UNIT VI Economic Geography CorePeriphery Model Core Periphery
- Slides: 38
UNIT VI: Economic Geography
Core-Periphery Model Core: Periphery: -wealthy -industrialized -MDC’s U. S. , W. Europe, Japan -poor -unindustrialized -LDC’s -the most exploited Semi-periphery: -developing -newly industrializing (NIC) China, India, Mexico, Brazil, Russia
Wallerstein’s World-Systems Theory: 1. global core & periphery countries
Types of Industrial Production Fordist Production: assembly-line industrial production for mass consumption (post-WW I) “Post-Fordist” Flexible Production: “post-Fordist” multinational producers can move production sites through outsourcing (post-WW II) -role of technology?
Textiles Production: Liverpool and Manchester Iron Production: Birmingham Coal Mining: Newcastle
Why is Detroit located where it is?
U. S. Manufacturing Regions “RUST BELT”
Labor costs? outsourcing: outsourcing to relocate from higher-cost locations to lower cost – Why make Nike shoes in Vietnam? 3 cents per shoe…
WHO “outsources”? multinational (or transnational) corporations: research, factories, & sell products globally
Mc. Donald’s sales in 2003 ($41 bill. ) greater than the GDP of Afghanistan ($21 bill. )…is this good or bad?
deindustrialization: manufacturing jobs shifting from MDC’s to developing countries The former Gautier rolling mills of Bethlehem Steel Corp. in Johnstown, PA Abandoned street in Liverpool, England
global division of labor: labor pool drawn around the world (cheaper resources & labor in the periphery countries) just-in-time delivery: short-term production & quick shipping
Supranational Organizations: 3 or more states form an alliance for: -military (NATO) -economic trade (E. U. , NAFTA, WTO) -political (U. N. )
Regional Scale – The European Union
**How many points?
Location Theories Locational Theories: predicting where business locates 1. Weber’s Model 2. Hotelling’s Model
Weber’s Least-Cost Theory: • • transport costs (“optimum point of production”) labor costs
Hotelling’s Model (“locational interdependence”): location dependent on other businesses
agglomeration economies: clustering of firms - Silicon Valley in California (“technopole”) technopole - Bangalore, India (Bollywood) - maquiladoras on the Mexican border (over 3, 000 factories) - Export Processing Zones (EPZs); Special Economic Zones (SEZ’s)
Concepts of Development
A. Describing development 1. world of rich & poor outdated names: 1 st, 2 nd, 3 rd, or 4 th World today: Developed---Developing---Underdeveloped or MDC---NIC---LDC geographic description: “North/South line”
The Brandt Line: distribution of MDCs & LDCs
Newly Industrialized “Pacific Rim” • East Asia • South East Asia
Major Manufacturing Regions of East Asia
old neighborhoods are destroyed to make room for new… Beijing, China
Four Asian Tigers South Korea Hong Kong Tiawan Singapore Hong Kong South Korea Singapore Taiwan
“Measuring’ Development Economic: “formal economy”: legal economy (measured by GDP) “informal economy”: the illegal or uncounted economy Noneconomic: – Education – Public Services (access to clean water; sewage) – Health Services (doctors person)
Rostow’s Economic Modernization Theory *assumes countries go through stages of development MDC’s rapid industrialization early industrializing; LDC subsistence farming
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