Agriculture, Industry & Services

Cultivation1. Observed over time that dropped fruits, berries, etc. produced new plants2. Later generations learned to water and add manure 3. First domesticated animals were for economic reasons or sacrifices 4. Two types of cultivation:

a. Vegetative planting – cloning from existing plants, eg – divide rootsb. Seed agriculture – planting seeds/sexual fertilization – used today

5. Vegetative begins in S/E Asia – chart pg. 330a. Primarily ate fish – more time for agricultureb. Diffused to China, Japan, Indiac. Dog, pig, and chicken were first domesticated animals

6. Seed agriculture had three hearths – India, China & Ethiopiaa. Diffused to Africa and Europeb. Rice has no hearth

7. SE Asia also integration of plants & animals – plowing8. Western Hemisphere had two hearths – S. Mexico & N. Peru9. AD 1500 – wheat, oats & barley introduced to West Hem & corn to E. Hem

Classifying Agricultural Regions1. LDCs – subsistence agriculture – production of food for

consumption2. MDCs – commercial agriculture – production of food for sale3. Five differences in subsistence and commercial:

a. Purpose of farmingb. Percentage of farmers in the labor force

1. MDCs > 1/10 are farmers; 50% in LDCs – Push/Pull factors?c. Use of machinery – machinery vs. animal powerd. Farm size

1. US = 444 - 3,000 acres2. 1.4% of farms produce 48% of sales3. Half generate less than $5,0004. 60% fewer farms than 1900 but 13% more farmland5. US is losing 1.2 million acres per year – urban sprawl

e. Relationship of farming to other businesses1. Agribusiness – related to food-production industry – 20%

in US

Percent of Labor Force Engaged in Agriculture

Shifting Cultivation1. Occurs mostly in Humid Low-Latitude climates – high temps & rain2. Estimated 250 million people on 36 million square miles3. Cultivation because agriculture implies more tools and animal use4. Two key components:

a. Slash & burnb. Move after it becomes infertile

5. Only fertilizer is from burned debris; land only fertile for 3 years6. Land is abandoned for 6-20 years; owned by the village 7. ¼ of world’s land area but only 5% of pop. = Hi Ag. Density & low

physiological density8. Is declining in the world but 50 % of rain forests already

a. Brazil has deforested 8 million acres per yearb. Bolivia set aside 3.7 million acres for $650 million in debt cancellation

Agriculture in MDCs1. Mixed crop & livestock – crops are fed to livestock

a. Most of the land is devoted to crops but ¾ of income comes from livestockb. Mix reduces variation in income

2. Crop rotation – a year of fallow helps maintain fertilitya. Two-field, three-field, and four-field rotation

3. Corn is the most frequent – higher yield per acrea. Used directly, as oil, margarine, fed to pigs and cattleb. Corn Belt – Ohio to the Dakotas

Von Thunen’s Model – 18261. Which crops to grow or animals to raise based on

market locationa. Compares 2 costs – cost of land vs. transportation to marketb. More distant farms select crops that can be transported cheaply

2. Market oriented and milk in the first ring; outermost ring is grazinga. A river may modify the the shape of ringsb. Doesn’t account for govt. policies or social customs

Von Thunen Model

Why Do Industries Have Different Distributions?

1. Industry seeks to maximize profits by minimizing production costs

a. Situation – minimize transportation costs – input and output

b. Site – Land, labor, and capital costs

Situation Factors – Proximity to Inputs1. Try and locate factory as close to buyers and sellers2. If the cost of transporting products exceeds transporting inputs,

plant is closer to buyers3. If inputs are more expensive to transport, the factory should

locate near the inputs4. Copper industry – built near inputs

a. Concentration mills – bulk-reducing industryb. Smelters built concentration mills because product is still very heavyc. Must be near economical energy sources

5. Steel industry centered around Pittsburgh – iron ore and coala. Recent success depends on location to markets

Situation Factors – Proximity to Markets1. Bulk-gaining industry – products gain volume during

production – soft-drinksa. Bottlers can minimize costs by producing drinks near their marketsb. Beer bottlers don’t ship water, either; whiskey is willing to ship heavy product

2. Fabricated-metal factories bring together many input parts to make complex itemsa. Televisions, refrigerators, air conditionersb. Final shipping costs becomes the critical factorc. Most plants are located between MI and AL (I-65 and I-75)

3. Number of distinct car models in 1950 = 100; 2000 = 700 – bailout?a. Assembly lines now specialize in one vehicle model

Site Factors – Labor1. Overall, three factors – labor, land, and capital –

labor most important2. 150 million people in manufacturing; 20% in China;

10% in US3. Labor-intensive industry – wages and benefits

make up high % of expensesa. Avg. $20/hr in US – pensions, health care, etc.b. LDCs = > $5/hr with little benefitsc. Auto workers earn a lot but most of the expenses are in parts & machinery

