Industrialization and Economic Development - PowerPoint PPT Presentation

Loading...

PPT – Industrialization and Economic Development PowerPoint presentation | free to view - id: 251572-ZDc1Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Industrialization and Economic Development

Description:

... make a choice to do one thing, something else won't get done so you do the most ... In the modern economy, most people work in the service industry! ... – PowerPoint PPT presentation

Number of Views:175
Avg rating:3.0/5.0
Slides: 99
Provided by: kaysvillej
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Industrialization and Economic Development


1
Industrialization and Economic Development
2
What is economics?
  • Answers question of Who gets what?
  • Deals with issue of scarcity
  • ½ people in the world live on less than 2.00 a
    day, 20 of worlds population lives on less than
    1.00 a day
  • Economic geographers study locations and reason
    for economic patterns in worlds human landscape
  • Analyze patterns of economic wealth, poverty,
    growth and decline
  • Industrialization key component to understanding
    economic development level
  • Impact of industrialization on humans and
    environment

3
Basic Terms
  • Opportunity Cost when we make a choice to do one
    thing, something else wont get done so you do
    the most important thing
  • This is very subjective and we make the choice in
    accordance with expected costs and benefits
  • Scarcity resources are not unlimited so we
    develop a system to allocate all resources
  • Marginal additional costs and benefits
  • Example you need your car washed for 10 or it
    is 5 with 10 gallon gas purchase-you need gas so
    the marginal cost is 5.00
  • Market anywhere buyers (demand) and sellers
    (supply) meet
  • When exchanges are made under FREE CHOICE, they
    will benefit both parties
  • Externalities additional costs or benefits
    imposed upon a non-consenting 3rd party
  • Negative externalities costs imposed, spill over
    or third party effects
  • Example loud music, tobacco (health care) or
    pollution
  • Positive externalities benefits imposed
  • Examples mosquito spraying, vaccines, tobacco
    (never pull social security)

4
Economic Systems
  • Capitalism process of letting competitive market
    determine price of goods
  • Supply and demand
  • Some argue that the competition inevitably
    creates winners and losers and in a capitalistic
    society the losers are those in poverty
  • Socialism when the government controls basic
    items in an economy
  • Government control of food prices, transportation
    and energy prices to ensure that everyone can pay
    for essential services
  • Taxes usually higher to pay for services but
    services like health care are usually free or are
    offered at minimal cost
  • Communism total government control of all prices
    in society
  • Former USSR tried this approach with some success
    (in military sectors) but left people with
    limited services

5
(No Transcript)
6
Economic Classifications
  • Economy defined system of production,
    consumption and distribution
  • Primary Sector most basic components of economy
  • Activities revolve around getting raw materials
    from earth
  • Examples farming, fishing, raw mining
  • Secondary Sector processing raw materials
    acquired through primary activities into finished
    products of greater value
  • Activities revolve around factories and
    manufacturing
  • Examples baby food, cars
  • Tertiary Sector focuses on moving, selling and
    trading products made in primary and secondary
    levels
  • Activities involve professional and financial
    institutions and services
  • Examples carpet cleaning business, restaurant,
    banks, grocery stores
  • Quaternary Sector involves information creation
    and transfer
  • Activities assemble, distribute and process
    information
  • Examples research, universities or business
    operations
  • Subsector known as Quinary Economic Activities
    that involve highest level of decision making
    like legislature or presidential cabinet

7
People working in service sector
8
Industrialization
  • Defined growth of manufacturing activity in the
    economy or a region and usually occurs alongside
    a decrease in number of primary activities within
    a country
  • Industrial Revolution
  • Began in England in 1760s when machines replaced
    human labor and new sources of energy were
    tapped-primarily coal
  • Defined by assembly-line manufacturing that
    tended to be located near coal fields and water
    sources
  • Allowing with manufacturing, transportation and
    shipping infrastructure improved

