Advanced Placement Human Geography Session 1. By Geri Flanary To accompany AP Human Geography: A Study Guide 3 rd edition By Ethel Wood.

Unit Six:INDUSTRIALIZATION

Advanced Placement Human Geography

Session 1

Advanced PlacementHuman Geography

Review Sessions: Unit Six

By Geri FlanaryTo accompany AP Human Geography:

A Study Guide3rd edition

By Ethel Wood

ECONOMIC GEOGRAPHY

Economic Geography

• What is it?•Economic geography studies the impact of economic activities on the landscape and investigates reasons behind the locations of economic activities.

Why is economic geography

interesting to geographers?

• Geographers are interested in • the changes that industrialization has brought to the cultural and social landscapes

• the different patterns of wealth created by industrialization

• the gap between rich and poor people of the world that became more pronounced after industrialization

KEY CONCEPTS IN INDUSTRIALIZATION AND DEVELOPMENT

Industrialization

Definition

Industrialization is the process by which economic activities on earth’s surface evolved from producing basic, primary goods to using factories for mass-producing goods for consumption.

Industrialization

• Industrialization involves the production of goods using advanced sources of energy to drive large machinery and specialized labor to produce standardized goods.

The Industrial Revolution

• The Industrial Revolution began in England in the late 18th century.

• Economic development, the process of improving the material conditions of people through the diffusion of knowledge and technology, has occurred as a result of industrialization.

Types of Economic Activities

• Economic development may be traced by examining three types of economic activities:• the primary sector (agriculture)

• the secondary sector (industry)

• the tertiary sector (services)

• This is the part of the economy that draws raw materials from the natural environment.

• It consists of• agriculture• raising animals• fishing• forestry• mining

The Primary Sector

• This sector of the economy is largest in low-income, pre-industrial nations.

• Even though it originated 10,000 years ago, farming is still the major occupation in many countries of the world.

The Primary Sector

• The secondary sector is the part of the economy that transforms raw materials into manufactured goods.

• This sector grows quickly as societies industrialize and includes the following operations:• refining petroleum into gasoline• turning metals into tools and

automobiles

The Secondary Sector

• As industrialization diffused to other areas of the world, economic activities dramatically changed along with:

• lifestyles• values• beliefs• customs


• This sector was first created during the late 18th century by the Industrial Revolution.

• Human and animal muscle was replaced with energy generated by machines.


• This sector is the part of the economy that involves services rather than goods.

• Tertiary activities grow with industrialization and come to dominate post-industrial societies, or countries where most people are no longer employed in industry.

The Tertiary Sector

• Post-industrial production is based on computers and other electronic devices that create, process, store, and apply information.

• Occupational structure changes significantly with post-industrialism.

The Tertiary Sector

• Examples of tertiary sector jobs:• construction• trade• finance• real estate• private services• government• transportation

The Tertiary Sector

• The quaternary sector is often seen as a subset of the tertiary sector.

• This sector includes service jobs concerned with research and development, management and administration, and processing and disseminating information.

The Tertiary Sector

Categorizing Countries by Economic Activities

More Developed Countries(MDCs)

• These countries have experienced industrialization.

Less Developed Countries

(LDCs)• These countries

have not experienced industrialization.

• Most countries in the world belong in this category.


• Some LDCs may be subcategorized as newly-industrialized countries.• These countries are found mostly in Asia and Latin America.


• The process experienced by these countries is sometimes called compressed modernity.• This means that the country has experienced:• rapid economic and political change

• a growing economy• an expanding web of nongovernmental institutions


• Examples of newly industrialized countries:• South Korea developed as one of the world’s largest economies during the last 50 years. It was once a poor agricultural country.

• Mexico has had dramatic economic growth that began in the late 1980s because of an abundance of oil.

ECONOMIC INDICATORS OF DEVELOPMENT

Economic development may be measured in

several ways.

• GDP is the value of the total output of goods and services produced in a country during a year.

• Dividing the GDP by total population creates the GDP per capita, a measure of the average person’s contribution to a country’s wealth in a year.

Gross Domestic Product Per Capital (GDP)

• In MDCs, the annual GDP per capita exceeds $20,000.

• In LDCs, the annual GDP per capita is approximately $1,000.

• The annual GDP per capita in newly industrialized countries falls between $1,000 and $20,000.


• GDP is strongly related to many social characteristics, since economic development is dependent on a skilled work force.

• Social characteristics include:

• literacy rates• education levels


Annual Gross Domestic Product (GDP) Per Capita

• MDCs usually have the fewest workers in the primary sector, and the most in the tertiary sector.

• LDCs have a larger percentage of workers in the primary sector, generally occupied as farmers.

Types of jobs

• Middle income nations have workers spread among the three economic sectors:

• primary• secondary• tertiary

Types of jobs

• Workers in MDCs are more productive than those in LDCs, largely because they have access to more:

• machines• tools• equipment

• Workers in LDCs rely more on animal and human power.

Worker Productivity

• Productivity can be measured by the value added by each worker.

• Value added in manufacturing may be figured by subtracting the costs of raw materials and energy from the gross value of the product.

Worker Productivity

The value added in MDCs is much higher than in

LDCs.

Worker Productivity

• Development requires access to raw materials than can be transformed into useful products.

• Raw materials include:• minerals• trees

Access to Raw Materials

• Energy to operate factories is also necessary.

