Human Geography
Jerome D. Fellmann
Mark Bjelland
Arthur Getis
Judith Getis
Human
Geography
Insert Figure 9.6 here
Chapter 9
Livelihood And
Economy:
From Blue Collar to
Gold Collar
© Getty RF
Components of the Space
Economy
• Concepts and Controls
• Market Equilibrium
Human Geography 11e
Secondary Activities:
• Gives form utility to
the products of
primary industry
through
manufacturing efforts
• Involved in material
processing and goods
production
Human Geography 11e
• Movable, rather than
spatially tied
• Locational decision
involves the weighting
of the locational
“pulls” of a number of
cost considerations
and profit prospects
Secondary Activities:
Manufacturing
• Locational Decisions in Manufacturing
– Principles of location
– Raw materials
– Power supply
– Labor
– Market
– Transportation
• Transportation and location
Human Geography 11e
Industrial Location Theories
•
•
•
•
Least-cost theory
Locational interdependence theory
Profit-maximization approaches
Other locational considerations and controls
Human Geography 11e
Industrial Location Theories
• Least-Cost Theory
– Based on the work of Alfred Weber (1868-1958)
– Explains the optimum of a manufacturing establishment
based on minimizing three basic expenses:
• Relative transport costs
• Labor costs
• Agglomeration costs
– Agglomeration refers to the clustering of productive
activities for mutual advantage
– Weber concluded that transport costs are the major
consideration determining location
Human Geography 11e
Industrial Location Theories
• Least-Cost Theory
– The optimum
location will be
found where the
costs of transporting
raw materials to the
factory and finished
goods to the market
are at their lowest
Human Geography 11e
Insert figure 9.10
Least-Cost Theory
• Assumptions
– Isotropic plain
– Single product to a single market
– Raw materials from two or more sources
– Labor infinitely available but immobile
– Transportation routes are not fixed but
connect places by a straight line
Human Geography 11e
Locational Interdependence
Theory
• Variable revenue analysis
• Competitive locations in a linear market
Human Geography 11e
Profit-Maximization
Approaches
• Spatial margin of profitability
• Satisficing locations
• Price sensitivity (elasticity of demand) will
encourage industrial dispersion
Human Geography 11e
Other Locational
Considerations and Controls
•
•
•
•
•
•
•
Agglomeration economies
Just-in-time and flexible production
Comparative advantage
Outsourcing
Offshoring
Imposed considerations
Transnational corporations
Human Geography 11e
World Manufacturing
Patterns and Trends
•
•
•
•
Anglo America
Western and Central Europe
Eastern Europe
Eastern Asia
Human Geography 11e
High-Tech Patterns
• Impacts of high-tech industries
• Agglomerating forces
• Contributors to production
Insert figure 9.23
Human Geography 11e
Tertiary and Beyond
• Services
• Business and labor
specializations that
provide services to
the primary and
secondary sectors, to
the general
community, and to
the individual
Human Geography 11e
• Tertiary
– Lower-level services
largely related to dayto-day needs of people
and to the usual range
of functions found in
smaller towns and
cities
Tertiary and Beyond
• Service activities are
by definition market
oriented
• Retailers and personal
service providers tend
to locate where
market density is
greatest and multiple
service demands are
concentrated
Human Geography 11e
• Quaternary
- Information,
administration, and
“knowledge”
- Dependent on
communication
- Dispersion has been
facilitated by electronic
digital processing and
telecommunication
transfer of data
Quaternary and Quinary
Activities
• Quaternary
– An advanced form of
services involving
specialized knowledge,
technical skills,
communication ability,
or administrative
competence
– Transportability of
these activities means
that many of them can
be spatially isolated
from their client base
Human Geography 11e
• Quinary
– “Gold Collar”
professions
– Special and highly paid
skills of top business
executives,
government officials,
research scientists,
financial, and legal
consultants
Services in World Trade
• Impact in international trade flows
• Impact in economic interdependence
• Foreign direct investment (FDI)
Human Geography 11e