9
Industrial Revolution, cont.
  • By 1960s oil replaced coal as dominant source of
    industrial energy
  • Before 1960s Russia, Venezuela and U.S were
    primary oil suppliers-after 1960s Middle East
    moved to leader in oil market
  • Diffusion of Industrialization
  • By 1825, Englands technology began spreading to
    North America and Western Europe
  • Areas with large coal deposits saw greatest
    amount of industrialization
  • Ohio and Pennsylvania in U.S., Ukraine in Russia
    and Ruhr region in Germany
  • By 1920s U.S. automobile factories changed method
    of assembly lines by building out not up allowing
    goods to move more easily around factory (Fordist
    or Ford Production Method)

10
(No Transcript)
11
(No Transcript)
12
(No Transcript)
13
Webers Least Cost Theory of Industrial Location
  • Answers questions like where will factories grow?
    What factors affect industrial location?
  • Alfred Weber studied locations of industrial
    activities in the early 20th century-predicted
    where industries would locate based on the paces
    that would be the lowest cost to them-hence the
    name, least cost theory

14
Webers Assumptions
  • The cost of transportation is determined by the
    weight of the goods being shipped and the
    distance to the market
  • The heavier the good and/or the farther the
    distance, the more expensive it is to ship
  • Industries are competitive and aim to minimize
    their costs and maximize their profits
  • Markets are fixed location
  • Labor exists only in certain places and is not
    mobile
  • Physical geography (land quality) and
    political-cultural landscape are uniform across
    the models space (no mountains, lakes or rivers
    would get in way of transportation)
  • Location of industry is driven by four factors
    transportation, labor, agglomeration and
    deglomeration

15
Transportation and Distance
  • Industries want to locate where transportation
    costs are minimized and must consider two factors
  • Distance to market and weight of goods
  • Early factories located near energy resources but
    electricity enable factories to locate far from
    energy sources without incurring high costs
  • Spatially variable costs costs that vary or
    change depending on the space in which it is
    located
  • Example companies using perishable raw materials
    may want to locate near perishables to limit loss
    and minimize transportation costs
  • Weight-losing processes manufacturing processes
    that create a product lighter and the raw
    materials going into it-example paper plant
  • Material orientation when weight losing
    industries locate near the raw resource supply
  • Weight-gaining processes take raw materials and
    create a heavier final product-example beverage
    companies
  • Market orientation when weight gaining
    industries locate near the place where heavier
    product will be sold to limit transportation
    costs
  • Spatially fixed costs when costs remain the same
    no matter where a company chooses to
    locate-example computer chips
  • Can also be known as Footloose industries because
    they are not bound to locational constraints

16
Other transportation issues
  • Time-space compression effort to increase
    efficiency of time in delivery process by
    diminishing distance obstacles
  • Most effective way to do this is with modern
    technologies
  • Truck very mobile and efficient but weather,
    slower traffic, use of fossil fuels and
    maintenance costs are all disadvantages
  • Trains most efficient and most cost-effective
    but cant cross oceans and have high start up
    costs
  • Airplanes fastest way to get products to market,
    can access isolated areas and have high
    flexibility in route but are most expensive and
    experience weather delays
  • Pipelines highly efficient but can only move
    liquid or gas and are very expensive to create
    and many fear spills harming the environment
  • Most famous in U.S. is Alaskan Pipeline
  • Ships most energy efficient transportation but
    are slowest, cant take perishable goods, have
    high terminal costs with port facilities and are
    weather dependent
  • Panama and Suez canal have increase efficiency of
    ships

17
(No Transcript)
18
Labor Costs
  • Can the factory owner hire the workforce needed
    for the factory?
  • Labor considerations include the availability of
    industrial capital (machinery and money to
    purchase the tools and workers the factory needs)
  • Industry may move to place with lower labor
    costs, even though transportation costs might
    increase-this decision is called substitution
    principle

