Lecture 2 Reading and Notes

Lecture 2 Reading - There are several “bumps” in History in which modernization and globalization are in sync Transportation Geography

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Unformatted text preview: There are several “bumps” in History, in which modernization and globalization are in sync. Transportation Geography: Globalization is impossible without the help of transportation. • If transportation is not available, then there is no incentive to create surplus, and therefore, exchange with other countries. o This will prevent the growth of any economies larger than the “village- level” o See the North-east Thailand and Port of bankok Example. Farmers ONLY began to grow surplus product once a road (in 1959) was built by the Americans. • Farmers Chose to grow Aenaf, a non-edible substance. There is an essential relationship between transportation and profits: • Profits made must be enough to more than cover transportation cost. There are two t-shirt factories: Factory A: $6.50 and Factory B: $4.50 (People will choose to buy from the more expensive one if the transportation cost is less than $2.00) Economies of Scale: When trying to create a bigger output, everything increases, but not everything multiplies by the same amount. • When trying to create 10x as many shirts, you may need 10x as much cotton, o But not 10x as much workers, or fuel, or 10x a bigger building, etc. o In other words, usually, bigger is more profitable, so long there is a demand for the item. o This increases production efficiency, and allows an increase in Wealth. • Now, the B factory may want to increase, and now has access to cheap transportation. As a result, they may want to create a “factory of scale.” They can essentially drive out the A factory. • There are now other towns. C=Book, D=Chicken, E=Milk • Until these towns have access to transportation, all of these towns have to have...
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This note was uploaded on 04/13/2011 for the course GEOG 20 taught by Professor Acker during the Fall '08 term at University of California, Berkeley.

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Lecture 2 Reading - There are several “bumps” in History in which modernization and globalization are in sync Transportation Geography

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