GEO CHAP 4: COMMODITY CHAINS 1. Study streams •The commodity chain allows us to chart the, Study notes of Geography

Download GEO CHAP 4: COMMODITY CHAINS 1. Study streams •The commodity chain allows us to chart the and more Study notes Geography in PDF only on Docsity! World Economic Geography Chapter One: The Conceptual Foundation Instructor: Dr. Nguyen Thi Phuong Chau Course email: weghcmiu@gmail.com 1 01. Conceptual foundations Aims: ▪ To understand the assumptions used by economists in understanding the economy. ▪ To recognize the limitations of economic approaches to the economy ▪ To appreciate key concepts in economic geography 2 1. Where?: Where did/are the phenomenon, processes, patterns happened/happening? 2. Why there?: Why did/are they happened/happening there? (not at a different/another place?) 3. How?: How are they in relation to those in other places, and affect or are affected by human life and the natural environment? ➔ spatial/geographical thinking Three fundamental questions 5 1 2 MAIN LEGENDS NGM ARTICLE | map | Bed PM eM te eed http://www.nationalgeographic.c om/coffee/map.html INDOWES| Ap Nomen The Coffee belt - (Source: German Coffee Association, Hamburg) > 6 @ 100% Robusta 100 % Arabica 100 % Robusta & Arabica World population map 2017 2.1. Absolute Location 2.2. Relative Location 2. Location 10 2.1. Absolute Location ▪ being unique to each described place ▪ measuring the distance separating places ▪ finding directions between places on the earth’s surface. ▪ One of systems (also called mathematic location): a positioning system of precise and accepted identification of a place accurately described by reference to its degrees, minutes, and seconds of latitude and longitude. • Ex: Vietnam is located at – latitude: 8010’ to 23024’ N – longitude:1020 09’ to 109030’ E 2. Location 11 12Vietnam is located at: latitude: 8010’ to 23024’ N and longitude: 1020 09’ to 109030’ E 2. Location - Relative location Paracel Sea Love Islands (disputed) P% + Porocet istondy _) (Adrninisteted by Chima. Claimed by Vietnam) ° 120 Miler To Kilometers 7 \ tsgheves mf Rang-Thap Cham of Kra Ho G# yY oe rueinvints ) ©) Thattena : Y \ eCon Deo hn Care *€ nee 74 . ee ae 15 3.1. Absolute distance ▪ refers to the spatial separation between two points on the earth’s surface ▪ measured by standard unit: miles or kilometers, feet or meters (for more closely spaced points). 3.2. Relative distance ▪ Transforms measurements into other units, more meaningful for the space relationship in the question. – Miles, kilometers, meters → hours, minutes, monetary system, or psychological transformation (unfamiliar, dangerous/familiar, friendly, etc.) 16 3. Distance ▪ specificity ▪ uniqueness of places ▪ specific context ▪ different scale ▪ internal characteristics of a place Ex: specific places within Niger ▪ Spatial interaction among places in the comprehensive ways. ▪ Their processes and patterns are described by words ‘connectivity’ and ‘accessibility’ 17 4. Place 20 The Donghai Bridge, a cross-sea bridge in China, is one of the longest bridges in the world with a length of 20.2 miles. East Taihang District/Wechat 4. Place – Connectivity ▪ Refers to location ▪ Consideration of location and distance implies assessment of accessibility. ▪ Question: How easy or difficult is it to surmount/overcome the barrier of the time and space separation of places? – Internal place: transport network… – External place: airplane, ship, train, etc. 21 4. Place – Interaction among places: Accessibility Refers to: ▪ Size and shape ▪ Levels of global, nation, sub-nation, and local 22 5. Scale Interaction amongst space, place, and scale Figure 1.3: Place, space, and scale Space Di Place cence ns ‘ C2 National scale <=> Flows ANS 26 6. Size 6. Size — Ex: 2,500,000 sq.km wo < MONGOLIA y KIRGIZSTAN OF < ~ a Bl ee NEPAL INDIA 6. Size - Ex: 25,000 to 150,000 sq.km BHUTAN Thimphu ePueha Cy (eka Pade 19 eTashigang ‘9 Chukha S Dewangirie INDIA 0 2s $0 mri _— O25 60 en BANG 26 NAURU 31 6. Size – Ex: less than 25,000 sq.km 1. Compact 2. Elongated 3. Proprute-Protruded 4. Fragmented 5. Perforated 6. Land-locked 7. Enclave 8. Exclave ▪ Each shape of state has advantages, as well as disadvantages 32 7. Shape German West and East AUTRICHE Berlin West and East 36 ▪ A prorupted state has a long extension, or an extended arm of territory. ▪ This protrusion gives the state several advantages. For example, the state gets easy access to the coast and the local resources around it. ▪ In addition, prorupted states are also able to prevent a rival access. ▪ An example would be Thailand. 