BY

MONA DOMOSHRODERICK NEUMANN

PATRICIA L. PRICETERRY JORDAN-BYCHKOV

C. 2012 W.H. FREEMAN & CO.

The Human Mosaic12th Edition

ECONOMIC GEOGRAPHY:INDUSTRIES, SERVICES, AND DEVELOPMENT

Chapter 9

Economics?

How goods are produced, distributed, financed, sold, and consumed by people

These activities shape our culture and are shaped by cultural preferences, ideas, and beliefs

Economic Geography

The study of: How people earn their livingHow systems vary by areaHow the economic activities are

spatially interrelated and linked

What controls economic activities of an area?

Physical environmentCultural rules/normsTechnologyPolitical decisions

What is Economic Development?

ECONOMIC DEVELOPMENT:

(1) THE LEVEL OF A COUNTRY’S DEVELOPMENT, OFTEN STATED IN GDP

OR

(2) THE PROCESS BY WHICH AN AGRICULTURAL SOCIETY MOVES TOWARD INDUSTRIALIZATION AND (USUALLY) HIGHER PATTERNS OF INCOME

World Map of Gross Domestic Product (Fig. 9.1)

PRIMARY INDUSTRIES

SECONDARY INDUSTRIES

SERVICES (TERTIARY INDUSTRIES)

Industries

INDUSTRIES ENGAGED IN THE EXTRACTION OF NATURAL RESOURCES, SUCH AS:

AGRICULTURELUMBERINGMININGFISHING

Primary Industries

Primary Products

The percentage of people working in agriculture exceeds 75% in many LDCs of Africa and Asia. In Anglo-America and Western Europe the figure is <5%

Trade in Primary ProductsImportance to

Developing Economies

Danger of Commodity Trade Dependence

Puerto Rico Coffee Plantation

INDUSTRIES ENGAGED IN PROCESSING RAW MATERIALS INTO FINISHED PRODUCTS.

OFTEN CALLED “MANUFACTURING.”

ORE STEELLOGS LUMBERFISH PROCESSED AND CANNED

Secondary Industries

Secondary Activities

TRANSPORTATION

ANDCOMMUNICATIO

N

•Highways•Railroads•Airlines•Internet

•Telephones•Radio

•Television

Services(pg. 321, 327-329)

PRODUCER

•Insurance•Legal services

•Banking•Advertising•Wholesaling•Retailing•Consulting

•Real estate transactions•Information processing

•Publishing

CONSUMER

•Education•Government•Recreation•Tourism

•Health/medicine

Tertiary Activities

Service sectorProvide services to:

Business sectors General community Individual

Link between producer and consumer

China’s economic activity as percent of GDP

WHERE IT ALL BEGAN:THE INDUSTRIAL REVOLUTION

MODERN TRENDS:•UNEVEN DEVELOPMENT•DEINDUSTRIALIZATION

•TRANSNATIONAL CORPORATIONS•POSTINDUSTRIAL NATIONS

Mobility

Origins of the Industrial Revolution

Before the industrial revolution:

Cottage Industry:A traditional type of manufacturing, practiced on a

small scale in individual rural households as a part-time occupation; goods were made by hand for local consumption.

Guild Industry:A traditional type of manufacturing involving

handmade goods of high quality manufactured by highly skilled artisans who resided in towns and cities.

Industrial Revolution

Began in England in the 1700s in the textile industry

Machines replaced human hands Human power replaced by other power:

water, fossil fuels Movement from rural areas to cities Coal and steel industries revolutionized New forms of transportation developed:

railroads, steam engines

Diffusion of the Industrial Revolution (Fig. 9.3)

Majors Industrial Regions in Anglo America (Fig. 9.4)

Locational Shifts of Secondary Services

Early on = few global transportation networks Industries were on a national scale with everything

inside one nation

Now = industries may have different operations in many different physical locations

Impact: Specialty industrial zones Steel = near mining source Textiles = near region with a large supply of

inexpensive labor

Core-periphery in secondary industry

England and textilesResources are drawn from the

peripheral areas leading to impoverishment of the periphery

Uneven development

Deindustrialization

The decline and fall of once-prosperous factory and mining areas

Manufacturing industries lost by the core countries relocate to newly industrializing lands that were once the periphery NICs Why would industry move to the periphery?

Brainstorm a list of possibilities with a partner for 4-5 minutes

Why move to NICs?

Cheap labor costs

Lower environmental standards (saves $$)

Relative proximity to expanding markets outside the traditional core

Deindustrialization

Developed countries (U.S., europe):Moving away from manufacturing and toward

postindustrial service economiesSince 1950 9 out of 10 new jobs has been in

service positions!