• Energy takes the form of:• oil• coal• water• natural gas


• During the 19th century, an important motivation for European empires was control of natural resources in other areas.

• Today countries have access to raw materials through world trade.


• MDCs have wealth for both essential and nonessential goods.

• Essential goods include:• food• shelter• clothing

• Nonessential goods include:

• cars• telephones• televisions

Availability of Consumer Goods

• The production and sale of nonessential goods in MDCs are vital to the economy.

• Few people in LDCs have the means to buy nonessential goods. Therefore, the growth potential of economies is limited.

Availability of Consumer Goods

Economic Development

• Economic development is often accompanied by social development such as:

• high rates of literacy• access to formal

education• good health care

Economic Development

• Economic development also changes demographic characteristics such as:

• life expectancy• birth rates• death rates

Key Terms and Concepts to Review for this Session

• Economic geography• Cultural landscape• Social landscape• Industrialization• Mass production• Industrial Revolution• Primary sector• Secondary sector• Tertiary sector• Quaternary sector

• Post-industrialism• MDCs• LDCs• Newly industrialized

countries• Compressed modernity• Economic indicators• GDP• GDP Per Capita• Value added• Essential goods• Nonessential goods• Consumer goods



Session 2

THEORIES OF ECONOMIC DEVELOPMENT

What factors explain differences in levels of economic development?

• Two conflicting theories have guided social scientists in the 20th century in answering the question.

• Those theories are:• THE MODERNIZATION MODEL

AND

• DEPENDENCY THEORY

The Modernization Model

• According to this theory, Britain was the FIRST country to begin to develop its industry.

• The Industrial Revolution was spurred by a combination of:

• prosperity• trade connections• inventions• natural resources


• Max Weber asserted that Western Europe had a cultural environment that favored change.

• The growing importance of individualism steadily replaced the traditional emphasis on community.


• The British model spread to other European nations and the U.S., which prospered because they built on British ingenuity and economic practices.

• By extension, any country that wants to improve its economy should follow the British model and enjoy modernization, or “westernization.”


• Modernization theory identifies tradition as the greatest barrier to economic development.

• In societies with strong family systems and a reverence for the past, the culture discourages people from adopting new technologies.• As a result, standards of living are not raised.

Dependency Theory

• Dependency theory puts the primary responsibility for global poverty on rich nations.

• The theory also holds that economic development is blocked by industrialized nations that exploit the poor countries.

A favela in Rio de Janeiro

Dependency Theory

How can a country develop when its natural and human

resources are controlled by a handful of prosperous

industrialized countries?

Dependency Theory

Inequality has its roots in the colonial era when European nations exploited resources in

various parts of the world.

Dependency Theory

• Although many countries gained independence in the 20th century, they have not gained economic

wealth.• This theory is an outgrowth of

Marxism, which emphasizes exploitation of one social class of the

other.

Reaction to Dependency Theory

• Many LDCs have experimented with various forms of socialism.

• Their intent is to nationalize industry and narrow the gap between rich and poor.

Modernization Theory: Rostow’s Stages

Modernization Theory holds that economic prosperity is open to all countries.

According to W.W. Rostow, modernization occurs in four stages.

• People in traditional societies build their lives around:

• families• local communities• religious beliefs

• Wealth is generally limited.

• Most people are subsistence farmers.

Traditional Stage

Stage One

• Political leaders encourage people to produce goods for their own consumption AND for trade.

• Sustained growth takes hold.

• Urbanization increases.

Take-off Stage

Stage Two

• Technological and production breakthroughs occur.

• Individualism flourishes, often at the expense of families and traditional customs.

Take-off Stage

Stage Two

• Economic growth is widely accepted.

• People focus on higher living standards and can afford more luxuries.

• Poverty is reduced and material goods are much more common.

Drive to Technological Maturity

Stage Three

• Cities grow as more people leave farms.

• Modernization is evident in the country’s core.

• Population growth decreases.

• International trade expands.

Drive to Technological Maturity

Stage Three

• Economic development raises living standards.

• Mass production encourages consumption of industrial products.

• Items that have been luxuries in earlier stages of development now become necessities (e.g. automobiles).

High Mass Consumption

Stage Four

• This stage is marked by high incomes.

• A majority of the workers are involved in the tertiary (service) sector of the economy.

High Mass Consumption

Stage Four

Modernization Theory

• This theory claims that high-income countries can help poorer countries by encouraging them to:

• control population growth• increase food production• take advantage of industrial

technology

Modernization Theory

High income countries also help poorer countries with foreign aid.

Criticisms of Modernization Theory

• Socialist countries believe that modernization theory provides justification for capitalist systems to continue to exploit non-capitalist countries.

• Others believe that modernization simply cannot occur in many poor countries.


• Critics also assert that rich nations, which benefit from the status quo, often block paths to development for poor countries.

• Another criticism is that the theory suggests that the causes of poverty lie in the poor countries themselves, which means that it blames victims for their own plight.


Dependency Theory: Wallerstein’s Capitalist World Economy

• In 1974, Wallerstein explained economic development using a model of the capitalist world economy, a global economic system that is based on high-income nations with market economies.

• He traced economic inequality among nations to the colonial era when Europeans first took advantage of the rest of the world.

