
GNI PPP (gross national income with purchasing power parity)a measure of the wealth of countries that takes into account price differences between countries. Usually goods in LDCs are priced lower, so this makes the difference between LDCs and MDCs less.
HDI (human development index)an aggregate index of development, which takes into account economic, social and demographic factors, using GDP, literacy and education, and life expectancy.
PQL (physical quality of life index)based on literacy rate, infant mortality rate, and life expectancy at age one.
Core-periphery modeldescribes the pattern of distribution of the MDCs and LDCs. When the earth is viewed from the North Pole (azimuthal), the MDCs are clustered near the center of the map (core) while the LDCs are near the edges (periphery).
World Systems Theory(Immanuel Wallerstein) illuminated by a three-tier structure (core, semi-periphery, periphery); refers to perspective that seeks to explain the dynamics of the "capitalist world economy" as a "total social system". Important because explains the power hierarchy in which powerful and wealthy "core" societies dominate and exploit weak and poor peripheral societies.
Liberal Modelassume all countries are capable of developing economically in the same way, and 2) disparities b/w countries & regions are the result of short-term inefficiencies in local or regional markets. Walter Rostow
Stage 1(Rostow’s model) Traditional
Stage 2(Rostow’s model) Preconditions for takeoff
Stage 3(Rostow’s model) Takeoff
Stage 4(Rostow’s model) Drive to Maturity
Stage 5(Rostow’s model) Age of Mass Consumption
Structuralist Models(type of model) economic disparities are the result of historically derived power relations w/in the global economic system; cannot be changed easily (misleading to assume all areas will go through the same process of development).
Dependency Theorystates that political & economic relationships b/w countries & regions control & limit the develpmental possibilities of less well-off areas (e.g., imperialism caused colonies to be _________ – this helps sustain the prosperity of dominant areas & poverty of other regions); only at later stages of development does the core have a positive impact on the periphery (grants, loans, specialized economic zones,…).
Neocolonialismthe economic control that MDCs are sometimes believed to have over LDCs. Through organizations such as the IMF, the MDCs are able to dictate precisely what LDCs economic policies are, or are able to use their economic subsidies to put LDCs industries out of business.
Economic backwatersregions that fail to gain from national economic development.
Foreign direct investmentinvestment in the economies of LDCs by transnational corporations based in MDCs. However, all countries are not recipients of this investment. Brazil, China and Mexico were the LDCs that received most of the investment.
Deindustrializationprocess where the companies move industrial jobs to other regions (typically with cheaper labor), leaving the newly ____________ region to switch to a service economy and work through a period of high unemployment. (e.g., the US “Rustbelt”; Northeastern China).
Backwash effectwhen one region's economic gain translates into another region's economic loss.
Maquiladoraexport processing zone in northern Mexico with factories supplying manufactured goods to the US market; primarily foreign-owned factories that assemble imported components (or raw materials) and export finished goods.
High technology corridortechnopole or center of high-tech manufactoring and information based quaternay industry
World Cities (Friedman)Time-space compression & time-space convergence
Development- Process of improvement in the material conditions of people through diffusion of knowledge and technology
microcredit program – program that provides small loans to poor people, especially women, to encourgae development of small businesses
W. W. Rostow-Was a United States economist and political theorist who served as a Special Assistant for National Security Affairs.
Nolan’s Stages of Growth Model- Describes the role of information technology, and how it grows within an organization.
Rostow’s Stages of Development- A type of international trade model of development that calls to a country to identify distinctive or unique economic assets
Technology Gap- The difference between people who use computers and mobile devices on a daily basis and those who do not.
break of bulk point- a location where transfer is possible from one mode of transportation to another; a location along a transport route where goods must be transferred from one carrier to another
carrier efficiency- the ratio of output to input for a given carrier
technology transfer- the diffusion to or acquisition by one culture or retention of the technology possessed by another, usually more developed, society
cumulative causation- the spiral buildup of advantages that occurs in specific geographic settings as a result of the development of external economies, agglomeration effects, and localization economies
economies of scale- cost advantages to manufacturers that accrue from high-volume production, since the average cost of production falls with increasing output
ecotourism- responsible travel that does not harm ecosystems or the well-being of local people
entrepot- a trading center,or simply a warehouse, where merchandise can be imported and exported without paying important duties , often at a profit
export processing zone-(EPZ)designated areas of countries where governments create conditions conducive to export-orientated production
fixed costs-an activity cost (as of investment in land, plant, and equipment) that must be met without regard to level of output; an imput cost that is spatially constant
multiplier effect-the direct, indirect, and induced consequences of change in a n activity. 1. In industrial agglomerations, the cumulative processes by which a given change (such as a new plant opening) sets in motion a sequence of further industrial employment and infrastructure growth. 2. In urban geography, the expected additional of non basic workers and dependents to a city’s total employment and population that accompanies new basic sector employment.
outsourcing-sending parts of a product out for production to another factory for cost savings
just in time production-seeks to reduce inventories for the production process by purchasing inputs for arrival just in time to use and producing output just in time to sell
resource orientation-tendency for an industry or other type of economic activity to locate close to its resources
specialized economic zones- (SEZ) specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment
variable costs-a cost of enterprise and operation that varies either by output level or by location of the activity
Alfred Weber-German geographer who was a major theorists of industrial location. He devised a model of how to understand industrial locations in regard to several factors, including labor supply, markets, resource location, and transpiration.