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World Economy, The: Resources, Location, Trade and Development,9780137277698
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World Economy, The: Resources, Location, Trade and Development

by ;
Edition:
3rd
ISBN13:

9780137277698

ISBN10:
0137277695
Format:
Hardcover
Pub. Date:
1/1/1998
Publisher(s):
Pearson College Div

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Summary

Appropriate for undergraduate courses in Economic Geography, International Trade, International Business, International Marketing, and International Development. Provides a sound theoretical and practical foundation for understanding the global economy in an era of shifting borders, restructuring economies, and regional realignments. Providing the most thorough treatment of the world economy and economic geography available, the text covers population, natural resources, and international trade and development. It combines economic theory with geography in addressing critical problems of growth, distribution, and development, and to explain their impact on international business. Recent geopolitical changes are vividly portrayed in a series of superb full color maps and striking photographs. Uses real-world examples to make abstract concepts understandable. The book provides a global perspective on international business through a pragmatic world view.

Table of Contents

Preface xi
1 Globalization of the World Economy: An Introduction
3(46)
Globalization
4(23)
Globalization of Culture
4(1)
Globalization of Consumption
5(1)
Telecommunications
5(3)
Globalization of the Economy
8(1)
Globalization of Finance
8(2)
Transnational Corporations
10(1)
Nature of Multinational Corporations
11(4)
Globalization of Investment From the Core Countries
15(1)
Global Locational Specialization of Work
16(1)
Globalization of the Tertiary Sector
17(1)
The Global Office
18(1)
Globalization of Tourism
19(1)
Information Technology (IT) Driving Globalization
20(1)
Globalization of Environmental Problems
21(1)
Growth of the East Asian Economy
21(1)
Collapse of Communism
22(1)
Government Control Slows
22(2)
Rise of East Asia
24(1)
Framework of the World Economy
25(1)
Core/Periphery Model
25(2)
World Development Problems
27(5)
Environmental Constraints
28(1)
Disparities in Wealth and Well-Being
29(3)
World Economic Conditions
32(1)
The Four Worlds
32(1)
The Four Questions of the World Economy
33(1)
The Factors of Production
34(1)
Political Economies
34(4)
Capitalistic Economies
34(1)
The Command Economy
35(1)
Mixed Economic Systems
36(1)
The Traditional Economy
37(1)
What Should Be Produced?
38(1)
Production Possibilities Curve
38(1)
Answering the "How" Question
39(1)
Future Versus Present Economic Growth
39(2)
Rwanda and the Sahel of Africa
40(1)
The Geographic Perspective
41(4)
The Field of Geography
41(1)
Trends in Economic Geography
41(2)
Some Fundamental Concepts of Space and Location
43(2)
Geographic Research in Aid of Development
45(1)
Economic Geographers
45(1)
Summary and Plan
45(1)
Key Terms
46(1)
Suggested Readings
46(1)
World Wide Web Sites
47(2)
2 Population and the World Economy
49(60)
Population Distribution
50(3)
Population Size
51(1)
Population Density
52(1)
Factors Influencing Population Distribution
53(5)
Changing Population Patterns
53(2)
Urbanization
55(3)
Population Growth Over Time and Space
58(4)
Population Processes
62(13)
Fertility and Mortality
64(3)
Migration
67(8)
Population Structure
75(4)
Demographic Characteristics
79(3)
Educational Attainment
79(1)
Labor Force Participation
80(2)
Income
82(1)
Economic Growth and Economic Development
82(3)
Impact of Population Size on Economic Development
83(1)
Impact of Age Structure on Economic Development
84(1)
Demographic Economic Forecasting: Companies and Cities
85(1)
Demographic Insights for the Firm
86(1)
Firm Target Marketing
86(8)
The Firm of the 21st Century
91(3)
The Great (Baby) Boom Ahead
94(10)
Flexible Economy
97(4)
Migration to Exurbs
101(1)
Demographics for City Planning
102(2)
Summary
104(2)
Key Terms
106(1)
Suggested Readings
106(1)
World Wide Web Sites
107(2)
3 Resources and Environment
109(54)
Resources and Population
110(1)
Carrying Capacity and Overpopulation
110(1)
Optimum Population
111(1)
Types of Resources and Their Limits
111(2)
Resources and Reserves
112(1)
Renewable and Nonrenewable Resources
112(1)
Food Resources
113(10)
Nutritional Quality of Life
113(1)
Causes of the Food Problem
113(4)
Increasing Food Production
117(4)
Creating New Food Sources
121(1)
A Solution to the World Food Supply Situation
122(1)
Nonrenewable Mineral Resources
123(4)
Location and Projected Reserves of Key Minerals
124(1)
Solutions to the Mineral Supply Problem
125(1)
Environmental Impact of Mineral Extraction
126(1)
Energy
127(7)
Energy Production and Consumption
128(1)
Oil Dependency
129(3)
Production of Fossil Fuels
132(1)
Future Energy Policy
133(1)
Adequacy of Fossil Fuels
134(5)
Oil: Black Gold
134(1)
Natural Gas
135(2)
Coal
137(2)
Energy Options
139(4)
Conservation
139(1)
Alternative Energy Options
139(4)
Environmental Degradation
143(9)
Pollution
144(3)
Wildlife and Habitat Preservation
147(1)
Nonrenewable Natural Resource Management
147(1)
Environmental Equity and Sustainable Development
148(2)
Environmental Production Possibilities
150(1)
From a Growth-Oriented to a Balance-Oriented Lifestyle
150(2)
Summary
152(1)
CHAPTER 3 Appendix A
152(5)
Why GIS?
