Chapter 16: Geographies of Production

Chapter 16: Geographies of Production

Human Geography by Malinowski & Kaplan CHAPTER 16 LECTURE OUTLINE GEOGRAPHIES OF PRODUCTION AND CONSUMPTION Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-1 Chapter 16 Modules 16A Growth of Mass Production and an Industrial World 16B Factors of Production and Changing Geographies of

Industrial Location 16C Industrialization and the Early Development of the US Space Economy 16D Modern Shifts in US Manufacturing 16E The Geography of High Technology 16F Globalized Manufacturing and the Rise of Transnational Corporations 16G Geographies of Consumption 16H Consuming Places: Geographies of Tourism Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-2

16A: Growth of Mass Production Production adds value greater than the sum of the raw materials used, hence value added Mass production was the key outcome of industrialization As the quantity of goods rose, prices dropped The factory system emerged because large, expensive machines required a great deal of money to buy and operate Factories led to a division of labor where workers specialized in single, repeated tasks Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

16-3 19 Century Factory th Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Figure 16A.1 16-4 Industry in Great Britain 1715-1815

Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Figure 16A.2 16-5 The Spread of Industrialization Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Figure 16A.3 16-6

16B: Factors of Production and Changing Geographies of Industrial Location 1 A production chain transforms raw materials into a finished product The process incorporates a number of direct and indirect factors of production Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-7 16B: Direct & Indirect Factors of

Production DIRECT FACTORS INDIRECT FACTORS

Raw materials Labor Financial capital Markets Technology Infrastructure Financial system Government role

Education / training Entrepreneurial climate Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-8 16B: Factors of Production and Changing Geographies of Industrial Location 2 Alfred Webers model of industrial location The optimum location of a manufacturing plant is a balance between the locations of raw materials, the labor force, and the markets where the products are

sold Products that lose weight in production are better situated near the raw materials Products that gain weight in production, such as the adding of water, are better situated near the market Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-9 Webers Model

Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Figure 16B.1 16-10 16B: Factors of Production and Changing Geographies of Industrial Location 3 Changes in recent decades have affected industrial location: 1. 2. 3.

4. Transportation costs have declined Labor costs and specialization of labor have increased A lot of production is now conducted overseas Government plays a bigger role in trying to lure businesses to certain areas 5. Production processes are more flexible and nimble because of computers, robots, fast shipping of raw materials, etc.. Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-11

16C: Industrialization and the Early Development of the US Space Economy The U.S. started industrializing later than some places in Europe By 1790 textile mills were in Rhode Island and then across southern New England by the 1830s By 1860, 72% of all manufacturing was in the Northeast Diversification through forward linkages and backward linkages Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

16-12 Late 19 Century Industry th Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Figure 16C.3 16-13 Geographic Advantages of the AngloAmerican Manufacturing Belt Good railroad network to tie the region

together Close proximity between places Close to main banks Good ports, good farmland, abundant coal The region attracted skilled and unskilled labor Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-14 16D: Modern Shifts in US Manufacturing 1 After the middle of the 20th century, a shift to

the South and West A move from inner cities to outer suburbs The move of high-paying jobs hurt losing areas Base employment supports numerous service sector jobs [multiplier effect] Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-15 Base Employment

Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Figure 16D.2 16-16 16D: Modern Shifts in US Manufacturing 2 Causes for the shift to the South and West: 1. Cheaper labor costs in the South 2. Increased car use and trucking, & better highways, made the railroads of the Northeast less important 3. Increased need for oil and gas made places like Texas more important for businesses

4. New, high-tech sectors sprung up in areas outside of the Northeast, or moved there 5. Government programs helped develop nonNortheast areas Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-17 16E: The Geography of High Technology 1 High-technology firms have emerged recently and have made certain areas more important Geographic factors for high-tech firms include: Proximity to major universities

An entrepreneurial climate with venture capitalists Environmental amenities to attract skilled labor Good transportation and communication networks Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-18 Global High-Tech Centers, 2000 Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

Figure 16E.1 16-19 16E: The Geography of High Technology 2 High-technology clusters share: Specialized labor Specialized inputs: specific technologies, specialized equipment, etc. Knowledge spillovers from formal and informal channels, and from universities Accessibility to markets or users

Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-20 16F: Globalized Manufacturing and the Rise of Transnational Corporations 1 Globalization The elimination of national boundaries through ever greater integration of people, companies, and governments across the world Characteristics of globalization include: Deterritorialization

More social and economic interconnectedness Faster communications A multipronged process including political, social, cultural, and economic movements Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-21 Global Colonial & Trade Activity Figure 16F.1 1500-1800

Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-22 Stages of Globalization Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Table 16F.1 16-23

16F: Globalized Manufacturing and the Rise of Transnational Corporations 2 A multidivisional corporation is a company with many division based on product lines A transnational corporation (TNC) is a multidivisional corporation that has overseas divisions Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-24 Location of Bayers Branch Plants

Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Figure 16F.3 16-25 Toyota Plants in the US Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Figure 16F.4

16-26 Corporations by Country Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. Figure 16F.5 16-27 Global Production Lines Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

Figure 16F.7 16-28 16G: Geographies of Consumption Consumption is interlinked with production Mass consumption means more and more people are consuming luxuries Conspicuous consumption people feel a need to display their status by ostentatiously consuming goods and services

Commodity chains: Design, Production, Marketing, Retail Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-29 16H: Consuming Places: Geographies of Tourism Figure 16H.2 Copyright The McGraw-Hill Companies, Inc. Permission required for reproduction or display. 16-30

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