Industry Flashcards
Regarding the Industrial Revolution: What? Where? When?
It was a series of improvements in industrial technology that transformed the process of manufacturing goods. It started in the United Kingdom in the 1700’s with the creation of the steam engine.
Define cottage industry:
Home based manufacturing. Make your own stuff. geographically dispersed across the landscape.
How did the iron industry benefits from the steam engine?
The steam engine provided the constant heat that iron needed to be produced.
How is the distribution of steel and iron industry influenced by coal?
Replaced scarce wood supply, and was the principal energy in ovens and steam engines.
Why was development in transportation necessary?
To attract large amounts of workers, to bring in bulky material, and to be able to ship products to consumers.
What two forms of transportation grew rapidly?
Ships and Trains, with the creation of canals and railroads - trains were delayed 50 years after their debut because of political disputes.
How did the Industrial Revolution change textiles?
Transformed from dispersed cottage industry to a concentrated factory system in 18th century.
How did the Industrial Revolution and factory system contribute to the need for food processing?
n 1810, Nicolas Appert canned food in glass bottles and sterilized them in boiling water. Used to feed workers.
United Kingdom –
19th Century - Textiles and Steel. Now - Attract International Investments through new high tech industries that serve the European market.
Rhine-Ruhr -
Concentration of iron and coal, from being near coalfields. Rotterdam, Largest port, lies at the Rhine river and flows into the North Sea
Mid-Rhine –
Europe’s most centrally located industrial area. Frankfurt, Stuttgart, Mannheim are all important hubs and ports.
Po Basin -
Textiles and other industries are attracted to the numerous low wage workers and inexpensive cost hydroelectricy from nearby alps.
Northeastern Spain –
Leading industrial area - Catalonia, centered on the city of Barcelona, which was the center of textile and motor vehicle plant.
Moscow -
Russia’s oldest industrial region centered around the largest city and capital.
St. Petersburg –
Specialize in shipbuilding and serving Russia’s navy, and is also Russia’s second largest city.
Urals –
Contains the worlds most varied collection of minerals, for this reason it has attract a variety of different plants.
Volga -
Contains Russia’s largest natural gas fields and petroleum. The Ural mountains 1,000 different types of minerals
Kuznetsk -
Russia’s most important manufacturing district, east of the Ural Mountains with coal and iron resources.
Donetsk –
In Eastern Ukraine, has one of the worlds largest coal reserves.
Silesia -
Growing industrial area, low paid workforce and close proximity to wealthy western European market.
New England –
Was a cotton textile center in the early 19th century. Raw materials would go south, Manufacturing would take place in the north, Products would go to Europe. Middle Atlantic - Largest US market, attracts industries that need close proximity to consumers and depend on foreign trade from ports.
Mohawk Valley –
A linear industrial belt in upper New York state, takes advantages inexpensive electricity generated at Niagara falls.
Pittsburgh.Lake Erie -
Was a leading steel - producing area in the 19th century because of it’s proximity to Appalachian coal and iron ore
Western Great Lakes –
Centered on Chicago, is the hud of the nations transportation network and is now the center of steel production.
Southern California -
The country’s largest area of clothing and textile production the second largest furniture producer and a major food processing center.
Southeastern Ontario-
Canada’s most important industrial area is central ti the Canadian and US markets, and near the great lakes and Niagara falls.
Japan
Became an industrial power in 1950’s and 1960’s Manufacturing is concentrated in the central region between Tokyo and Nagasaki.
South Korea
Leading producer of ocean going ships, centered along the rim of the country. Seoul and Busan are the largest ports.
China-
Has the worlds largest supply of low cost labor and is the worlds largest market many consumer products. Clusters among the east coast.
Define situation factors
Involve transporting materials to and from a factory. A firm seeks a location that minimizes the cost of transporting inputs to the factory and finished good to the consumer
Define site factors:
Result from the unique characteristics of a location
What is a “bulk-reducing industry”?
An industry where the final product weighs less than the inputs; located near raw materials
What is a “bulk-gaining industry”?
An industry in which the final product weighs more or comprises a greater volume than the inputs; located near the market.
Give two examples of these industries, and explain how they are bulk-gaining.
- Fabricated metals
- Beverage production
Fabricated Metals:
Fabricated and machined products typically occupy a large volume than the sum of their individual parts and metal. - Final Product weigh more than inputs/resources/parts.
