Chapter 11 Flashcards
Where is the hearth of modern industry? Where did it diffuse from there?
northern England and southern Scotland, it then diffused throughout Europe
Industrial Revolution-
transformed goods from the cottage industry to manufacturing goods
Cottage Industry-
Home based manufacturing
Watt Steam Engine (and impact of) –
produced a lot of power which concentrated all manufacturing processes, steps in one factory
Early industries impacted by the Industrial Revolution-
iron, textiles, chemicals for bleach and dye, food progressing
economies of scale-
a proportionate saving in cost gained be an increased level of production
How did the industrial revolution contribute to the Age of Imperialism/Colonialism?
there was a desire to acquire new goods and resources for production, there was a desire to acquire markets to sell goods
Energy/power prior to fossil fuels:
animate power or power supplied by animals and people, wood was also a big source of energy
Fossil fuels:
energy formed by residue of plants and animals buried millions of years ago, non-renewable
Examples of fossil fuels
coal, petroleum, and natural gas
One-half of the world’s industrial output comes from what 4 countries?
Japan, U.S., China, Germany
What are SEZs?
special economic zones, area in a country that has different economic laws
What countries make up the four “Asian Tigers” (sometimes called “Asian Dragons”)?
South Korea, Taiwan, Singapore and Hong Kong
In terms of trade/economics, what is a complementary process (also called complementarity)?
measures the degree to which the export pattern of one country matches another. This makes a good trade relationship
What is a trade imbalance?
when one country exports more than another than it imports from that country
Explain the concept of comparative advantage
situation where one producer can produce a good or service, at a lower cost
Site factors include
labor, capitol, and land
situation factors include
proximity to markets and inputs
When/why would a company locate its factory closer to inputs? Closer to markets?
close to inputs- near resources, cheaper labor, the closer to markets means less transportation costs
bulk-reducing industry-
The original product weighs more compared to the final product, Lumber yard, copper industry. Locators near sources of inputs
bulk-gaining industry-
coke, makes something that gains volume and weight during production
single-market manufacturers-
when companies only give one product to a single costumer
Give examples of perishable-product companies:
bakers and milk bottlers, must be close to market
How has steel production shifted from 1980 to 2013?
share of the world steel production declined 27% in developed countries, and increased 73% in developing countries
break-of-bulk point-
a location where transfer among transportation modes is possible
What is containerization?
where they put products in containers and put into the mode of transportation
just in time delivery-
where products will arrive at a factory just before they are needed to be used
Site factors relate to what costs?
Production costs
labor-intensive industry
an industry in which wages and other compensation paid to workers constitute a high percentage of expenses
Wages paid to manufacturing workers:
$35 in developed countries
$2 in some developing countries
the motor vehicle industry labor intensive?
no it is not the textile industry is more intensive
Define capital-
the funds to establish new factories or modernize existing ones
Identify key contemporary factory location factors.
large amount of room, close to railroads, near highways
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textiles-
woven fabric manufacturing
What type of laborers are required in the textile industry?
low skill labor
Is the textile industry labor or capital intensive?
labor intensive
agglomeration-
economic activity congregating or close to a single location, rather than being spread uniformly over space, ex: silicon valley
Criticisms of Weber’s Least Cost Theory:
many assumption in theory are unrealistic and it’s an over simplified theory that takes weight and distance into transportation congestion
How is the production of the world’s coal distributed?
1/2 in china, 1/4 in the US and the other 1/4 in other in other developing countries
How is the production of the world’s petroleum distributed?
1/4 Russia and Saudi Arabia, 1/2 Central and Southwest Asia, and 1/4 US
How is the production of the world’s natural gas distributed?
1/3 Russia and Southwest Asia, 1/3 developing regions, 1/3 the US
How has the U.S. energy use changed over time?
The US consumed more petroleum than it consumed, the US then became a net importer of petroleum from the middle east, now we use Canada.
OPEC
Formed to help oil-rich countries gain control of there resource, controls supply and prices, took control of US and European transnational cooperation.
What does nationalize mean?
The industry was changed from private ownership to government owned
What is the greenhouse effect?
An increase of the temperature of the earth caused by CO2 emissions
What percentage of the world’s electricity is powered by nuclear energy?
14%
How is nuclear energy produced?
Uranium molecules are split- this is called fission
What is bio-mass?
The burning of wood, plant material, or animal waste
What are some drawbacks to nuclear energy?
Exposure to radioactive energy, and radioactive waste
What is re-manufacturing?
Rebuilding of a product to specifications of the original product by using repaired, reused, and new parts
What items can be re-manufactured readily?
paper, plastic, glass, and aluminum.
How has the distribution of world industries changed since the 1970s?
In 1970 1/2 of the worlds industry was in Europe and 1/3 in North America, now its only 1/4 in each country
Outsourcing-
corporations allocate production to low wage countries
What is the driving factor behind a company’s decision to outsource? Is this a site or situation
factor?
It is the cost of labor therefore this is a site factor
Define new international division of labor (also called global division of labor)-
Transfer of some types of jobs, especially those requiring low-paid, less skilled workers, high labor jobs from more developed to less developed countries.
What is vertical integration?
One company controls all of the phases of production
Con- Companies can make cheaper parts
Pro- saves money and gives control
foxconn
provides dorms for workers, workers are high skilled and payed low wages
What about Mexico makes it attractive to industries?
Trade agreements have eliminated barriers between us and Mexico nearest low-wage country to the US so it satisfy site and situation factors
Maquiladoras-
Manufacturing plants near the US border. Companies receive tax If they ship materials from us, assemble Parts at the maquiladoras and ship them back to the US
Pros of NAFTA
Lowered prices of goods GDP becomes better Diplomatic relations become better increased exports created regional production blocs
Cons of NAFTA
US manufacturing jobs were loss
- lower wages for people who didn’t go to college in the US
- hurt small Mexican farmers and small business owners
- NAFTA’s environmental/labor standards were not up to par
Countries in BRICS
Brazil, Russia, India, China, South Africa
What does BRICS do?
Have a bank that they share together and make good economic relations
Right-to-work law
state laws that prohibit union security agreements between employers and labor unions
What two factors make central Europe an attractive location for industry?
Lowest labor with close proximity to Western Europe
