Industry and Economic Development Chapter 11 Industry Industry

Industry and Economic Development Chapter 11: Industry

Industry • • • Secondary sector Loss or relocation of manufacturing jobs Financial incentives to keep jobs in a region Incentives often considered excessive Industry more clustered than agriculture – Based on land, labor, and capital (investment money) – Based on location/connections relative to markets & resources • Was clustered in a few MDCs; now diffused to more LDCs due to lower wages and growing markets • Maquiladoras – special factories typically owned by U. S. companies; located in northern Mexico near border; produce goods typically for sale in U. S. markets; low wage labor; easy access to U. S. markets

Key Issue #1: Where is Industry Distributed? • ¾ of Industrial productivity clustered in 4 regions (less than 1% of Earth’s land vs. 25% for agriculture) ① Western Europe – Grew because of proximity to raw materials (coal & iron ore) & proximity to markets (large, wealthy populations) 1) United Kingdom • Dominated world manufacturing during 1800 s – cotton fabric (textiles), iron & coal (steel) • Industrial Revolution began in Northern England & Southern Scotland in late 1700 s – industrial tech, farming tech, transportation, etc. (higher standards of living) • Factories eventually aged & deteriorated; Britain lost power in early-mid 20 th century • West Germany & Japan became leaders after WW 2 with U. S. assistance in building factories • Recent industrial expansion with high-tech industries, lower taxes, reduced government regulation, privatization of formerly public industries • Autos (Rolls-Royce, Jaguar, Aston Martin, Bentley, Mini, Range Rover) • Generally locate near Southeastern England (London area) • Channel Tunnel (“Chunnel”) – road & RR connection to mainland Europe under English Channel

Key Issue #1: Where is Industry Distributed? ① Western Europe 2) Rhine-Ruhr Valley • • • U. K. diffused Industrial Revolution to rest of Europe Belgium – developed new coal-mining technique France – Coal fired blast furnace for iron Germany – industrial cotton mill Industrial Revolution & railroad slowed by political instability – French Revolution (1789 -1799), Napoleonic Wars (1796 -1815), Germany not unified until 1870 s Rhine-Ruhr includes NW Germany, Belgium, NE France, Netherlands Ruhr is a tributary of the Rhine River 20 million people – Germany (Cologne, Bonn, Dortmund, Dusseldorf, Essen), Netherlands (Rotterdam, Amsterdam), Belgium (Brussels, Antwerp, Liege), France (Lille) Rotterdam – one of the world’s largest & busiest sea ports; where Rhine meets North Sea Iron & steel – close to large coalfields Heavy metal industries – locomotives, machinery, & armaments

Key Issue #1: Where is Industry Distributed? ① Western Europe 3) Mid-Rhine • SW Germany, France, Luxembourg • Lacks some raw materials, but at center of important consumer market (population center) • Center of EU & “Blue Banana” (Europe’s Megalopolis) • Grew after WW 2 with West Germany • Germany – Frankfurt – financial, commercial, & transportation hub – Stuttgart – high value goods, skilled labor, Daimler, Mercedes Benz, Porsche – Mannheim – chemicals, synthetic fibers, dyes, pharmaceuticals – East of Mid-Rhine region: Bavaria/Munich (BMW, Audi); Wolfsburg (Volkswagen) • France – Alsace & Lorraine regions (largest iron ore field in Europe); steel region • Luxembourg – Lorraine iron ore region; one of world’s leading steel producers

Key Issue #1: Where is Industry Distributed? ①Western Europe 4) Northern Italy • Cities of Turin & Milan • Southern & Eastern Europe joined Industrial Revolution in early 20 th century • Po River Valley – textiles; 1/5 of Italy’s land but ½ of population & 2/3 of its industry • Inexpensive power from hydroelectricity; proximity to Alps • Numerous workers willing to accept low (by Europe’s standards) wages • Produce automobiles (Fiat, Ferrari, Maserati, Lamborghini, Abarth, Alfa Romeo), process raw materials, assemble mechanical parts

Key Issue #1: Where is Industry Distributed? ② Eastern Europe – 5 in Russia (4 European, 1 Asian), 1 in Ukraine, 1 in Poland/Czech Rep. 1) Central Russia Industrial District • Oldest industrial region of Russia; near Moscow (capital & largest city) • Few resources, but close to largest market • ¼ of Russia’s industrial output • Higher value goods, large pool of skilled workers needed – textiles (linen, cotton, wool, silk), chemicals, light industrial goods 2) St. Petersburg District • 2 nd largest city in Russia/Eastern Europe • RR came to St. Petersburg earlier than rest of Russia (more connected with Europe) • On Baltic Sea – shipbuilding, industries for Russia’s navy & ports • Food processing, textiles, chemicals for local markets

Key Issue #1: Where is Industry Distributed? ② Eastern Europe 3) Volga District • Planned by USSR in 20 th century • Volga & Kama Rivers, hydroelectricity • Grew during WW 2 when Germany occupied Central District & Eastern Ukraine • Largest petroleum & natural gas fields in Russia • Motor vehicles at Togliatti, oil refining in Kuybyshev, chemicals in Saratov, metallurgy in Volgograd, leather/fur in Kazan 4) Ural District • Planned by USSR in 20 th century; Ural Mts. – over 1, 000 mineral types • Iron, copper, potassium, manganese, bauxite (aluminum), salt, tungsten • Steel, iron, chemicals, machinery, metal fabricating • Development hindered by lack of nearby energy sources – had to ship coal 900 miles from Volga-Ural, Bukhara, & Central Siberia • Includes southern Urals in Kazakhstan

