Agriculture, Industry & Services
Cultivation 1. Observed over time that dropped fruits, berries, etc. produced new plants 2. Later generations learned to water and add manure 3. First domesticated animals were for economic reasons or sacrifices 4. Two types of cultivation: a. Vegetative planting – cloning from existing plants, eg – divide roots b. Seed agriculture – planting seeds/sexual fertilization – used today 5. Vegetative begins in S/E Asia – chart pg. 330 a. Primarily ate fish – more time for agriculture b. Diffused to China, Japan, India c. Dog, pig, and chicken were first domesticated animals 6. Seed agriculture had three hearths – India, China & Ethiopia a. Diffused to Africa and Europe b. Rice has no hearth 7. SE Asia also integration of plants & animals – plowing 8. Western Hemisphere had two hearths – S. Mexico & N. Peru 9. AD 1500 – wheat, oats & barley introduced to West Hem & corn to E. Hem
Classifying Agricultural Regions 1. LDCs – subsistence agriculture – production of food for consumption 2. MDCs – commercial agriculture – production of food for sale 3. Five differences in subsistence and commercial: a. Purpose of farming b. Percentage of farmers in the labor force 1. MDCs > 1/10 are farmers; 50% in LDCs – Push/Pull factors? c. Use of machinery – machinery vs. animal power d. Farm size 1. US = 444 - 3, 000 acres 2. 1. 4% of farms produce 48% of sales 3. Half generate less than $5, 000 4. 60% fewer farms than 1900 but 13% more farmland 5. US is losing 1. 2 million acres per year – urban sprawl e. Relationship of farming to other businesses 1. Agribusiness – related to food-production industry – 20% in US
Percent of Labor Force Engaged in Agriculture
Shifting Cultivation 1. Occurs mostly in Humid Low-Latitude climates – high temps & rain 2. Estimated 250 million people on 36 million square miles 3. Cultivation because agriculture implies more tools and animal use 4. Two key components: a. Slash & burn b. Move after it becomes infertile 5. Only fertilizer is from burned debris; land only fertile for 3 years 6. Land is abandoned for 6 -20 years; owned by the village 7. ¼ of world’s land area but only 5% of pop. = Hi Ag. Density & low physiological density 8. Is declining in the world but 50 % of rain forests already a. Brazil has deforested 8 million acres per year b. Bolivia set aside 3. 7 million acres for $650 million in debt cancellation
Agriculture in MDCs 1. Mixed crop & livestock – crops are fed to livestock a. Most of the land is devoted to crops but ¾ of incomes from livestock b. Mix reduces variation in income 2. Crop rotation – a year of fallow helps maintain fertility a. Two-field, three-field, and four-field rotation 3. Corn is the most frequent – higher yield per acre a. Used directly, as oil, margarine, fed to pigs and cattle b. Corn Belt – Ohio to the Dakotas
Von Thunen’s Model – 1826 1. Which crops to grow or animals to raise based on market location a. Compares 2 costs – cost of land vs. transportation to market b. More distant farms select crops that can be transported cheaply 2. Market oriented and milk in the first ring; outermost ring is grazing a. A river may modify the shape of rings b. Doesn’t account for govt. policies or social customs
Von Thunen Model
Why Do Industries Have Different Distributions? 1. Industry seeks to maximize profits by minimizing production costs a. Situation – minimize transportation costs – input and output b. Site – Land, labor, and capital costs
Situation Factors – Proximity to Inputs 1. Try and locate factory as close to buyers and sellers 2. If the cost of transporting products exceeds transporting inputs, plant is closer to buyers 3. If inputs are more expensive to transport, the factory should locate near the inputs 4. Copper industry – built near inputs a. Concentration mills – bulk-reducing industry b. Smelters built concentration mills because product is still very heavy c. Must be near economical energy sources 5. Steel industry centered around Pittsburgh – iron ore and coal a. Recent success depends on location to markets
Situation Factors – Proximity to Markets 1. Bulk-gaining industry – products gain volume during production – soft-drinks a. Bottlers can minimize costs by producing drinks near their markets b. Beer bottlers don’t ship water, either; whiskey is willing to ship heavy product 2. Fabricated-metal factories bring together many input parts to make complex items a. Televisions, refrigerators, air conditioners b. Final shipping costs becomes the critical factor c. Most plants are located between MI and AL (I-65 and I-75) 3. Number of distinct car models in 1950 = 100; 2000 = 700 – bailout? a. Assembly lines now specialize in one vehicle model
Site Factors – Labor 1. Overall, three factors – labor, land, and capital – labor most important 2. 150 million people in manufacturing; 20% in China; 10% in US 3. Labor-intensive industry – wages and benefits make up high % of expenses a. Avg. $20/hr in US – pensions, health care, etc. b. LDCs = > $5/hr with little benefits c. Auto workers earn a lot but most of the expenses are in parts & machinery 4. 86% of woven cotton fabric is produced in LDCs; 50% in China
Site Factors – Land 1. Availability of land is not as critical as labor 2. Land should include low-cost energy; first built near rivers, coal, & forests Site Factors – Capital 1. Most manufactures borrow for new factories or expansion 2. Silicon Valley – located near banks willing to make loans a. About 2/3 failed; 25% of all new loans are spent in Silicon Valley