19
(No Transcript)
20
Agglomeration
  • Defined advantages and savings made when
    industries clump together for mutual advantages
  • Example factories in the same area share costs
    associated with resources such as electoral
    lines, roads, pollution control, etc.
  • Agglomeration economy when agglomeration has
    positive effects for both the clustered
    industries and consumers of their products
  • Example high-tech corridor (place where
    technology and computer industries agglomerate)
    in Californias Silicon Valley-companies located
    here to benefit from shared resources like highly
    trained workforce, similar support businesses
  • Negative consequence of agglomeration is called
    backwash effect
  • Example out-migration of talented computer
    engineers and other skilled workers who migrated
    to Silicon Valley
  • Locational interdependence states that
    industries choose locations based on where their
    competitors are located to maximize their
    dominance in the market
  • Example large numbers of gas stations near a
    freeway exit

21
(No Transcript)
22
  • Agglomeration of major shopping areas

23
Deglomeration
  • Defined the unclumping of factories because of
    the negative effects of higher costs associated
    with industrial overcrowding
  • Happens when a region becomes too clustered or
    too crowded-can cause excessive pollution,
    traffic congestion, lack of resources and labor,
    etc
  • Criticism of Weber
  • Doesnt identify the fact that markets and labor
    are often mobile
  • Doesnt address labor variations in age, skill
    sets, gender, language and other traits
  • Doesnt address some transportation costs not
    being directly proportional to distance

24
Other things businesses look at
  • Situation relationship a location has with
    locations around it
  • Creates basic industries (focal point of a cities
    economy) and nonbasic industries (secondary
    businesses that sprout after the city has already
    established its basic industry)
  • Multiplier effect expansion of the economic base
    of a city as a result of nonbasic and basic
    activities located there
  • Industrial Cost costs of doing business
  • Fixed costs do not fluctuate based on quantity
    ordered
  • Variable costs fluctuate based on the volume of
    orders

25
(No Transcript)
26
Globalization
  • Spatial interaction has occurred throughout
    history at many different levels
  • Tribe to tribe village to village empire to
    empire
  • Globalization defined increasing sense of
    interconnectedness and spatial interaction among
    governments, cultures and economies
  • Example Starbucks or McDonalds
  • Many countries see this as the Americanization
    of world culture with some areas seeking to
    purify this new culture

27
(No Transcript)
28
(No Transcript)
29
Multinational Corporations
  • Defined businesses with headquarters in one
    country and production facilities in one or more
    other countries
  • Sometimes referred to as transnational
    corporations
  • Usually they are conglomerate corporations where
    one massive corporation owns and operates a
    collection of smaller companies that provide it
    with specific services in its production process
  • Example owning a bottling company and a
    food-coloring company
  • MNC can also include companies that own
    completely unrelated businesses
  • Example owning a movie studio, TV production and
    a bottling company
  • Usually locate headquarters in core countries and
    build production facilities in peripheral
    countries
  • Outsourcing practice of MNCs to relocate a piece
    (or all) of its manufacturing operations to
    factories in other countries
  • Companies outsource to take advantage of lower
    labor costs, lower tax rates and cheaper land
    prices in countries outside the United States
  • Remember the substitution principle?

30
(No Transcript)
31
(No Transcript)
32
What brings economic success?
  • Environmentally friendly activities really
    becoming more of an issue that in past
  • Political support local politicians zone areas
    allowing factories and businesses to be created
  • Societal acceptance companies must sell product
    people want that doesnt violate cultural
    standards
  • Economic support base worker training and
    experience

33
(No Transcript)
34
New Industrial Countries
  • New Industrial Countries (NIC) are states that
    have climbed the economic ladder and established
    and industrialized economy based on manufacturing
    and global trade
  • Traditional MNCs were found in U.S., Canada,
    Germany, U.K., France and Japan
  • Asian Tigers
  • Four countries that became NICs in late 20th
    Century
  • Taiwan, South Korea, Hong Kong and Singapore
  • These four countries with China make up the core
    of Asian economic growth
  • Also known as the Pacific Rim economic region

