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

by Stutz, Frederick P.; Warf, Barney

• ISBN13: 9780131478046
• ISBN10: 0131478044
• Edition: 5th
• Format: Hardcover
• Copyright: 2007-01-01
• Publisher: Prentice Hall

Summary

Appropriate for undergraduate courses in Economic Geography, International Trade, International Business, International Marketing, and International Development. Today's undergraduate Geography students need a This comprehensive and up-to-date volume covers contemporary topics and perspectives. This text provides a sound theoretical and offers a practical foundation for understanding the global economy in an era of shifting borders, restructuring economies, and regional realignments. The authors combine economic theory with geography in addressing critical problems of growth, distribution, and development, and explain their impact on international business. Recent geopolitical changes are vividly portrayed in a series of superb full color maps and striking photographs. Real-world examples make abstract concepts understandable.

Table of Contents

Preface	xi
Economic Geography: An Introduction	3	(30)
Geographic Perspectives	4	(4)
Economic Geography	6	(2)
Economic Geography of the World Economy	8	(5)
Globalization	13	(7)
Globalization of Culture	14	(1)
Globalization of Consumption	14	(1)
Telecommunications	15	(1)
Globalization of the Economy	16	(1)
Transnational Corporations	16	(1)
Globalization of Investment	17	(1)
Global Locational Specialization of Work	18	(1)
Globalization of Services	18	(1)
Globalization of Tourism	18	(1)
Information Technology and Globalization	19	(1)
Globalization versus Local Diversity	19	(1)
World Development Problems	20	(4)
Environmental Constraints	20	(2)
Disparities in Wealth and Well-Being	22	(2)
Four Major Questions of the World Economy	24	(1)
Political Economies	25	(2)
Capitalist Economies	25	(1)
The Command Economy	26	(1)
The Traditional Economy	27	(1)
Geographical Information Systems	27	(1)
Summary and Plan	28	(1)
Study Questions	29	(1)
Key Terms	29	(1)
Suggested Readings	30	(1)
World Wide Web Sites	30	(3)
The Historical Development of Capitalism	33	(38)
feudalism and the Birth of Capitalism	34	(5)
Characteristics of Feudalism	34	(2)
The End of Feudalism	36	(3)
The Emergence and Nature of Capitalism	39	(7)
Markets	39	(1)
Class Relations	39	(1)
Finance	40	(2)
Territorial and Geographic Changes	42	(1)
Long-Distance Trade	42	(2)
New Ideologies	44	(1)
The Nation-State	45	(1)
The Industrial Revolution	46	(10)
Inanimate Energy	47	(1)
Technological Innovation	48	(1)
Productivity Increases	49	(1)
The Geography of the Industrial Revolution	49	(2)
Cycles of Industrialization	51	(2)
Consequences of the Industrial Revolution	53	(3)
Colonialism: Capitalism on a World Scale	56	(12)
The Unevenness of Colonialism	56	(1)
How Did the West do it?	57	(1)
A Historiography of Conquest	58	(6)
The Effects of Colonialism	64	(2)
The End of Colonialism	66	(2)
Summary	68	(1)
Study Questions	68	(1)
Key Terms	68	(1)
World Wide Web Sites	69	(1)
Suggested Readings	69	(2)
Population	71	(42)
Global Population Distribution	72	(3)
Population Density	73	(2)
Factors Influencing Population Distribution	75	(1)
Population Growth Over Time and Space	76	(2)
Population Change	77	(1)
Fertility and Mortality	77	(1)
Malthusian Theory	78	(3)
Demographic Transition Theory	81	(14)
Stage 1: Preindustrial Society	81	(6)
Stage 2: Early Industrial Society	87	(1)
Stage 3: Late Industrial Society	88	(1)
Stage 4: Postindustrial Society	89	(5)
Contrasting the Demographic Transition and Malthusianism	94	(1)
