Industry
Chapter 11
WHERE DID INDUSTRY
ORIGINATE?
What did Europe look like proximate
to the Industrial Revolution?
• Home based
manufacturing
(known as cottage
industry)
• On a small scale
The Industrial Revolution (Cont)
B. Why did it begin in Great
Britain?
– capitalist system
• guilds had created a middle
class of workmen
• people free to form businesses
• education
• patent system encouraged
development
– labor:
• Jethro Tull’s seed drill (1701)
and other developments >
improved productivity in
farming > people can leave
farms and work elsewhere
The Industrial Revolution (cont)
B. Why did it begin in Great
Britain? (CONT)
3. raw materials (iron ore, coal)
4. rivers, canals, harbors (ease
in trade)
5. small, compact size (iron and
coal near rivers and harbors)
6. existing banking system
(borrow $ to buy machinery)
7. stable political system
8. colonies (guaranteed
markets, additional raw
materials)
Flow of Capital into Europe, 1775
Needed flow of capital in order to fuel the industrial revolution.
Where did industry originate? Key Issue #1
HOW DID THE INDUSTRIAL
REVOLUTION DIFFUSE?
Important Innovation 1
• The Steam Engine
– Patented by James
Watt in 1769
– Was the first (there
had been steam
engines in ancient
times) to be able to
make one efficient
enough to power other
things than itself
atory furnace (where heat is applied above, rather than forced air fro
process; it appears that Onions and Cort may have been developing
me time.
Important Innovation 2
• Puddling and rolling
of iron
Puddling furnace
– By Henry Cort in 1783
– Iron purification
process that increased
the manufacture of
iron
e.
he grate or fireplace; C, the chimney with a damper at the summit to
Important Innovation 3
• Railways or “iron horse”
• Two key inventions:
– A locomotive using Watt’s steam engine
– Iron track
The Rocket
Important Innovation 4
• Chemicals
– Sulfuric acid, chlorine
gas and lime, vitriol
– Today, the largest
textile factories are
owned by chemical
companies
Important Innovation 5
• Food preservation techniques
– Canning by Nicholas Appert (done in glass jars)
– Peter Durand’s tin can
The Industrial Revolution (cont)
D. Effects
– economic: more goods
at lower prices
– social: available labor
leaves farms and
clusters in cities
• urban blight, pollution
• canned food
(encourages new
industry)
– political: surplus labor >
mistreated workers >
liberalism and
communism
The Industrial Revolution (cont)
D. Effects
4. technological: >
railroad, steamship
5. agricultural: > 2nd
Agricultural
Revolution
• increased
productivity
• use of machinery
> larger farms >
enclosures
6. demographic: caused
move from Stage 1 to
Stage 2 of DTM
WHERE IS INDUSTRY
DISTRIBUTED? KEY ISSUE #2
Diffusion of
Industrial
Revolution
Early diffusion
– eastward to Belgium, France, and Germany
(early 1800s; delay due to Napoleonic Wars)
– further diffusion to Italy, Netherlands, Russia
and Sweden by late 1800s
– U.S. not affected by political instability in
Europe: diffusion by early 1800s
• 8,000 spindles of textiles in 1808 > 80,000
spindles by 1811
• by Civil War, U.S. was world’s 2nd largest
industrial power
Why do industries have different
distributions?
Key Issue 3
It’s all about situation factors
Inputs
Factory
Consumers
Each industry has to consider what costs more: to
transport inputs or to transport the final product to
consumers?
Factories are located to REDUCE cost
Bulk-Reducing
Industry
If the cost of
transporting inputs is
greater than the cost of
transporting the final
product to the
consumer… you place
the factory closest to the
inputs.
Ex. Bulk Reducing
Industries because the
process of production
REDUCES the weight of
inputs
COPPER
Bulk-Gaining Industry
Industries that gain volume or
weight during production
1. Fabricated goods and metals
(like TVs, motor vehicles, air
conditioners, refrigerators, etc.)
http://science.discovery.com
/videos/how-its-made-miniepisodes-fire-hydrants.html
(if we have time)
2. Beverage Production
– Water is expensive to ship but
can be found in a lot of places so
there are beverage plants
dispersed throughout the US
Other types of plants
• Perishable Products
• Single-market
manufacturers
– Make specialized parts
to go into larger
products
– Located near the
consumer
– Located near the
consumer
– Exs mostly include
fresh foods
– Newspapers (kinda)
How do inputs and products get
from place to place?
• Short answer:
–Trucks
–Trains
–Ships
–Air
• Important points
– Often times modes get
mixed (might use planes
and trucks etc.)
– Costs rise every time
you switch from one
mode to the next
– Break of bulk pointplaces like seaports and
airports where you can
transfer from one mode
to the next easily
Site Factors
Land
Labor
Capital
Land factors
• Factories likely to be located in suburbs and
rural areas
• Energy sources play a key role (are you next to
hydroelectric power? Are you near coal fields?)
Labor factors
• Is your industry labor
intensive? Do you
pay a high percentage
in wage? (note
percentage does not
equal high wages)
Triangle Shirtwaist Fire of 1911
(New York)
• 146 workers (majority
women) died after being
locked in so they couldn’t
take breaks etc.
• Textile manufacturing
(with the exception of
wool) is located mostly in
the south where wages
are considered higher
comparable to other jobs
What is the difference between
skilled and unskilled labor?
Capital
• Industry will
locate where it
is able to get
capital from
banks
Why do industries face
problems?
Key Issue #4
Basic Economics on a Global
Scale
• As demand for a good
goes up, the price of that
good goes… UP
• Is that good for business?
• Demand is going down
because
– 1. People already own
the goods
– 2. People’s wages
aren’t enough to buy
the goods
Overproduction
• In the past, few
countries were
making a particular
good. Now everyone
wants in on the
action. This =
overproduction
• Why do countries
want to have their
own steel mills for ex?
Government Policies
• Trading blocs (groups
of countries working
together to keep
countries outside of
their group from
getting ahold of their
markets)
• Transnational
corporations (bases are
primarily in MDCs
with factories in LDCs
to open markets)
• Tax breaks and loans
to bring in business to
underdeveloped areas
Topper the Trick Terrier
Plastic Eyes:
(Shenzhen, China)
Voice Recognition Requirements:
(San Francisco)
Voice Recognition Programming:
(Taiwan)
Plastic Body: (Malaysia)
Speaker for voice:
(Dongguan, China)
Motors for legs:
(Shaoguan, China)
Plastic legs: (Taiwan)
Microfiber for Coat: (Korea)
Transistors:
(Shenzhen, China)
IC chips: (Taiwan)
Wiring: (Dongguan, China)
Packaging: (Hong Kong)
Problems that uniquely face
LDCs
• They are far from
large markets
• They lack
infrastructure
• New International
Division of Labor
(low skilled is
clustered in LDCs
where higher skilled
is in MDCs)
36
Taboo Review
• 1 minute to get your partner to identify
the words/phrases
• You CAN’T say the words, you must
describe and define the concept so that
your partner will guess the word.
Partner 1
•
•
•
•
•
•
•
•
Break of bulk point
Bulk-gaining industry
Bulk-reducing industry
Cottage industry
Fordist
Industrial Revolution
Labor-intensive industry
Maquiladora
Partner 2
•
•
•
•
•
•
•
•
New international division of labor
Post-Fordist
Right-to-work state
Site factors
Situation factors
Textile
Trading bloc
Footloose industry
What was the most important innovation
of the industrial revolution?
• Steam engine, puddling (iron production),
railroads, development and use of
chemicals, food preservation techniques,
others?
• Why was this innovation more important
or significant than the others?