Beverage Production:
The principle input placed in a beverage container is water, which is bulky and expensive to transport. - Better to be near the market for low transportation cost.
Specialized manufacturers make products that are designed to be sold primarily to
One or two consumers
Where is specialized manufacturers optimum location?
Close proximity to the customers.
Describe one example of optimal location of specialized manufacturers phenomenon.
EX: YKK (Producers of zippers) Have factories in the 68 countries to be close to clothing manufacturers.
List examples of “perishable products” that must be located near their markets.
Dairy, Newspapers, Bread, etc. Located near markets to avoid spoiling
How is a newspaper highly perishable?
Contains dated information.
Give reasons for why each of the following modes of transportation might be selected by a manufacturer to deliver their products to market.
- Trucks
- Trains
- Ships
- Air
Trucks-
often used for short-distance delivery can load and unload quickly really good if item is delivered in a day
Trains-
Used to ships things take longer than a day to deliver Loading takes longer No need for rest stops
Ships-
Cost is low for transportation over long distances. Slow. Travels across the sea unlike trains and trucks
Air-
Expensive. Speedy delivery for small-bulk, high value, package
What is a “break-of-bulk point”?
A location where transfer is possible from one mode of transportation to another.
Give two examples of important break-of-bulk points. Seaports and airports.
EX: Steel mill near the the port, ships in iron and gets coal by train
Make a brief flow chart to illustrate how copper is an example of a bulk-reducing industry
\1.Mining, Bulky ore is waste. 2.Concentration near mines, crush grind and mix copper. 3. Smelting, remove impurities with smelters, built near mills to reduce transportation cost. -Final Product weighs less -Located near raw materials
How does energy play a role in the situation of copper mills?
Metal producers try to locate near economical electrical sources
Steel mills: Pittsburgh, southwestern Pennsylvania-
-Iron ore and coal was mined here,US Steel Mills Mid 19th Century
Steel mills: Locations around southern shore of Lake Erie
-Steel mills were created. Iron ore was mined. Mesabi range
-Steel mills: Southern Lake Michigan (Gary, Indiana & Chicago)
Steel mills were created -Iron ore was mined -Mesabi range
Steel mills:East and West Coasts (Trenton, NJ & Los Angeles, CA)-
-Input in steel production proces. US Steel mills Mid 20th
Why are the newest steel mills (minimills) beginning to move closer to markets and away from inputs?
Coastal plants provide steel to large east coast population centers and lake Michigan plants are centrally located to distribute products countrywide.
Explain how motor vehicle production is a bulk-gaining industry.
Ad the markets for new cars change, the distribution of factories change.
Where are the three regions of assembly plants for vehicle production?
North America, Europe, Asia
Why is vehicle production highly clustered?
Clusters near the final assembly plants to finish faster
What are the three production cost factors associated with the site of an industry? (Memorize Them!)
Labor- Human effort directed toward producing goods and services
Capital-The account used to summarize the owner’s equity in a business
Land-Natural resources and surface land and water
Define labor intensive industry:
An Industry in which wages and other compensation paid to employees constitute a high percentage of expenses.
Explain the difference between “labor-intensive” and “high-wage” industries.
“Labor Intensive” is measured as a percentage. “High Wage” is measure in dollars or other currencies
Describe the relationship between capital and the computer industry in California.
Banks in silicon valley have long been willing to provide money for new software and communication firms.
What are several factors about a given piece of land that make it attractive to industry and manufacturing?
- Proximity to a large local market and convenience is shipping to national market by rail. -Proximity to large supply of labor as well as to sources of capital -Space.-Facilities delivery of inputs and delivery of products
What type of worker is required for the textile industry?
Less skilled, Low cost
What country accounts for most of the world’s spinning and weaving?
China produces two thirds and India beats Europe and North America.
Why do MDCs play a larger role in textile assembly than LDCs?
Because most of the consumers of assembled products are located in developed countries.
How are manufacturing jobs shifting in the U.S.?
Industry has shifted from the northeast toward the south and west
Define right-to-work laws:
A state law forbidding requirements that workers must join a union to hold their jobs - also known as a “open shop”. When everyone agrees to join a union - its called a closed shop.
Why are southern right to work states attractive to companies?
They have right-to-work laws making unions impossible.
Why has textile production moved from the northeast to the southeast?
Prevailing wage rates are lowers and there is no interest in unions.
What are the convergence regions?
