Human Geography by Malinowski & Kaplan
CHAPTER 16 LECTURE OUTLINE
GEOGRAPHIES OF PRODUCTION
AND CONSUMPTION
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Chapter 16 Modules
• 16A Growth of Mass Production and an Industrial World
• 16B Factors of Production and Changing Geographies of
Industrial Location
• 16C Industrialization and the Early Development of the US
Space Economy
• 16D Modern Shifts in US Manufacturing
• 16E The Geography of High Technology
• 16F Globalized Manufacturing and the Rise of Transnational
Corporations
• 16G Geographies of Consumption
• 16H Consuming Places: Geographies of Tourism
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Growth of Mass Production
• Production adds value greater than the sum
of the raw materials used, hence value added
• Mass production was the key outcome of
industrialization
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As the quantity of goods rose,
prices dropped
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19th
Century Factory
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Figure 16A.1
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The factory system emerged because
large, expensive machines required a
great deal of money to buy and operate
• Factories led to a division of labor where
workers specialized in single, repeated tasks
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Industry in Great Britain 1715-1815
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Figure 16A.2
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The Spread of Industrialization
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Figure 16A.3
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A production chain transforms raw
materials into a finished product
• The process incorporates a number of direct
and indirect factors of production
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Raw Materials
Ubiquitous
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Localized
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Alfred Weber’s
model of industrial location
The optimum location of a manufacturing plant is a
balance between the locations of raw materials, the
labor force, and the markets where the products are
sold
• Products that lose weight in production are
better situated near the raw materials
• Products that gain weight in production, such
as the adding of water, are better situated
near the market
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Raw materials that lose
weight in production
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Gain Weight in production
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Factors of Production
DIRECT FACTORS
INDIRECT FACTORS
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Raw materials
Labor
Financial capital
Markets
Technology
Infrastructure
Financial system
Legal system
Government role
Education / training
Entrepreneurial climate
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Weber’s Model
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Figure 16B.1
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Where will you put the brewery?
Assumption: transportation fixed
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Changes in recent decades have affected
industrial location:
1. Transportation costs have declined
2. Labor costs and specialization of labor have
increased
3. A lot of production is now conducted overseas
4. Government plays a bigger role in trying to lure
businesses to certain areas
5. Production processes are more flexible and
nimble because of computers, robots, fast
shipping of raw materials. Just in time
inventory
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US Space Economy Geographers do not
use the term Space economy to mean the
economics of outer space exploration!
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US space economy = where
industries are located
• The U.S. started industrializing later than
some places in Europe
• By 1790 textile mills were in Rhode Island
and then across southern New England by
the 1830s
• By 1860, 72% of all manufacturing was in the
Northeast
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Late
19th
Century Industry
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Figure 16C.3
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Geographic Advantages of the AngloAmerican Manufacturing Belt
• Good railroad network to tie the region
together
• Close proximity between places
• Close to main banks
• Good ports, good farmland, abundant coal
• The region attracted skilled and unskilled
labor
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Diversification through forward
linkages and backward linkages
Forward Linkages
What can be made with
the product?
Backwards linkages
(inputs)
What needs to be
manufactured in order to
make the product?
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Modern Shifts in US Manufacturing
• After the middle of the 20th century, a shift to
from North East to the South and West
• A move from inner cities to outer suburbs
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• Triangle Shirtwaist
Factory, near NYU
Industrial Park
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Causes for the shift to the South and West:
1. Cheaper labor costs in the South
2. Increased car use and trucking, & better highways,
made the railroads of the Northeast less important
3. Increased need for oil and gas made places like
Texas more important for businesses
4. New, high-tech sectors sprung up in areas outside
of the Northeast, or moved there
5. Government programs!
6. Aerospace industry World War II
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• Oil Boom North
Dakota
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The move of high-paying jobs hurt
losing areas
Base employment supports
numerous service sector jobs
[multiplier effect]
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Base Employment
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Figure 16D.2
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The Geography of High Technology
• High-technology firms have emerged recently
and have made certain areas more important
• Geographic factors for high-tech firms
include:
– Proximity to major universities UC Berkeley
– An entrepreneurial climate with venture
capitalists
– Environmental amenities to attract skilled labor
– Good transportation and communication
networks
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South of San Francisco
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High-technology clusters
– Specialized labor
– Specialized inputs: specific technologies,
specialized equipment
– Knowledge spillovers from formal and informal
channels, and from universities
– Accessibility to markets or users
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Global High-Tech Centers, 2000
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Figure 16E.1
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Globalized Manufacturing and the Rise of
Transnational Corporations
• Globalization
– The elimination of national boundaries through
ever greater integration of people, companies,
and governments across the world
• Characteristics of globalization include:
– De-territorialization
– More social and economic interconnectedness
– Faster communications
– A multipronged process including political, social,
cultural, and economic movements
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Globalization The World is Flat
• Internet and personal
computer
• Micro fiber optic cable
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Global Colonial & Trade Activity
Figure 16F.1
1500-1800
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Stages of Globalization
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Table 16F.1
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Globalized Manufacturing and the Rise of
Transnational Corporations
• A multidivisional corporation is a company
with many division based on product lines
• A transnational corporation (TNC) is a
multidivisional corporation that has overseas
divisions
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Location of Bayer’s Branch Plants
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Figure 16F.3
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Toyota Plants in the US
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Figure 16F.4
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Corporations by Country
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Figure 16F.5
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NESTLÉS
91 percent of its total assets,
98 percent of its sales, and 97
percent of its workforce are
foreign-based—began in
condensed milk
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8,000 brands
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Commodity chains:
Clothes
Design Marketing RetailProduction Vietnam
USA
Paris
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Global Production Lines
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Figure 16F.7
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Mexico Maquiladora zone
Spanish: maquilar to assemble
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Export Processing Zone
“free ports”
Areas of a country for
manufacturing not under
the control of customs,
and often of local laws
concerning labor,
environment, safety
A female maquiladora
worker gets 1/6 the pay
of an American worker
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NORTH AMERICAN FREE TRADE
AGREEMENT (NAFTA) 1994
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Geographies of Consumption
• Consumption is
interlinked with
production
• Mass consumption
means more and
more people are
consuming
“luxuries”
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Conspicuous consumption
People feel a need to
display their status by
ostentatiously
consuming goods and
services
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Consuming Places: Geographies of
Tourism
Figure 16H.2
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World Tourist Destinations
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France
United States
China
Spain
Italy
Turkey
United Kingdom
Germany
Malaysia
Mexico
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Tourism helps the economy, but…
• Many Italians complain
how Americans sit
anywhere
• Is poverty tourism
helpful?
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Foreign Tourist destinations in the USA
NYC Times Square
LA Hollywood
San Francisco
Miami
Orlando Disney
Oahu/Honolulu
Las Vegas
Washington, D.C.
Chicago
Boston
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