Chapter 11: Industry

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Chapter 11 Industry

• By Andrea Yazbeck

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Key Issue 1 Where Did Industry Originate?

• Industry the manufacturing of goods in a factory
• When it began in the U.K. in the 1700s it began a
  process of change called the Industrial
  Revolution.
• The root of the Industrial Revolution was
  technology, that changed how goods were
  manufactured.
• Before the Industrial Revolution people were
  involved in home based manufacturing called the
  cottage industry system.
• As the I.R. grew more important inventions were
  created such as the Steam Engine (James Watt,
  1769)

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Key Issue 1 Where Did Industry Originate?
(continued)

• Diffusion From Iron Industry
• -Benefitted from invention of steam engine, it
  provided a practical way to keep ovens (used to
  make iron) stay constantly heated.
• -Iron then promoted the coal industry and then
  the engineering profession and that promoted
  transportation.
• -William Hedley demonstrated in 1812 that the
  steam locomotive could run on rails if the wheels
  had rims.
• Diffusion From Textile Industry
• -Richard Arkwright improved the process of
  spinning yarn
• -Like iron, transformed from home based
  enterprises
• -Because the cotton cloth had to be bleached and
  dyed before it was made in to clothing the
  chemical industry grew. The chemical industry
  then helped promote food processing. Because
  workers who could not grow food or obtain fresh
  produce required preserved food.
• Diffusion from United Kingdom
• -UK produced more then half the worlds cotton
  fabric and iron and mined 2/3 of its coal. Their
  production systems far outpaced the rest of the
  world. Then the IR diffused east word through
  Europe and westward across the ocean to North
  America.

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Key Issue 2 Where Is Industry Distributed?

• Four Regions Eastern North America, Northwestern
  Europe, Eastern Europe, and East Asia.
• North America Compromises 5 of land area of
  these countries (U.S. Canada) but contains 1/3 of
  the population and 2/3 of the manufacturing
  output. Industrialized areas are New England,
  Middle Atlantic, Mohawk Valley, Pittsburgh-Lake
  Erie, Western Great Lakes, St. Lawrence
  Valley-Ontario Peninsula
• Europe West industrialized areas are Rhine-Ruhr
  Valley, Mid-Rhine, UK and Northern Italy. East
  areas are Central, St. Petersburg, Eastern
  Ukraine, The Volga, The Ural, Kuznetsk Industrial
  districts and Silesia.
• East Asia Most heterogeneous industrial region.
  Japan is one of the worlds wealthiest countries
  and china the most populous country.

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Key Issue 3 Why Do Industries Have Different
Distributions?

• Situation Factors involve transporting materials
  to and from a factory. Firm wants to minimize
  cost.
• Location near Inputs- If the weight and bulk of
  any one input is particularly great , the firm
  may locate near the source of that input to
  reduce transportation costs. Some examples are
  the copper and steel industries. They are
  bulk-reducing industries. Which is an economic
  activity in which the final product weighs less
  than its inputs.
• Location near Markets- The cost of transporting
  goods to consumers is a critical location factor
  for three types of industries bulk-gaining,
  single-market, and perishable.

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Key Issue 3 Situation Factors

• -A bulk-gaining industry makes something that
  gains volume or weight during production (soft
  drink bottling)
• -Single Market Manufacturers make products sold
  primarily in one location, so they cluster near
  their markets. (New York clothing stores)
• -Perishable products need to be delivered to
  consumers as rapidly as possible so they must be
  located near their markets. (dairy products)
• One last thing that companies have to decide is
  how they are going to transport their goods. They
  have to decide if it would be cheaper to ship
  something by rail, ship, air or truck. They also
  need to have a good break-of-bulk point, which is
  a location where transfer among transportation
  modes is possible and preferably inexpensive.

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Key Issue 3 Why Do Industries Have Different
Distributions? (continued)

• Site Factors result from unique characteristics
  of a location. Land, labor and capital are
  factors that create a unique location.
• Land-Modern factories are more likely to be in
  suburban or rural areas because of the large
  amount of space. Also because the land would be
  cheaper.
• Labor- A labor-intensive industry is one in which
  labor cost is a high percentage of expense. For
  instance textile industries are examples of labor
  intensive industries the require less skilled,
  low-cost workers. Skilled workers are more likely
  to live in MDCs because of better education.
  While LDCs will tend to have less skilled workers
  because of cheap labor costs.
• -Fordist Production worker is assigned one
  specific task to perform repeatedly.
• -Post Fordist Production flexible work rules,
  Such as assigning a team of workers to perform a
  variety of tasks

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Key Issue 3 Site Factors

• Capital-manufacturers need to borrow money to
  establish new factories and expand existing ones.
• - For example the motor vehicle industry started
  in Michigan due to that fact that there were many
  banks willing to loan money.
• - In Silicon Valley, California there were many
  banks willing to loan to technology companies and
  communication firms.

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Key Issue 4 Why Do Industries Face Problems?

• Industrial Problems From A Global Perspective
• -Most basic problem on a global scale is a gap
  between the world demand for products and the
  world capacity to supply them.
• -And a higher industrial capacity has resulted
  in the desire by individual countries to maintain
  their production despite a global overcapacity.

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Key Issue 4 Why Do Industries Face Problems?
(continued)

• Industrial Problems in MDCs
• -Trading Blocs are groups of countries that
  cooperate trade. The three most important are the
  Western Hemisphere, Western Europe and East Asia.
  The problem with trading blocs is they sometime
  cause competition between countries and some
  trading blocs make trade barriers to restrict
  other regions from competing effectively. Another
  problem within trading blocs is in some regions
  industries are concentrated and sparse elsewhere.

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Key Issue 4 Why Do Industries Face Problems?
(continued)

• Industrial Problems in LDCs
• -Older problems in include distance from markets
  and inadequate modes of transportation,
  communication and equipment, tools and machines.
  Also a lack of trained employees.
• -Newer problems include a lack of raw material
  access and site factors. Transnational
  corporations use the New international division
  of labor which is the transfer of some types of
  jobs ,especially those requiring low paid, less
  skilled workers, from more developed countries to
  less developed countries

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The End!!!!!!! ?