Transcript North America

The American economic core
area: North America
dr. Jeney László
Senior lecturer
[email protected]
Economic Geography
I. International Business bachelor study programme (BA)
Spring term 2015/2016.
CUB Centre of Economic Geography and Futures Studies
Concept and divisions of
America
Concept and discovery of America,
its main features
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Name:
– Amerigo Vespucci (female version of the name: America)
– New World
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Discovery:
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30–40 thousand years ago: from Asia (ancestors of Red Indians)
10 thousand years ago: Patagonia was reached
Viking fishermen
1492.: Columbus (did not know, it was America)
1497.: John Cabot (North America)
Area: 42 mn km2 (28%) (WR2.)
Population: 870 mn (14%)
A single or a dual continent?
– Physical Geography: joining of two continents
– Human Geography: division of one continent into two parts 3after
colonisation
Divisions of America (1 or 2)
The Americas
Physical Geography:
North and South
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Human Geography:
North and Latin
Divisions of America (3 or 4)
Physical Geography:
North, Central, South
Human Geography:
North, Middle, South
Human Geography:5
N, Middle, S, Caribbean
Southern borders of North
Amerca
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More clear-cut borders:
E, W, N (only Greenland
is debated)
Only its Southern border
is question
1. History: within current
USA –traditional Mexican–
USA border (from
colonization to 1849)
2. Human geography:
current Mex–USA state
border (Rio Grande)
3. Physical geography: within
Mexico – Isthmus of
Tehuantepec (216 km)
4. Foreign trade: Southern
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borrder of Mexico (NAFTA,
OECD)
Evolution of the North
American economic pole of the
World
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Birth of the USA
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For a short time: four centuries
First British settlement (1607): Jamestown (Virginia)
Puritan spirit of the real founders of USA
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1620: Mayflower (New England – Massachusetts)
But: lots of religious persecuted persons arrived too
Tenacious toughness, adventurous sprit, hard work
Tensions of native population
Not real melting pot (opposite to Sp., Fr. colonies)
Initially problems: sailing, frost, hunger, epidemic
XVIII. century: prosperous 13 British colony: integrated
zone
– Swedish, Dutch colonies disappeared
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Commercial Farming Base
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Combination of:
– Natural resources (climate, land, soils, water)
– Economic factors
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 led to specialization
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Midwest: grain-livestock area
Mississippi Delta: cotton area
Great Plains: feedlots
California (irrigated lands): grape (most productive
vineyards) orange
– Drier, higher parts of the West: low productivity 
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grazing land
Manufacturing becomes central
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Early 1800s
– East Coast: Southern New England, New Jersey, Eastern
Pennsylvania
– Manufacturing developed from local crafts (pottery, smithing)
– Under family ownership
– Based mainly on water mill power
– Produced: metal, leather goods, textiles
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Required new transportation facilities
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Financed by federal investments
By 1860: railroad reached Chicago from East Coast
 construction  basis of iron industry expansion
Coal, iron  steel production (Pittsburgh)
Inland emerged from the East Coast (closely to the raw
materials + as US settled newer markets)
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Manufacturing from 1860 to the
World War II
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Value from manufactured goods > commercial
farm products
– Agriculture become industrialized
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Till 1950s: manufacturing: primary engine
fuelling the expansion of the US economy
– Consumer goods, transportation vehicles (cars,
trucks, airplanes)
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Traditional developed Manufacturing Belt: New
York, Chicago, Detroit
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Key economic industries after
World War II
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Wider geographic diffusion of manufacturing industries: West Coast,
Southern US too
– Distributing electricity to rural areas
– Interstate highways
– Airline routes
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Later: goal to satisfy more market needs (Latin America and Asia)
Products became more technologically sophisticated
– High-tech goods: Silicon Valley of California, Boston, Washington
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US companies become multinational
Service industries: financial, computer services, publishing
Tourism: 54 mn visitors to USA, 64 mn American abroad
World’s most developed country  economic prosperity, political
influence
Largest GNI (ppp): WR1 (however: fluctuating growth)
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Regional policies
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After Civil War: poverty in South
Southern Appalachia: hill farms on small plots of eroded
lands  extremely poor
World crisis  1933: Tennessee Valley Authority (TVA)
– To stimulate economic growth in lagging regions
– However dominant US policies: against government-funded
regional aid
– Economic and population growth, but environmental degradation
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1960s: Appalachian region: poorest
– 1965: Appalachian Regional Commission (ARC): financial aid
packages
– 1980s: Ronald Reagan reduced ARC’s funding and effectiveness
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Rural problems
Metropolises: increasing dominance in economic and
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social life
Canada
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Natural resources: diamond, irons, timber and
other minerals
Follows US, but with a time lag
Industrialization from the World War II
– Import substitution industries: aluminium, vehicles,
consumer goods production
– Hamilton: steelmaking center
– Montréal, Toronto, Vancouver: financial services,
commercial enterprises
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GNI ≈ EU members, but not equals with US
NAFTA: increased US investment
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The North American economic
integration: NAFTA
Canada and USA: significant and
multifaceted economic systems
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Per capita GDP (ppp) (2011)
– USA $47,200 (largest economy in the world) > Canada $39,400
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Similar sectoral composition of GDP
– Services: USA 76.7% < Canada 78%
– Industry: USA 22.2% > Canada 20%
– Agriculture: USA 1,2% < Canada 2 %
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Similar economic trends