7. Shape – Proprute-protruded 37 ▪ A state that is separated by a physical or human barrier. ▪ Many portions of the state are separated by oceans, lakes, and mountains. ▪ It is difficult to govern, such as Indonesia. ▪ In addition, communication is difficult within the state. 7. Shape – Fragment 40 A territory legally or politically attached to a territory with which it is not physically contiguous 7. Shape – Exclave 41 Approximately one-fifth of the world's countries are landlocked and have no access to the oceans. There are 43 landlocked countries that do not have direct access to an ocean or ocean-accessible sea (such as the Mediterranean Sea). They have the disadvantageous situation of needing to rely upon neighboring countries for access to seaports. 7. Shape – Land-locked For example, Ethiopia relies on Eritrea for access to the Red Sea and recent conflicts have made that access difficult. 42 7. Shape – Land-locked 45 Land-locked Exclave Enclave FragmentProprute-protruded Compact Elongate Perforate Location, size, and shape of nation support for national economy? 46 ▪ Location theory and the neoclassical approach – Explain patterns and order in the distribution of economic activities across space. – Alfred Weber’s industrial location theory (1909) – August Lösch (1950s-1960s), profit maximization approach – … ▪ Behavioral approach (1960s- 1980s) – Behavioral economic geographers examined the role of cognitive information – and human choices in determining decision-making and locational outcomes – Focus remained on locational issues and spatial behavior 47 Theory Weber assumed that: • Transport costs are uniform but labour costs are spatially variable because of different wage and efficiency of workforces. • Therefore, the cheap labour might be attractive. • The long-term trend in transportation costs is downward, labour locations will be increasingly attractive for all industries. • With the agglomeration, the specific cost terms and transport costs for firms might seek separated locations. Profit-maximization approaches August Lösch (1906 – 1945) • Dissatisfaction with the simplicities and rigidities of the least- cost and the locational interdependence explanations. • The correct location of a firm lies where the net profit is greatest. Profit = sale incomes – production costs • The substitution principle allows to replace a declining amount of one input (labour, materials…) to increase another (automated equipment, or increase transport costs while reducing land rent…) • Therefore, number of different points may be optimal locations. Distance Distance Profit Maximum profit Loss Loss Break-even Point Area of Profitable Production P ri ce o C B A 52 Profit (AB) = sale incomes (AC) – production costs (BC) • Profit maximization occur only at one point (O) where the excess of total revenue is greatest. • The whole series points exists within a spatial margin of profitability is possible. They are less than optimal, but still acceptable, called satisficing location. • Some firms the costs of transport, labour… are the negligible factors in production and marketing, called footloose – neither resource nor market oriented. ▪ Marxist-political economy – To address adequately the social and spatial inequities in economic development and wealth – Not focus on patterns or location decisions, but rather the structures of social relations that underpinned capitalism. ▪ New economic geography (mid-1990s) – Examined the economic processes as separate from social, cultural, and political contexts. – Social, cultural, and industrial factors can be seen as key factors in understanding economic dynamics. 55 Theory Back to the aim of this chapter • What are the limitations of economic approaches to the economy? • What are the geographical economic approaches to the economy? 56 Figure 1.6: An economic-geographical perspective on the global economy. Processes of interactions Mediating forces SEE Giebal / Internationa: + Place Macro-ragional ZS Space } ] National Chains and Networks of Actors In Economic Space Cumure ‘Gender Ethnicity g 3 2 g 2 57