Transcript Day 1 IRandWeberx

INDUSTRIALIZATION
Wednesday, December 14
Wednesday, December 14
Directions: Take just a few minutes to review your
agriculture notes. In 5 minutes, we will quiz on Unit
6 and move on!
What geographic factors
contribute to the
economic success of a
particular area?
INDUSTRIAL REVOLUTION
BEFORE
AFTER
Industrial Revolution


When and where did the
industrial revolution begin?
Why Great Britain?
 Flow
of capital
 Second agricultural
revolution
 Mercantilism and cottage
industries
 Resources: coal, iron ore, and
water power
Diffusion, Europe
Least Cost Theory



Alfred Weber (1868-1958)
Theory: industry is located where
it can minimize its costs, and
therefore maximize its profits.
Weber’s
cost
theory
“Whatleast
is the
best
(most
accounted for the location of a
profitable) plant
location
for of the
manufacturing
in terms
manufacturing
plants?”three
owner’s
desire to minimize
categories of cost:
 Transportation
 Labor
 Agglomeration
Bulk…
Bulk Reducing





Inputs weighs more that
final product.
Weight is lost during the
production process
Cost of shipping inputs to
factory > cost of shipping
outputs to market.
Therefore, factory is
located near raw
materials/ inputs.
Examples: copper, lumber
Bulk Gaining





Finished product weighs
more than the inputs.
Weight is gained during
the production process.
Cost of shipping outputs to
market > cost of shipping
inputs to factory.
Therefore, factory is
located near the market.
Examples: Automobiles,
beverages
Bulk Reducing
Heavier input, shorter
distance to plant
• Input
Factory
Lighter output, longer
distance to market.
• Input
Factory
Market
Market
Lighter input, longer distance to plant.
Bulk Gaining
Heavier output,
shorter distance to market
Bulk gaining or
bulk
producing?
Agglomeration, Chicago East Side
A process involving the clustering or concentrating of people or activities. Often refers
to manufacturing plants & businesses that benefit from close proximity because they
share many features.
Warehouses
Assembly
Plant
Ford Offices
Auto Parts
Manufacturers
Weber
Hotelling
Losch
Suppose
that twoLocation
owners
ofindustry
refreshment
George
Manufacturing
plants will
of an
cannot stands,
Manufacturing
plants choose
locate where
costs
are theare trying
be understood
without
and
Henry,
to decide
where tolocations
locate where
alongthey
a can
least (least cost
theory)of beach.
reference
to other
industries
maximize
stretch
Suppose
further
that there
areprofit.
100
of the same kind.
customers
located at even intervals along Where
this beach,
andoutpace
Name: Least
Cost Theory
income will
(1909)
Locational
costs. vendor.
that a customerName:
will buy
only from the closest
Finally, assumeInterdependence
that the beach is short enough so that
-Weight-losing case: (bulk
Name: Zone of Profitability
sales are independent
ofexample
where the vendors locate.
reducing) iftotal
the finished
Beach/ice-cream
product costs less to
transport, the firm will be
located closer to the raw
materials to reduce cost.
-Weight-gaining case (bulk
gaining) if the finished
product costs more to
transport, the firm will be
located closer to the market to
reduce cost.
4 Primary Industrial Regions
History of Development
Geographic areas that dominate
in region
Region
Time Period
WW Influences
Impacts (why stand out)
Status Today
4 Primary Industrial Regions

Western & Central Europe

North America

The Former Soviet Union

Eastern Asia