35
Other Global Industrial Zones
  • NE U.S. and SE Canada
  • Sub regions include New England, Mid-Atlantic,
    Eastern Great Lakes, Western Great Lakes and the
    South
  • Russia and Ukraine
  • Ukraine is agricultural, Russia is industrial on
    the European side
  • Central and Western Europe
  • Britain, Germany, France and Ireland
  • China
  • Beijing (majority of natural resources), Hong
    Kong (trading one of Asian Tigers) and Shanghai
    (largest city, Yangtze River, massive industrial
    parks)
  • Japan
  • Technological leader with highly educated work
    force

36
The Rust Belt
  • Greatest amount of industrial area in the United
    States
  • Has seen huge factories shut down within last two
    or three decades creating the name
  • Has created crumbling infrastructure and
    environmental problems

37
(No Transcript)
38
Russia and Ukraine
39
Chinas economic zones
40
(No Transcript)
41
Four Tigers
42
Foreign Direct Investment
  • Defined Less-developed countries actively
    solicited foreign corporations investment in
    their countries to improve economic development
  • Countries can provide Special Economic Zones
    regions offering special tax breaks, eased
    environmental restrictions and other incentives
    to attract businesses-China is great example
  • Export-processing zones regions that offer tax
    breaks and loosened labor restrictions to attract
    export-driven production processes like factories
    producing goods for foreign markets
  • Free-trade zones regions where duties and
    tariffs are waived by governments wanting to
    encourage MNCs to invest in their countries
  • In 1982, global total of foreign direct
    investment flows was nearly 57 billion. By
    2000, number had grown to 1.3 trillion (20 times
    larger than 1982)

43
(No Transcript)
44
Maquiladoras
  • Established in Mexico
  • Special economic zones on its northern boarder
    with the U.S. where MNCs can outsource labor to
    take advantage of labor costs in Mexico that are
    far below those required for U.S. workers to
    manufacture the same products-tax breaks also
    provided
  • Created program to create jobs for Mexican
    farmers no longer able to make a living
  • Today nearly 500,000 Mexicans work in
    maquiladoras creating overpopulation and
    pollution problems
  • Program supposed to be phased out as part of NAFTA

45
Maquiladoras and Economic Growth
46
International Division of Labor
  • Defined as the material production of a society
    in other words, what type of jobs to people have
    and what sector are they in
  • Happened with the rise of globalization and
    assembly-line concept developed during Industrial
    Revolution
  • Breaks up the manufacturing process by having
    various pieces in another country
  • In some cases, MNCs have a total yearly sales
    larger than the GNP of the countries they are in
  • Many MNCs have considerable power in
    less-developed countries because of economic
    importance

47
(No Transcript)
48
Free trade vs. Fair trade
  • Currently, there is a large debate over whether
    foreign direct investment is helping increase
    economic development or is causing exploitation
    by profit-driven MNCs
  • Many human right advocacy groups claim MNCs are
    not paying workers in the periphery a living wage
  • Free trade idea of allowing MNCs to outsource
    without any regulation except for basic forces of
    market capitalism
  • Critics argue free trade only protects interests
    of MNCs and does nothing to protect workers
    rights
  • Fair Trade idea of creating policies that favor
    oversight of foreign direct investment and
    outsourcing to ensure workers throughout the
    world are guaranteed a living wage for their work
  • Currently womens rights is big topic in this
    issue because many believe that women typically
    work in sweatshop-like conditions of outsourced
    factories