4. 86% of woven cotton fabric is produced in LDCs; 50% in China

Site Factors – Land1. Availability of land is not as critical as labor

2. Land should include low-cost energy; first built near rivers, coal, & forests

Site Factors – Capital1. Most manufactures borrow for new factories or expansion

2. Silicon Valley – located near banks willing to make loans

a. About 2/3 failed; 25% of all new loans are spent in Silicon Valley

Where is Industry Expanding?1. Originally, factories were in cities for situation and site factors

a. Situation – markets and rail shippingb. Site – large supply of labor and capital

2. Now, factories are suburban or rural – large tracts of land – intraregional shift

3. The NE US has lost 1 mil jobs; South & West have gained nearly 20% - interregional

4. Right-to-work laws – workers are not required to join a union5. W. Europe has interregional shift to S. & E. Europe – govt.

encouraged

Outsourcing1. Transnational corps

must outsource to remain competitive in global economya. Outsourcing – turning over production to independent suppliers

2. Highly skilled workers remain in MDCs a. New international division of labor – low skilled jobs outsourced

Labor Cost Per Hour

Proximity to Skilled Labor/Just-in-Time Delivery1. Two factors to remain in traditional regions – skilled

labor and rapid delivery a. Computer manufacturing – CA, MA, NY, and TX – major universities

2. Just-in-time – parts and materials arrive hours before they are neededa. Reduces money tied up in inventoryb. Reduces the size of the factory (and energy)c. Dell & Gateway have NO inventory

3. Problems – strikes and “acts of God” can disrupt delivery

Types of Services1. Three types – consumer services, business services, public services2. Consumer services– provide service to individual who can afford to pay

a. Retail (11% of all US jobs), education (11%), health (10%), leisure (10%)

1. High increase in health care, recreation, entertainment3. Business services – facilitate other businesses

a. FIRE – finance, insurance, real estate (6%)b. Professional services (13%) – law, accounting, architecture, engineering, etc.

1. Large growth in law, engineering, managementc. Transportation/information (6%) – trucking, publishing, water, electricity

4. Public Services – security and protection for citizens and businesses a. 16% of US workers if teachers are includedb. 16% work for Federal Government

1. Federal jobs have decreased while state jobs have increased

Percent GDP From Services

Employment Change by

Sector in the U.S.

Central Place Theory1. Central Place Theory – for the exchange of goods and centrally located

services from people of surrounding area.2. Market Area (hinterland) – area surrounding a service from which

customers are attracted.3. Theory requires a hexagon - no gaps or overlaps

Size of Market Area1. Range – Max. Distance people are willing to travel to use a service.

a. Groceries, laundry, videos, etc. = short distancesb. Sports, concerts, etc. = longer distancesc. Max distance that MOST customers are willing to travel; not single farthestd. Distance is measured in time, not miles

2. Threshold – min. # of people needed to support a service; is dependent on income

Market Areas

Rank/Size Rule1. The second largest city is one-half the size of the largest city

a. The fourth largest is one-fourth the size and so on2. Primate city – largest city is more than double the size of

second largesta. MDCs in Europe have primate cities and most LDCs

3. Absence of rank-size implies that there is not enough wealth to pay for services.a. People must travel long distances for shops, hospitals, etc.b. Romania banned moving to Bucharest to create a regular hierarchy

1. New hospitals, schools, apartments were planned but not carried out

4. Periodic markets – provides goods to rural areas where purchasing power is too low for permanent retailing

US (2005) RSR(1/x)

1- NYC (8.1 million -

2- Los Angeles (3.8) 4.05

3- Chicago (2.8) 2.7

4- Houston (2.02) 2.025

5- Philadelphia (1.47) 1.62

6- Phoenix (1.46) 1.35

7- San Antonio (1.26) 1.16

8- San Diego (1.255) 1.0125

9- Dallas (1.21) .9

10- San Jose (.91) .8

 

Utah1- SLC (178,000) -2- West Valley City (120,000) 89,0003- Provo (114,000) 59,3334- West Jordan (94,300) 44,5005- Sandy (94,200) 35,6006- Orem (90,800) 29,6667- Ogden (78,000) 25,4288- St. George (67,600) 22,2509- Layton (62,700) 19,77710- Taylorsville (58,000) 17,800

Central Business District (CBD)1. Accessibility – easy to get to -

transportation2. Three types of retail services –

high threshold, long range, serve people who work there

3. Long range – people willing to make a special trip for shops, special setting, and recreation

4. Serve workers – office supplies, computers, dry cleaning, etc.

5. Main Street – ban cars?6. Business services – face-to-face

contact – finance, lawyers, advertising

7. Able to employ workers from various neighborhoods

Excluded from the CBD1. Manufacturing – moved to suburbs – replaced with offices,

shops, parks, etc.2. Lack of Residents – pushed by high rents; pulled by better

schools, etc.a. Empty nesters and professionals w/o children still remain

3. European CBDs – preserve its historic “old towns” – low rise and narrow streets

4. Europe’s tallest building is 688 feet (Sears Tower = 1450 ft.)

Suburbanization of Businesses1. Land is cheaper and most of the customers are there2. Zoning has restricted shops from residential areas – no

walking, more cars3. Shopping malls require 100 acres of land and 1 million square

feet of space