152(5)
Introduction
152(1)
What Is a GIS?
153(1)
Spatial Operations
153(1)
Data Linkage
154(1)
Generic Questions That a GIS Can Answer
155(1)
Some Applications of GIS
155(1)
What a GIS Is Not
156(1)
The Components of GIS
157(1)
CHAPTER 3 Appendix B
157(6)
GIS Suitability Mapping and Modeling
157(3)
Key Terms
160(1)
Suggested Readings
160(1)
World Wide Web Sites
160(3)
4 Transportation and Communications in World Economy
163(66)
Transport Costs in the World Economy
165(8)
General Properties of Transport Costs
165(2)
Commodity Variations in Transport Rates
167(1)
Freight Rate Variations and Traffic Characteristics
168(1)
Regimes for International Transportation
169(1)
Transport and Location
170(2)
Transport Improvements and Location
172(1)
Routes and Networks
173(9)
Networks as Graphs
173(1)
Network Connectivity
173(2)
Density and Shape of Networks
175(2)
Location of Routes and Networks
177(1)
Minimum-Distance Networks
177(1)
Deviations From Straight-Line Paths
178(2)
Development of Transport Networks
180(1)
African Transport Development
180(1)
Southeast Asian Transport Development
181(1)
Flows in Networks
182(2)
The Gravity Model
182(1)
The Law of Retail Gravitation
183(1)
Improved Transport Facilities
184(6)
Cost-Space and Time-Space Convergence
187(1)
Transportation Infrastructure
188(2)
Transportation Policy
190(3)
Deregulation and Privatization
190(1)
Deregulation of the U.S. Airlines
190(1)
Hub-and-Spoke Networks
191(1)
Transportation of Nuclear Wastes
191(2)
Personal Mobility in the United States, 1990
193(11)
Mobility and Gender
196(2)
Transit Oriented Development
198(1)
Intelligent Vehicle Highway Systems
199(1)
Automatic Vehicle Identification
200(1)
High Speed Trains and Magnetic Levitation
201(1)
Supersonic Aircraft
201(1)
Transportation Software
201(1)
Spatial Decision Support Systems
202(1)
Typical GIS Applications for Transportation
203(1)
Communication Improvements
204(14)
Computers Automate Business
205(3)
Flexible Factories
208(1)
Fiber-optic and Satellite Systems
209(3)
The Internet/Information Superhighway
212(2)
Societal Implications of Information Technology (IT)
214(1)
Opportunities for People With Disabilities
214(1)
Changing Role of Women
214(1)
Improvements in Health Care
215(1)
Help for the Consumer
215(1)
Quality of Life
215(1)
Information Technologies and Their Impact
215(1)
Multimedia
216(1)
Hypertext and Hypermedia
216(1)
ISDN
217(1)
The Information Warehouse
217(1)
Summary
218(1)
CHAPTER 4 Statistical Appendix
219(10)
Key Terms
226(1)
Suggested Readings
226(1)
World Wide Web Sites
227(2)
5 World Agriculture and Rural Land Use
229(44)
Transforming Environments Through Agriculture
230(6)
Revolutions in Agriculture
230(2)
The Diffusion of Agriculture
232(2)
Human Impact on the Land
234(2)
Factors Affecting Rural Land Use
236(1)
Site Characteristics
236(1)
World Cultural Preference and Perception
236(1)
Systems of Production
237(1)
Subsistence, or Peasant Mode, of Production
237(7)
Subsistence Agriculture: Crops and Regions
238(5)
Problems Faced by Subsistence Agriculturalists
243(1)
Commercial Mode of Production
244(16)
U.S. Commercial Agriculture: Crops and Regions
246(2)
Types of Commercial Agriculture
248(8)
U.S. Agricultural Policy
256(1)
The Farm Problem in North America
256(2)
The U.S. Farm Subsidy Program
258(2)
Socialist Mode of Production
260(1)
Agricultural Policy in the Former Soviet Union
261(1)
Comparison of the Three Systems of Production
261(1)
Relative Location of Farms
261(1)
Von Thunen's Model
262(7)
The Law of Diminishing Returns
262(1)
Economic Rent
263(1)
The Isolated State
263(6)
Summary
269(1)
Key Terms
270(1)
Suggested Readings
