Location Near Markets

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APHG INDUSTRIALIZTION: HISTORICAL GEOGRAPHY
‘Machines replace Hands’
Some basics of Industrialization
• Industry is based on
transportation and
labor costs – best
location for a
production point is in
the center of a triangle
• 5 main means of
transport are truck,
train, plane, pipeline,
and ship
• Basic industries are
city-forming industries
– EXAMPLES >
– Auto = Detroit
– Steel = Pittsburgh
World Industrial Regions
Europe’s
Economic
Core and
Regions
North America’s Manufacturing Regions
Russia’s Manufacturing Regions
East Asian
Manufacturing
Centers
*Asia’s
Tigers/Dragons
*SEZ’s (Special
Economic
Zones) in China
Major manufacturing regions of the world today :
‘The CORE’
Types Of Industrial Activities
Primary industries =
extraction of resources,
are dependent on location
of resources such as oil,
timer, fish, soil for
farming…
•
•
•
Secondary industries = creation of
products from resources (factories)
>> Are less dependent on resource
location because raw materials can
be transported to distant locations
to be converted into manufactured
products -if the resulting profits
outweigh the costs.
>> The location of secondary
industries depends on human
behavior and decision making.
(Cultural, political, economic
factors, even on intuition or whim.)
Situation Factors • Manufacturers try to locate
factories as close as possible to
both buyers and sellers.
• Location Near Inputs - If the
weight and bulk of any one
input is particularly great, the
firm may locate near the source
of that input to minimize
transportation costs. (Copper
Industry….)
• Location Near Markets - The
cost of transporting goods to
consumers is a critical
locational factor for three types
of industries
• Single-market
• Perishable
• Break-Of-Bulk Points - A
location where transfer among
transportation modes is
possible. (Ex. - seaports and
airports) (See SS photo of Long
Island….)
Some terms…..
Agglomeration Economies
The savings to an individual enterprise
derived from locational association with a
cluster of other similar economic activities,
such as other factories or retail stores.
•
Multiplier effect - Cumulative
processes by which a given change sets
in motion a sequence of further
industrial employment and infr. growth.
Agglomeration –
clustering of productive activities and
people for mutual advantage
• Comparative Advantage
The principle that an area produces the
items for which it has the greatest ratio
of advantage or the least ratio of
disadvantage in comparison to other
areas, assuming free trade exists.
Deglomerative Effect/Deglomeration - the
disadvantages of congestion
cause some plants to move
outward
•
Shopping centers or malls, factories too
–
–
–
Nike – produces shoes in
Indonesia
Barbies – Maquilas in Tijuana
Rawlings sports equipment –
Haiti
Outsourcing – producing parts or
products abroad for domestic sale.
Raw Materials and Markets
Raw Materials and Markets
Raw Materials and Markets
Raw Materials and Markets
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