49
(No Transcript)
50
Privatization
  • Defined selling of publicly operated industries
    to market-driven corporations
  • Proposed as solution to increasing economic
    efficiency in less-developed countries
  • Problem is privatization can cause social
    hardship for families that once depended on
    government-owned and operated resources being
    sold off to profit-driven corporations
  • Many fear the movement of foreign companies into
    local economies threatens survival of local
    businesses driven out of the market by larger
    MNCs
  • Advocates of structural adjustment believe idea
    that long-term economic benefits to countries
    will outweigh the immediate and often difficult
    side effects of making the economic changes

51
Nongovernmental Organizations (NGOs)
  • Defined aid organizations that assist in
    boosting economic development and human rights
    throughout the worlds peripheral regions
  • Always non-profit
  • Many thousands exist around globe
  • Deal with myriad of causes like womens rights,
    health care, eradication of poverty, animal
    rights, education, etc.
  • Often supply resources and money to local
    businesses and causes advancing economic and
    human development
  • Have worked to combat HIV/AIDS and hunger
  • Examples Doctors without Borders or Save the
    Children

52
(No Transcript)
53
Sustainable Development
  • Defined rate of growth and resource consumption
    that can be maintained from one generation to
    another
  • Many feel with will protect future generations
    from us consuming all Earths resources
  • In 1992, UN Commission on Sustainable Development
    called for conservation and careful use of
    resources
  • Focused on caring for soil, protecting species
    from extinction and reducing air pollution
  • Recycling and alternative sources of fuel seen as
    important as well

54
(No Transcript)
55
Globalization and Sustainability
  • With increased industrialization and economic
    interaction, many wonder if this increased rate
    of production and development can be sustained
  • Fossil fuels and natural resources (including
    land) are being depleted
  • Travel availability are altering landscapes to
    fit what tourists want
  • Ecotourism tourist operations that aim to do as
    little harm to the environment as possible
  • Costa Rica is excellent example

56
(No Transcript)
57
(No Transcript)
58
Contemporary Patterns and Impacts of
Industrialization and Development
  • Development process of improving the material
    condition of people through the growth and
    diffusion of technology and knowledge
  • Different levels of development exist in
    different countries
  • Human development is continuous and unending but
    we classify areas to make it easier to understand
  • Developing countries wealthier side of
    development spectrum
  • Developed countries on the economically poorer
    side of the spectrum
  • Middle-income countries in the middle of the
    spectrum-has aspects of both developed and
    developing
  • Many factors influence the level of development!

59
UN Human Development Index
  • Defined uses a formula to measure development
    that can be used to compare the various
    development levels of regions and countries
  • Based on idea that development is a process of
    expanding choice
  • Factors three areas into measurement life
    expectancy, average educational levels and
    standard of living
  • Economic component of the HDI is GDP (gross
    domestic product)
  • GDP value of total outputs of goods and services
    produced in a country, usually over a one year
    period
  • Per-capita GDP is simply the GDP divided by the
    population
  • Developed countries have per-capita GDP greater
    than 20,000 developing countries have
    per-capita GDP less than 1,000
  • GNP value of all goods and services owned and
    produces by a country overseas

60
World Human Development Levels
61
Uses for the GDP
  • Gives PPP (purchasing power parity)-a measurement
    tool for calculating the exchange rates required
    for each currency to buy an equal amount of goods
  • Example GDP per capita in sub-Saharan African
    countries is at or below 750.00 but with the
    PPP, buying power is closer to 4,000.00.
  • Puts number comparisons into perspective
  • Doesnt reflect inequality among people in a
    country
  • HDI highest score is 1.000 with the lowest .000.
    In 2006 lowest country was Niger with score of
    .311, highest country was Norway with score of
    .965.
  • U.S. ranked 8th among 177 countries

62
GDP levels across the world
63
The Informal Sector
  • Many countries do not know and/or report data
    from their informal sector in GDP
  • Defined network of business transactions that
    are not reported, therefore, not included in the
    countrys GDP and official economic projections
  • Examples babysitting, street vendors, drug
    trafficking
  • In many less developed countries, this sector is
    prominent in overall economic activity
  • Why does the informal sector exist?
  • Good produces in informal sector may be meeting
    need the formal sector has ignored
  • Good produced here may be in high demand because
    they are inexpensive-the negative to this is
    people who work in this sector rarely make enough
    to meet basic needs
  • Often this sector involves illegal immigrants