270(1)
World Wide Web Sites
271(2)
6 Urban Land Use: Theory and Practice
273(34)
Cities and Societies
275(2)
Basic Forms of Society
275(1)
Transformation of Market Exchange
275(1)
Relative Importance of Different Modes of Exchange
276(1)
The Process of City Building
277(4)
Cost Behavior of the Single Firm
277(1)
Scale Economies and Diseconomies of the Single Firm
278(2)
Transportation Costs of the Single Firm
280(1)
Economic Costs and City Building
280(1)
Intraurban Spatial Organization
281(5)
The Competitive-Bidding Process
281(1)
Ceiling Rents
281(1)
The Residential Location Decision
282(2)
Site Demands of Firms
284(1)
Market Outcomes
285(1)
Classical Models of Urban Land Use
286(1)
The Concentric-Zone Model
286(1)
The Sector Model
287(1)
The Multiple-Nuclei Model
287(1)
Models of City Structure in Developing Countries
287(2)
Latin American City Structure
288(1)
Southeast Asian City Structure
289(1)
Sprawling Metropolis: Patterns and Problems
289(15)
The Spread City
289(3)
Causes of Urban Spread
292(4)
Urban Realms Model
296(1)
Problems of the City
297(6)
Visions of Future Metropolitan Life
303(1)
Summary
304(1)
Key Terms
305(1)
Suggested Readings
305(1)
World Wide Web Sites
305(2)
7 Cities as Retail and Service Centers
307(36)
Central Places and Their Hinterlands
308(3)
Locational Patterns of Cities
308(1)
Cities and Trade
309(1)
Hinterlands
309(1)
The Law of Retail Gravitation
310(1)
The Questions of Central-Place Theory
311(6)
Threshold and Range
311(1)
Order of a Good and a Center
311(1)
Emergence of a Central-Place Hierarchy
312(1)
A Rectangular Central-Place Model
313(2)
A Hexagonal Central-Place Model
315(2)
Southern Germany
317(1)
Wholesaling and the Mercantile Model of Settlement
317(2)
Evidence in Support of Central-Place Theory
319(10)
Upper Midwest Trade Centers
319(1)
Hierarchy of Business Centers
319(1)
Central-Place Pattern
320(1)
Dispersed Cities
321(1)
High-Order Central Places
321(1)
Rank-Size Rule
322(1)
Structural Elements of the Central-Place Hierarchy
323(2)
Consumer Travel as a Mirror of the Hierarchy
325(1)
Space-Preference Structures
326(3)
Cross-Cultural Patterns
329(2)
Cultural Differences in Consumer Travel
329(1)
Periodic Markets
329(2)
Planning Uses of Central-Place Theory
331(2)
New Central Places in the Netherlands
331(1)
Market Area Analysis
332(1)
World Cities
333(2)
Industrial Restructuring and the Urban Hierarchy
333(1)
The U.S. Urban Hierarchy
333(2)
The World Economy's World Cities
335(1)
Smart Cities
335(5)
The Coming Digital Revolution
336(1)
The New Shape of Competition
336(1)
Smart Community Architecture
337(1)
Community-Based Applications
337(1)
Government
337(1)
Business
337(1)
Education
338(1)
Health Care
338(1)
Networked Communities
338(2)
Summary
340(1)
Key Terms
341(1)
Suggested Readings
341(1)
World Wide Web Sites
341(2)
8 Industrial Location: Firms
343(46)
The Nature of Manufacturing
344(1)
Uneven Distribution of Raw Materials
345(6)
The Simple Weberian Model: Assembly Costs
345(1)
Raw-Material Classes
345(1)
Ubiquities/Localized Raw Materials
345(4)
Weight- or Bulk-Losing Raw Materials
349(2)
Extensions of Weber's Model
351(2)
Space-Cost Curves
351(1)
Distortions of the Isotropic Surface
352(1)
Weber Diminished in Today's World
353(1)
Production Costs at the Site
353(8)
The Cost of Land
353(1)
The Cost of Labor
354(2)
The Cost of Capital
356(1)
Managerial and Technical Skills
357(3)
Flexible Economy
360(1)
Locational Costs
361(1)
The Locational Effects of Technique
362(1)
Scale Considerations in Industrial Location
363(3)
Principles of Scale Economies
363(1)
Possible Scale Economies
364(1)
Implications of Scale Economies
364(1)
