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Global Industrial Patterns - HGAP
Global Industrial Patterns - HGAP
Vocab List:
Technopole, Agglomeration, Deindustrialization, High Threshold, High Range, Location Theory, Least Cost Theory, Friction of Distance, Break of Bulk Point, Just-in-time deliveries, Intermodal connections, International Division of labor, container system
Key Concepts:
Central Place Theory, Industry vs. Services, Bulk Gaining vs Bulk Reducing Industries, Labor intensive vs capital intensive industries, Fordist vs Post fordist industrial activity
Global Industrial Patterns: Four major Industrial Belts in the world: Western & Central Europe, North America,
East Asia, and Russia & the Ukraine. For industrialization to happen a country needed to have a close proximity to coal fields and connection via water by port
North America:
East Asia:
Hottelling Model
Focused on the issue of locational interdependence = Where two vendors would locate in relation to each other The location of an industry cannot be understood without reference to the location of other like industries. Only maximization of sales is considered Example: Ice cream vend ors on a beach
intensive product
Bulk Gaining vs. bulk reducing industries
Bulk reducing: Processing is located as close to inputs
as is reasonable, minimizes transportation costs by shipping only what is valuable. Example: copper mining Bulk Gaining: Processing is located as close to market as is reasonable. Transportation is the most important factor. Example: automobile industry, Soft drink industry.
labor capital
Labor-intensive vs. capital intensive industries Labor intensive- high labor costs (percentage of total cost)
Example: T-shirt production Capital intensive- high capital costs (percentage of total costs), low labor costs Example: Auto Assembly
Loschs Model