64
(No Transcript)
65
(No Transcript)
66
(No Transcript)
67
(No Transcript)
68
Other indicators of development
  • Because of problems with GDP, we often use other
    measures to analyze economic development. These
    include
  • Access to raw materials
  • Amount of consumer goods
  • Amount of technology in the country/region
  • Number of TVs and radios per person
  • Womens rights and level of equality
  • Expendable income the amount of money left over
    after all bills have been paid
  • Big Mac Index compares price of Big Mac
    throughout the world
  • In Thailand, costs 1.78 where GNP per person is
    8,440
  • In United Sates, costs 3.22 where GNP per person
    is 42,000
  • This shows the Big Mac is an expensive meal in
    Thailand

69
The Development Gap
  • Defined the widening difference between
    development levels in more-and less- developed
    countries
  • More-developed countries are improving their
    development levels faster than less-developed
    countries with this difference widening
  • In last 10 years, GDP tripled in more-developed
    countries but only doubled in less-developed
    countries
  • Natural population increase fell by 85 in
    more-developed countries but only by 5 in
    less-developed countries
  • North-South Gap more-developed countries located
    in Northern Hemisphere and less-developed
    countries primarily located in Southern Hemisphere

70
(No Transcript)
71
Development Gap Countries
72
(No Transcript)
73
This map shows what happens to the world if you
remove the countries producing the bottoms 5 of
the worlds GDP. (realize this is ONLY 5 of the
worlds GDP!)
74
Structuralists vs. Liberal economic development
theories
  • Structuralist theories
  • Argue less developed countries are locked into
    vicious cycle of entrenched underdevelopment by
    global economic system that supports unequal
    structure
  • Dependency theory argues that political and
    economic relations among countries limit the
    ability of less-developed countries to modernize
    and develop
  • Uses Immanuel Wallerstiens world-systems analysis
    (we will learn more about this later) but
    basically states there are core, periphery and
    semi-periphery countries
  • Use Europes colonial occupation of Africa as
    reason for Africas poverty
  • Offers little hope for less-developed countries
    because the dominance of more-developed countries
    is highly linked to continued economic and
    political inferiority of less-developed countries
  • Major criticism is it doesnt allow for cultural
    geographic differences
  • Liberal Theories The Rostow Modernization Model
  • Claim that development is process through which
    all countries can move
  • Assumes all countries follow similar path of
    development toward becoming modernized
  • Similar to demographic transition model that
    predicts countries will move through stages of
    structural change to attain development
  • 5 total levels
  • More developed countries exist in stages 4-5
    while less-developed countries exist in stages
    1-3

75
(No Transcript)
76
Rostows Stages of Development
  • Stage 1 traditional where economic activities
    focus on subsistence with outcome of activity
    consumed primarily by those producing the
    product-sees large amount of national wealth
    allocated to tasks that are not economically
    productive like building temples or a military
  • Example subsistence agriculture
  • Stage 2 preconditions to take off where small
    groups of people initiate innovative economic
    activities that pave the way to economic
    development-these people invest in new
    technologies and infrastructure- causes some
    surpluses for trading
  • Example better water systems and modes of
    transportation
  • Stage 3 takeoff where small number of new
    industries that the elite invested in during
    stage 2 begin to show rapid economic
    growth-industrialization increases but some areas
    remain dominated by traditional activities like
    agriculture
  • Example Industrial Revolution
  • Stage 4 drive to maturity where diffusion of
    advanced technology moves beyond just the few
    initial industries-other industries experience
    rapid growth, workers become more skilled and
    specialized and the economy begins to diversify
  • Stage 5 high mass consumption where economy
    shifts from dominance of secondary manufacturing
    jobs to dominance of service-sector tertiary
    jobs- most incomes fairly high and people become
    mass consumers of produced goods

