Global Connections:
Industry
Objectives
 Identify the different types of industry sectors.
 Explore the spatial relationships of trade.
 Consider location factors for industries: why do industries
locate where they do?
 Analyze the impact of the global trade network and how it is
changing.
Industries – Types of Economic
Activities
 Primary industries – extraction of raw materials.
 Secondary industries – manipulation of raw or altered
materials into fuels or finished products.
 Tertiary industries – provision of services or non-tangible
goods.
 Quaternary – transportation, communications, real estate,
insurance, finance, management.
 Quinary – Research, education, and engineering – creation
of new ideas and technologies through expanded knowledge
and skills.
Primary Industries
 Staple theory – the resources available to an area shape its
economic system through linkages
 Linkages = all the extra activities that arise alongside the
primary industry.
 Two perspectives toward the future:
 Mackintosh – an economy based on a primary industry allows for further
industrial development.
 Innis – dependence on a primary industry limits economic growth
through dependency on that commodity.
Price sensitivity! Prices don’t rise as quickly as manufactured goods! Lack
of diversification!
GREAT map page 299.
HowStuffWorks.com
Secondary Industries Industrial Revolution
*Fundamental changes in
technology and systems of
production beginning in
England.
* Beginning in the late 1700s.
Changes:
Transportation – canals, river, road, rail, sea transport
Production – iron, coal, textiles, food production
becomes more efficient, creates increased profits and
production
Economy – shift from agriculture to industry & trade
Society –Women and children begin working outside
the home; Middle class grows
Industrial Centers
What Do You Notice?
What Factors Influence Industry
Location? Situation
 Proximity to inputs
 To save on transportation costs
bulk-reducing industries locate
closer to inputs than to markets.
 Proximity to markets
 When it is more expensive to
transport the final product than the
raw materials the industry locates
closer to the markets. This is a
bulk-gaining industry.
 Transportation
 Mode of transport
impacts shipping costs.
 Distance impacts cost
and attractiveness of
different methods.
 Agglomeration!
 Political policies (right to
work laws)
What Factors Influence Industry
Location?
 Site Factors:
 Labor Costs / Availability
 Land availability / Costs
 Energy availability and costs
 Environmental regulations
 Amenities / tax advantages
Systems of Production - Fordism
 System of industrial production
for mass production based on
scientific management.
 Deskilled labor
 Reinforced social hierarchy
 Growth of MNCs
 Requires reliable inputs –
materials and labor
 Need mass consumers!
 BORING.
Vertical Integration – control
of multiple production
stages directly or indirectly
Producer-driven commodity
chains
Systems of Production – Flexible
Production
Increased manufacturing
costs in the 70s and better
technologies == Fordism
Crisis
 Just – in –time delivery
 Smaller inventory can be
kept.
 Outsourcing –
Consumer-driven commodity
chains
More worker power /
collaboration / critical
thinking
subcontracting work that
was once done in-house.
 Offshoring -- transfer of
internal or outsourced
activity to an international
location.
Globalization and Industry
Edward Burtynsky
Two Principle features of the Global Economy:
Two main components:
1. Global assembly line – refers to a network of labor and production
processes that produce a finished product for the global market.
2. Consolidation of companies into transnational corporations.
Where Are Your Clothes From?
 World Map
The Times They Are A-Changin’…
 Is Wal-Mart Good For America?
 Why does Wal-Mart get goods from China?
 What are the positive and negative outcomes of the global
economy, based on what we see in this brief film?
 How much would an all-American iPhone cost?
Attraction of New Industrial Regions
 Within the US shifting to the South and West
 Partly because of the Right-to-Work laws in Southern states that limit
union power
 Internationally
 In Europe shifting to Eastern Europe, Spain, Portugal, Italy, and Greece
under EU policy
 Still see industry moving from MDCs to LDCs – East Asia, South Asia,
and Latin America
 Why?
New International Division of Labor
 Transnational corporations move some segments of their
production to low-cost areas.
 Highly skilled positions remain in the more developed
countries.
 US role as a manufacturer is declining – more people in and
profit from research, services, and advertising.
Review – Things to Focus on For Exam
 How does geography help us understand industry?
 What was the Industrial Revolution?
 What factors influence industry location?
 Site: Examples?
 Situation factors: Examples? Bulk-reducing and bulk-gaining
industries-what are they and examples?
 Globalization and industry—what are the principal features? The
main components? What is a global assembly line?
 What is the New International Division of Labor? Where is
manufacturing moving in the US and internationally? Why?
 Wal-Mart video: Why does Wal-Mart get products from China?
What are the positive and negative outcomes?