Dependency Theory: Wallerstein’s Capitalist World Economy

• Wallerstein divided today’s countries into three types, according to how they fit into the global economy:• Core countries• Countries of the periphery• Countries of the semiperiphery

• This category includes the rich countries of the world that fuel the global economy by taking raw materials and channeling wealth, through multinational corporations, to:

• North America• Europe• Australia• Japan

Core Countri

es

• This category includes low-income countries that were exploited during the colonial era.

• These countries continue to support rich countries today by providing inexpensive labor.

• Countries of the periphery are also a large market for industrial products.

Countries of the Periphery

• The remaining countries of the world have characteristics that place them somewhere between the core and the periphery.

• Countries of the semiperiphery exert more power than peripheral countries but are dominated to some extent by the core.

Countries of the Semiperiphery

According to Wallerstein…

• The world economy benefits rich societies and harms other countries by making them dependent on the core.

• Dependency is perpetuated by narrow, export-oriented products such as oil, coffee, and fruit.

According to Wallerstein…

• Poorer countries lack industrial capacity so they are caught in a cycle of selling inexpensive raw materials and buying expensive manufactured goods.

• As a result, foreign debt cripples poorer countries even further.

Dependency theory emphasizes the idea that NO COUNTRY develops in isolation because the global economy shapes the destiny of all nations.

Important note about Dependency Theory

Criticisms of Dependency Theory

• Critics disagree that wealth is a zero-sum commodity, as if no one gets richer without someone getting poorer.

• They believe that new wealth is created through:

• ambition• hard work• new uses of technology


• Critics also believe that the theory places blame on rich countries that have a long history of supporting economies of nations such as:

• India• South Korea• Japan

• The poorer countries have been supported through foreign investments that foster economic growth.


• Dependency theorists are also criticized for ignoring cultural factors in poor countries that discourage economic growth.

• Corrupt leaders may contribute to poor economic health in a country that lacks a strong rule of law, since the country’s wealth is monopolized by the elite.

The Self-Sufficiency Model

This model encourages LDCs to isolate newer

businesses from competition from large international

corporations.


How can LDCs escape global inequalities?The government can:• Shield local businesses from

trade in international markets

• Encourage internal growth• Limit imports from other

places


Another approach to protecting local markets:• Require international

companies to purchase expensive licenses that discourage them from selling within the newly industrialized country’s borders.


Example: India• India has used all of

the methods described to encourage internal economic development.

• However, problems persisted.


Problems in India• Inefficiency• Little incentive for

businesses in India to develop better products

• Complex bureaucracy that hampered development


• Modernization Model

• Dependency Theory• Industrial

Revolution• Individualism• Westernization• Modernization• Marxism• Socialism• Sustained growth

• Mass consumption• Core• Semiperiphery• Periphery• Status quo• Foreign debt• Foreign

investments• Self sufficiency

theory



Session 3

GROWTH AND DIFFUSION OF INDUSTRIALIZATION

The Existence of Industry

• Prior to the Industrial Revolution, industrial centers existed in:

• China: silk factories• India: metal workshops

The Production of Goods

Most work was done by hand and

powered by water and/or wind prior to

the Industrial Revolution.

A Big Breakthrough!• The invention of the steam engine

was a huge breakthrough for industry.• It was invented by James Watt.• The engine could pump water more efficiently than water mills used at the time.

A Big Breakthrough!

• New methods for smelting iron were discovered that transformed coal into high-carbon coke.

THE INDUSTRIAL REVOLUTION

The Textile Industry• The textile industry was one of the FIRST

to benefit from new steam-powered machines and smelting processes.

• New inventions helped to weave cloth.• British factories began to demand more

raw materials such as:• wool• linen• cotton

The Textile Industry

The textile industry was transformed from home-based industries to a small number of large factories centered in a

few locations.

What helped to diffuse industries?

• Britain had:• a stable government• wealth from overseas ventures• an abundant supply of coal• good transportation and communications systems


The first railroad in England was opened in 1825, and soon major

cities were connected by rail.


• Ships benefited from steam engines.

• England expanded its industrial power as steam-powered vessels began crossing the Atlantic Ocean.

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The first industries arose in northern and western England around abundant coal and iron-ore deposits. Railroads connected the major cities to one another and to the coast for shipping.

Industrialization Throughthe Early 20th Century

As Industrialization Diffused During the 19th Century…

• Britain had an enormous comparative advantage over other areas.

• Britain’s creator role in the Industrial Revolution allowed expansion of its colonial empire to further its prosperity and power.


• The new industries transformed England’s landscape.

• Cities grew dramatically, especially in north-central England where a belt of major coalfields was located.


• Mainland Europe: Another industrial belt developed around coalfields that stretched through…

• northern France• southern Belgium• the Netherlands• Germany• Poland


• Iron ore was found in the industrial belt in mainland Europe.

• Economic activity developed accordingly.

THE DIFFUSION OF THE INDUSTRIAL REVOLUTION

The Industrial Revolution began in England in the late 18th century and diffused across Europe, following belts of coalfields and iron ore.

Western Europe’s Industrial Success

• Although Western Europe had abundant raw materials, France, Britain, and the Low Countries had access to resources from their colonial empires.

• Europe also had skilled laborers as well as established trade routes to facilitate exchange of new products.

By the turn of the 20th century…

Industry had diffused as far as northern Spain, southern Scandinavia,

and the Ukraine.This shows the

area of diffusion.

