Human Geography Jerome D. Fellmann Arthur Getis Judith Getis Jon C. Malinowski Human Geography Chapter 9 Livelihood And Economy: From Blue Collar to Gold Collar Components of the Space Economy • Concepts and Controls • Market Equilibrium Secondary Activities: Manufacturing • Locational Decisions in Manufacturing – Principles n Location – Raw Materials – Power Supply – Labor – Market – Transportation Secondary Activities: Manufacturing (cont.) • Transportation and Location • Industrial Location Theories – Least-Cost Theory – Locational Interdependence Theory – Profit-Maximization Approaches Source: Western History/Genealogy Department, Denver Public Library Least-Cost Theory • Alfred Weber (1868-1958) • 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 Locational Interdependence Theory • Variable Revenue Analysis • Competitive Locations in a Linear Market Profit Maximization Approaches • Spatial Margin of Profitability • Satisficing Locations Secondary Activities: Manufacturing (cont.) • Other Locational Considerations and Controls – Agglomeration Economies – Just-in-Time and Flexible Production – Comparative Advantage – Imposed Considerations • Transnational Corporations World Manufacturing Patterns and Trends • • • • Anglo America Western and Central Europe Eastern Europe Eastern Asia High-Tech Patterns • Impacts of High-Tech Industries • Agglomerating Forces • Contributors to Production Tertiary and Beyond • Tertiary Services • Beyond Tertiary – Quaternary – Quinary Services in World Trade • Impact in International Trade Flows • Impact in Economic Interdependence • Foreign Direct Investment (FDI)