Transcript File - AP HUMAN GEOGRAPHY

Economic and Industrial
Geography Terms
2016
Vazquez
Agglomeration
When a substantial number of enterprises
cluster in the same area, as in a large
industrial city, they can provide assistance
to each other through shared talents,
services and facilities
Ex. Silicon Valley, Dolphin mall
Assembly Line/Fordism
1) the system of mass production that was
pioneered in the early 20th century by the
Ford Motor Company or
(2) the typical postwar mode of economic
growth and its associated political and
social order in advanced capitalism.
Bid Rent Theory
a geographical theory that
refers to how the price
and demand on land
changes as the distance
towards the CBD (Central
Business District)
increases.
Closer to CBD more
expensive!!!
Break of Bulk Point
The location (usually a port) where a
shipment is divided into parts. This usually
(such as at the port) happens where a
transfer of the shipment between transport
modes occurs, such as between water and
land at a port.
Port of Hong Kong busiest in the world
Port of Shanghai most containers
Port of South Louisiana-break of bulk
Commodity Chain
A series of links connecting many places
of production and distribution and resulting
in a commodity that is then exchanged on
the world market.
Iphone, Nike
Comparative Advantage
Principle whereby places and regions
specialize in activities for which they have
the greatest advantage in productivity
relative to other regions----or for which
they have the least disadvantage.
(the ability to sell goods and services at a
lower price than its competitors and realize
stronger sales margins.)
Deglomeration
The process of industrial deconcentration
in response to technological advances
and/or increasing costs due to congestion
and competition
Deindustrialization
a relative decline in industrial employment
in core regions
Detroit
Economic Sectors
Primary
Secondary
Tertiary
Quaternary
Quinary
Economies of Scale
Savings that accrue from large-scale
production when the unit cost of
manufacturing decreases as the level of
operation enlarges.
Bulk buying, assembly lines
Ecotourism
Aims to inform about the natural
environment
Hotels like El Valle de Anton, Panama who
hires local guides and donates a portion of
the hotel’s profit to local and international
birding clubs.
Entrepot
A place, usually a port city where goods
are imported, stored, and transshipped; a
break of bulk point. Re-exporting center.
Singapore
Export Processing Zone
Small areas within which especially favorable
investment and trading conditions are created
by governments in order to attract export
oriented industries
In CHINA:
Tianjin Free-Trade Zone
Shanghai Free-Trade Zone
Fujian Free-Trade Zone
Guangdong Free-Trade Zone
Export Oriented
trade and economic policy aiming to
speed-up the industrialization process of a
country through exporting goods for which
the nation has a comparative advantage
(As seen in the East Asian NICs or “Asian
Tigers”).
Fixed Costs
Fixed costs are expenses whose total
does not change in proportion to the
activity of a business, within the relevant
time period or scale of production.



Rent
Utilities
Payroll
Footloose Industry
an industry whose production costs are
unaffected by location many modern
industries have components which are
much easier to transport, giving them
much more choice of location
Amazon sellers
Post fordist
Flexible set of production practices in
which goods are not mass produced,
instead production has been accelerated
and dispersed around the globe by MNC.
Globalization has permitted the
exploitation of global comparative
advantages in terms of labor and
resources (outsourcing and offshoring),
Four Tigers
These countries and territories were noted
for maintaining high growth rates and rapid
industrialization between the early 1960s
and 1990s
Taiwan. Hong Kong, Singapore, South
Korea
Industrial Revolution 1800’s
A series of improvements in industrial
technology that transformed the process of
manufacturing goods
1. Steam engine
2. Electricity and oil
UK diffuses to the rest of Europe
Infrastructure
The foundations of society:






Urban centers
Transport networks
Communications
Energy systems
Educational facilities
Farms, factories, mines
International Division of Labor
The specialization by countries in
particular products for export
New International Division of
Labor
global division of labor associated with the
growth of transnational corporations and
the deindustrialization of the advanced
economies
maquiladora
Factories built by US companies in Mexico
near the US border to take advantage of
much lower labor costs in Mexico
Imported components or raw materials are
assembled and then finished products are
exported
An example of an export processing zone
Multiplier effect
Expansion of economic activity caused by
the growth or introduction of another
activity
NAFTA
North American Free Trade Agreement
1994
Created a free trade area between US,
Mexico and Canada
Provides for tariff free movement of goods,
products, financial services,
telecommunications, investment and
patent protection
outsourcing
The process of transfering a function or
service to a third party
Generally takes advantage of low wages
in semi-peripheral or periphery countries
Just in time delivery
first developed in Japan in the 1970s, the
idea of just-in-time (JIT) marked a radical
new approach to the manufacturing
process. It cut waste by supplying parts
only as and when the process required
them.
POST-INDUSTRIAL
​belonging or ​relating to an ​economy that is
no ​longer ​based on ​heavy ​industry, such
as the making of ​large ​machines:
Service ​industries such as ​tourism
have ​become more ​important in the postindustrial ​age.
Self Sufficiency Model
China, India and most African and Eastern
European countries adopted this strategy
at one time.
The idea is to protect local, fledgling
businesses from large, international
competition. This also helps to make your
country independent of the MDCs and not
at the whim of TNCs.
offshoring
- specifically refers to moving production
overseas (e.g., China)).
Special economic zones
SEZ’s
A specific area within a country in which
tax incentives and less stringent
environmental regulations are
implemented to attract foreign businesses
and investment
a geographical region that has economic
laws that are more liberal than a country's
typical economic laws
Special economic zones (China)
any of several localities in which foreign and
domestic trade and investment are conducted
without the authorization of the Chinese
central government in Beijing. Special
economic zones are intended to function as
zones of rapid economic growth by using tax
and business incentives to attract foreign
investment and technology.
The first four special economic zones were
created in 1980 Shenzhen, Zhuhai, and
Shantou in Guangdong province and Xiamen
Substitution Principle
economic policy adopted in most
developing countries from the 1930s to the
1980s to promote industrialization by
protecting domestic producers from the
competition of imports. Protection—in the
form of high tariffs or the restriction of
imports through quotas—was applied.
Technopole
Center of high tech manufacturing and
information based industry.
High tech Corridor
Areas along major transportation arteries
that are devoted to research, development
and sale of high technology products.
Synergistic advantages of agglomeration.
Silicon Valley, CA
Research Triangle - North Carolina
Route 128 – Massachusetts
Silicon Alley-New York (Chelsea NY
google headquarters)
Time Space Compression
The reduction in the time it takes to diffuse
something to a distant place as a result of
improved communications and
transportation systems.
Examples:
Distant places brought to homes by
television and internet
Trips are faster bc/airplanes
Transnational Corporation
Companies that operate in several
countries are called multinational
corporations (MNCs) or transnational
corporations (TNCs). The US fast-food
chain McDonald's is a large MNC - it has
nearly 30,000 restaurants in 119 countries.
Ubiquitous
Found everywhere
In industry these are hotels, restaurants,
schools, recreration
Vertical Integration
the merging together of two businesses
that are at different stages of production—
for example, a food manufacturer and a
chain of supermarkets. Merging in this way
with something further on in the production
process (and thus closer to the final
consumer) is known as forward
integration.
Dell’s Vertical Integration
Dell combined the traditional vertical
integration of the supply chain with the
special characteristics of the virtual
organisation to create something that he
called “virtual integration”. Dell assembles
computers from other firms' parts, but it has
relationships with those firms that are more
binding than the traditional links between
buyer and supplier. exchanges of
information and a variety of loose
associations it achieves much the same
Horizontal Integration
When a company increasing production of
goods or services at the same part of the
supply chain. A company may do this via
internal expansion, acquisition or merger.
The process can lead to monopoly if a
company captures the vast majority of the
market for that good or service.
Standard Oil
Least-Cost Location
Model developed by Weber according to
which the location of manufacturing
establishments is determined by the
minimalization of three critical expenses



1)agglomeration
2)transportation
3)labor costs
Resource orientation
If the weight and bulk of any one input is
particularly great, the firm may locate near
the source of that input to minimize
transportation costs