Key Issue #1: Where is Industry Distributed? ② Eastern Europe 5) Kuznetsk District • Planned by USSR in 20 th century in Asia/Siberia due to proximity of resources • Most important industrial region in Russia east of Urals • Largest coal supply in Russia, abundant iron ore • Iron, steel, other factories 6) Eastern Ukraine • • Donetsk coalfield – one of largest in world Abundant in iron, manganese, & natural gas Located on Black Sea/Sea of Azov Largest producer of pig iron & steel 7) Silesia • Southern Poland & northern Czech Republic • Steel (very productive coalfields) but must import iron

Key Issue #1: Where is Industry Distributed? ③ North America – Industrialized later than Britain & Western Europe; mainly agricultural after independence – Labor & capital was scarce in U. S. – manufacturing was expensive – Shipping was also expensive back and forth to Europe – 1 st textile mill at Pawtucket, RI in 1791 by Samuel Slater (had worked at Arkwrights in England) – U. S. embargo on European trade in 1808 to avoid involvement in Napoleonic Wars – caused domestic textile industry to grow rapidly – U. S. became 2 nd leading industrial country behind Britain by 1860 – textiles, food processing, lumber processing, iron & steel (late 1800 s) – Industry clustered near coasts, canals, navigable rivers prior to 1850 (railroad) – Industrial area: mainly NE U. S. & SE Canada (5% of land, 1/3 of pop. , 2/3 of manufacturing) • 1 st European settlement, tied to European markets, infrastructure in place • Raw materials (iron, coal); transportation (Great Lakes, St. Lawrence R. , Mississippi R. , Ohio R. ); connected to West by RRs, trails/hwys, canals, rivers

Key Issue #1: Where is Industry Distributed? ③North America 1) New England • • • NH, MA, RI; centered around Boston Oldest industrial region in U. S. ; cotton textiles in early 1800 s (imported cotton from South) Shipped textiles to Europe; abundant inexpensive immigrant labor in 1800 s (from Europe) Now – abundant, skilled but expensive labor High-tech industries; proximity to education 2) Middle Atlantic • • NY, CT, NJ, PA, DE, MD; cities of NYC, Philadelphia, DC, Baltimore, Richmond, Wilmington Largest U. S. market (many consumers) Must import raw materials (major port city) Communications, finance, entertainment

Key Issue #1: Where is Industry Distributed? ③North America 3) Mohawk Valley • • Upstate NY (Buffalo) Along Hudson River, Erie Canal, Lake Erie, Lake Ontario Steel, food processing, aluminum, paper, electrochemical Niagara Falls – inexpensive, abundant hydroelectricity 4) Pittsburgh-Lake Erie • • PA, OH (Pittsburgh & Cleveland) Most important steel region in 1800 s Close to Appalachian coal & iron ore Other industries that use/assemble steel

Key Issue #1: Where is Industry Distributed? ③ North America 5) Western Great Lakes • • • OH, IN, MI, IL, WI; Toledo, Detroit, Chicago, Gary, Milwaukee Lake Erie, Huron, Michigan Chicago – 3 rd largest city in U. S. ; dominant interior city; transportation hub (air, water, road, rail) Detroit – automobile industry hub Machine tools, transportation equipment, agricultural machinery, food products, clothing, furniture 6) St. Lawrence Valley-Ontario Peninsula (in Canada) • • • Southern Canada on U. S. border Central to Canadian market/population center Close to Great Lakes & St. Lawrence River Seaway Niagara Falls (hydroelectricity) Hamilton – steel; Toronto – automobiles Aluminum, paper, flour mills, textiles, sugar refining

Key Issue #1: Where is Industry Distributed? ④ East Asia – – – – – China, S. Korea, Japan, Taiwan Isolated from world markets; shortage of essential resources Most abundant resource = large labor force Japan – became a world industrial power post-WW 2 (1950 s 60 s); produced goods in large quantities at low prices due to low labor costs in spite of high shipping costs; now has transformed into highly skilled/trained workforce South Korea, Taiwan, & other Asian countries followed Japan’s lead with even lower labor costs 1970 s & 80 s – Japan turned to high quality electronics, precision instruments Japan now the leader in automobiles, ships, cameras, stereos, TVs Japanese autos/engines – Toyota/Lexus, Honda/Acura, Nissan/Infiniti, Suzuki, Mazda, Mitsubishu, Subaru, Isuzu, Kawasaki, Yamaha South Korea autos – Hyundai, Kia, Daewoo

Key Issue #1: Where is Industry Distributed? ④ East Asia – – – Japan’s industrial regions between Tokyo & Nagasaki 1) 2) 3) Tokyo-Yokohama (Kantu Plain) Osaka-Kobe-Kyoto (Kinki Plain) Nagoya (between Tokyo & Osaka) 1) 2) 3) Beijing-Tianjin Shanghai-Nanjing-Wuhan (on Yangtze/Chang Jiang) Guangzhou-Hong Kong-Shenzhen China – world’s 2 nd largest manufacturer in output, largest in workforce; world’s largest market by number of consumers; clustered in eastern coastal portion of China Special Economic Zone (SEZ) – any area with unique economic laws/regulations (customs, duties, etc. ); includes free ports, entrepot, Export Processing Zones (EPZs), Free Trade Zones (FTZs) EPZs – typically in LDCs; attract manufacturing operations for export FTZs – lack of customs oversight; typically at ports, airports China has established over 200 SEZs since 1980 to allow more market -oriented economic activity