Fundamentals of Human Geography Chapter 11 Industry

Chapter Industry Introduction Ion sourced pans ' Pins . am , mesa ! my my ' me , Re 17 . end . and sums Poland mad up Germany 015 . waving on and an we , Ireland A look at the many different countries that supplied components needed to manufacture a car . Source Financial Times ) A Short History of Industrialization

The Industrial Revolution began in England in the late . It mainly replaced expensive handmade goods with goods by taking advantage of Inanimate power using readily available resources like water , steam , and coal to power machines to produce textiles ( and eventually other goods ) rather than doing everything by hand . production process straightforward steps to produce goods that can be done by laborers using standardized parts and machines in the assembly line . Mass production producing large numbers of the same thing to reduce production cost . As a result of industrialization , people were able to afford more goods and food because they can now be cheaply , but it also led to environmental degradation , poor working conditions , and a widening wealth gap between the wealthy ( factory owners ) and the poor ( factory workers ) WHERE WAS MODERN WORLD BORN ?

Origins and impacts of the Industrial Revolution ( Source DER Project , Creative Commons Attribution allowed , via Youtube ) Since the the and other developed countries have undergone , where the importance of the manufacturing industry in the labor market and the economy

has been in decline . This decline is caused by three main factors . Automation formerly manual tasks are done by software and robots . Relocation factories moving to less developed countries to take advantage of lower wages and lax environmental regulations . Decrease in demand certain items that used to be made by developed countries are no longer in demand . Today , many companies around the world operate as transnational corporations ( with the ability to control production and sales in different countries . Some of the reasons that have provided for operating across different countries include reducing labor costs , moving closer to the markets where the final products will be sold to reduce shipping costs , creating manufacturing jobs , and reducing poverty in developing countries . Location , Location , Location Deciding where to locate a factory requires one to balance interrelated costs such as Capital cost of rent , facilities , and machines a Material cost of fuel and raw materials Labor cost of workers Market distance to market and transportation costs Moving the factory to reduce one cost ( capital cost or rent ) may lead to a rise in another interrelated cost ( market cost or the cost to transport finished products to customers ) The ultimate goal is to find the location that will balance the factors above and produce the lowest cost of production .

The location of some industrial activities such as those in the primary industry , which involves the extraction and production of raw materials through activities like farming , logging , fishing , or mining , are determined by site . The site refers to the characteristic of a location . For example , a coffee plantation must be located on a site with farmable land . As another example , a logging company needs to be located on a site with trees to cut down . The location of other industrial activities such as those in the secondary industry , which takes raw materials and manufactures them into finished products ( fish cannery , car factory , textile mill ) are more dependent on their situation . Situation describes a location based on its relations to Surrounding natural or Many textile mills were powered by the water of the River Dane , England . In this photo , the Upper Mill has an exterior water factory may be lust South of wheel and an internal turbine . Source Clem the border in Mexico , in order to Vi Commons ) features . For example , a car take advantage of the lower labor cost in Mexico without incurring significant expenses to send the finished goods back to stores in the market . As another example , a textile mill may be situated next to a river in order to use its water turbines to generate electricity for its machines . While the economies of many developing countries are dominated by primary and secondary industries , the economies of most developed countries are dominated by tertiary industries or service industries . Activities in the tertiary industry focus on providing services , including public services provided by the government ( public utilities , schools ) business services provided to other businesses ( shipping , business loans ) and consumer services provided to ordinary citizens ( supermarkets , movie theaters )

An example industries is the which are situated just south of the US . border in Mexico . These factories manufacture all kinds of goods that are bound for sale in the ( Source ) In many cases , similar businesses may be intentionally locating themselves next to their competitors ( auto mall , food court ) in what is known as agglomeration . Taking the example of an auto mall such as Car Country , agglomeration allows a customer to shop from multiple car dealers at the same time , and potentially buy from a car dealer that the customer did not originally intend to buy from . Furthermore , all the car dealers may require similar services ( marketing ) and they can split the costs of the services since they are clustered in the same general location . Costs of Production The goal of most companies is to minimize their production costs , so that their profits can be maximized . We will look at some of the costs that go into production below . Land , material , energy Factories may be located in suburban or rural areas to take advantage of cheaper rent in areas where open lands are in abundance .