By the turn of the 20th century…

• Industrialization had diffused westward across the Atlantic to North America.

• Natural resources and available land space encouraged economic development in this region.

North America and the Industrial Revolution

• The first U.S. textile mill was built in Rhode Island in 1791 by Samuel Slater.

• Slater was a former worker in an English factory.


• Industry grew because of government protection through embargoes on European trade.

• Most early industry grew in the northeastern United States.


• The area lacked abundant natural resources.

• However, there was a large population from Boston to Washington, D.C.

• As a result, the Northeast provided a large market for consumption of industrial products.


• New York City became one of the world’s great ports.

• The city had a large skilled and semiskilled labor force.


• New York also had a natural harbor for break-of-bulk, where cargo was transferred from one type of carrier to another. Example: Goods could be transferred from ships to trains and trucks and vice versa.

By the start of World War I…

• Europe had developed a huge industrial base.

• The United States was rapidly catching up to Europe.

• However, industrialization had NOT diffused to the rest of the world, except for areas settled by Europeans (e.g. Australia).

20th Century Industrialization after World War I

The Mid-20th Century…

• The use of coal as an energy source diminished.

• The use of oil and natural gas greatly increased.

The Mid-20th Century…• Industrialized nations needed

these products to run their:• power plants• machinery• cars• airplanes• ships

The Mid-20th Century…Oil and natural gas became common forms of energy for heating homes and providing household conveniences, such as heating water.

The Mid to Late 20th Century…

• The U.S. and industrialized Europe turned to foreign countries for their energy needs.

• Those countries included:• Saudi Arabia• Kuwait• Iran• Russia• China• Mexico• Venezuela• Nigeria


Oil enriched countries that played host to American and European

multinational companies.


• Most oil-rich nations signed agreements with these companies that allowed a great deal of wealth to return to the U.S. and Europe.

• These agreements have produced international tensions between developing countries and the established industrialized powers.


• Industrial centers• Water and wind

power• Steam engine• James Watt• Home-based

industries• Importance of

railroads• Comparative

advantage• Industrial belt

• Raw materials• Skilled laborers• Semiskilled laborers• Samuel Slater• Embargoes• Break-of-bulk• Multinational

companies



Session 4

THE EVOLUTION OF ECONOMIC CORES AND PERIPHERIES

Why did industrial growth occur in some areas and not

others?

Location theory explains the locational pattern of economic activities by identifying factors

that influence this pattern.

Why did industrial growth occur in some areas and not

others?

The patterns formed by primary and secondary

industries divide the world into regions based on economic activities.

• Primary industry develops around the location of natural resources.

• Example: the industrial belt in the British Midlands.

Primary Industry

• As transportation improves, secondary industry develops.

• Secondary industry is less dependent on resource location.

• Raw materials may be transported to factories for manufacturing.

Secondary Industry

Variable costs •Energy, labor, and transportation are less expensive in some areas than others. Low costs encourage industries to develop.

Secondary Industry

Location depends on several factors.

Distance decay•As distance increases, business activity decreases until it becomes impractical to do business.

Secondary Industry

Location depends on several factors.

So…

Where are industries more likely

to serve markets?• In nearby places, largely because of friction of distance.

IMMANUEL WALLERSTEIN

The Core-Periphery Model

•Immanuel Wallerstein first used the following terms in 1974:•core•periphery•semiperiphery


• He used the terms to promote dependency theory among nations.

• Many economic geographers now use the core-periphery model to describe economic spatial patterns in general.


• Core regions have concentrations of primary and secondary industries.

• Peripheral regions do not.• Semiperipheral regions have some

industries in contrast to peripheries, but not as many as the core regions.


Even within core countries wealthy urban cores lie in contrast to

depressed rural peripheries.


Example: modern-day United States

• “High tech” concentrations create wealth that contrasts to rural areas or “rust belt” industrial areas that provide few job opportunities for young people.

• “High tech” areas include the Pacific coastline, the Northeast, some interior cities (e.g. Austin, Texas).


With more jobs in the service sector, people move to areas where those jobs are provided, leaving the peripheral areas with even fewer resources than

they had before.


A look at India…• This country has clear core/peripheral distinctions.

• High tech jobs are often outsourced by Western companies and are growing rapidly in urban centers.

• Urban centers contrast to peripheral areas that still adhere to traditional customs and occupations.

WEBER’S MODEL FOR THE LOCATIONOF INDUSTRIES

Alfred Weber• In his Theory of the Location of Industries

published in 1909, Weber developed a model for the location of secondary industries.

• Weber identified points for particular inter-related activities, such as:• manufacturing plants• mines• markets

Alfred Weber

• Weber’s industrial model has been compared to Von Thünen’s agricultural model.

• Both are examples of location theory that explain patterns of economic activities.

Weber’s Least Cost Theory

The least cost theory explains the location of industries in terms of three factors:

•transportation•labor•agglomeration

• The site of industry is chosen in part by the cost of moving raw materials to the factory and finished products to the market.

• Business owners look for the least expensive transportation costs.

Transportation

Transport Media• Truck transport is

cheapest over short distances.

• Railroads are most cost efficient over medium distances.

• Ships are cheapest over long distances.

• Transportation involves terminal costs which vary considerably.

• Terminal costs are least expensive for trucks and most expensive for ships.