Eastern and southern Europe, where incomes lag behind Europe’s average
What are the competitive and employment regions?
Western Europe’s traditional core industrial areas, which have experienced substantial manufacturing job losses in recent years
What makes central Europe attractive to manufacturers?
Site and Situation factors - Labor and Market Proximity
Where has industry shifted internationally? And, name each regions leading industrial country(s).
To minimize labor costs, manufactures are locating in places where prevailing wages rates are lower than in tradition industrial regions. From Europe and North America to developing countries.
To minimize labor costs, manufactures are locating in places where prevailing wages rates are lower than in tradition industrial regions. From Europe and North America to developing countries.
To remain competitive despite great transportation cost, they can profitably transfer work to LDC’s with their lower wages.
Define outsourcing:
Which is turning over much of the responsibility for production to independent suppliers.
Provide an example of an industry that outsources, and what do they outsource?
Car makers outsource for parts that are cheaper and better, Iphones as well.
Define maquiladoras:
A factory in Mexico near the border that assembles imported materials into finished goods for export
. Explain the two major fears of the integration of a North American industry.
-Labor leaders fear that more manufactures relocate production to Mexico to take advantage of lower wages rate.-Environment fear the less stringent laws on air and water quality
. Who are the four BRIC countries and what are they expected to do?
Brazil, Russia, India, China … Later south Africa. Dominate global manufacturing control 1/4 of the worlds land area and the world’s 3 billion inhabitants.
Which country was added to the BRIC countries in 2010 and why?
South Africa for it’s big economy and population, even though it’s considerably less than all BRIC countries combined.
What factors influence industry to remain in northeast U.S. or northwest Europe?
Availability of skilled labor and rapid delivery to market
Define Fordist:
Factories assigned each worker one specific taste to perform repeatably
Define Post-Fordist:
Lean production, involves teams, problem solving, leveling, and productivity.
What benefits do the manufacturers receive from just-in-time delivery?
Reduces the money that a manufacturer must tie up in wasteful inventory.. Computer manufactures have eliminated waster inventory altogether.
How can labor unrest, traffic, and natural hazards disrupt reliance on just-in-time delivery?
Disrupt deliveries and shut down production.
What are the three ways the US government distinguishes between domestic and foreign vehicles?
- For measuring fuel efficiency 75% US and Canadian content
- For setting important tariffs 50% US and Canadian content
- For informing consumers port is 70% Canadian and US
Just-in time- delivery:
materials and parts are shipped to arrive just before they are needed
Maquiladora:
a factory built by a US company in Mexico near the US border, to take advantage of the much
lower labor costs in Mexico
New international division of labor:
transfer of some types of jobs, especially those requiring low-paid, less-
skilled workers, from more developed to less developed countries
Post-Fordist production
adoption by companies of flexible work rules, such as the allocation of worker to teams
that perform a variety of tasks
Vertical integration:
an approach typical of traditional mass production in which a company controls all phases of
a highly complex production process
Greenhouse effect-
the anticipated increase in earth’s temperature, caused by carbon dioxide and other gases
trapping some of the radiation emitted by the surface
Site factors: what are the 3 factors
labor, capital, land
Situation factors:
factors:markets, bulk gaining, proximity to inputs. Involve transporting materials to and from a factory.
A firm seeks a location that minimizes the cost of transporting inputs to the factory and finished goods to consumers
Consumer services
provide services to individual consumers who desire them and can afford to pay from them. Nearly .5
of the jobs in the US. Retail, education, health, leisure and hospitality
Business services:
facilitate the activities of other businesses. Professional, financial, and transportation services
Public services:
provide security and protection for citizens and businesses. Fed, state, local government
Footloose industry-
a general term for an industry that can be placed and located at any location without effect from factors
of production such as resources, land, labour, and capital.
Labor-oriented industry:
Industries that produce goods or services requiring a large amount of labor. Ex: sewing clothes
Locational interdependence
the impact of a business’s geographic location on its ability to operate and make a profit. Ex:
Tiffany’s in Chicago
Rust belt:
Michigan, Midwest, northeastern US. The rust belt jobs are abandoned (rust)
Weber:
the 3pt theory of where to place the factory in relation to the res piece area and the market
Define service:
Any activity that fulfills a human want or need and
returns money to those who provide it
What sector of the economy do services fall under?
Tertiary
Define settlement:
A permanent collection of buildings, where people
reside, work, and obtain services.
Where are services located?
