INDUSTRIAL REVOLUTION The social and economic changes in agriculture, commerce and manufacturing that resulted from technological

innovations and specialization in late-eighteenth-century Europe.

During the 1800s the Industrial Revolution spread throughout Britain. The use of steam-powered machines, led to a massive increase in the number of factories (particularly in textile factories or mills). Developments there moved the country from a largely rural population that made its livelihood almost entirely from agriculture to a town-centered society that was increasingly engaged in factory manufacture.

The most important of the changes that brought about the Industrial Revolution were the invention of machines to do the work of hand tools; the use of steam, and later of other kinds of power, in place of the muscles of human beings and of animals; and the adoption of the factory system.

LOCATION THEORIES Location Theory Is a logical attempt to explain the locational pattern of an economic activity and the manner in which its producing areas are interrelated. The von Thunen model is a leading example. y Webers Model: least cost theory: Model developed by Alfred Weber according to which the location of the manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration. Agglomeration: a process involving the clustering or concentrating of people or activities. The term often refers to manufacturing plants and businesses that benefit from close proximity because they share skilled-labor pools and technological and financial amenities. Deglomeration: the process of industrial deconcentration in response to technological advances and/or increasing costs due to congestion and competition. To Weber, transportation was the most important cost factor. The reason why manufacturers try to locate near their buyers and sellers is to reduce the costs of transportation. At the same time, they would try and minimize the costs of transporting in raw materials to their factories. The Further away you are located from your buyer and dealer, the higher the cost of your transportation to travel to and from them will be. Industries will also look at the cost of labor, they will be willing to locate somewhere where

they can hire people who will work for small wages because their jobs are not specialized, and do not take much skill. If cheaper labor made up for transport costs, you would locate further away but only so far from your market as you had to in order to get cheap labor. An example would be of the United States which locates its factories in places like Mexico where outsourcing workers means lower wages as well as still being close to the market and also taking advantage of a trading agreement (NAFTA). By taking advantage of NAFTA, products from Mexico can be transported across the borders for free. Agglomeration is also a factor that industries look at, because they will have fewer costs if they locate near other factories because each factory will in some ways share the costs. Hotellings Model:

Locational Interdependence: theory developed by economist Harold Hotelling that suggests competitors, in trying to maximize sales, will seek to constrain each other's territory as much as possible which will therefore lead them to locate adjacent to one another in the middle of their collective customer base.

Losch's Model: He added consumer demand and production costs to his model for why industries locate where they do. According to him, companies will try and locateat the point of highest profit in a zone of profitability. so you want

to locate in an area where consumers have lots of disposable income and that drives up prices (in other words, demand is high keeping prices high) but you also want to locate in an area that keeps you production costs as far down as possible. How has Industrial Revolution changed? 1. fordist dominant mode of mass production of consumer goods at a single site 2. post-fordist current mode of production with 2 or more flexible set of production practices where they're not mass produced 3. time space compression the notion that some places in the world are more connected through communication & transportation technologies than ever before 4. just in time delivery rather than keeping a large inventory of components or products; companies keep just what they need for short term production and now parts are shipped quickly when needed 5. global division of labor corporations can draw from labor around the globe for different componants of production 6. production of TV's (production of TV has shifted across the world over time) 3 key elements: research & design, manufacturing, componants, assembly 7. research & design was and continues to be located in the home countries of the major television manufacturers (major firms began to move the manufacture of components and assembly "offshore" 8. low wages, intermodal trasportation, regional & world trade aggreements, & availability of energy In post-fordist era, the major influences on industrial location include: 9. efficient transportation systems enable manufacturers to purchaseraw materials from distant sources and to distribute finished products to a widely dispersed population of consumers 10. intermodal connections places where 2 or more modes of transportation meet, in order to ease the flow of goods and reduce the costs of transportation 11. North American Free Trade Agreement & european union regional trade organizations have trade agreements that set up quotas for where imported goods can be produced 12. 27% & 37% of the annual world total U.S consumption of petroleum and natural gas today is...