• The cost of labor is important when determining the location of secondary industries.

• Cheap labor may allow an industry to make up for higher transportation costs.

Labor

• Example: A factory may relocate from the U.S. to Mexico where transportation costs to market increase but are more than made up by cheaper labor costs.

Labor

If several industries cluster in one city, they can provide support by sharing

•talents•services•facilities

Agglomeration

A restaurant needs furniture and equipment, and the companies that provide those products have workers that bring business to the restaurant.

Agglomeration

AN EXAMPLE…

All the workers need clothes that may be provided by a clothing store that also needs furniture and equipment and employs people who eat in the restaurant.

Agglomeration

AN EXAMPLE…

• The point of agglomeration explains location of industry.

• Excessive agglomeration may lead to an increase in labor and transportation costs. This is called deglomeration, or the exodus of businesses from a crowded area.

Agglomeration

Criticism of Least Cost Theory

• The substitution principle suggest that business owners can juggle expenses such as:• labor• land rents• transportation

• This balancing of expenses allows a business to be profitable within a larger area than Weber’s model suggests.

LOCATIONAL INTERDEPENDENCE THEORY

Locational Interdependence Theory

Another approach to location theory is locational interdependence, or the influence on a firm’s locational decision by locations chosen by its competitors.


This model is concerned with variable revenue analysis, or the firm’s ability

to capture a market that will earn it more customers and money than its

competitors.


• An example of this theory was provided by the economist, Harold Hotelling:• Two ice cream vendors on a beach sold identical products and had a fixed demand for ice cream from their customers (those on the beach).

• Where should each vendor locate?


• Example (continued):• In reality, what generally happens is that both vendors on the beach will cluster in the middle.

• That way each can have half but can also compete for those customers located in the middle.

• This maximizes the customer base.


• Example (continued)• The problem is that some customers will have to walk farther to get ice cream.

• They may then change their minds and not want ice cream.

• If that happens, the vendors might have to relocate.

Below is an illustration of locational interdependence using the example of

two vendors on a beach.

SITUATION AND SITE FACTORS

Geography provides companies with two types of

production costs: situation

and site factors

• Situation factors have to do primarily with transportation —bringing raw materials or parts into a factory and shipping the finished goods to consumers or retailers.

Situation Factors

• Bulk-reducing industries usually locate factories close to raw materials because the raw materials are heavier and bulkier than the finished products.

• Examples: North American copper industry; U.S. steel industry

Situation Factors

• Factories for bulk-gaining industries usually determine location by accessibility to the marketplace.

• Examples: canned food; beverage products

• Weight is gained and transportation costs are increased so being close to consumers is important!

Situation Factors

• Single-market manufacturers also cluster near their markets.

• Example: clothing manufacturers who ship their goods to New York City

Situation Factors

• Von Thünen noted for farmers that perishable products need to be close to large urban markets.

Situation Factors

• Site factors are particular to a geographic location and focus on varying costs of:• land• labor• capital

Site Factors

• Modern factories are located in suburban or rural areas, and NOT in center cities, where land costs are prohibitive for the space necessary for production.

Site Factors

• Climate may also impact location decisions, with some industries drawn to relatively mild climates and opportunities for year-round outdoor recreation activities.

Site Factors

• The cost of labor is another consideration, especially for labor-intensive industries.

• Examples:• fiber-spinning• weaving• cutting and sewing fabric into clothing

Site Factors

• Textile industries require skilled workers and so they often choose locations where labor costs are low.

• Example: China and other Asian countries have cheaper labor.

Site Factors

• Sometimes businesses are influenced by the willingness of banks in a geographical location to provide loans to entrepreneurs.

• Example: California’s Silicon Valley• Banks offered large incentive packages to persuade businesses to locate within their city limits.

Site Factors

• Footloose industries are neither resource nor market-oriented.

• Example: Both parts and finished products in the manufacture of computers are expensive, so transportation is only a small part of total production costs.

Footloose Industries


• Location theory• Core• Periphery• Semi-periphery• Variable costs• Friction of distance• Distance decay• Core-Periphery

Model• Immanuel

Wallerstein

• Dependency theory• Alfred Weber• Least Cost Theory• Agglomeration• Transport media• Deglomeration• Locational

interdependence theory

• Hotelling


• Situation • Site• Bulk-gaining

industries• Bulk-reducing

industries• Single market

manufacturers• Footloose industries



Session 5

CONTEMPORARY PATTERNS AND IMPACTS OF INDUSTRIALIZATION AND DEVELOPMENT

Globalization

• Globalization means that every country’s industrial development is related to conditions in the global economy.

• The position of places in the global web is also crucial.

Globalization

• Site and situation factors are important when studying economic activities.

• The role of agglomeration in location decisions, for instance, has reached new dimensions as urban areas have grown much larger and international contacts have increased.

Globalization

• Space-time compression describes the reduction in the time it takes to diffuse something to distant places as a result of improved communications and transportation systems.

Globalization

• Infrastructure is made up services that support economic activities.

MAJOR INDUSTRIAL REGIONS

Global Distribution of Industries

Why is global distribution of industry uneven?

