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The American economic The American economic core area: core area: North AmericaNorth America
Economic GeographyEconomic GeographyI. International Business bachelor study programme (BA)I. International Business bachelor study programme (BA)AutumnAutumn term 201 term 20155/201/20166..CUB Department of Economic Geography and Futures StudiesCUB Department of Economic Geography and Futures Studies
dr. Jeney Lászlódr. Jeney LászlóSenior lecturerSenior [email protected]@elte.hu
Concept and divisions of Concept and divisions of AmericaAmerica
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Concept and discovery of America, its main features
Name:– Amerigo Vespucci (female version of the name: America)– New World
Discovery:– 30–40 thousand years ago: from Asia (ancestors of Red
Indians)– 10 thousand years ago: Patagonia was reached– Viking fishermen– 1492.: Columbus (did not know, it was America)– 1497.: John Cabot (North America)
Area: 42 mn km2 (28%) (WR2.) Population: 870 mn (14%) Physical Geography: joining of two continents Human Geography: division of one continent into
two parts after colonisation
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Divisions of America (1 or 2)
The The AmericasAmericas Physical Geography:Physical Geography:North and SouthNorth and South
Human Geography:Human Geography:North and LatinNorth and Latin
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Divisions of America (3 or 4)
Physical Geography:Physical Geography:North, Central, SouthNorth, Central, South
Human Geography:Human Geography:North, Middle, SouthNorth, Middle, South
Human Geography:Human Geography:N, Middle, S, CaribbeanN, Middle, S, Caribbean
66
Division of America from the viewpoint of Regional Geography
North America (English America)
Latin America
Middle America
Mexico
Central America
The Caribbean
South America
Inner dividing borderlines:Inner dividing borderlines:– Human Geography: State Human Geography: State
border between USA and border between USA and Mexico (border of North and Mexico (border of North and Latin America)Latin America)
– Physical Geography: Isthmus Physical Geography: Isthmus of Tehuantepec (216 km) of Tehuantepec (216 km) (border of North and Central (border of North and Central America)America)
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Evolution of the North Evolution of the North American economic pole of American economic pole of
the Worldthe World
88
Birth of the USA
For a short time: four centuries First British settlement (1607): Jamestown
(Virginia) Puritan spirit of the real founders of USA
– 1620: Mayflower (New England – Massachusetts)– But: lots of religious persecuted persons arrived too– Tenacious toughness, adventurous sprit, hard work– Tensions of native population– Not real melting pot (opposite to Sp., Fr. colonies)
Initially problems: sailing, frost, hunger, epidemic XVIII. century: prosperous 13 British colony:
integrated zone– Swedish, Dutch colonies disappeared
99
Commercial Farming Base
Combination of:– Natural resources (climate, land, soils, water)– Economic factors
led to specialization– Midwest: grain-livestock area– Mississippi Delta: cotton area– Great Plains: feedlots– California (irrigated lands): grape (most
productive vineyards) orange– Drier, higher parts of the West: low productivity
grazing land
1010
Manufacturing becomes central
Early 1800s– East Coast: Southern New England, New Jersey, Eastern
Pennsylvania– Manufacturing developed from local crafts (pottery,
smithing)– Under family ownership– Based mainly on water mill power– Produced: metal, leather goods, textiles
Required new transportation facilities– Financed by federal investments– By 1860: railroad reached Chicago from East Coast construction basis of iron industry expansion– Coal, iron steel production (Pittsburgh)– Inland emerged from the East Coast (closely to the raw
materials + as US settled newer markets)
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Manufacturing from 1860 to the World War II
Value from manufactured goods > commercial farm products– Agriculture become industrialized
Till 1950s: manufacturing: primary engine fuelling the expansion of the US economy– Consumer goods, transportation vehicles (cars,
trucks, airplanes) Traditional developed Manufacturing Belt:
New York, Chicago, Detroit
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Key economic industries after World War II
Wider geographic diffusion of manufacturing industries: West Coast, Southern US too– Distributing electricity to rural areas– Interstate highways– Airline routes
Later: goal to satisfy more market needs (Latin America and Asia)
Products became more technologically sophisticated– High-tech goods: Silicon Valley of California, Boston,
Washington US companies become multinational Service industries: financial, computer services, publishing Tourism: 54 mn visitors to USA, 64 mn American abroad World’s most developed country economic prosperity,
political influence Largest GNI (ppp): WR1 (however: fluctuating growth)
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Regional policies
After Civil War: poverty in South Southern Appalachia: hill farms on small plots of
eroded lands extremely poor World crisis 1933: Tennessee Valley Authority (TVA)
– To stimulate economic growth in lagging regions– However dominant US policies: against government-funded
regional aid– Economic and population growth, but environmental
degradation 1960s: Appalachian region: poorest
– 1965: Appalachian Regional Commission (ARC): financial aid packages
– 1980s: Ronald Reagan reduced ARC’s funding and effectiveness
