Unit 6

1. Industrial and Economic Development Unit 6

2. Industrial and Economic Development Unit 6

3. Economic Classification • Production / Consumption / Distribution • Sectors • Primary • Secondary • Tertiary • Quaternary

4. Economic Sectors • Primary • Raw Materials • Secondary • Processing

5. Economic Activities • Tertiary • Moving / Selling / Trading • Services • Quaternary • Information • Intellectual Activities • Quinary • High Level Decision Making

6. Industrial and Economic Development Unit 6

7. Industrial and Economic Development Unit 6

8. Industrialization • Industrialization • Manufacturing • Machines • Decline in primary activities • Move from rural to urban

9. Quiz Ferret! !

10. Quiz Ferret! Industry is a part of which economic sector?

11. Quiz Ferret! Secondary!

12. Industrial Revolution • 1760’s • Machine Power • Fueled by engines • Steam • Coal and water • Textile Production

13. Industrial Revolution • Factories • Moving Water • Coal allows movement • Infrastructure • Trains / Rails • Canals • Transportation of goods

14. Assembly Line Production • 1920’s • Henry Ford • Assembly Line Production • Interchangeable parts • Mass Production • Division of Labor • Cheaper labor

15. New Industrial Concepts • International Division of Labor • Labor is divided geographically • This Core-Semi Periphery-Periphery • Each region provides a specific part of the labor process

16. New Industrial Concepts • Just in Time Production • Parts are made and delivered as they are needed • Products are made to order • Cuts down on storage and inventory • Cuts down production costs • Requires sophisticated communication and transportation infrastructure

17. Industrial and Economic Development Unit 6

18. Industrial and Economic Development Unit 6

19. Weber’s Least Cost Theory • Factory Location • Least Cost to the Factory / Company • Assumptions • Cost of Transportation • Weight • Distance • Maximize Profits • Minimize Cost

20. Weber’s Least Cost Theory • Assumptions • Markets are fixed (1 market) • Labor is fixed (fixed cost / fixed number) • Uniform Landscape • 4 Main Factors • Transportation • Labor • Agglomeration • Deglomeration

21. Weber’s Least Cost Theory • Transportation and Distance • Weight and Distance • Types of Distance • To raw materials • Distance to energy • Perishable

22. Weber’s Least Cost Theory • Transportation and Distance • Weight Losing vs Weight Gaining • Heavier to lighter vs Lighter to Heavier • Weight Losing • Heavier to Lighter • Raw Material • Weight Gaining • Lighter to Heavier • Market

23. Quiz Ferret! !

24. Quiz Ferret! What are the two parts of transportation cost Weber considers in his theory?

25. Quiz Ferret! Distance and weight!

26. Weber’s Least Cost Theory • Agglomeration • Several Industries come together • Can share cost of development • Can feed off of one another • High Tech Corridor • Silicon Valley • Movement of Skilled Labor • Backwash effect

27. Weber’s Least Cost Theory • Deglomeration • Too much competition • Not enough market share

28. Weber’s Least Cost Theory • Criticisms • Markets and Labor • Complications with transportation cost

29. Weber’s Least Cost Theory • Labor Cost • Wages and ……. • Machines and Labor • Labor vs Transportation • Substitution Principle

30. Weber’s Least Cost Theory • Footloose industries • Light Weight / High Value • Transportation cost is non factor • Materials or final product • Labor cost is main factor • Computers / electronic devices

31. Interdependence • Locational Interdependence • Hotelling’s Model • Harold Hotelling • Location due to competitors • Share markets • Maximize profits

32. Quiz Ferret! !

33. Quiz Ferret! Which type of industry is most likely to locate close to raw materials?

34. Quiz Ferret! Weight Losing!

35. Industrial and Economic Development Unit 6

36. Industrial and Economic Development Unit 6

37. Current Industrial Patterns • Develop faster / Richer? • Levels of Development • Development is defined as the process of improving the material condition of people through the growth and diffusion of technology and knowledge • Everywhere / some level of development

38. Current Industrial Patterns • Classification • MDC / LDC • Or Developed / Developing / Least Developed • Social / Demographic / Economic

39. HDI • Human Development Index • Compare Development • 4 Areas • Life Expectancy (Demographic / Health) • Avg Education (Social) • Expected Years of Schooling(Social) • GNI Per Captia(Economic)

40. HDI • Economic • GNI • Gross National Income • Domestic and foreign output claimed by a country’s residence • Income per person

41. HDI • PPP • Purchasing Power Parity • Relative Wealth • GNI Drawbacks • Not the whole picture • Informal Sector

42. HDI • Informal Sector • Meets Demand • Less Expensive

43. Quiz Ferret! !

44. Quiz Ferret! What is the purpose of the HDI?

45. Quiz Ferret! To give us a quantifiable measure of development for comparison!

46. HDI • Life Expectancy • Shows Demographic Development • Greater wealth • Greater access to health care • Greater education • Make educated decisions

47. HDI • Average Education • Social Development • Average time a person spends in school • Can vary by sex • Greater stability • More diversified economy • Greater wealth • Greater opportunities

48. HDI • Expected Years of Schooling • The number of years you can expect to be in school • Social Development • Greater access to education • Provides greater opportunities • Educational • Economic • Political

49. Industrial and Economic Development Unit 6

50. Industrial and Economic Development Unit 6