• historical patterns of development• colonization• current power relations among nations• geographical context


Only a few countries have become major industrial economies because they have:

•abundant natural resources•favorable relative location•stable political circumstances


Only a few countries have become major industrial economies because they have :

•economic leadership•high levels of educated and trained

executives and workers

Primary Industrial Regions

The four areas of the world with the largest agglomeration of industry:

• Western and Central Europe• Eastern North America• Russia and the Ukraine• Eastern Asia

PRIMARY INDUSTRIAL REGIONS

OF THE WORLD

Most of the primary industrial areas of the world exist within a “belt” that stretches from North America, through Europe, southern Russia, China, South Korea and Japan. Even within the belt, other economic activities take place.

• After World War II, American aid to new factories helped to rebuild and incorporate new technologies in industries.

• This aid revived Europe’s economies overall.

Western and Central Europe

Primary Industrial Region

• Europe’s economic and political influence has allowed it to withstand severe damage from 20th century wars.

• However, other parts of the world have come to challenge its industrial preeminence.

Western and Central Europe


• World Wars I and II weakened Europe’s economy, allowing the U.S. to emerge as the world’s strongest industrial power by the mid-20th century.

• Production of war materials bolstered a developing industrial economy.

• Canada benefitted as well.

North America


The core area of North American manufacturing

NORTH AMERICAN MANUFACTURING

• Other important industrial areas developed in North America during the 20th century.

North America


North Americ

a

• Newer industrial areas include:• Richmond, VA to Birmingham, AL: iron and steel

• Atlanta, GA to Richmond, VA: cotton, tobacco, and furniture

• Oklahoma to Dallas-Ft. Worth, TX, Houston, TX, and New Orleans, LA: growing oil industry

North America


Other North American Manufacturing Regions. During the 20th century, manufacturing spread to other areas of North America from the Manufacturing Belt in the Northeastern United States.

By the end of the 19th century, the Ukraine was affected by the diffusion of the Industrial Revolution as it spread eastward across Europe.

Russia and the Other Former Soviet Republics


• When Russia became the Soviet Union in the 20th century, the Ukraine produced much of the country’s coal.

• The Ukraine grew into one of the world’s largest manufacturing complexes by the mid-20th century.



• Other manufacturing areas grew around Moscow and Leningrad (now St. Petersburg).

• After World War II, a series of dams were constructed along the Volga River, making electric power plentiful.



• Canals linked the Volga to both Moscow and the Don River, making it easy to transport raw materials, including oil and natural gas from nearby reserves.



• Industry in other regions in Russia follow the Trans-Siberian Railroad that connects western cities across southern Siberia all the way to the Pacific coastline.



RUSSIAN INDUSTRIAL AREASAlthough many of the industrial regions of the former Soviet Union are outside the boundaries of the modern Russian Federation, several industrial areas remain, including the region around the capital of Moscow, St. Petersburg, and the Volga River. The eastern regions follow the Trans-Siberian Railroad.

•Japan was the earliest country in East Asia to industrialize.• Japan’s economic

development began during the second half of the 19th century with the Meiji Restoration, a government-sponsored campaign for modernization and colonization.

Eastern Asia


JapanUnder the leadership ofoligarchs, or industrial

andmilitary leaders who

came topolitical power, Japan:

• modernized industries• organized armed forces• transformed education

and transportation systems so that they followed the Western model

Eastern Asia


Japan• After the massive

destruction of World War II, Japan rebuilt its economy so that by the 1980s it was a major post-industrial society.

• Japan’s dominant region of industrialization is the Kanto Plain, which includes Tokyo.

Eastern Asia


Japan• Many industries and businesses chose Tokyo as their headquarters in order to be near government decision makers.

Eastern Asia


The “Four Tigers”• Japan’s economic dominance was challenged in the late 20th century by:• South Korea• Taiwan• Hong Kong• Singapore

Eastern Asia


The “Four Tigers”• All “Four Tigers” used

the strategy of export-oriented industrialization to directly integrate their economies into the global economy.• They concentrated on economic production to find a place in international markets.

Eastern Asia


The “Four Tigers”• These countries have

focused on the “product life cycle”:• An innovator country produces something new.

• Next that country moves on to other innovations.

• Meanwhile, other countries think of ways to make the first product better and cheaper and export it back to the innovator country.

Eastern Asia


• The “Four Tigers”• Asian countries have prospered from the product life cycle with automobiles and electronics in their trade with the United States.

Eastern Asia


China• China has long been a political power, but its major industrial expansion did not begin until the mid-20th century under communist leaders.

• Its earliest industrial heartland was the Northeast District in Manchuria, centered on coal and iron deposits.

Eastern Asia


China• Other major industrial areas developed around:• Beijing• Shanghai• Hong Kong

Eastern Asia


China has successfully challenged Japan for economic and political leadership in the early 21st century.

Eastern Asia


CHINESE INDUSTRIAL AREAS

China’s first large industrial area was the Northeast District, centered on coal and iron deposits located in the basin of the Liao River.

The Pacific Rim includes countries that

border the Pacific Ocean on their eastern shores.

• More cities in China are industrializing, partly through the creation of special economic zones.

Eastern Asia


Special Economic Zones (SEZs) are areas where foreign investment is allowed and capitalistic ventures are encouraged.

Eastern Asia


SECONDARY INDUSTRIAL REGIONS

Secondary Industrial Regions

• Secondary industrial regions lie south of the world’s primary industrial region.

• These regions and their industrial centers are not as large as the primary regions, but their economies are growing.