Criticisms of Demographic Transition Theory	94	(1)
Population Structure	95	(3)
The Baby Boom and Its Impacts	98	(1)
Migration	99	(9)
Causes of Migration	99	(1)
The Economics of Migration	100	(2)
Barriers to Migration	102	(1)
Characteristics of Migrants	102	(1)
Consequences of Migration	102	(1)
Patterns of Migration	103	(4)
Modeling Migration	107	(1)
Summary	108	(1)
Study Questions	109	(1)
Key Terms	109	(1)
World Wide Web Sites	110	(1)
Suggested Readings	110	(3)
Resources and Environment	113	(44)
Resources and Population	114	(1)
Carrying Capacity and Overpopulation	114	(1)
Types of Resources and Their Limits	115	(7)
Resources and Reserves	115	(1)
Renewable and Nonrenewable Resources	115	(2)
Food Resources	117	(1)
Population Growth	117	(3)
Poverty	120	(1)
Maldistribution	120	(1)
Civil Unrest and War	121	(1)
Environmental Decline	121	(1)
Government Policy and Debt	122	(1)
Increasing Food Production	122	(4)
Expanding Cultivated Areas	122	(1)
Raising the Productivity of Existing Cropland	122	(3)
Creating New Food Sources	125	(1)
Cultivating the Oceans	125	(1)
High-Protein Cereals	125	(1)
More Efficient Use of Foods	126	(1)
A Solution to the World Food Supply Situation	126	(1)
Nonrenewable Mineral Resources	126	(2)
Location and Projected Reserves of Key Minerals	126	(1)
Solutions to the Mineral Supply Problem	127	(1)
Environmental Impact of Mineral Extraction	128	(1)
Energy	128	(9)
Energy Production and Consumption	131	(1)
Oil Dependency	131	(1)
Production of Fossil Fuels	132	(1)
Adequacy of Fossil Fuels	133	(1)
Oil: Black Gold	133	(2)
Natural Gas	135	(1)
Coal	135	(2)
Energy Options	137	(5)
Conservation	137	(1)
Nuclear Energy	138	(2)
Geothermal Power	140	(1)
Hydropower	140	(1)
Solar Energy	140	(1)
Wind Power	141	(1)
Biomass	141	(1)
Environmental Degradation	142	(9)
Pollution	142	(1)
Air Pollution	142	(2)
Water Pollution	144	(1)
Wildlife and Habitat Preservation	145	(1)
Regional Dimensions of Environmental Problems	145	(6)
Environmental Equity and Sustainable Development	151	(1)
From a Growth-Oriented to a Balance-Oriented Lifestyle	152	(1)
Summary	152	(1)
Study Questions	153	(1)
Key Terms	153	(1)
World Wide Web Sites	154	(1)
Suggested Reading	154	(3)
Theoretical Considerations	157	(30)
Factors of Location	158	(6)
Labor	158	(2)
Land	160	(1)
Capital	161	(1)
Managerial and Technical Skills	162	(2)
The Weberian Model	164	(5)
Raw Materials	164	(1)
Localized Pure Raw Material Plus Ubiquities	165	(2)
Perishable Goods	167	(1)
Weight- or Bulk-Losing Raw Materials	167	(1)
Extensions of Weber's Model	168	(1)
Technique and Scale Considerations	169	(4)
Scale Considerations	170	(1)
Principles of Scale Economies	170	(1)
Vertical Integration and Diversification	171	(1)
Interfirm Scale Economies: Agglomeration	171	(1)
Evaluation of Industrial Location Theory	172	(1)
How and Why Firms Grow	173	(2)
Geographic Organization of Corporations	175	(2)
Organizational Structure	175	(1)
Administrative Hierarchies	176	(1)
Forces of Production and Social Relations	177	(1)
Relations among Owners	177	(1)
Relations between Capital and Labor	177	(1)
Competition and Survival in Space	178	(1)
Business Cycles and Regional Landscapes	178	(2)
Information Technology: The Fifth Wave?	179	(1)
Business Cycles and the Spatial Division of Labor	180	(1)
The State and Economic Geography	180	(3)
Summary	183	(1)
Key Terms	184	(1)
World Wide Web Sites	185	(1)
Suggested Readings	185	(2)
Agriculture	187	(36)
The Rise of Agriculture	188	(3)
The Formation of a Global Agricultural System	190	(1)
The Industrialization of Agriculture	191	(2)