Bulk reducing industries
Copper
Steel
World Bank
international financial institution that
provides loans to developing countries for
capital programs. It comprises two
institutions: the International Bank for
Reconstruction and Development (IBRD),
and the International Development
Association (IDA). The World Bank is a
component of the World Bank Group,
which is part of the United Nations system.
HQ: DC
Agricultural labor force
% of people employed in agriculture
High % of people employed in agriculture
associated with low per capita income and
low energy consumption and
underdevelopment
Core-periphery model
As general prosperity grows worldwide, the
majority of that growth is enjoyed by a 'core'
region of wealthy countries despite being
severely outnumbered in population by those in
a 'periphery' that are ignored.
There are many barriers, physical and political,
that prevent the poorer citizens of the world
from participating in global relations. The
disparity of wealth between core and periphery
countries is staggering, with 15% of the global
population enjoying 75% of the world's annual
Core-Periphery in Conflict
There are a number of locations that represent
the physical separation
The growing fence between the U.S. (core)
and Mexico (periphery) to prevent the entrance
of unauthorized immigrants.
The Demilitarized Zone between North and
South Korea.
Air and naval patrols on the waters between
Australia and Southeast Asia and between the
EU and North Africa to keep out unwanted
immigrants.
Calorie consumption
Requirements vary according to
occupation, age, sex, size and climate
conditions
Used to assess the degree of
undernourishment of a country’s
population
Dependency Theory
(structuralist) states that political & economic
relationships b/w countries & regions control
& limit the developmental possibilities of less
well-off areas (e.g., imperialism caused
colonies to be dependent – this helps sustain
the prosperity of dominant areas & poverty of
other regions); only at later stages of
development does the core have a positive
impact on the periphery (grants, loans,
specialized economic zones,…).
GNP
The value of the goods and services
produced by a country’s economy within a
given year. Includes goods and services
produced by corporations and individuals
of a country, whether or not they are
located within the country
GNI (formerly GNP)
is the total income of all citizens of a
country including income generated from
investment and earning overseas. This is a
valuable indicator of the economic
strength of a country.
The income per capita can also be
calculated by dividing a country’s GNI by
its population.
Human Development Index
a composite index that measures a country’s
average achievements in three
aspects of human development: life expectancy
at birth, education (combination of mean years
of schooling and expected years of schooling)
and the GNI per capita. In 2012, Norway (.93)
was the highest ranked HDI country in
the world followed by Australia, while the
Democratic Republic of Congo and Niger had
the equal lowest. (.34)
Development
A process of improvement in the material
conditions of people through diffusion of
knowledge and technology.
Measured by: development in economic
welfare, development in technology and
production, and development in social
welfare
GNP, GDP, GNI
Dependency ratio
GDP
GDP: Gross Domestic Product is the total
value of the goods and services produced
in a country over one year.
♦ GDP per capita: Gross Domestic
Product can be converted into GDP per
capita. The total GDP for a country is
calculated and divided by the country’s
total population to determine the per capita
amount.
♦
Measures of Development
Human development index
Gender related development index
Gender empowerment measure
Neocolonialism
Economic and political strategies by which
powerful core states indirectly maintain or
extend influence over other areas or
people
Physical Quality of Life Index
an attempt to measure the quality of life or
well-being of a country. The value is a
single number derived from basic literacy
rate, infant mortality, and life expectancy
at age one, all equally weighted on a 0 to
100 scale .
Purchasing Power Parity
A monetary measurement taking into
account what money actually buys in a
country.
W.W. Rostow
Developed the five stages of growth
Liberal Models: assume all countries are
capable of developing economically in the
same way, and 2) disparities b/w countries
& regions are the result of short-term
inefficiencies in local or regional markets.
Stages of Growth Model
Walter Rostow's Modernization Model
(1960s) stated countries develop through
five stages:
Stage 1: Traditional
Stage 2: Preconditions for takeoff
Stage 3: Takeoff
Stage 4: Drive to Maturity
Stage 5: Age of Mass Consumption
Technology Gap
The contrast between the technology
available in the core and present in the
periphery
Technology Transfer
The diffusion or acquisition by one culture
or region of the technology possessed by
another
Third World
can be used to divide the nations of Earth
into one of three broad categories
the Third World became a synonym for
those nations that aligned themselves with
neither the West nor with the Soviet Bloc
during the Cold War.
World Systems Theory
Immanuel Wallerstein
One of many theories that treat the global
economy as a large system
Agglomeration Economies
agglomeration economies refers to
savings or benefits derived from the
clustering of activities
Growth Poles
Economic activities that are deliberately
organized around one or more high-growth
industries
Industries designed to stimulate growth
through the establishment of various
supporting industries
Industrial Location Theory
Attempts to explain the locational pattern
of an economic activity in terms of the
factors that influence this pattern
Industrial Regions
Western and Central Europe
Eastern North America
Russia and Ukraine
Eastern Asia
Labor-Intensive
An industry for which labor costs comprise
a high percentage of total expenses
Substitution principle
From Weber, when one cost decreases a
firm can endure higher costs in another
area
Threshold/range
Range is the maximum distance people
are willing to travel to use a service
Threshold is the minimum number of
people needed to support the service
World cities
Most closely integrated into the global
economic system because they are at the
center of the flow of information and
capital



London
New York
Tokyo