Secondary Industrial Regions

• Secondary industrial regions include:• Thailand• Indonesia• South Africa around Johannesburg• Egypt around Cairo• Rio de Janeiro, Brazil• a corridor between Mexico City and Guadalajara

Maquiladoras• A manufacturing zone was created

in the 1960s in northern Mexico just south of the border with the United States.

• Workers in this maquiladora district have produced goods primarily for consumers in the U.S.

Maquiladoras

A number of U.S. companies have established plants in the zone to transform imported, duty-free components or raw materials into finished industrial products.

Maquiladoras• Over 20% of Mexico’s entire industrial

labor force works in the maquiladora district.

• Interactions with the U.S. market provide a good example of the new international division of labor in which some components of products are made in one country and other in another.

NAFTA• The North American Free Trade

Agreement (NAFTA) was a treaty signed in 1995 by Mexico, the U.S., and Canada.

• The treaty eliminated the barriers to free trade, including most tariffs among the three countries.

NAFTABoon?

• NAFTA was hailed a free trade area that would rival the European Union.

Hindrance?• Integrating the markets of these

different countries has been difficult, especially since Mexico has a lower standard of living than the U.S. or Canada.

• Environmentalists fear that industries will relocate to Mexico because of their lax environmental laws.

NAFTAHindrance?• Mexico faces a new problem: Maquiladora jobs are now being lost to countries where wages are even lower.

• Example: Mexican wages are about twice those in China, where wages are only about $1 per hour.

NAFTA

Hindrance?• Since wage rates constitute an important site factor, many firms are moving from Mexico to China.

INDUSTRIALIZATION AND TERTIARY DEVELOPMENT IN INDIA

Changes are occurring in India…

• Industrialization in India is expanding as a result of government policies.

• Although India has no major oil reserves, it does have:

• hydroelectric potential• large coal reserves• iron ore deposits


India has a large labor force and a geographical location midway between Europe and

the Pacific Rim.


• India has benefitted from global access to information technology and electronic data submission.

• Computer software companies are rapidly growing in places such as Bangalore.


• Customer interaction services (“call centers”) formerly based in the U.S. have relocated to India.

• Examples of services now offered include:• processing insurance claims• taking care of banking transactions• booking airline tickets• making medical appointments


As a result of these changes, the Indian economy has

developed a strong tertiary (service) sector, increasingly integrating it into the world

market.


• Globalization• Space-time

compression• Infrastructure• Primary industrial

region• North American

Manufacturing Belt• “Four Tigers”• Product life cycle

• Special economic zones (SEZs)

• Secondary industrial region

• Maquiladoras• NAFTA• Tertiary

development• “call centers”



Session 6

GLOBAL INEQUALITIES

The Industrial Revolution set in motion dramatic

global inequalities that exist among

people and nations today.

Today…

• An increasingly integrated global economy provides challenges for all countries, despite their levels of development.

• The problems for more developed countries generally differ from those of less developed countries.

CHALLENGES FOR MORE DEVELOPED COUNTRIES

Challenges for More Developed Countries

• An important challenge for more developed regions is the protection of their markets from new competitors.

• This challenge is increasing since competition now occurs more frequently within regional trading blocs, or conglomerations of trade among countries within a region.

Impact of Trading Blocs

• The three most important trading blocs are:• North America• The European Union• East Asia

Since 1994, NAFTA countries have negotiated with other Latin American countries to extend the trading bloc to new areas of the Western Hemisphere.

North America

Important Trading Bloc

• Most trade barriers have been eliminated among the members of the EU.

• Even European nations that are not EU member-states depend heavily on trade with members.

The European Union (EU)


• No formal organization of states exists in East Asia.

• However, Japanese companies play leading roles in the economies of the countries of that region.

East Asia


East Asia

• The rapid economic development of many Pacific Rim countries has created a strengthening trade bloc in East Asia in spite of tensions among countries in this region.

East Asia


Transnational Corporations

• Transnational corporations operate factories in countries other than the ones in which they are headquartered.

• Most transnational corporations are also conglomerate corporations comprised of many smaller firms that support the overall industry.

• Most transnational corporations are headquartered in the U.S., but other are located in Japan or Europe.

Disparities within Trading Blocs

European Union:• Industrialization is concentrated in Germany, France, and the United Kingdom.

• Even within those individual countries some areas are more industrialized and richer than others.


European Union:• Example of disparity: In France, wealth

and industry are concentrated around Paris.

• Example of disparity: The eastern part of Germany, formerly communist, lags behind the rest of Germany.


• Example: Within the NAFTA countries, Mexico’s economy lags behind those of the U.S. and Canada.

Deindustrialization

Deindustrialization

• Deindustrialization refers to the decline in employment in the manufacturing sector of the economy.

• Deindustrialization is commonly found in more developed countries.

Deindustrialization

• Generally, the number of jobs in the service or tertiary sector increases as the percentage of jobs in industry decreases.

Deindustrialization

• Deindustrialization is particular evident in:• The United States• Europe• Japan• The economies of the Four Tigers

Deindustrialization: A Cause for Concern

• Some suggest that deindustrialization is the result of the globalization of markets as trade between advanced economies and the developing

world has grown.

Deindustrialization: A Cause for Concern

• Critics believe that the fast growth of labor-intensive manufacturing industries in LDCs is displacing the jobs of workers in advanced economies.