Human Impacts on the Land	191	(2)
Factors Affecting Rural Land Use	193	(1)
Site Characteristics	193	(1)
Cultural Preferences and Perceptions	193	(1)
Systems of Agricultural Production	194	(6)
Subsistence, or Peasant Mode, of Production	194	(1)
Subsistence Agriculture: Crops and Regions	195	(5)
Problems Faced by Subsistence Agriculturalists	200	(1)
Commercial Agriculture	200	(11)
U.S. Commercial Agriculture: Crops and Regions	203	(1)
Commercial Agriculture and the Number of Farmers	203	(1)
Machinery and Other Resources in Farming	203	(2)
Types of Commercial Agriculture	205	(6)
U.S. Agricultural Policy	211	(3)
The Farm Problem in North America	211	(1)
The U.S. Farm Subsidy Program	212	(2)
The Von Thunen Model	214	(5)
Diminishing Returns and Economic Rent	214	(1)
The Isolated State	215	(2)
Location-Rent Gradients for Competing Crops	217	(1)
Modified Patterns of Agricultural Land Use	217	(1)
Von Thunen's Model and Reality	218	(1)
Summary	219	(1)
Suggested Readings	220	(1)
Study Questions	220	(1)
Key Terms	220	(1)
World Wide Web Sites	221	(2)
Manufacturing	223	(36)
The Nature of Manufacturing	224	(1)
Concentrations of World Manufacturing	224	(8)
North America	225	(4)
Europe	229	(2)
Japan	231	(1)
Globalization of Manufacturing	232	(1)
Globalization of Major Manufacturing Sectors	233	(9)
Textiles and Garments	233	(1)
Steel	234	(4)
Automobiles	238	(2)
Electronics	240	(2)
The Changing Geography of U.S. Manufacturing	242	(5)
The International Movement of American Manufacturing	244	(2)
American Manufacturing Today	246	(1)
Flexible Manufacturing	247	(4)
Fordism	247	(1)
Post-Fordism/Flexible Production	248	(3)
Business Process Reengineering	251	(2)
Downsizing	251	(1)
Real-Time Information Systems (RTIS)	252	(1)
IT and Strategic/Competitive Advantage	252	(1)
The Product Cycle in Manufacturing	253	(1)
Locational Adjustment	254	(1)
Summary	254	(1)
Study Questions	255	(1)
Key Terms	255	(1)
World Wide Web Sites	256	(1)
Suggested Readings	256	(3)
Services	259	(42)
Defining Services	261	(2)
Forces Driving the Growth of Services	263	(7)
Rising Incomes	264	(1)
Demand for Health Care and Education	265	(1)
An Increasingly Complex Division of Labor	265	(1)
The Public Sector: Growth and Complexity	266	(1)
Service Exports	267	(1)
The Externalization Debate	268	(2)
The Productivity Debate	270	(1)
Labor Markets in the Service Economy	271	(8)
U.S. Employment in Services	271	(1)
Characteristics of Services Labor Markets	272	(7)
Financial Services	279	(3)
Components of Financial Services	279	(1)
The Regulation of Finance	280	(2)
The Deregulation of Finance	282	(1)
Sectoral Studies in Producer Services	282	(5)
Accounting	282	(1)
Design and Innovation	283	(1)
Legal Services	284	(3)
The Location of Producer Services	287	(1)
Intraregional Trade in Producer Services and Development	288	(1)
International Service Transactions	288	(1)
Technological Change in Services	288	(3)
Electronic Funds Transfer	291	(1)
Offshore Banking	292	(1)
Back-Office Relocations	293	(2)
Consumer Services	295	(1)
Tourism	296	(1)
Summary	296	(1)
Key Terms	297	(1)
Suggested Readings	298	(1)
Study Questions	298	(1)
World Wide Web Sites	299	(2)
Transportation and Communications	301	(42)
Transportation Networks in Historical Perspective	302	(6)
Cost-Space and Time-Space Convergence	308	(1)
Transportation Infrastructure	309	(1)
General Properties of Transport Costs	310	(5)
Carrier Competition	311	(1)
Loading and Packaging Costs	312	(1)
Elasticity of Demand	312	(1)
Freight Rate Variations and Traffic Characteristics	313	(1)
Regimes for International Transportation	313	(1)
Transit Time and Location	314	(1)
