Lecture 11 - Industry 4-10-13 PDF

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Download Lecture 11 - Industry 4-10-13 PDF

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4/10/13

Industry _____________________________________________________________ The Industrial Revolution  Origins & diffusion of the Industrial Revolution - Diffusion from the iron industry - Diffusion from the textile industry - Diffusion from the United Kingdom Industrial Location  Why do industries locate where they do? - Initial advantage - External economies & agglomeration effects  Backward linkages: new firms arrive to provide components, supplies, and services for existing firms  Forward linkages: new firms arrive to create finished products for their own use  Ancillary industries: business services (maintenance, repair, recycling, security) for all existing firms  Development of infrastructure * Cumulative causation: an upward spiral of development * Backwash effects: the negative impacts on a region due to economic growth of some other region - Initial advantage: a critical head start in economic development - External economies: existing labor markets, consumer markets, and frameworks of fixed social capital - Agglomeration effect: when cost advantages accrue to individual firms because of their location near other similar firms  Situation factors - Location near inputs  Resources, products from other companies  Bulk-reducing (finished costs less to ship) industry; steel refining - Location near markets

 Bulk-gaining (heavier than original) finished products; beer/soda - Transport choices  Ship, rail, truck, or air; break-of-bulk (switching) points Industrial Location (continued)  Site factors - Land - Labor; labor-intensive industry - Capital Environmental Costs  Industrialization alters the environment - Clear cutting forests - Acid rain - Altered landscapes - Air quality - Radioactive pollution; national sacrifice (Chernobyl)...