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.

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 RevolutionJames 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 shipcrossed the Atlantic

in 1819

British influence around the world reached its peak

Know-how, experience and capital

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

“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

Primary industries

Determined by locationof resources

Secondary industries

Human behavior, d-making (cultural, political and economic), or just whim

Model, model, model again?Yes!!!

Weber’s “least cost theory”(German economic geographer

Minimize

Transportationcost

Raw materials to the factory

Finished products to the market

Laborcost 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

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 LocationRussia - 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

coal iron

Intermediatelocation

1- Raw MaterialsIron 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 - LaborJapan from 1950 to 1990

Taiwan S. Korea

China Thailand Malaysia

Vietnam Others

US and Canada

Mexico

NAFTA, 1994

1/40

1/30

NAFTAGood 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

Development ofcontainer systems

Truck good for short distances

Shipcheapest over longest distances

Rail good formedium distance

Other factors:loading and unloadingprocess, weight and volumeof the freight

4 - InfrastructureTelephone, 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 factors5 - 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