Rural problems Metropolises: increasing dominance in economic and
social life
1414
Canada
Natural resources: diamond, irons, timber and other minerals
Follows US, but with a time lag Industrialization from the World War II
– Import substitution industries: aluminium, vehicles, consumer goods production
– Hamilton: steelmaking center– Montréal, Toronto, Vancouver: financial
services, commercial enterprises GNI ≈ EU members, but not equals with US NAFTA: increased US investment
The North American The North American economic integration: economic integration:
NAFTANAFTA
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Canada and USA: significant and multifaceted economic systems USA
– $47,200 per capita GDP (ppp) (2011) largest economy in the world
– Technologically the most developed economy– GDP: services 76.7%, industry 22.2% and agriculture
1.2% Canada
– $39,400 per capita GDP– Economic trends ≈ to that of USA– Significant growth in services, mining and manufacturing
sectors– GDP: services 78%, industry 20% and agriculture 2%
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NAFTA
The North American economy could be defined in the economic areas of the North American Free Trade Agreement (NAFTA): Canada, USA and Mexico
One of the four largest trade blocs in the world Its implementation: 1994
– Allowed for strong economic cooperation– Hopes of eliminating barriers of trade and foreign investment
between the three member countries Earlier: Canada and USA already conducted the
largest bilateral trade relationship in the world before– Canada–USA trade relations already allowed trade without
taxes and tariffs– NAFTA allowed Mexico to experience a similar duty free trade
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NAFTA
Trade volume steadily increased annually– Trade between the three NAFTA states reached an all-
time historical increase of 24.3% or USD $791 billion The NAFTA trade bloc GDP (PPP): $17.617 USD
trillions (WR1) – This is in part attributed to the fact: GDP of USA $14.7
trillion (WR1) The countries of NAFTA: also some of each other's
largest trade partners– USA: largest trade partner of Canada and Mexico– Canada and Mexico: each other's third largest trade
partners
1919
North American economy
USA also take part in inter-continental trade blocs– Trade agreements under the Transatlantic Free
Trade Area with EU– US-Middle East Free Trade Area: with numerous
Middle Eastern countries and itself– Trans-Pacific Strategic Economic Partnership:
with Southeast Asian nations, Australia, and New Zealand
2020
Advantages and disadvantages of NAFTA
Supporters of NAFTA Critics of NAFTANew markets for the 3 countries New markets primarily for Mex and
CanMexican cheaper goods force down the prices of USA and Can goods consumers win
Low labour costs USA and Can companies move to Mex higher unemployment
Stronger global economic weight in competition with the EU and others
More significant economic disparity between USA, Can and Mex
Democracy and political stability in Mex greater stability in N America
Higher economic disparity within Mex political instability in Mex
Jobs in (mainly North) Mex higher living standards, employment rates
USA culture overpowers in Can and Mex. SW USA: increased use of Spanish language tensions
Environmental agreements healthier environment in Mex
USA factories relocate to Mex polluted areas in Mex
Equal treatment of corporations Too powerful corporations
21212121
North American North American metropolizationmetropolization
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Population change of Chicago, Population change of Chicago, 1831–19301831–1930
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
1820 1840 1860 1880 1900 1920 1940
fő
2323N-Am: cities on peripheries, EU: in the centre
2424
Urban – rural duality
Share of cities
country population
GDP
USA (SMA) 38% 49%
Kanada (CMA)
45% 54%
2525
New York – Manhattan 1.5 mn citizens, de 1.8 mn workplaces Skyscrapers:
– Empire State Building (381 m, World Record from 1931)– World Trade Center (412 m, till 2001)
Polarization in incomes– Average is 2x higher than national average– 1/5 of population is under poverty rate (slums,
criminality) Mixed population (melting pot):
– 30% Spanish-speaking (Puerto Rico), 27% Afroamerican, 10% Asian
– Jewish (mostly from East Europe, 2nd largest community after Israel)
– Segregation: Little Italy, Chinatown
2626
Toronto
On the bank of the Lake Ontario (seat of Ontario state)
19th century: „Canadian Chicago”: starting point of industrial diffusion + economic centre
5 mn (largest Canadian city)– One of the most multicultural citiesof the world (100 ethnics)– Best place for living in the world (Economist, 1994)
Leading metropolis of industrial, commercial and financial life– Industries: metallurgy (agricultural machines, airplanes,
electronic equipments, heating elements for nuclear plants), chemical firms, automotive industry)
– First electronic managed stock exchange (Bay Street) Landscape: CN Tower (553 m)
2727
Inner structure of citiesInner structure of cities
Friedrich Engels Friedrich Engels (1845)(1845): state of : state of working class in working class in EnglandEngland
Richard Hurd (1903) Richard Hurd (1903) Principles of CityPrinciples of City Land Land ValuesValues
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Concentric zones of urban land Concentric zones of urban land use (Burgess & Park 1925)use (Burgess & Park 1925)
„„L” tracksL” tracks
29292929
Sectoral model of Hoyt Sectoral model of Hoyt (1939)(1939)
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Policentric model of Harris and Policentric model of Harris and Ullman (1945)Ullman (1945)