Integration and Diversification
365(1)
Interfirm Scale Economies: Agglomeration
365(1)
Obstacles to Optimal Location
366(1)
Evaluation of Industrial Location Theory
366(2)
Global Manufacturing Location Today
368(1)
The Large Industrial Enterprise
368(3)
Trends in Industrial Organization
369(2)
Multinational Corporations
371(6)
MNC Organization Structure
371(1)
Role in Global Redistribution of the Factors of Production
371(1)
Theories of the Multinational Enterprise
372(1)
An Outline of Leading Theories
372(1)
Globalization of the Firm
373(1)
A "New" Theory of International Trade and Transactions
374(1)
The Dual Economy
374(1)
Why Firms Grow
374(1)
How Firms Grow
375(2)
Geographic Organization of Corporate Systems
377(6)
Organizational Structure
377(1)
Administrative Hierarchies
378(3)
Technological Hierarchies
381(2)
Locational Adjustment
383(1)
Industrial Evolution
383(2)
The Industry Life-Cycle Model
383(1)
Kondratiev Cycles
384(1)
Information Technology: The Fifth Wave?
385(1)
Long Waves of Sector Shifts
385(1)
Summary
386(1)
Key Terms
386(1)
Suggested Readings
387(1)
World Wide Web Sites
387(2)
9 Industrial Location: World Regions
389(38)
Forces Of Production And Social Relations
390(2)
Relations Among Owners
391(1)
Relations Between Capital and Labor
391(1)
Competition and Survival in Space
391(1)
Where Industry Is Located
392(8)
North America
392(5)
Europe
397(2)
Russia and the Ukraine
399(1)
Globalization of World Manufacturing
400(8)
Globalization Shifts in the Textile and Clothing Industries
402(1)
Globalization Shifts in the Automobile Industry
403(1)
Globalization of Microelectronics
404(4)
The Relocation of the American Manufacturing Industry
408(6)
The American Manufacturing Belt
408(1)
U.S. Domestic Movement of Manufacturing
409(1)
Movement of the North American Automobile-Manufacturing Industry
410(1)
The International Movement of American Manufacturing
410(4)
The Industrialization of Japan
414(1)
The Problems of Japan Incorporated
415(1)
The Japanese Model
415(1)
Industrialization in the Developing World
415(6)
Import-Substitution Industrialization
416(1)
Export-Led Industrialization
416(1)
Consequences of Export-Led Industrialization on Women
417(1)
East Asian "Miracle"
418(3)
World Industrial Problems
421(3)
Decreasing Demand for Industrial Products in the Mid-1990s
421(1)
Excess World Capacity
421(1)
Industrial Problems in Developed Countries
422(1)
Industrial Problems in Developing Countries
423(1)
Sweatshops
424(1)
Summary
424(1)
Key Terms
425(1)
Suggested Readings
425(1)
World Wide Web Sites
425(2)
10 International Business I: Dynamics
427(46)
International Trade
429(7)
Why International Trade Occurs
429(1)
Trade by Barter and Money
430(1)
Classical Trade Theory
430(1)
Heckscher-Ohlin Trade Theory
431(1)
Inadequacies of Trade Theories
431(1)
A New Theory of International Trade and Transactions
431(1)
Fairness of Free Trade
432(4)
Competitive Advantage of a Nation
436(1)
Factor Conditions
436(18)
Demand Conditions
436(1)
Supporting Industries
436(1)
Firm Strategy, Structure, and Competition
437(1)
Why Production-Factor Flows Occur
437(1)
Forms of Capital Flow
438(1)
Sources of Capital Flow
438(1)
International Money and Capital Markets
438(3)
Financing International Trade
441(3)
U.S. Trade Deficit
444(2)
Classical Capital Theory
446(1)
Motivation for Foreign Direct Investment
446(1)
Bias in Foreign Direct Investment
447(1)
Origin and Destination of Foreign Direct Investment
447(1)
World Investment by Multinationals
448(1)
Investment by U.S. Multinationals in Foreign Countries
449(1)
Investment by Foreign Multinationals in the United States
449(3)
