Spatial Patterns of Economic Activity: Industrialization and

Interplay Between Site and Situation: Part Two

It’s a lot but it’s all good…

Spatial Character of Industrialization• Industrialization

– grew out of crafts and trade activities in Northern Europe

• Site and situation– Basic concepts used in the analysis of localization of

industry

• Human invention– A very significant factor but hard to explain for

individuals.

• Diffusion of ideas and practices – very important

Industrialization of USA• Technology transfer to the USA was nearly

complete by the 1880s• Waterpower sites were important early• An extensive canal system was built and

then replaced by railroads• Coalfields and iron ranges were exploited• Eventually markets became a factor in

industrial localization

Industrialization Based on Fossil Fuel

• New locations of fossil fuel beds changed.

• A continental energy landscape supports the manufacturing regions in Canada and the United States.

• In many ways the Canadian economy is integrated into that of the USA.

The Spread of Industrialization into the Soviet Union

• Although not market driven, Socialist industrialization followed same basic location principles as in capitalist states with the additional concern for security.

• Moscow became a industrial center because of market and controlling government agencies.

• Resource locations spurred development elsewhere

Industrialization in East Asia

• Japanese industrialized first with a model that was based on labor, not resource locations.

• Korean industrialization was based on heavy industry and import substitution.

• People’s Republic of China based first on Marxist concepts and now Market Socialism (means of production of are publically owned,

operated in a market economy) is the rule.

• “Four Tigers” based on labor, education and government policies for Special Economic Zones– Who are the four tigers?

• Hong Kong, Singapore, South Korea, Taiwan

Korean steel mill was located on the coast for ease of importing raw material and to export finished goods.

Deindustrialization of Core and Industrialization of Periphery

• Geographic factors of site and situation are causing major changes in location of manufacturing.

• Economies of core are shifting into information, service and financial activities. Tertiary Activities

• New industrial areas are being developed based on new site and situational characteristics.

New Location Factors Produce New Industrial Zones

• Maquiladoras epitomize the new industrial areas.• Manufacturers locate in zones that wave import

and export tariffs. • Factories assemble imported components into

finished products for sale in another country.• Highly productive labor and conducive

regulations are the key location factors.

New industrial regions have been developed to provide needed manufactured goods to the core countries. Much of this is the result of direct investment by companies (FDI) from the core.

Maquiladoras in enterprise zones near the Mexican border with the USA have been developed by investors from East Asia and USA

Deindustrialization frequently is really relocation of jobs.

• Contemporary economic geography has enabled corporate leaders to spread their companies’ activities over the world – Allowing them to take advantage of specific locational

features. Manufacturing goes to lowest cost areas, management to high amenity locations.

Direct Foreign Investment in China

-20

-10

0

10

20

30

40

China Honduras Hong Kong,China

Indonesia Mexico Thailand Turkey

Countries

Employment in Industry (% of Total)

1990

1998

% Change

Debate About Deindustrialization

• Workers and their leaders are concerned about the impact of closing plants and the loss of their jobs.

• Government leaders have tried to provide retraining programs for displaced workers.

• Scholars are concerned about the impact of the reduction of jobs in the industrial sector.

Deindustrialization May Be Good

• Economists point out that in areas where deindustrialization has occurred, worker productivity has increased.

• According to the Rostow model, moving to the later stages of economic development means a decrease in the importance industrial employment as people move into better jobs in the tertiary, quaternary sectors.

New industries in the information sectors such as advertising are characteristic of post-industrial countries.

New factors are important in the localization of economic activity.

• Because electricity is nearly ubiquitous in the developed world, power sources are not a primary factor.

• Skilled labor

• Amenities

• Large urban markets

• Optic fiber networks

The world wide web and other forms of high speed communication have the potential to interject a new set of location factors in the decision.

Summary

• Geography of industrialization and pattern of industrial regions best understood with Weber’s model.

• Combination of site and situation.

• Accessibility of raw materials, market, labor, and other elements of production.

• Agglomeration.

Summary

• Deindustrialization of some places while others are industrializing.

• New geography of global firm – the global production line.

• Industrialization of information?

Key maps and images for teaching about industrialization and development:

Maps reproduced from:

•Human Geography, Culture, Society and Spaceby DeBlij Murphy

•Human Geography; Places and Regions in Global Contextby Knox and Marston

David Lanegran • July 2010 • Minnesota Alliance for Geographic Education