Key Issues 12 Warm Up Von Thunens Model would best fit which statement A Agricultural products need to be close to market to minimize transportation costs B Raw materials need to be close to market to minimize transportation costs ID: 483608
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Slide1
Ch. 11 Industry
Key Issues 1-2Slide2
Warm Up
Von
Thunen’s
Model would best fit which statement?
A. Agricultural products need to be close to market to minimize transportation costsB. Raw materials need to be close to market to minimize transportation costsC. Lower-income countries are considered periphery locationsD. Farmers practicing subsistence agriculture need to sell their products to marketE. Shepherds practicing pastoral nomadism move to a commercial market
Reminders:
Turn in
Agri
Project
Reading Notes due 4/22
SE Asia Map due 4/29Slide3
Huffy Bicycles
1892-1998=Ohio, $10.50/hour
1998-1999=Farmington, $8/hour
1999-2001=Nueva Laredo, MX, $5/hour
2001-present=Sha Jiang, China, $0.25/hourPrice of bikes:Celina=$80.00
Sha
Jiang=$40.00Slide4
Where is Industry Distributed?
Much more clustered than Agriculture
Agriculture=25% of earth, Industry=1%
Europe
North AmericaEast Asia
Approx. ¾ of the worlds industrial production is in North America, Eastern Europe, Western Europe and East AsiaSlide5
Why Europe?
Proximity to raw materials (coal, iron ore)
Proximity to markets
United Kingdom—hearth of Industrial Revolution
http://www.youtube.com/watch?v=fsiE8yOBbUI3 Major Areas:Rhine-Ruhr Valley
Mid-Rhine
Northern Italy
The Industrial Revolution began in Great Britain in the late 1700sSlide6
Industry in EuropeSlide7
Eastern Europe
Industry was established by Communists in the 19
th
/20
th centuriesCentral Industrial District—large marketSt Petersburg, Volga, Ural Industrial districts
Variety of resources:
Oil
Gas
Metals
Coal
Iron
SteelSlide8
Manufacturing Centers in Eastern Europe and Russia
Fig. 11-5: Major manufacturing centers are clustered in southern Poland, European Russia, and the Ukraine. Other centers were developed east of the Urals. Slide9
North America
Industry arrived later by colonization
NE US, SE Canada
—early settlement, high population, good transportation, iron and coal
Utilized waterways of Great Lakes and St. Lawrence Seaway
At the time, the East Coast had largest markets, raw materials, transportation and climate suitable for industrySlide10
Industrial Regions of North America
Fig. 11-6: The major industrial regions of North America are clustered in the northeast U.S. and southeastern Canada, although there are other important centers.
Even today, the Western Great Lakes’ biggest asset is its access to transportationSlide11
East Asia
Unlikely site:
Isolated
few resources
WWIIAdvantage: large labor forceInternational trade approach: focused on high quality electronics and precision instruments
Japan had to overcome its isolation/distance from consumersSlide12
Manufacturing Centers in East Asia
Fig. 11-7: Many industries in China are clustered in three centers near the east coast. In Japan, production is clustered along the southeast coast.Slide13
Why are Industries Where they are?
Remember site and situation from Ch. 1?
Situation Factors-Transportation to and from
Site Factors-Unique characteristics of a locationSlide14
Which is an input? Which is a product?Slide15
Situation Factors
Proximity to inputs
Raw Materials
Parts made by other companies
Depending on weight/bulk industry may locate near the input factorsBulk-reducing industry=final product weighs less than the inputsCopper, Steel, Potato Chips
Situation Factors are all about location—minimizing costs associated with transportationSlide16Slide17
Situation Factors
Proximity to Markets
Bulk-Gaining Industries=something that gains volume or weight during production
Drink Bottling
Fabricated metals and machineryPerishable products
Example: Where would automobile producers select for a location?Slide18Slide19
Other types of industry…
Single-Market Manufacturers are specialized manufacturers with only one or two customers
. Depending on size of item or need, can be placed near or far from the factory.
Example – parts for a specific car manufacturer
Perishable Products are industries that must be located near the market because of the perishability
of the product.
Example – food items and newspapersSlide20
Ship, Rail, Truck or Air?
Which method of transportation should industry use?
LOWEST COST,
duh!!!! BUT industry must find the
transportation that best meets their needs.
The lowest cost transportation for very long distances is by boatSlide21
Why is Houston a break-of-bulk point?
Many companies that use multiple transport modes locate at a break-of-bulk point, which is a location where transfer among transportation modes is possible.
Most often found in seaports and airports
.
Another word for break of bulk is entrepotSlide22
Weber’s Least Cost Theory
Alfred Weber-German Economist 20
th
cent.
Describes the location of industriesCompany building a plant considers the raw materials and the market.Weight of raw materials vs. finished product influences where builtRaw materials, labor, transportation. Transportation is easiest to control
Potato chips vs.
french
friesSlide23
Weber’s Least Cost TheorySlide24
Weber’s Assumptions
Same topography
Everyone within triangle must have same opportunity to purchase the product and same desire for it
Transportation is equally available in triangle
Labor is always availableRaw materials are available and a market is known for the product