By consumers
Business Services: how has number of employees changed
Increases. Especially engineering, management, and law
Consumer Services: how has number of employees changed
Increase. Especially health care
Who created the original study in central place theory? Where?
Walter Christaller, Germany
. Define Christaller’s central place theory:
Helps to explain how the most profitable location can be identified. Where are the consumer services located.
. What does central place theory seek to explain?
Why consumers services follow a regular pattern based on size of settlements with larger settlements offering
not only more consumer resources but also more specialized ones.
Define central place:
A market center for the exchange of goods and services by people attracted from the surrounding area.
What is a market area?
Aka hinterland. The area surrounding a service from which customers are attracted.
. What shape does central place their hypothesize for market areas? (See Figure 12-4) Why?
Hexagon, so they fit together with no gaps.
Range: definition/description
The maximum distance people are willing to travel to use it.
Services with LONG ranges (give specific examples):
Services offered exclusively in specific places.
Concerts and professional sporting evils
Services with SHORTER ranges (give specific examples):
Everyday services. Groceries and movie rentals.
Food.
Threshold description
The minimum number of people needed to support the service
Not all people within a market area can be counted when determining
location of a service by considering its threshold. Explain how this is so,
and provide examples →
How the customers are counted depends on the product. Conscience stores and fast
food restaurants appeal to nearly everyone, wheats other goods and services appeal
primarily to certain customer groups
Small settlements: thresholds, ranges, market
-Services with small thresholds, small ranges, and small market areas
Larger settlements: thresholds, ranges, markets
-Have large thresholds, ranges, and market areas
However, smaller neighborhoods within larger settlements must also do what?
Provide services that have small thresholds and ranges
- In MDCs, the pattern of cities follows the rank-size-rule. What is it?
States that the country’s nth largest settlement is 1/n the population of the largest settlement. If the
pattern is linear, it follows rank size rule
- If the largest city in a country is more than twice the size of the second city, it is said to be what?
Primate city rule.
- Explain the gravity model.
Predicts that the optimal location of a service is directly related to the number of people in the area and inversely
related to the distances people must travel to cross it.
What two patterns are reflected by consumer behavior? Explain
The more ppl living in a places the more potential customers there are for a service.
Farther the ppl are from a service, they less likely it is that they will use it.
Define periodic market:
Provides goods to residents of developing countries, as well as rural areas in developed countries, where
sparse populations and low incomes produce purchasing power too low to support full-volume retailing
. What groups of people and areas are provided goods by periodic markets? Give examples
Muslim countries- weekly calendar
Rural China- 3-city, 10 day cycle
Korea- 2 15 day market cycles
Africa- occur every 3 to 7 days
How is the distribution of business services different than the distribution of consumer services?
Business services cluster disportionately in a handful of urban settlements, and individual settlements specialize in particular
business service. Every urban settlementp rovides consumer services to people in a surrounding area, but not every settlement of
the same size have the same number and type of businesses
Explain what/why business services are disproportionately concentrated in global cities.
Global cities are in the global economic system bc they are at the center of the flow of information and capita
Bullet major characteristics of global cities with brief explanation.
• HQs of companies, and stock market is there
• Lawyers, accountants, and other professionals cluster there to provide advice to majors corporations and financial
institutions
• Attract HQs do major banks, insurance, specialized financial institution
. Explain why there are more consumer and public services than expected in global cities. Give examples
Site and situation. The cities are attracting people, which attracts services. The UN in New
York
What functions do offshore centers provide, and explain each with examples
Taxes- low or no taxes. Companies incorporated in an offshore center may have tax-free status
Privacy- ppl who get sued like doctors or lawyers can protects some of their assets by storing them in offshore
centers. Creditors cannot reach such assets in bank ruptcy hearings
. What are typical back-office functions?
Insurance claims processing, payroll management, transcription work, other routine clerical activities. Centers for
responding to billing inquiries relayed to credit cards, shipments, or technical ones like installation
What have LDCs been able to attract back offices?
Indonesia, Thailand, India, Malaysia, Philippines
Define basic industry
Export primarily to consumers outside the settlement. Ex:apple company
. Define non-basic industry:
Enterprises whose customers live in the same community. Ex: the local farmers market
What is the economic base of a community?
A community’s unique collection of basic industries. Ex: Silicon Valley is very tech based
- Explain how a basic industry creates new types of jobs.
Attracts new workers, workers bring family, more consumers, more jobs
