- Industrialization & Economic Development -

The Industrial RevolutionIndustry Distribution

Northwestern EuropeEastern EuropeEast AsiaEastern North America

Distribution factorsChanges since the industrial revolutionExpanding industry

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Industrial RevolutionA series of inventions that brought new uses to known energy sources, new machines to improve efficiencies and enable other new inventions.e.g. steam engine, iron smelting, water pump, and more.

Beginning of Industrial Revolution

When and where did the industrial revolution begin?In Great Britain in the mid to late 1700s

Why Great Britain?Flow of capital ($$$)Mercantilism (What is it? Well, see next 2

slides…)Resources: coal, and water power

What is mercantilism? (1/2)

A 1700s, European, economic theory, that says that the prosperity of a country depends on:

1. its supply of capital (available $)

2. international trade being "unchangeable“

3. one party (gvt, elite, businessmen) may/will benefit at the expense of another.

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What is mercantilism? (2/2)

4. increasing a nation's wealth by government regulation of all of the nation's commercial interests .

5. In commerce: transactions (sales and purchases) having the objective of supplying commodities (goods and services).

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Diffusion to Mainland EuropeEarly 1800s, innovations diffused into mainland Europe.

Location criteria: 1. proximity to coal fields 2. connection via water to a port 3. flow of capital

Later DiffusionLate 1800s, innovations diffused to some regionswithout coal.Location criteria: 1. access to RRs

2. flow of capital

Where is industry distributed?

Less than 1 % of the Earth’s land is devoted to industry (25% to agriculture)

¾ of industrial production is concentrated in four regions:Northwestern EuropeEastern EuropeEastern North AmericaEast Asia

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Western Europe1. The UK

Home of the Industrial Revolution

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Western Europe2. Rhine-Rhur Valley and Mid-Rhine

Rhine-Rhur Valley First place industrial revolution diffused toProximity to large coal fields, access to iron and

steelAcess to major rivers (Rhine and Rhur)

Mid-RhineCenter of Europe's most important consumer

market9

Western Europe 3.Northern Italy

Large number of workers willing to work cheap

Inexpensive hydroelectricity from the Alps

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Eastern Europe’s DistrictsMoscow District

access to large marketsSt. Petersburg District

proximity to Baltic SeaVolga District

large petroleum and natural gas fields close to rivers

Ural DistrictMinerals in the Ural

mountains

Eastern Europe’s Districts

Kuznetsk Districtcoal and iron-ore

Eastern Ukraine Districtcoal, iron, gas, etc.

Silesia Districtcoal

North America (1/2)New England

Historically populatedAbundant, cheap immigrant

laborMiddle Atlantic

Largest Market (close to New York)

Main portsMohawk Valley (NY)

Inexpensive abundant hydroelectricity (Niagara Falls)

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North America (2/2)Pittsburgh-Lake Erie

Coal and Iron in the Appalachians

Steel production attracted more industry

Western Great LakesAutomobilesTransportation

St. Lawrence ValleyClose to Canadian MarketsClose to Niagara FallsClose to Great Lakes

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East Asia

Isolated from world markets

Access to portsLarge labor force

working for cheapGrew based on

production of cheap exports

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The distribution of Industry

Situation factorProximity to markets

Site Factors (see next slides) LaborLand Capital

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Site Factors: Land

Climate

TopographyRecreational

opportunities

Cultural facilities

Cost of living

Cost of land

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Site Factors: Capital ($$$)Which institutions will lend the money and where

are they located?

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How has Industry changed since the industrial revolution?

Henry Ford and the assembly line: dominant mode of mass production during the 20th century, production of consumer goods at a single site.

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Post-Fordist

Post-Fordist: Current mode of production

More flexible set of production practices Production is accelerated and dispersed by

multinational companies that shift production, outsourcing it around the world.

Time-Space Compression (1/2)

Through improvements in transportation andcommunication technologies, many places inthe world are more connected than everbefore.

Time-Space Compression (2/2)Just-in-time delivery

Rather than keeping a large inventory of components or products, companies keep just what they need for short-term production and new parts are shipped quickly when needed.

Global division of laborCorporations can draw from labor around the globe for different components of production.

Where is industry expanding?Southern and Western U.S.

Lack of unionsCheap labor Opening of western ports

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• From Cities to Suburbs• Cheap land• Factory layout

Outsizing

Contracting out of a business function – previouslyperformed in one area - to another geographic area(within/outside of a country).

A business “outsource” to suppliers outside the nation,sometimes referred to as off shoring.

Example: problems with Internet provider?

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The End

Child Labor26