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  • 1. Chapter 7 Lecture Human Geography: Places and Regions in Global Context Sixth EditionGeographies ofEconomicDevelopmentWendy A. MitteagerState University of New York, Oneonta
  • 2. Key Concepts • Economic development • Carrying capacity • Sustainable development • Division of labor • Fair trade • Deindustrialization • Economic globalization • Flexible production systems Figure: Chapter 7 Opener Migrant workers in China boarding a train home.© 2013 Pearson Education, Inc.
  • 3. Patterns of Economic Development • Three types of changes • Unevenness – Structure of region’s • Gross domestic product economy – Forms of economic (GDP) organization • Gross national income – Availability & use of (GNI) technology • Purchasing power parity (PPP) Apply your knowledge: What kind of statistics besides GNI provide an indication of international disparities in economic development?© 2013 Pearson Education, Inc.
  • 4. Patterns of Economic Development, (cont’d) Figure 7.1 GNI is one of the best single measures of economic development. Use this map to compare the core countries with the peripheral and semiperipheral countries.© 2013 Pearson Education, Inc.
  • 5. Resources and Development • Cultivable land • Carrying capacity • Industrial resources Figure 7.3 Deforestation of rainforest in Figure 7.2 Major sources of energy are Cameroon. unevenly distributed.© 2013 Pearson Education, Inc.
  • 6. Resources and Development, (cont’d) Figure 7.4 Some countries are fortunate in having a broad range of cultivable land. Others must rely on exploitation of one major resource for economic development.© 2013 Pearson Education, Inc.
  • 7. Resources and Development, (cont’d) • Sustainable development • Ecological footprint • Obstacles – Reliance on fossil fuels – Rate of growth in periphery – Institutional framework Figure 7.6 Promoting local economies Apply your knowledge: Provide examples of renewable energy projects in the U.S. How can they change the ecological footprint? How might their growth be impeded?© 2013 Pearson Education, Inc.
  • 8. Economic Structure • Primary, secondary, • Newly industrializing tertiary, and quaternary countries (NIC’s) activities • Foreign direct • Division of labor investment • Manufacturing value • Transnational added (MVA) corporations (TNCs) Apply your knowledge: Consider a product you own and map out the product’s development through the primary, secondary, and tertiary activities.© 2013 Pearson Education, Inc.
  • 9. Primary Economic Activities, 2002 Figure 7.7 The geography of primary economic activities© 2013 Pearson Education, Inc.
  • 10. China’s Economic Development Figure 7.B The city of Shenzhen Figure 7.C New affluence Figure 7.D Real estate boom© 2013 Pearson Education, Inc.
  • 11. Economic Structure, (cont’d) • Trading blocs • Autarky • Neoliberal polices Figure 7.8 Manufacturing in South Korea Figure 7.9 World economic forum in Switzerland, 2011© 2013 Pearson Education, Inc.
  • 12. Economic Structure, (cont’d) Figure 7.10 One reflection of dependency: the index of commodity concentration of exports, 2002© 2013 Pearson Education, Inc.
  • 13. Economic Structure, (cont’d) • International debt • Elasticity of demand • Terms of trade – Ratio of prices • Import substitution Figure 7.12 Cocoa production, Ghana Apply your knowledge: Determine the current debt of three countries. What main factors have contributed to each countries’ debt?© 2013 Pearson Education, Inc.
  • 14. Economic Structure, (cont’d) Figure 7.11 The 2008 debt crisis© 2013 Pearson Education, Inc.
  • 15. Fair Trade Figure 7.13 Fair trade coffee in Uganda Figure 7.14 A fair trade shop in Canterbury, England© 2013 Pearson Education, Inc.
  • 16. Stages of Economic Development Figure 7.15 A model based on the idea of successive stages of economic development, now regarded as overly simplistic.© 2013 Pearson Education, Inc.
  • 17. Regional Economic Development • Regional inequalities • Geographical path dependence • Initial advantage • External economies • Localization economies Apply your knowledge: Identify an example of localized economics functioning in your own community. What industries are clustering together and how can this result in cost savings?© 2013 Pearson Education, Inc.
  • 18. Regional Economic Development, (cont’d) • Webs of functional interdependence • Agglomeration effects • Backward and forward linkages • Ancillary industries • Cumulative causation • Backwash effects Apply your knowledge: Identify and research three cities that have experienced a backwash effect and the reasons for the backwash effect in each locale.© 2013 Pearson Education, Inc.
  • 19. Regional Economic Development, (cont’d) • Modification of regional core-periphery patterns • Spread effects • Import substitution • Agglomeration diseconomies • Deindustrialization Figure 7.18 An abandoned Packard automobile • Creative destruction plant in Detroit, Michigan.© 2013 Pearson Education, Inc.
  • 20. Regional Economic Development, (cont’d) • Government intervention • Growth poles Figure 7.19 The London congestion charge was introduced in 2003. Apply your knowledge: Identify two regions that have experienced deindustrialization. What industries were lost? Did they experience creative destruction? Has government intervention played a role?© 2013 Pearson Education, Inc.
  • 21. Globalization and Economic Development Figure 7.20 The impact of containerization on Figure 7.21 24-hour trading between major world trade financial markets© 2013 Pearson Education, Inc.
  • 22. Globalization and Economic Development, (cont’d) Figure 7.22 Banks in trouble: customers in line in Santa Figure 7.23 U.S. President Monica, 2008. George W. Bush addresses the nation about the financial crisis on October 10, 2008.© 2013 Pearson Education, Inc.
  • 23. Economic Globalization • Global assembly lines and supply chains • Conglomerate corporations • TNCs and globalization • Flexible production systems – Fordism Figure 7.26 Nestle is the main food company – Neo-Fordism for Disneyland Paris© 2013 Pearson Education, Inc.
  • 24. Economic Globalization • Just-in-time production • Export-processing zones • Vertical disintegration • Homogenization of • Strategic alliances consumption • Experience economy Figure 7.27 Principal maquiladora centers on the United States–Mexico border© 2013 Pearson Education, Inc.
  • 25. Wal-Mart’s Economic Landscape Figure 7.E Wal-Mart locations in the Atlanta metropolitan region Apply your knowledge: Consider the eateries you dine at most often. Are they locally owned or chains owned by large corporations? If they are chains, research what business they replaced in that location.© 2013 Pearson Education, Inc.
  • 26. Geographies of Office Employment • Decentralization – Back-office functions • Outsourcing • Clusters of specialized offices • Offshore financial centers Figure 7.30 Workers at a call center in India.© 2013 Pearson Education, Inc.
  • 27. The Pleasure Periphery • Tourism • Alternative tourism Figure 7.32 Ecotourism: birdwatchers in Panama Apply your knowledge: Choose a popular tourist location and list costs and benefits of tourism for this place and its inhabitants.© 2013 Pearson Education, Inc.
  • 28. Future Geographies • Availability of resources • Expansion of world economy • Globalization of industry • Transportation technologies Figure 7.34 Energy-consuming goods: in an Apple – High-speed rail Store in Beijing, China systems – Smart roads – Smart cars© 2013 Pearson Education, Inc.
  • 29. End of Chapter 7© 2013 Pearson Education, Inc.