Human Geography

Jerome D. Fellmann
Mark Bjelland
Arthur Getis
Judith Getis
 Human
Geography
Insert Figure 9.6 here

Chapter 9
Livelihood And
Economy:
From Blue Collar to
Gold Collar

© Getty RF
 Components of the Space
Economy

• Concepts and Controls

• Market Equilibrium

Human Geography 11e

 Secondary Activities:
• Gives form utility to • Movable, rather than
the products of spatially tied
primary industry • Locational decision
through involves the weighting
manufacturing efforts of the locational
• Involved in material “pulls” of a number of
processing and goods cost considerations
production and profit prospects

Human Geography 11e

 Secondary Activities:
Manufacturing
• Locational Decisions in Manufacturing
– Principles of location
– Raw materials
– Power supply
– Labor
– Market
– Transportation
• Transportation and location

Human Geography 11e

 Industrial Location Theories
• Least-cost theory
• Locational interdependence theory
• Profit-maximization approaches
• Other locational considerations and controls

Human Geography 11e

 Industrial Location Theories
• Least-Cost Theory
– Based on the work of Alfred Weber (1868-1958)
– Explains the optimum of a manufacturing establishment
based on minimizing three basic expenses:
• Relative transport costs
• Labor costs
• Agglomeration costs
– Agglomeration refers to the clustering of productive
activities for mutual advantage
– Weber concluded that transport costs are the major
consideration determining location

Human Geography 11e

 Industrial Location Theories
• Least-Cost Theory
– The optimum
location will be
found where the Insert figure 9.10

costs of transporting
raw materials to the
factory and finished
goods to the market
are at their lowest

Human Geography 11e

 Least-Cost Theory
• Assumptions
– Isotropic plain
– Single product to a single market
– Raw materials from two or more sources
– Labor infinitely available but immobile
– Transportation routes are not fixed but
connect places by a straight line

Human Geography 11e

 Locational Interdependence
Theory
• Variable revenue analysis
• Competitive locations in a linear market

Human Geography 11e

 Profit-Maximization
Approaches
• Spatial margin of profitability
• Satisficing locations
• Price sensitivity (elasticity of demand) will
encourage industrial dispersion

Human Geography 11e

 Other Locational
Considerations and Controls
• Agglomeration economies
• Just-in-time and flexible production
• Comparative advantage
• Outsourcing
• Offshoring
• Imposed considerations
• Transnational corporations

Human Geography 11e

 World Manufacturing
Patterns and Trends
• Anglo America
• Western and Central Europe
• Eastern Europe
• Eastern Asia

Human Geography 11e

 High-Tech Patterns
• Impacts of high-tech industries
• Agglomerating forces
• Contributors to production

Insert figure 9.23

Human Geography 11e

 Tertiary and Beyond
• Services • Tertiary
• Business and labor – Lower-level services
specializations that largely related to day-
to-day needs of people
provide services to
and to the usual range
the primary and of functions found in
secondary sectors, to smaller towns and
the general cities
community, and to
the individual

Human Geography 11e

 Tertiary and Beyond
• Service activities are • Quaternary
by definition market - Information,
oriented administration, and
“knowledge”
• Retailers and personal
- Dependent on
service providers tend
communication
to locate where
- Dispersion has been
market density is facilitated by electronic
greatest and multiple digital processing and
service demands are telecommunication
concentrated transfer of data

Human Geography 11e

 Quaternary and Quinary
Activities
• Quaternary • Quinary
– An advanced form of
services involving
specialized knowledge,
technical skills,
communication ability, or
administrative
competence
– Transportability of these
activities means that
many of them can be
spatially isolated from
their client base
– “Gold Collar”
professions
– Special and highly paid
skills of top business
executives,
government officials,
research scientists,
financial, and legal
consultants

Human Geography 11e

 Services in World Trade
• Impact in international trade flows
• Impact in economic interdependence
• Foreign direct investment (FDI)

Human Geography 11e