Transport Improvements and Location	315	(1)
Transportation Policy	315	(3)
Deregulation and Privatization	315	(1)
Deregulation of the U.S. Airlines	315	(1)
Hub-and-Spoke Networks	316	(2)
Transportation of Nuclear Wastes	318	(1)
Personal Mobility in the United States	318	(4)
Intelligent Vehicle Highway Systems	319	(2)
Automatic Vehicle Identification	321	(1)
High-Speed Trains and Magnetic Levitation	322	(1)
Telecommunications	322	(8)
Fiber-optic and Satellite Systems	324	(4)
Telecommunications and Geography	328	(2)
Geographies of the Internet	330	(7)
Origins and Growth of the Internet	330	(4)
Social and Spatial Discrepancies in Internet Access	334	(1)
Social Implications of the Internet	334	(1)
E-Commerce	335	(1)
Electronic Data Interchange	336	(1)
Future Impacts of Information Technologies	337	(2)
Smart Cities	337	(1)
Community-Based Applications	337	(1)
Government	337	(1)
Business	338	(1)
Education	338	(1)
Health Care	339	(1)
Summary	339	(1)
Suggested Readings	340	(1)
Study Questions	340	(1)
Key Terms	340	(1)
World Wide Web Sites	341	(2)
Cities and Urban Economies	343	(42)
Cities in Historical Perspective	344	(5)
The First Cities	344	(1)
The Rise of the Modern City	345	(4)
Central Places and Their Hinterlands	349	(4)
Hinterlands	349	(1)
Threshold and Range	349	(1)
A Central Place Hierarchy	350	(3)
Urban Economic Base Analysis	353	(4)
Intraurban Spatial Organization	357	(9)
The Residential Location Decision	357	(1)
The Filtering Model of Housing	357	(2)
Population Density Gradients	359	(2)
The Concentric Ring Model	361	(1)
The Sector and Multiple-Nuclei Models	362	(1)
Applied Urban Geography	363	(3)
Sprawling Metropolis: Patterns and Problems	366	(5)
The Postwar Suburban Boom	366	(2)
Out in the Exurbs	368	(2)
Suburbanization and Inner-City Decline	370	(1)
Gentrification	371	(1)
Problems of the American City	371	(4)
Urban Decay	372	(1)
The Crisis of the Inner-City Ghetto	372	(3)
Employment Mismatch	375	(1)
Global Cities	375	(6)
Restructuring and the Urban Hierarchy	376	(5)
Summary	381	(1)
Suggested Readings	382	(1)
Study Questions	382	(1)
Key Terms	382	(1)
World Wide Web Sites	383	(2)
International Trade and Investment	385	(44)
International Trade	386	(1)
Trade by Barter and Money	387	(1)
Comparative Advantage	387	(4)
Transport Costs and Comparative Advantage	389	(1)
Heckscher-Ohlin Trade Theory	389	(1)
Inadequacies of Trade Theories	390	(1)
An Alternative Theory of International Trade and Transactions	390	(1)
Fairness of Free Trade	390	(1)
Worsening Terms of Trade	391	(1)
Competitive Advantages of Nations	391	(4)
Factor Conditions	395	(1)
Demand Conditions	395	(1)
Supporting Industries	395	(1)
Firm Strategy, Structure, and Competition	395	(1)
International Money and Capital Markets	395	(1)
International Banking	396	(1)
Euromarkets	396	(1)
Financing International Trade	396	(3)
Determining Exchange Rates	396	(2)
Why Exchange Rates Fluctuate	398	(1)
U.S. Trade Deficits	399	(1)
Results of the U.S. Trade Deficit	399	(1)
Capital Flows and Foreign Direct Investment	400	(9)
Motivations for and Constraints to Foreign Direct Investment	402	(1)
World Investment by Multinationals	402	(2)
Investment by U.S. Multinationals in Foreign Countries	404	(2)
Investment by Foreign Multinationals in the United States	406	(3)
Effects of Foreign Direct Investment	409	(1)
Barriers to International Trade and Investment	409	(4)
Management Barriers	410	(1)
Distance as a Barrier	410	(1)
Government Barriers to Trade	410	(1)
Tariffs, Quotas, and Nontariff Barriers	411	(1)
Effects of Tariffs and Quotas	412	(1)
