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    Economic Geography: Fiat Factory, Italy

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    Kerry Bernard Bacon
    This document provides an overview of economic geography and the key concepts within it. It discusses the three main economic sectors - primary, secondary, and tertiary - and how they differ between less developed, newly industrialized, and developed countries. Primary activities involve extracting natural resources, secondary activities are manufacturing and processing raw materials, and tertiary activities are services. It also covers principles of location for industries and services, new international divisions of labor, trading blocks, and how resources and technology affect development patterns.

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    Economic Geography: Fiat Factory, Italy

    Uploaded by

    Kerry Bernard Bacon
    50 views20 pages
    This document provides an overview of economic geography and the key concepts within it. It discusses the three main economic sectors - primary, secondary, and tertiary - and how they differ between less developed, newly industrialized, and developed countries. Primary activities involve extracting natural resources, secondary activities are manufacturing and processing raw materials, and tertiary activities are services. It also covers principles of location for industries and services, new international divisions of labor, trading blocks, and how resources and technology affect development patterns.

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    Economic Geography

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    This document provides an overview of economic geography and the key concepts within it. It discusses the three main economic sectors - primary, secondary, and tertiary - and how they differ between less developed, newly industrialized, and developed countries. Primary activities involve extracting natural resources, secondary activities are manufacturing and processing raw materials, and tertiary activities are services. It also covers principles of location for industries and services, new international divisions of labor, trading blocks, and how resources and technology affect development patterns.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    50 views20 pages

    Economic Geography: Fiat Factory, Italy

    Uploaded by

    Kerry Bernard Bacon
    This document provides an overview of economic geography and the key concepts within it. It discusses the three main economic sectors - primary, secondary, and tertiary - and how they differ between less developed, newly industrialized, and developed countries. Primary activities involve extracting natural resources, secondary activities are manufacturing and processing raw materials, and tertiary activities are services. It also covers principles of location for industries and services, new international divisions of labor, trading blocks, and how resources and technology affect development patterns.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 20

    Economic Geography

    Fiat Factory, Italy

    Chemist in Laboratory

    New York Stock Exchange

    Overview
    Economic Sectors Changes in the U.S. and Global Economy Trading Blocks Economic Location Theory

    Primary Activities
    Direct removal of natural resources such as mining, forestry, and agriculture most important in the LDCs.

    Subsistence Agriculture Fishing and Forestry Mining and Quarrying

    Primary Products
    The percentage of people working in agriculture exceeds 75% in many LDCs of Africa and Asia. In Anglo-America and Western Europe the figure is <5%

    Trade in Primary Products


    Importance to Developing Economies Danger of Commodity Trade Dependence

    Puerto Rico Coffee Plantation

    Secondary Activities: Manufacturing


    Secondary - Processing and transforming natural resources: steel, textiles, auto assembly. These used to be most important in MDCs, but increasingly important in the semiperiphery (Korea, Mexico, Brazil, Singapore)

    Tertiary and Beyond: Services


    Provision of services in exchange for payment. Includes retailing, banking, law, education, and government. Education, R & D, and information technology becoming most important in the postindustrial core regions. Less-developed countries often focus on tourism.
    Services historically were clustered into settlements. Increasingly the most important service centers are massive world cities.

    Tertiary and Beyond: Services


    Less-developed countries often focus on tourism.

    Vendors, Bali

    Club Med, The Bahamas

    Tertiary and Beyond: Services

    Resources and Technology


    Resources affect patterns of development: cultivable land, energy sources, minerals. But changes in technology affect the value of these resources. Also, trade or lack of it can offset lack of resources (Japan) or make them less relevant (Brazil). Technology Systems: roughly every 50 years since 1790 a new complex of technologies has revolutionized the world economic system and its structure. The most recent of these is the system which includes biotechnology, advanced materials (superconductors, solar power) and information technology.
    Which parts of the world benefited from the shift from coal to oil? Which suffered? Which parts of the world will benefit from the inevitable end of our reliance on petroleum and the necessary shift to wind, hydro, tide, or solar power ?

    New International Division of Labor


    Transnational Companies have been very aggressive in using low-cost labor in LDCs.

    Seek elimination of trade barriers (Tariffs) No minimum standards in place A rush to the bottom? Loss of U.S. jobs - a great sucking sound after NAFTA?

    New International Division of Labor

    Trading Blocks
    International agreements that eliminate barriers to trade within regions:

    North American Free Trade Agreement (NAFTA) European Union (EU) Oil Producing and Exporting Countries (OPEC)

    Trading Organizations
    International agreements that eliminate barriers to trade among members:

    World Trade Organization (WTO)

    Principals of Location
    Industrial Location: Site and Situation Factors

    Raw Materials Energy Labor Market Transport

    In order to succeed industries must have some comparative advantage in one or more of these factors. Moreover, demand must exist for the product.

    Industrial Location: Transport Characteristics (Bulk-Reducing)

    Secondary Activities: Manufacturing


    Industrial Location: Site and Situation Factors

    Transport Characteristics (Bulk-Gaining)

    Service Location Theory


    Convenience Store Locations

    Market Areas - circular or hexagonal area from which customers are drawn. Range - maximum distance people will go for a service Threshold - minimum # of consumers needed to support the service.

    Service Location Theory


    Grocery Store Locations

    Market Areas - circular or hexagonal area from which customers are drawn. Range - maximum distance people will go for a service Threshold - minimum # of consumers needed to support the service.

    Industrial Location: Site and Situation Factors

    Labor Supply versus Access to Markets


    The industrial centers of Japan, for example, depend on imported raw materials and access to markets via the Pacific.

    Woven Cotton Production

    East Asian Manufacturing Centers

    Why are so many wovens produced in the less developed world?

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