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4.ppt

U.S. Economic Geography/Preindustrial

Most economic activity was in the Primary Sector. That is extracting raw materials.
This included agriculture, mining, lumber, commercial fishing
Most people lived in rural areas
A person with an 8th grade education, or even lower could find meaningful employment
AFL craft unions predominated if workers were represented at all

U.S. Economic Geography/Industrial Period

Most economic activity centered on the Secondary Sector. That is converting raw materials into more valuable manufactured products. (Fordist order)
Most people lived in urban areas
New workers entered the workforce with a high school degree
CIO industry-based unions predominated
Results in a modern society, consumerism, urbanization, and commercial agriculture

U.S. Economic Geography/Post Industrial

Important economic activity is in the Tertiary, or Service, Sector
Most people live in urban areas
A high school education is the minimum needed, an increasing number of workers entering the workplace have some college
Union membership has declined, service sector workers form CIO style unions.

Service Industries/Tertiary Sector

Service industries do not generate an actual, tangible product; instead they include the range of services that are found in modern societies.
Tertiary activities may include communications, accounting, architecture, scientific research, computer services, and administrative support.
These are often tied to technology and require trained workers

Location Factors for Industry

TERMS

Gross Domestic Product (GDP) – The total value of all goods and services produced within a country
Gross National Income (GNI) – A country’s GDP plus any income that residents receive from foreign investments

Location Factors-Information/Technology

-Manuel Castells describes the new high tech industries as having their own “spatial logic” which form at “locations of milieus of innovation”

-These are locations with a characteristic social organization based on a culture committed to generating new knowledge, processes and products”

(Manuel Castells; “The New Industrial Space”; 1988)

Location Factors-Information/Technology

Castells argues that these industries are placed where there fundamental elements of production converge:
1. Raw Material- innovative technological information; this is usually found where there are research universities and Research and Development Companies (Stowers)
2. Labor-access to a large pool of scientific and technical labor; usually this occurs in places with good academic institutions, high social status and attractive urban amenities
3. Capitol- from educational grants and R+D funds

State Economic Systems

Capitalism – many economic decisions made by private entrepreneurs
Communism – a “command economy” where the government owns both resources and production and makes most of the economic decisions
State-Directed Capitalism – the government is involved in the economy supporting private entrepreneurs where needed. Usually a strong political framework supporting economic growth with subsidies, education, tax relief.

The Newly Industrialized Countries (NIC’s)

Often called the “economic tigers” they include South Korea, Taiwan, Singapore and Hong Kong. Others trying to enter the group include Thailand, Malaysia , Indonesia, Mexico, Brazil, and Pakistan.
They are trying to follow the path Japan pioneered
Success is based upon:
Government support
Inexpensive labor
Exports in the global economy
Access to technology and business practices

World-Systems Theory
Immanuel Wallerstein

This idea views the world as much more than the sum total of the world’s states. 3 basic tenets:
1 The world economy has one market and a global division of labor
2 Although the world has multiple states, almost everything takes place within the context of the world economy.
3 The economy has a three-tier structure

World Systems Theory - Tiers

Countries in the CORE Tier are where core processes using advanced manufacturing and financial techniques generate most of the wealth in the world economy.
Here is where there are higher levels of education, higher salaries, and a predominant use of technology.
CORE nations include The United States and Canada; most of Western Europe, except Ireland and Portugal; Japan, South Korea, Singapore, and Australia in the Pacific.

World Systems Theory - Tiers

Countries in the PERIPHERY Tier focus mainly on primary sector activities for subsistence.
The are low levels of education, earnings, and less use of technology.
Countries include Bolivia and Paraguay in South America; most of sub-Saharan Africa except Nigeria and South Africa; most Central Asian countries, and Myanmar and Laos in Asia.

World Systems Theory - Tiers

The Semiperiphery tier includes countries where both Core and Periphery activities are taking place.
This is where social change and development is taking place. The process keeps the world from dividing into two extremes of rich and poor.
Countries in this tier include: Mexico, Brazil, Argentina, Chile, Peru, Venezuela, Colombia, and Uruguay in South America; Russia and Eastern Europe; India, Indonesia, South Africa, Nigeria; and North Africa, Saudi Arabia, and Turkey. China?

China and the Global Economy

What is the role of China in the global economy? Can it maintain a communist government? Concerns for China include:
Differences between Maoist thought and western methods
Keeping several economies going
Dealing with difference in earnings, rise of consumerism.
Controlling migration within the country

China and the Global Economy

China has set up ‘Economic Zones’ along the coast open for foreign investment
Within these zones foreign companies use ‘township enterprises’ to keep new, foreign industries in rural areas