Industry

Chapter 11

WHERE DID INDUSTRY ORIGINATE?

What did Europe look like proximate to the Industrial

Revolution?• Home based

manufacturing (known as cottage industry)

• On a small scale

The Industrial Revolution (Cont)B.Why did it begin in Great

Britain?– capitalist system

• guilds had created a middle class of workmen

• people free to form businesses

• education • patent system encouraged

development

– labor: • Jethro Tull’s seed drill

(1701) and other developments > improved productivity in farming > people can leave farms and work elsewhere

The Industrial Revolution (cont)B.Why did it begin in Great

Britain? (CONT)3.raw materials (iron ore,

coal)4.rivers, canals, harbors

(ease in trade)5.small, compact size (iron

and coal near rivers and harbors)

6.existing banking system (borrow $ to buy machinery)

7.stable political system8.colonies (guaranteed

markets, additional raw materials)

Flow of Capital into Europe, 1775Needed flow of capital in order to fuel the industrial revolution.

HOW DID THE INDUSTRIAL REVOLUTION DIFFUSE?

Where did industry originate? Key Issue #1

Important Innovation 1

• The Steam Engine– Patented by James

Watt in 1769– Was the first (there

had been steam engines in ancient times) to be able to make one efficient enough to power other things than itself

Important Innovation 2

• Puddling and rolling of iron– By Henry Cort in

1783– Iron purification

process that increased the manufacture of iron

Puddling furnace

Important Innovation 3

• Railways or “iron horse”• Two key inventions:– A locomotive using Watt’s steam engine– Iron track

The Rocket

Important Innovation 4

• Chemicals– Sulfuric acid,

chlorine gas and lime, vitriol

– Today, the largest textile factories are owned by chemical companies

Important Innovation 5

• Food preservation techniques– Canning by Nicholas Appert (done in glass

jars)– Peter Durand’s tin can

The Industrial Revolution (cont)D.Effects

– economic: more goods at lower prices

– social: available labor leaves farms and clusters in cities • urban blight,

pollution• canned food

(encourages new industry)

– political: surplus labor > mistreated workers > liberalism and communism

The Industrial Revolution (cont)D.Effects

4.technological: > railroad, steamship

5.agricultural: > 2nd Agricultural Revolution • increased

productivity• use of machinery

> larger farms > enclosures

6.demographic: caused move from Stage 1 to Stage 2 of DTM

WHERE IS INDUSTRY DISTRIBUTED? KEY ISSUE #2

Diffusion of Industrial Revolution

Early diffusion

– eastward to Belgium, France, and Germany (early 1800s; delay due to Napoleonic Wars)

– further diffusion to Italy, Netherlands, Russia and Sweden by late 1800s

– U.S. not affected by political instability in Europe: diffusion by early 1800s• 8,000 spindles of textiles in 1808 > 80,000

spindles by 1811• by Civil War, U.S. was world’s 2nd largest

industrial power

Why do industries have different distributions?

Key Issue 3

It’s all about situation factors

Inputs

Factory

Consumers

Each industry has to consider what costs more: to transport inputs or to transport the final product to consumers?

Factories are located to REDUCE cost

Bulk-Reducing IndustryIf the cost of transporting inputs is greater than the cost of transporting the final product to the consumer… you place the factory closest to the inputs.Ex. Bulk Reducing Industries because the process of production REDUCES the weight of inputs

COPPER

Bulk-Gaining Industry

Industries that gain volume or weight during production

1. Fabricated goods and metals (like TVs, motor vehicles, air conditioners, refrigerators, etc.) http://science.discovery.com/videos/how-its-made-mini-episodes-fire-hydrants.html

(if we have time)

2. Beverage Production– Water is expensive to ship

but can be found in a lot of places so there are beverage plants dispersed throughout the US

Other types of plants

• Single-market manufacturers– Make specialized

parts to go into larger products

– Located near the consumer

• Perishable Products– Located near the

consumer– Exs mostly include

fresh foods– Newspapers (kinda)

How do inputs and products get from place to place?

• Short answer:–Trucks–Trains–Ships–Air

• Important points– Often times modes get

mixed (might use planes and trucks etc.)

– Costs rise every time you switch from one mode to the next

– Break of bulk point- places like seaports and airports where you can transfer from one mode to the next easily

Site Factors

Land Labor

Capital

Land factors

• Factories likely to be located in suburbs and rural areas

• Energy sources play a key role (are you next to hydroelectric power? Are you near coal fields?)

Labor factors

• Is your industry labor intensive? Do you pay a high percentage in wage? (note percentage does not equal high wages)

Triangle Shirtwaist Fire of 1911 (New York)

• 146 workers (majority women) died after being locked in so they couldn’t take breaks etc.

• Textile manufacturing (with the exception of wool) is located mostly in the south where wages are considered higher comparable to other jobs

What is the difference between skilled and

unskilled labor?

Capital

• Industry will locate where it is able to get capital from banks

Why do industries face problems?

Key Issue #4

Basic Economics on a Global Scale

• As demand for a good goes up, the price of that good goes… UP

• Is that good for business?

• Demand is going down because– 1. People already

own the goods– 2. People’s wages

aren’t enough to buy the goods

Overproduction

• In the past, few countries were making a particular good. Now everyone wants in on the action. This = overproduction

• Why do countries want to have their own steel mills for ex?

Government Policies

• Trading blocs (groups of countries working together to keep countries outside of their group from getting ahold of their markets)

• Transnational corporations (bases are primarily in MDCs with factories in LDCs to open markets)

• Tax breaks and loans to bring in business to underdeveloped areas

Topper the Trick TerrierVoice Recognition Requirements:(San Francisco)Voice Recognition Programming:(Taiwan)

Plastic Eyes:(Shenzhen, China)

Plastic Body: (Malaysia)

Motors for legs:(Shaoguan, China)

Microfiber for Coat: (Korea)

Plastic legs: (Taiwan)

Speaker for voice:(Dongguan, China)

Transistors:(Shenzhen, China)

IC chips: (Taiwan)

Wiring: (Dongguan, China)

Packaging: (Hong Kong)

Problems that uniquely face LDCs

• They are far from large markets

• They lack infrastructure

• New International Division of Labor (low skilled is clustered in LDCs where higher skilled is in MDCs)

36

Taboo Review

• 1 minute to get your partner to identify the words/phrases

• You CAN’T say the words, you must describe and define the concept so that your partner will guess the word.

Partner 1

• Break of bulk point• Bulk-gaining industry• Bulk-reducing industry• Cottage industry• Fordist• Industrial Revolution• Labor-intensive industry• Maquiladora

Partner 2

• New international division of labor• Post-Fordist• Right-to-work state• Site factors• Situation factors• Textile• Trading bloc• Footloose industry

What was the most important innovation of the industrial

revolution?• Steam engine, puddling (iron

production), railroads, development and use of chemicals, food preservation techniques, others?

• Why was this innovation more important or significant than the others?