Developing nations: Still industrializing South Korea, Taiwan, Singapore, Mexico,

China, Brazil (NICs)

Deindustrialization in Europe (Fig. 9.5)

Map of World Manufacturing Production (Fig. 9.6)

Service Industry categories

Transportation/Communication/Utilities Facilitate the distribution of goods, services, and

informationProducer services

Services required by the manufacturers of goods Insurance, banking, legal, advertising, wholesale,

retail, information generation, etc.Consumer services

Services provided to the general public Education, government, recreation/tourism,

health/medicine

HOW HAS GLOBALIZATION AFFECTED INDUSTRIES, SERVICES, AND DEVELOPMENT?

LABOR SUPPLYMARKETS

GOVERNMENTS AND GLOBALIZATIONECONOMIC GLOBALIZATION AND CULTURAL

CHANGE

Globalization

Labor Supply, Markets, and Government Influences

LABOR SUPPLY Increased mobility of people

Lessens labor’s influence on location

“Footloose” industries Reliant on large labor forces Move around to the cheapest labor pool

Outsourcing Not just manufacturing jobs

Labor Supply, Markets, and Government Influences

MARKETS: the geographic area in which a product may be sold in a volume and price profitable to the manufacturer

Weight, perishability, and fragility of product influence need to locate close to market

Emerging markets in China and other developing countries

Recently opened to global market Population is gaining capital ($$)

Labor Supply, Markets, and Government Influences

GOVERNMENT INFLUENCES: Why intervene?

Encourage foreign investment

Diversify industries

Bring industry (jobs) to poor regions

To develop strategic, militarily important industry

Stop mass accumulation in one specific region

Labor Supply, Markets, and Government Influences

GOVERNMENT INFLUENCES

Tariffs, quotas, and political obstacles EU, NAFTA, WTO

Export Processing Zones (EPZs) and maquiladoras EPZs: special zones created by governments to

facilitate export-oriented production 90% of these zones are located in Latin America

and Asia

Global Sites of Export Processing Zones (EPZs) (Fig. 9.11)

Maquiladora in Nuevo Laredo, Mexico (Fig. 9.12)

Economic Globalization and Culture

How can a global market impact culture?Alter regional economy = altering the types

of jobsAccess to new cultural products – cultural

interactionLarge movements rural to urban areas (folk

to pop)Reshaping gender roles

Women workers more desirable in factories

ENVIRONMENTAL ISSUES IN DEVELOPMENT:

Renewable resource crisesAcid rain

Global climate changeOzone depletion

Environmental sustainability

Nature-Culture

Environmental Issues

Renewable resource crises

Deforestation1/3 of forest cover

lost since 1950Rain-forest

clearingOverfishing

30% of fish species are near a state of collapse

Acid rain

Caused by burning of fossil fuels

Poisons fishDamages plantsLowers soil fertilityProblem has

become less severe since 1990

Destruction of Rain Forest in Papua New Guinea (Fig. 9.13)

Tropical Rain Forest of the Amazon Basin (Fig. 9.14)

Environmental Issues

Global climate change and

Ozone depletion

Global warming 8 warmest years on

record occurred between 1990 and 2001

Greenhouse effect

Potential impact of Global Warming

Global ice cap meltingInundation of world’s coastlines

What percentage of the world’s population lives near the coast again???

Kyoto Protocol 2001 38 industrial countries signed on to reduce

greenhouse gases U.S. is not involved…

Ozone Depletion

Ozone shields humans from the most harmful types of solar radiation

Levels drop an average of 5% a decade since the 1970s

The survival of a land-use system for centuries or millennia without destruction of the

environmental base, allowing generation after generation to live there.

Environmental Sustainability Index (ESI)Alternative power: solar, wind, geothermal

EcotourismRise of the “Greens”

Environmental Sustainability

Environmental Sustainability Index (ESI) (Fig. 9.16)

PRIMARY INDUSTRIAL LANDSCAPES

SECONDARY INDUSTRIAL LANDSCAPES

Cultural Landscape

Economics on the Cultural Landscape

How many visible aspects of economics on the cultural landscape can we list??

Production areas Factories, Plants

Circulation Highways, trains, airports, communication

infrastructure

Consumer landscapes Malls, shops, offices

Primary Industrial Landscapes (Fig. 9.17)

•Most drastic impact on the land•Major land alterations due to deforestation, commercial farming, mining, etc.

Fishing Village in Newfoundland (Fig. 9.18)

Secondary industry’s impact on cultural landscape

Early industrial ‘mill towns’ Developed around power source (water) and created

living conditions and infrastructure for the population Linear layout in line with the water source

Early 20th century industry Move to urban areas as steam, coal, and electricity

replace water as power source Located around the edges of downtown areas Lined railroad routes Surrounded by working class housing neighborhoods

Secondary industry’s impact on cultural landscape

Late 20th century patterns Industrial parks Major highway intersections Factories develop the ‘big-box store’ look

Old industrial regions are still present and may be preserved as cultural complexes or refinished for retail industries

Mill Buildings in Massachusetts (Fig. 9.19)

New Lanark, Scotland: Planned Industrial Town (Fig. 9.21)

Workers’ Dormitory in Dongguan, China (Fig. 9.23)

Office Buildings in Suburban Florida (Fig. 9.24)