Raw materials needed to manufacture finished products are sourced from any location in the world that can provide them at the lowest cost , taking into account the cost of shipping the raw materials to the factory . industries ( steel production ) may be attracted by any location in the world with cheap energy sources ( China ) Labor Since workers are often unhappy with wage cuts , companies wishing to decrease labor costs may send jobs to countries where people are willing to work for less , or ( if possible ) replace workers with machines ( automation ) altogether . However , the savings in labor costs may be outweighed by the cost to transport the finished products to the market , so companies must balance their labor savings with potentially higher shipping costs . Transportation According to the German economist , Alfred Weber , the different costs to transport different types of goods need to be considered when determining the location of an industry . Some types of goods include ma , mass by panama Take a look at the cost of labor in different countries as of 2012 . What may be some factors that discourage

Ubiquitous raw materials These are i i ' labor cost ?

Source ) can be found in many places ( clean water ) Industries ( breweries ) that use a lot of these resources can worry less about locating themselves close to the sources of these raw materials , and situate themselves close to their markets and customers in order to reduce transportation costs . a Local raw materials These are raw materials that are found in specific locations ( forests ) For raw materials that can be compacted and take up less space ( reducing ) in their processed form ( trees to logs ) the factories to process these raw materials will be located close to their extraction site in order to reduce transportation costs . Conversely , for goods that will take up more space ( in their finished form ( logs to furniture ) the factories that produce these finished goods will be located close to their markets to reduce transportation . Capital costs and risks Countries and states may be able to artificially make themselves more attractive to industries by offering tax breaks and other financial incentives , such as tariff ( a tax or custom one pays when importing or exporting something ) forgiveness , construction allowance , cash , and free healthcare for employees . An example is the United States , which established a number of Foreign Trade Zones ( in the country . These allow companies to import raw materials and parts ( car parts ) to their factories in the without paying tariffs that are normally due , assemble finished products ( cars ) in the from the raw materials and parts , and export the finished products from the to markets outside of the . car dealerships in Canada or elsewhere ) without paying any tariffs .

share planet money How Foreign Trade Zones In The . Came Into Existence listen Learn How Foreign Trade Zones In The . Came Into Existence ( Source ) Industries may also be tempted to introduce new technology , build factories , and train workers ( all examples of foreign direct investment ) in countries with lax environmental or labor regulations , since they may be able to reduce the cost of production . However , some of those same countries may also have high levels of corruption and political instability or inadequate infrastructure ( power lines , roads ) which may drive industries away due to the risk to their investments . av , 300 mi Powered by Explore this map to the foreign trade zone and port of entry near you . Click on a point to learn more .

Recent Global Trends According to Karl Marx discussion of the tendency of the rate of to fall theory , the original inventor of a new product ( iPhone ) is the only maker of the product and can profit greatly from the invention initially . But over time , competitors will provide similar products at a lower price ( Android ) leading to a race between the original inventor and its competitors to cut production costs in order to maximize profits . This cut may take the form of replacing workers with robots ( automation ) reducing wages for existing workers , or moving factories from one country to another ( from the to China to Vietnam ) with lower wages or tariffs . The trade war and worries about tariffs are pushing factories to move from China to other countries with lower wages . Source News ) As some factories leave wealthier developed countries for developing countries to cut production costs , the economies of many developed countries shifted from the secondary industry to the industry that was already discussed above . However , a relatively new type of service job has been called the gig economy , where most gig workers ( shoppers , and Uber drivers ) work on their own schedules , at their desired locations , and often without benefits . The State of Gig Work in 2021 16 of Americans have done gig work . 35 of them said they have felt unsafe on the job . Learn more A brief assessment of recent trends

on the trends discussed above and deciding who may be the winners or losers , some questions to consider are Automation Can everyone whose jobs were replaced by machines and robots learn new skills in time to start a new career ?

If not , what happens to those displaced workers ?

Factories How may factories that moved to developing countries impact the welfare of the people and environment of those countries ?

Gig Economy Is the gig economy eroding laws that have historically protected workers against unsafe work conditions ( pressured to work long hours or lower wages ) Are you supposed to tip an Uber driver ?

Source Vox ) By Wing Cheung , College Keeping the world interesting one map at a time Fundamentals of Human Geography by Wing Cheung is licensed under the Creative Commons Attribution International ( BY )