Deindustrialization: Some Optimism

• Some believe that the adjustments between industrial and service sectors will work themselves through without interference.

• Advances in the service sector, rather than in the manufacturing sector, are likely to encourage rising standards of living in advanced economies.

CHALLENGES FOR LESS DEVELOPED COUNTRIES

Industrial development not only lifts the value of exports, it generates money to buy other

products.

Problems Encountered by LDCs

• Distance from markets• Inadequate infrastructure• Competition with existing

manufacturers in other countries

Less developed countries face the challenge of reducing

the disparities between their economies and those of more

developed countries.

• Wealthy consumers in MDCs are generally far away, so industrializing countries have had to invest scarce resources in constructing and subsidizing transportation facilities such as:

• airports• docks• ships

Distance from

Markets

• Support services for industrial development are often lacking in LDCs.

• These services include:• transportation• communications• equipment production• fewer schools and

universities

Inadequate

infrastructure

• The control exerted by transnational corporations headquartered in MDCs, but doing business globally, is a problem for LDCs.

Competition with

Existing Manufacturers in Other Countries

Competition with


Transnational corporations have

used low-cost labor in LDCs but have

kept highly skilled jobs in the MDCs,

a phenomenon known as theinternational division of

labor.

• The international division of labor is a process that:• keeps global inequalities in place

• discourages new industries from developing in LDCs

• prevents wealth from flowing from MDCs to LDCs

Competition with


INDUSTRIALIZATION AND THE ENVIRONMENT

Industrialization and the Environment

As a result of the Industrial Revolution, coal replaced wood as the leading energy source in North America and Western Europe.


• The change from wood to coal relieved the environmental pressure of deforestation.

• However, it increased the likelihood that coal, and eventually petroleum and natural gas, would be depleted as natural resources.


Population growth has added to the problem but energy use in MDCs is

far greater than it is in LDCs.


• Fossil fuels – including coal, petroleum, and natural gas – are residues of plants and animals that were buried millions of years ago.

• The world faces an energy problem because fossil fuels, especially petroleum, are rapidly being depleted.

Fossil Fuel Reserves

• Energy deposits that have been discovered are called proven reserves.

• We do not know how many potential (undiscovered) reserves there are.

• Petroleum is being consumed at a more rapid rate than it is being found.

Country Usage

United States 20,700,000 bbl/day

China 6,534,000 bbl/day

Japan 5,578,000 bbl/day

Germany 2,650,000 bbl/day

Russia 2,500,000 bbl/day

India 2,450,000 bbl/day

Canada 2,294,000 bbl/day

South Korea 2,149,000 bbl/day

Brazil 2,100,000 bbl/day

France 1,970,000 bbl/day

TOP CONSUMERS OF OIL

Source: NationMaster.com

Consumption of Fossil Fuels

MDCs, with about 25% of the world’s population, consume about 75% of the

world’s fossil fuels.

Consumption of Fossil Fuels

As countries with large populations, such as China and India, develop industries, their share of the world’s consumption of energy is increasing.

INDUSTRIAL POLLUTION

Industrial products have greatly added to the

overall pollution of air, water, and land resources

on Earth.

Global Warming

• Global warming is the increase in earth’s temperature caused primarily by the burning of fossil fuels.

• The greenhouse effect is an anticipated warming of earth’s surface that could melt the polar icecaps and raise the level of the oceans enough to destroy coastal cities.

Acid Rain

• Another by-product of air pollution is acid rain, which forms when sulfur dioxide and nitrogen oxides are released into the atmosphere by burning fossil fuels.

• Pollutants eventually make their way into lakes and streams.

Acid Rain

• Results include:•corrosion of buildings and monuments

•stunted growth of forests•death of fish• loss of crops

SUSTAINABLE DEVELOPMENT

Sustainable Development

The basic premise of sustainable development is that people living today should not impair the ability of future generations to meet their

needs.

Sustainable Development

• Irreparable harm to the environment would compromise the earth’s future.

• Many critics believe that the pace of economic development today is no longer sustainable, despite the fact that natural resources still abound.

Possible Solutions to Environmental Problems

Humans may respond to environmental problems in many ways, including the following:

• prevention• technological change• mitigation• compensation

• Some government policies have encouraged destruction of the environment (e.g. cheap gasoline).

• The one-child policy in China is an example of prevention of over-use of natural resources through limiting population growth.

Prevention

• Technological possibilities include:• installing pollution-capturing filters for industrial runoff

• recycling industrial waste

Technological Change

• Damage may be undone or reduced once it has occurred.

• Example: Chemical spills may be cleaned up.

Mitigation

• Political bodies may negotiate compensation for those negatively impacted by industrial wastes.

• Example: A company whose chemical wastes have resulted in illness and/or death among workers may be held legally responsible for damages.

Compensation


• Global inequalities• Global economy• Trading blocs• Trade barriers• Transnational

corporations• Conglomerate

corporations

• Deindustrialization• Infrastructure• International

division of labor• Fossil fuels• Global warming• Greenhouse effect• Acid rain• Sustainable

development

Advanced Placement Human Geography Session 1. By Geri Flanary To accompany AP Human Geography: A Study Guide 3 rd edition By Ethel Wood.

Documents

industrialization slide

ethel wood slide

quaternary sector

tertiary sector services

economic development

primary sector agriculture

secondary sector industry

tertiary activities