Industry
Chapter 11
Origin and Diffusion of the Industrial
Revolution
 The Industrial Revolution- new social, economic, and
political inventions
 Diffusion of the Industrial Revolution
 Diffusion from the iron industry
 Coal, engineering, transportation
 Diffusion from the textile industry
 Chemicals, food processing
 Diffusion from the United Kingdom
 Belgian, Italy, U.S.
 Political instability led to the slow diffusion in Europe
World Industrial Regions
 North America
 Industrialized areas in North America
 New England, Middle Atlantic, Mohawk Valley, Pittsburgh-Lake Erie,
Western Great Lakes and St. Lawrence Valley-Ontario Peninsula
 Changing distribution of U.S. manufacturing
 Declined in N.E but grew in S.E because of cheap labor, no unions
 Europe
 Western Europe
 Rhine-Ruhr Valley, Mid-Rhine, U.K. and Northern Italy
 Eastern Europe
 Central Industrial District, St. Pete, Eastern Ukraine, Volga, Urals,
Kuznetsk and Silesia
World Industrial Regions
 East Asia
 Most heterogeneous industrial region
 China has natural resources but not Japan or other E. Asian
countries
 E. Asia used its large labor force to compete in world market
 Japan produced a large, skilled workforce to produce cheap, high
quality products
 China is a major exporter of steel and textiles
 Japan’s concentration of industry is between Tokyo and Nagasaki
 China’s concentration is Hong Kong,Yangtze River (Shanghai and
Wuhan) and Gulf of Bo Hai (Tianjin, Beijing and Shenyang)
Industrial Location
 Situation factors-transportation
 Location near inputs because of weigh or bulk to reduce
transportation costs
 Copper and Steel are examples
 Location near markets
 Bulk gaining- Soft drinks, scotch, TVs, refrigerators and automobiles
 Single market- products are manufactured near market “Just in Time”
 Perishable- Bakers, milk, newspapers,
 Transportation choices-Ship, Rail, Truck or Air
 Must consider distance, load and unload, warehouses
 Trucks for short distance and Trains for longer distances
 Air is the most expensive but useful for high value packages
 Break of bulk points allows for multiple modes of transportation
Industrial Location
 Site factors-location near markets and break points more
important than location near materials
 Land
 Land is cheaper outside of urban areas
 Industries are attracted to location near energy sources or amenities
 Labor
 Location is dependant on the amount of labor needed and cost of labor
 Textile industry may have multiple locations due to the type and cost of labor
needed and location of input
 Capital
 The ability to borrow money greatly influences the location of industry
 Automobiles, Silicon Valley and LDC development
 Obstacles to optimum location
 Footloose-due to technology
 Corporate goal versus maximum profit
Industrial Problems
 Global perspective
 Stagnant demand, market saturation and technology has caused
demand to decrease while production increases
 Increased capacity through global diffusion of Industrial Revolution
has led to overproduction (steel)
 More developed countries
 Trading blocs-W. Hemisphere, W. Europe and E. Asia
 Within these blocs, countries cooperate in trade
 NAFTA, European Union
 Disparities within trading blocs
 European Regional Development Fund
 Transnational corporations
 Operates factories in countries other than where the headquarters
are located
 Japanese transnational corporation in U.S.
Industrial Problems
 Less developed countries
 Industrial development can raise the value of exports and help the
country to buy products or re-invest in the country
 Old problems for LDCs
 Distance from markets- hurts global participation in markets
 Inadequate infrastructure- lack of transportation, communication, factories,
universities
 New problems for LDCs
 Access to raw materials helps attract transnational corporations
 Site factors like cheap labor attract transnational corporations
 New international division of labor