Government Stimulants to Trade	413	(1)
Reductions of Trade Barriers	413	(5)
General Agreement on Tariffs and Trade	413	(1)
World Trade Organization	414	(1)
Closed Japanese Markets	415	(1)
Government Barriers to Production-Factor Flows	415	(1)
Multinational Economic Organizations	416	(1)
International Financial Institutions	416	(2)
Regional Economic Integration	418	(6)
The European Union	419	(1)
The EU's Single Currency	420	(1)
U.S.-Canadian Free Trade Agreement	421	(1)
North American Free Trade Agreement	421	(1)
Canada and NAFTA	422	(1)
OPEC	423	(1)
Globalization and Business Cycles	424	(1)
Summary	425	(1)
Study Questions	426	(1)
Key Terms	426	(1)
World Wide Web Sites	427	(1)
Suggested Readings	427	(2)
International Trade Patterns	429	(40)
Emerging Markets	432	(2)
World Patterns of Trade	434	(27)
The United States	434	(5)
Canada	439	(2)
The European Union	441	(3)
Latin America	444	(3)
Japan	447	(3)
China	450	(2)
Taiwan	452	(1)
South Korea	453	(2)
Australia	455	(1)
India	455	(2)
South Africa	457	(1)
Russia	458	(1)
The Middle East	458	(3)
Major Global Trade Flows	461	(5)
Microelectronics	461	(1)
Automobiles	461	(1)
Steel	462	(1)
Textiles and Clothing	463	(1)
Grains and Feed	464	(1)
Nonoil Commodities	465	(1)
Summary	466	(1)
Key Terms	466	(1)
World Wide Web Sites	467	(1)
Suggested Readings	467	(1)
Study Questions	467	(2)
Development and Under-development in the Developing World	469	(45)
What's in a Word? ``Developing''	470	(15)
How Economic Development Is Measured	471	(1)
GDP per Capita	471	(1)
Economic Structure of the Labor Force	472	(1)
Education and Literacy of a Population	472	(3)
Health of a Population	475	(3)
Consumer Goods Produced	478	(1)
Urbanization in Developing Countries	478	(7)
Human Development Index	485	(1)
The Location of Underdevelopment	485	(3)
Latin America	486	(1)
Southeast Asia	486	(1)
East Asia (excluding Japan)	487	(1)
South Asia	487	(1)
Middle East and North Africa	487	(1)
Sub-Saharan Africa	487	(1)
Characteristic Problems of Less Developed Countries	488	(9)
Rapid Population Growth	488	(1)
Unemployment and Underemployment	488	(2)
Low Labor Productivity	490	(1)
Lack of Capital and Investment	490	(2)
Inadequate and Insufficient Technology	492	(1)
Unequal Land Distribution	492	(1)
Poor Terms of Trade	492	(1)
Foreign Debt	492	(3)
Restrictive Gender Roles	495	(1)
Corrupt and Inefficient Governments	496	(1)
Trends and Solutions	496	(1)
Major Perspectives on Development	497	(4)
Modernization Theory	497	(2)
Dependency Theory	499	(1)
World-Systems Theory	500	(1)
Regional Disparities Within Developing Countries	501	(1)
Development Strategies	502	(2)
Expansion of Trade with Less Developed Countries	502	(1)
Private Capital Flows to Less Developed Countries	502	(1)
Foreign Aid from Advanced Nations	503	(1)
Industrialization in the Developing World	504	(7)
Import-Substitution Industrialization	505	(1)
Export-Led Industrialization	505	(1)
Consequences of Export-Led Industrialization for Women	506	(1)
Sweatshops	507	(1)
The East Asian Economic Miracle	507	(4)
Summary	511	(1)
Study Questions	512	(1)
Key Terms	512	(1)
World Wide Web Sites	513	(1)
Suggested Readings	513	(1)
Glossary	514	(12)
References	526	(7)
Index	533

Excerpts

