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Unit 3: Industrialization

James Petersen

on 14 March 2013

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Transcript of Industrialization

Primary Secondary Tertiary Sectors of Economic Activity The source of raw materials Wood harvesting,
A Pig Farm A workshop that manufactures products (ex: jewelery, computers, etc.) Manufactured Products Travel Agency, Hair Dresser, Dry Cleaners, Service Station Services Where did it all begin? When? In Europe At the end of the 18th century (late 1700s). Technology: faster production
lower cost
greater quantities
more precision
reduced workforce powered by coal electricity oil Steam
Engine Mechanical Loom Steam Locomotive Electric
Power Plant Computer Page 10 Page 13 Revenue from sales - Costs of production = Profits Increase Increase revenues by increasing sales or increasing price. Reduce Reduce costs by paying less for labour (lower wages), by paying less for materials (lower quality), or by paying less for transportation (move closer to the supplier or market). Near an energy resource: energy is required by machinery Industrial activities are secondary sector activities. Consumer Goods Raw Materials A company that consumes a lot of energy will have better access if it is located near an energy resource. Near raw materials they are the basis of manufactured products They are often bulky or heavy, and expensive to transport. Energy Source Aluminum Smelter consumes a large amount of energy
possibility of getting electricity at low cost Raw Materials Paper Manufacturer reduces cost to transport raw materials Transportation Infrastructure Refinery need for transportation infrastructure to get raw materials and distribute products Markets Agri-food company proximity to markets allows perishable products to be shipped within a short period of time. Labour Electronic Equipment Manufacturing Need for specialized labour Ireland had the lowest tax rate in Europe at the start of the 21 century.
Foreign companies chose to locate there in order to benefit from the low tax rate. st What are looking for? industrial companies Profits Returns Page 14 Production Costs are a major factor in determining a company's profits. By locating near natural resources, companies can increase profits by reducing costs. Revenue - Costs = Profit Aluminum Smelter in Baie-Comeau Paper mill in Trois-Rivières Energy Electricity needed to operate factories. Raw Materials Reduced transportation costs. Transportation Infrastructure Fast transportation of raw materials and fast product delivery. Markets Access to customers Labour facilitates recruitment of employees. Government Support Reduced tax rates. Geography Unit: Industrialization Definition: The process of expanding and intensifying industrial activities in a region or country. Page 18 Industrial activity drives development because it allows the development of other sectors of activity. Example: The Auto Industry road network
service stations
repair centres
parts stores
recyclers Positive Effects of Stimulates other sectors of the economy Urbanization improves living conditions (sanitation systems, utilities, medical care, education) Causes many forms of pollution (noise, air, water) Changes the landscape (factories, chimneys, railways, etc.) Negative Effects of Factories Transportation Infrastructure Worker Housing Industrial Parks are designed to accommodate manufacturing, distribution, and service companies. Modern industrial parks are built in the suburbs or on the outskirts of major urban centres. In the past, industrial zones were located near city centres. Page 34 The highest concentration of industrial zones is found in Eastern North America The highest variety of industries is found in Asia Industrialization can bring a reduction in poverty improvements to infrastructure exploitation of natural resources and the work force Activity: View the tour of the industrial park located near Trois-Rivières, Québec Aerospace Industry in Canada: Highly Developed: high literacy rate (99%)
high GDP per capita ($38 495)
industrial growth rate 3% Automobile Industry in China Developing: high literacy rate (92%)
industrial growth rate 28%
GDP per capita $6 642 Textile Industry in Ethiopia Low Development: Industrial growth rate 6.7%
Literacy rate 42%
GDP per capita $800 Biotechnology Industry in the United States Highly Developed: literacy rate 99%
GDP per capita $40 540
Industrial Growth Rate 3% A moderate growth rate indicates a high level of development Industrial Growth Rate Level of Development Low growth High growth Moderate growth GDP Per Capita Bombardier Aerospace Canada Canada U.S. China Northern Ireland United Kingdom United Arab Emirates United States Bombardier Aerospace Regional and Business Aircraft Bombardier Capital Financial Services
Railway car leasing and management Canada United States Austria Germany United Kingdom Switzerland Bombardier Transportation Rail Transportation Equipment Definition: The overall process of improving living conditions in a city, a region, or a country. World's 10 Biggest Multinationals Page 41 The United States has the most companies in the list of the biggest multinationals. Petroleum Automotive and industries appear most frequently on the list. International Division of Labour The sharing of production activities among different countries. Multinationals have their parts manufactured in countries where resources cost the least: low-paid labour, inexpensive raw materials, and so on. For Example: Automotive Industry A large number of multinationals make this product. Consumer often choose the car that offers the most advantages at the lowest price. Globalization Networks transportation, communications, capital Multinationals 700 in 1970, 60 000 in 2004. concentrated in industrialized countries. 80% of multinational head offices are located in Industrialized Countries Production in countries with low tax rates is mainly controlled by foreign companies (ex: Ireland, Hungary) Production in countries with high tax rates is mostly controlled by domestic companies (ex: USA, Japan) Rel cation o Companies usually move production to developing countries in order to maximize profits minimum wage
environmental restrictions Laws regarding and are generally not as strict in developing countries. Definition: Change in the geographic site of a company's activities, in particular to reduce production costs. Production that takes place in Canada is more expensive than relocating to a developing country. Thus, relocation to lower costs results in lost jobs in Canada. However, foreign-made products are less expensive. Page 46 Subcontractors based in Export Processing Zones allows companies to reduce costs, and increase profits. Definition: A company that fulfills an order on behalf of another. Definition: A country that accommodates a company's production activities following a relocation. Consequences: Creation of jobs in export processing zones, and stimulation of the local economy. Workers' rights Increased profits for companies that relocate. are not respected. So why do the workers not complain? Most must work in poor conditions simply as a matter of survival. Victims: Beneficiaries: Big companies Page 65 The Great Lakes Region extends along each side of the border between Canada and the United States, in eastern North America Resources include: Fertile Soil Dense Forests Mineral Deposits (iron, nickel, copper, coal, salt) The predominant industries are Steel Production Automobile Manufacturing and Specialized Infrastructures: Transportation St. Lawrence Seaway highways, airports, railway networks, ports links the Atlantic Ocean to the network of the Great Lakes Page 66 Great Lakes Region Ontario, Minnesota, Wisconsin, Michigan, New York, Illinois, Indiana, Ohio, Pennsylvania Lake Superior Lake Michigan Lake Huron Lake Erie Lake Ontario The region is home to approximately 10 % of the American population, and 30% of all Canadians. Most industrial activity takes place South of Lake Michigan, as well as along both sides of Lake Erie and Lake Ontario The automotive industry represents 10% of Michigan's GDP St. Lawrence Seaway A navigable waterway that links the Atlantic Ocean to the Great Lakes. It was inaugurated in 1959. Products shipped on the seaway: Salt Cement Coal Heavy Equipment Iron Ore Grain Iron & Steel Products With a partner, complete the activity on page 85 about Globalization Use your notes and the text book to help.
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