USA: technologically the most developed economy
Canada: significant growth in services, mining and
manufacturing sectors
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NAFTA
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Earlier: Canada and USA already conducted the largest
bilateral trade relationship in the world
– Canada–USA trade relations already allowed trade without taxes
and tariffs
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North American Free Trade Agreement (NAFTA):
Canada, USA and Mexico
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NAFTA allowed Mexico to experience a similar duty free trade
Its implementation: 1994
North American economy could be defined in its economic areas
One of the four largest trade blocs in the world
Allowed for strong economic cooperation
Hopes of eliminating barriers of trade and foreign investment
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between the three member countries
NAFTA
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Trade volume steadily increased annually
– Trade between the 3 NAFTA states reached an all-time historical
increase of 24.3% or USD $791 billion
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The NAFTA trade bloc GDP (PPP): $17.617 USD trillions
(WR1)
– This is in part attributed to the fact: GDP of USA $14.7 trillion
(WR1)
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The countries of NAFTA: also some of each other's
largest trade partners
– USA: largest trade partner of Canada and Mexico
– Canada and Mexico: each other's third largest trade partners
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Advantages and disadvantages of
NAFTA
Supporters of NAFTA
New markets for the 3 countries
Critics of NAFTA
New markets primarily for Mex and
Can
Mexican cheaper goods force down Low labour costs  USA and Can
the prices of USA and Can goods  companies move to Mex  higher
consumers win
unemployment in USA and Can
Stronger global economic weight in More significant economic disparity
competition with the EU and others between USA, Can and Mex
Democracy and political stability in Higher economic disparity within
Mex  greater stability in N America Mex  political instability in Mex
Jobs in (mainly North) Mex  higher Can and Mex: USA culture
living standards, employment rates overpowers, SW USA: increased
use of Spanish language tensions
Environmental agreements 
USA factories relocate to Mex 
healthier environment in Mex
polluted areas in Mex
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Equal treatment of corporations
Too powerful US corporations
Participation of USA in intercontinental trade blocs
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Trade agreements
– Transatlantic Free Trade Area: with EU
– US – Middle East Free Trade Area: with numerous
Middle Eastern countries
– Trans-Pacific Strategic Economic Partnership: with
Southeast Asian nations, Australia and New Zealand
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North American
metropolization
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Population change of Chicago,
1831–1930
4000000
3500000
residents
fő
3000000
2500000
2000000
1500000
1000000
500000
0
1820
1840
1860
1880
1900
1920
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1940
N-Am: cities on peripheries, EU: in the centre
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Urban – rural duality
Share of cities
country
population
GDP
USA (SMA)
38%
49%
Canada (CMA)
45%
54%
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New York –
Manhattan
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1.5 mn citizens, but 1.8 mn workplaces
Skyscrapers:
– Empire State Building (381 m, World Record from 1931)
– World Trade Center (412 m, till 2001)
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Polarization in incomes
– Average is 2x higher than national average
– 1/5 of population is under poverty rate (slums, criminality)
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Mixed population (melting pot):
– 30% Spanish-speaking (Puerto Rico), 27% Afroamerican, 10%
Asian
– Jewish (mostly from East Europe, 2nd largest community after
Israel)
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– Segregation: Little Italy, Chinatown
Toronto
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On the bank of the Lake Ontario (seat of Ontario state)
19th century: „Canadian Chicago”: starting point of
industrial diffusion + economic centre
5 mn (largest Canadian city)
– One of the most multicultural cities of the world (100 ethnics)
– Best place for living in the world (Economist, 1994)
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Leading metropolis of industrial, commercial and
financial life
– Industries: metallurgy (agricultural machines, airplanes,
electronic equipments, heating elements for nuclear plants),
chemical firms, automotive industry)
– First electronic managed stock exchange (Bay Street)
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Landscape: CN Tower (553 m)
Urban Landscapes based on
studies of Chicago (1900 to
1950)
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Concentric zone model of
Burgess & Park (1922–
1925)
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„L” tracks
Concentric zones of urban land use
1. CBD (Central Business District): Loop tracks of elevated
railroads, skyscrapers, turism
2. Wholesale, light manufacturing: zone in transition (mid
19th cent., strong ageing, inner industrial, outer
residential zone‚ Ghetto’ ≠ residental clusters of African
Americans)
3. Lower-class residential: zone of industrial workingmen’s
homes (late 19th cent., tenement houses with 2 flats)
4. Middle- and higher-class residential: apartment houses
(middle) and single family dwellings (high)
5. Residential suburbs: commuters zone
6. Agricultural zone: supplier belt
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7. Gravitation zone: hinterland of metropolis
Sector model of Hoyt
(1939)
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Location of the high-rent residental areas
– Based on the model of Burgess
– For 64 American cities, 3 dates
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Results
– Sectors instead of/besides concentric circles
– Impact of railroads and highways on the location of
different land uses
– Sectors are separated from each other by the avenues
– Sectors are moving towards the edge of the cities on
a long run (suburbanization)
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Urban districts/sectors:
1.
2.
3.
4.
5.
CBD
Wholesale, light manufacturing (industry)
Lower-class residential
Middle-class residential
Higher-class residential
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Multiple nuclei model of Harris &
Ullman (1945)
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Policentric: outer centres besides the
CBD
– Single center + commercial and
manufacturing districts not in close
proximity to it
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Parts of cities:
1.
2.
3.
4.
5.
6.
7.
8.
9.
CBD
Wholesale, light manufacturing (industry)
Lower-class residential
Middle-class residential
Higher-class residential
Heavy manufacturing
Outlying business district
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Residential suburbs
Industrial suburbs