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

by de Souza, Anthony R.; Stutz, Frederick P.

• ISBN13: 9780137277698
• ISBN10: 0137277695
• Edition: 3rd
• Format: Hardcover
• Copyright: 1998-01-01
• Publisher: Pearson College Div

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