77
(No Transcript)
78
Criticisms of Rostow
  • Some feel the model isnt applicable to all
    countries because model is based on European and
    Anglo-American development patterns
  • Does not account for road blocks to development
    like postcolonial dependency on former colonizer
    that many countries experience while struggling
    to develop their economies
  • Considers each country an independent agent
    rather than one that interlocks with other
    countries

79
Reducing the Development Gap
  • There is much debate on how to reduce the
    development gap
  • Example of gap African womens chances of dying
    in childbirth is 1 in 16 while in the industrial
    world, chances are 1 in 2,800
  • Popular method developed in the 1900s is the
    self-sufficiency model
  • Defined as ability to provide for a countries own
    people, independent from foreign economies
  • Country should spread its investments and
    development equally across all sectors of its
    economy and regions
  • Rural areas develop along with urban areas
  • Poverty reduced across the entire country
  • Favors closed economic state
  • Imports are limited and heavily taxes so local
    businesses can flourish without competing with
    foreign countries
  • China, India, eastern Europe and Africa are using
    this approach to improve development in their
    regions
  • This system can and does create corruption and
    inefficiency limited develop
  • Example Indian government paid failing
    businesses to stay open and continue rather than
    face competition that could improve product and
    by extension, business success

80
Reducing the Development Gap with International
Trade
  • This approach encourages international trade
  • Pushes a country to identify its strengths in the
    world then channel investment toward those
    strengths
  • Argues that to compete internationally, a country
    must find out what it can offer the world and
    then capitalize on that good or service
  • Argue that eventually a country will develop a
    comparative advantage (when the country is better
    at producing a particular good or offering some
    service than another country) over the rest of
    the world in producing that good or service
  • This comparative advantage can fill the markets
    need for a good or service at a lower production
    cost than other places can
  • Example Japan invested money and power into
    developing a comparative advantage in
    high-technology products

81
Eastern Europe
82
Western Europe
83
America
84
South America
85
Australia
86
India
87
Nepal
88
Mongolia
89
Africa
90
What does this population pyramid suggest about
the future for developing nations?
91
(No Transcript)
92
Services
  • Defined as any activity that fulfills a human
    want or need and returns money to those who
    provide it
  • In the modern economy, most people work in the
    service industry!
  • Where services are located and why they grow
    where they do is a major part of geography

93
Types of Services
  • Consumer Services provides services to
    individual consumers who desire and can pay for
    them
  • Retail Services about ¼ of all jobs in U.S.
    this is shopping
  • Personal Services 1/5 of all jobs in U.S.
    these improve quality of life like health care or
    education
  • Business facilitate other businesses
  • Producer services provide services to help
    people conduct other business like financial,
    real estate, law or management
  • Transportation businesses that distribue and
    diffuse services includes information services
    like broadcasting and publishing
  • Public provides securty and protection for
    citizens and businesses
  • Includes police, fire, public schools, etc.
  • About 10 of American workers are in public
    services

94
(No Transcript)
95
Where are services located?
  • Central Place Theory defined as a market center
    for the exchange of goods and services by people
    attracted from the surrounding areas
  • Central places compete with each other to provide
    services
  • A.K.A. the Christaller model
  • Primarily deals with question of How far will you
    drive to receive a particular service?
  • Ex. Pizza vs. Neurosurgeon

96
(No Transcript)
97
Rank-Size Distribution of Settlements
  • Defined where the countrys nth largest
    settlement is 1/n the population of the largest
    settlement
  • Lets do an activity!

98
World Cities
  • Defined Cities that are integrated into the
    global economic system and are at the center of
    the flow of information and capital
  • Three major world cities London, New York and
    Tokyo
  • Why would they be important?
  • Where are these?
About PowerShow.com