L4) Mapping The World Economy

Question 1

Name a few reasons as to why geographical location might matter for industrial purposes. (Industrial Location)

Answer 1

the relative importance of these factors varies depending on the type of activity involved

• Access to inputs: raw materials, energy (no Absolute correlation as geographically $$ differs from industrial $$)
• Availability of labour: skill, qualifications)
• Processing costs: LLK
• “Pull” of the market
• Transfer costs of alternative locations (Weber’s optimal Least Cost Theory)
• Institutional & cultural factors: laws/policies
• Behavioural considerations

Question 2

Why is the “Pull” of the market an important consideration for industrial location?

Answer 2

Optimal industrial locations are dependent on accessibility to customers (further dependent on the product/service)

Question 3

What are the types of economic activities?

Answer 3

1) Primary Activities: natural resources drawn from the land.
2) Secondary Activities: processing/transformation of raw materials into manufactured goods. Two types:
* Light Manufacturing Activities: consumer-oriented
* Heavy Manufacturing Activities: intermediate goods
3) Tertiary Activities: sale/exchange of goods & services (service-based)
4) Quaternary Activities: handle/processing of knowledge/information (service-based)

Question 4

Economic transition model of economic activities over time: Observations

Answer 4

Growth/development pushes the economy toward service-based activities (3&4)

Services become dominant sector (agriculture and industry decrease)

Applicable to most countries (GN), however, China, in this 30 years transition, has gone from agriculturally-based economy to more industry/service-based

Question 5

What are Light & Heavy Manufacturing Activities?

Answer 5

Light Manufacturing Activities: finished, consumer-oriented

Heavy Manufacturing Activities: intermediate, capital-intensive

Question 6

What are the world’s four major regions of early industrialization? (& notable regions)

Answer 6

North America: Rust to Sun Belt & IR
Europe: colonialism & IR
Russia & Ukraine: Volga
East Asia: Japan, China, & ‘Four Tigers’

Question 7

Which regions are included in East Asia’s ‘Four Tigers’?

Answer 7

Hong Kong, South Korea, Singapore, & Taiwan