The World Economy: Resources, Location, Trade, and Development,now in its fourth edition, offers a overview of the field of economic geography and its linkages to related issues of development and underdevelopment, international business, and the global economy. In an age of increasing globalization, an understanding of these issues is central to both liberal arts and professional educations, for the concerned voter to the engaged business practitioner. This work is designed as a comprehensive introduction to the ways in which economic activity is stretched over the space of the earth's surface. Economists too rarely take the spatial dimension seriously, a perspective that implies all economic activity occurs on the head of a pin. Geographers, in contrast, are interested in the manner in which social relations and activities occur unevenly over space, the ways in which local places and the global economy are intertwined, and the difference that location makes to how economic activity is organized. No social process occurs in exactly the same way in different places; thus, where and when economic activity occurs has a profound influence on how it occurs. Space, then, can no longer be relegated to the sidelines. As globalization has made small differences among places increasingly important, space has become more, not less, important. This new edition differs from the previous one in several respects. It has updated empirical data found throughout. Some traditional material has been trimmed to avoid making the volume overly long. In keeping with the disciplines growing concern for political and cultural issues, which recognizes that the economy cannot be treated separately from other domains of social activity, this volume offers more emphasis on the historical context and political economy of capitalism, including class and gender relations. Throughout, it synthesizes diverse perspectives--ranging from mainstream location theory to post-structuralism--to reveal capitalism as a profoundly complex, important, and fascinating set of social and spatial relations. Additions to the third edition include a new chapter on the historical development of capitalism from its feudal origins through colonialism and the industrial revolution. Like all social sciences, geography has become increasingly self-conscious about how it interprets and understands the world, that is, theory. Accordingly, this edition also collects the various aspects concerned with conceptual and theoretical matters and unites them. Thus, it explores issues ranging from the locational determinants of firms to the role of the state in shaping market economies. Additionally, it offers much more discussion about services, including the multiple reasons for the growth of the service economy, its labor market impacts, and the fundamental role played by telecommunications in the global services economy. Finally, it approaches international development in an intellectually critical manner, emphasizing multiple theoretical views concerned with the origins and operations of the global economy. Some students wrongly assume that economic geography is dominated by dry, dusty collections of facts and maps devoid of interpretation. This volume aims to show them wrong. Others are intimidated by economics, equating it with abstract and difficult supply and demand diagrams and mathematical equations. While this book uses both maps and some diagrams to make various points, it does not presume that the Student has an extensive background in economics. There are several forms of economics, including neoclassical views and political economy. The volume at hand uses both of these and other perspectives as well, in an attempt to raise the readers understanding to a level above that of the lay public but not to the degree of sophistication expected of an expert. In doing so, the book hopes to show that economic geography offers insights that make t