Foreign Direct Investment in the United States by Region
452(1)
Balance Between U.S. FDI and FDI in the United States
453(1)
Effects of Foreign Direct Investment
453(1)
Barriers to International Business
454(6)
Management Barriers
454(1)
Distance as a Barrier
455(1)
Government Barriers to Trade
455(3)
Stimulants to Trade
458(2)
Government Barriers to Production-Factor Flows
460(1)
Multinational Economic Organizations
460(10)
International Financial Institutions
460(2)
Regional Economic Integration
462(6)
Corporate Mergers
468(1)
Globalization Smooths Business Cycles
469(1)
Globalization of the Space Economy by 2000
469(1)
Summary
470(1)
Key Terms
471(1)
Suggested Readings
471(1)
World Wide Web Sites
471(2)
11 International Business II: World Patterns
473(54)
Composition of World Trade
474(5)
The State of the World Economy
474(2)
Giant Emerging Markets (GEMs)
476(3)
World Patterns of Trade
479(38)
The United States
479(3)
Shifting U.S. Trade Patterns
482(3)
Export Sectors
485(2)
U.S. Stocks Lead World Economy
487(1)
Canada
487(3)
European Union (EU)
490(6)
Latin America
496(4)
Japan and East Asia
500(5)
Australia
505(1)
China
505(4)
Taiwan
509(1)
South Korea
510(2)
India
512(1)
South Africa
512(1)
The Former Soviet Sphere
513(3)
The Middle East
516(1)
Major Global Trade Flows in the 1990s
517(8)
Global Trade Flow of Microelectronics
517(1)
Global Trade Flow of Automobiles
518(2)
Global Trade Flow of Steel
520(1)
Global Trade Flow of Textiles and Clothing
521(1)
Global Trade Flow of Grains and Feed
522(2)
Global Trade Flow of Nonoil Commodities
524(1)
Key Terms
525(1)
Suggested Readings
525(1)
World Wide Web Sites
525(2)
12 Development
527(33)
What's in a Word? "Developing"
528(1)
From Primitive to Underdeveloped
528(1)
The Goals of Development
528(1)
Characteristics of Less Developed Countries
529(6)
Rapid Population Growth
529(2)
Unemployment and Underemployment
531(1)
Low Labor Productivity
531(1)
Adverse Climate and Lack of Natural Resources
532(1)
Lack of Capital and Investment
532(1)
Lack of Technology
533(1)
Cultural Factors
534(1)
Political Factors
534(1)
Vicious Cycle of Poverty
534(1)
The Less Developed Countries' Debt Crisis
535(1)
Causes of the Debt Crisis
535(1)
How Economic Development Is Measured
536(10)
Per Capita Income
537(1)
Economic Structure of the Labor Force
537(1)
Consumer Goods Produced
538(1)
Education and Literacy of a Population
539(1)
Health and Welfare of a Population
539(2)
The Epidemiological Transition
541(1)
Demographic Characteristics
542(1)
Total Human Development
542(1)
Major Perspectives on Development
543(2)
World Political Economy Theories
545(1)
Ecopolitical Economy Theories
545(1)
Colonialism and Global Core-Periphery Relations
546(2)
Cycles of Colonialism
546(1)
Core Structure and Global Center-Periphery Relations
546(2)
Regional Disparities Within Developing Countries
548(2)
The Center-Periphery Concept
548(1)
Center-Dominant Models of Regional Development
549(1)
The Collapse of Communism in the Soviet Union
550(7)
Why Soviet Communism Failed
551(2)
The Transition to a Market Economy
553(1)
Participation in the World Economy
553(1)
How to Help the Former Soviet Union Embrace a Capitalist Economy
554(1)
Economy and Privatization, 1997
555(2)
Help for Less Developed Countries from Advanced Nations
557(1)
Expansion of Trade With Less Developed Countries
557(1)
Private Capital Flows to Less Developed Countries
557(1)
Foreign Aid From Advanced Nations
557(1)
World Bank Aid
558(1)
Summary
558(1)
Key Terms
559(1)
Suggested Readings
559(1)
World Wide Web Sites
559(1)
Glossary 560(17)
References 577(12)
Index 589


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