Chapter 22 Industrial Activity and Geographic Location

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					Chapter 22 Industrial
Activity and
Geographic Location
 Why Hong Kong, not Macau?
 Map of Hong Kong and Macau
 Location Theory
   Preindustrial world
India - textiles:best in the world, riots in
British textile industry in 1721.
China, Japan all had industrial base
before the Industrial Revolution
European companies used colonist
power to control and local raw materials
and process to finish products
    Industrial Revolution
James Watt and others developed (not invented) steam-
driven engine
coal transformed to high-carbon coke
And many other inventions..

      First railroad               First powered ship
       in England,                crossed the Atlantic
         in 1825                         in 1819

           Know-how, experience and capital

     British influence around the world reached its peak
James Watt (1736-1819)
Scottish inventor, Repairing a
Newcomen Steam Engine, he devised
improvements that resulted in a new
type of engine (patented 1769) with a
separate condensing chamber, an air
pump to bring steam into the chamber,
and insulated engine parts. Watt coined
the term horsepower
      Industrial Revolution - 2

“Black Country” in Britain - densely populated
and urbanized industrial regions along the
The eastward diffusion of the Industrial
Revolution during the second half of the
nineteenth century. Figure 22-1
Industrial regions due to raw material
combinations - Ruhr, Saxony, Silesia and the
Urban Market cities - London and Paris
Figure 22-1 (link)
          Location Decision
  Primary industries
                             Secondary industries

Determined by location
of resources
                         Human behavior, d-making (cultural,
                         political and economic), or just whim

                             Model, model, model again?
       Weber’s “least cost theory”
     (German economic geographer
                          Raw materials to the factory
                          Finished products to the market
                 cost        Industries moved from Japan/Taiwan to
                             China/Vietnam. (computers, Nike…)

Agglomeration           Make a big-city location more attractive

           Over agglomeration - high rent/labor/transport cost
Industrial Location Theory
General/Special, Regional/local factors
General - transportation cost, Special - food, etc.
Regional factors - transportation, a critical determinant of
regional industrial location. Local -
agglomerative/deglomerative factor
He didn’t take into account the consumption over the
wide area instead of a single location.
Consumer demand and production costs were taken into
considerations for
August Losch’s book “The economics of Location”
Factors of Industrial Location
 Russia - state planning directed industrial growth.
 Market is distorted by black market and influence of
 entrenched interests
 First decision faced by the capitalists- move either
 coal to iron ores or iron ore to the coalfields.
 Iron ore usually travels farthest. In commercial
 economics, iron ore is usually transported to the

     coal                               iron

      1- Raw Materials
Iron ore from overseas (Venezuela, Labrador, Liberia
etc.) - the reason why industrial plants in U.S.
northeastern seaboards.
With limited resources, Japan expanded its
dependencies to Korea and Northeast China
Strong economics allows Japanese industries
purchase raw materials anywhere in the world
Core-periphery country relationship maintain the buyer
and suppliers roles. Buyers usually control the market,
OPEC in 1970s - oil prices up and down due to the
non-cartel member’s increased production
          Japan from
         1950 to 1990
                                    2 - Labor

                                         US and Canada
       Taiwan           S. Korea

                                                NAFTA, 1994

       China     Thailand     Malaysia

1/30      Vietnam       Others
Good or bad, judged by yourself
Agriculture import and export between US and
Canada/Mexico is increasing (Do you think you’ve got
more fruit choice in Wal-Mart, Bi-Lo or Kroger?)
Industrial plants closed - 9000 jobs lost in Cape Fear
region (N.C)
Job loss - 0.5 million between 1993 and 2000.
Most job losses states: CA,MI,NY,TX, and OH
Hardest-hit sectors:Home audio/video,phones,
appliances, motor vehicles,textiles and lumber
TN loss in motor vehicles/textiles
            3 - Transportation
Other factors:               Truck good for short distances
loading and unloading
process, weight and volume
of the freight

                         Development of
                        container systems
                                                 Rail good for
                                                 medium distance
      cheapest over longest distances
          4 - Infrastructure
   Telephone, utilities, electricity, water supply, banks,
   postal and messenger services, hotels, and social
Lack of infrastructure in regional and local scale
forces China to slow down the industrialization in
Pacific Rim
China is still going - due to the perception of the
future disadvantage

Vietnam - next economic tiger on the Pacific Rim -
having the infrastructure problems too. (water
supply and poor transportation network)
       Other factors
5 - Energy - Aluminum production
Northwest and TVA locations and
fertilizer production. But not that
important as it was.
Political stability/taxation (Cambodia,
Environmental consideration - good
weather in CA - film and aircraft

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