Where is Industry Expanding? 1. Originally, factories were in cities for situation and site factors a. Situation – markets and rail shipping b. Site – large supply of labor and capital 2. Now, factories are suburban or rural – large tracts of land – intraregional shift 3. The NE US has lost 1 mil jobs; South & West have gained nearly 20% - interregional 4. Right-to-work laws – workers are not required to join a union 5. W. Europe has interregional shift to S. & E. Europe – govt. encouraged
Outsourcing 1. Transnational corps must outsource to remain competitive in global economy a. Outsourcing – turning over production to independent suppliers 2. Highly skilled workers remain in MDCs a. New international division of labor – low skilled jobs outsourced
Labor Cost Per Hour
Proximity to Skilled Labor/Just-in-Time Delivery 1. Two factors to remain in traditional regions – skilled labor and rapid delivery a. Computer manufacturing – CA, MA, NY, and TX – major universities 2. Just-in-time – parts and materials arrive hours before they are needed a. Reduces money tied up in inventory b. Reduces the size of the factory (and energy) c. Dell & Gateway have NO inventory 3. Problems – strikes and “acts of God” can disrupt delivery
Types of Services 1. Three types – consumer services, business services, public services 2. Consumer services– provide service to individual who can afford to pay a. Retail (11% of all US jobs), education (11%), health (10%), leisure (10%) 1. High increase in health care, recreation, entertainment 3. Business services – facilitate other businesses a. FIRE – finance, insurance, real estate (6%) b. Professional services (13%) – law, accounting, architecture, engineering, etc. 1. Large growth in law, engineering, management c. Transportation/information (6%) – trucking, publishing, water, electricity 4. Public Services – security and protection for citizens and businesses a. 16% of US workers if teachers are included b. 16% work for Federal Government 1. Federal jobs have decreased while state jobs have increased
Percent GDP From Services
Employment Change by Sector in the U. S.
Central Place Theory 1. Central Place Theory – for the exchange of goods and centrally located services from people of surrounding area. 2. Market Area (hinterland) – area surrounding a service from which customers are attracted. 3. Theory requires a hexagon - no gaps or overlaps Size of Market Area 1. Range – Max. Distance people are willing to travel to use a service. a. Groceries, laundry, videos, etc. = short distances b. Sports, concerts, etc. = longer distances c. Max distance that MOST customers are willing to travel; not single farthest d. Distance is measured in time, not miles 2. Threshold – min. # of people needed to support a service; is dependent on income
Market Areas
Rank/Size Rule 1. The second largest city is one-half the size of the largest city a. The fourth largest is one-fourth the size and so on 2. Primate city – largest city is more than double the size of second largest a. MDCs in Europe have primate cities and most LDCs 3. Absence of rank-size implies that there is not enough wealth to pay for services. a. People must travel long distances for shops, hospitals, etc. b. Romania banned moving to Bucharest to create a regular hierarchy 1. New hospitals, schools, apartments were planned but not carried out 4. Periodic markets – provides goods to rural areas where purchasing power is too low for permanent retailing
US (2005) 1 - NYC (8. 1 million 2 - Los Angeles (3. 8) 3 - Chicago (2. 8)2. 7 4 - Houston (2. 02) 5 - Philadelphia (1. 47) 6 - Phoenix (1. 46) 7 - San Antonio (1. 26) 8 - San Diego (1. 255) 9 - Dallas (1. 21) 10 - San Jose (. 91) RSR(1/x) 4. 05 2. 025 1. 62 1. 35 1. 16 1. 0125. 9. 8 Utah 1 - SLC (178, 000) 2 - West Valley City (120, 000) 3 - Provo (114, 000) 4 - West Jordan (94, 300) 5 - Sandy (94, 200) 6 - Orem (90, 800) 7 - Ogden (78, 000) 8 - St. George (67, 600) 9 - Layton (62, 700) 10 - Taylorsville (58, 000) 89, 000 59, 333 44, 500 35, 600 29, 666 25, 428 22, 250 19, 777 17, 800
Central Business District (CBD) 1. Accessibility – easy to get to transportation 2. Three types of retail services – high threshold, long range, serve people who work there 3. Long range – people willing to make a special trip for shops, special setting, and recreation 4. Serve workers – office supplies, computers, dry cleaning, etc. 5. Main Street – ban cars? 6. Business services – face-to-face contact – finance, lawyers, advertising 7. Able to employ workers from various neighborhoods
Excluded from the CBD 1. Manufacturing – moved to suburbs – replaced with offices, shops, parks, etc. 2. Lack of Residents – pushed by high rents; pulled by better schools, etc. a. Empty nesters and professionals w/o children still remain 3. European CBDs – preserve its historic “old towns” – low rise and narrow streets 4. Europe’s tallest building is 688 feet (Sears Tower = 1450 ft. ) Suburbanization of Businesses 1. Land is cheaper and most of the customers are there 2. Zoning has restricted shops from residential areas – no walking, more cars 3. Shopping malls require 100 acres of land 1 million square feet of space
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