* The Revolution had slower progress in Southern & Eastern Europe, not reaching these areas until the mid to late 1800s. This was due in part to a more politically unstable climate. * The Industrial Revolution started in North America with the building of textile factories in New England in the late 1700s. The machines were water powered until the mid-1800s * By the 1870s, the U.S. was second only to the U.K. in the level of industrialization. The steel industry was growing rapidly, textiles were still a major component of the U.S. Industrial Revolution and new activities were being developed at a rapid pace. * By the early 20th century, the Industrial Revolution had spread to most of Europe, and Japan. During the remainder of the 20th century it spread to its present worldwide distribution. Why does an industry (or business) locate where it does? * To maximize profits by minimizing (production and other) costs * It is a combination of the factors discussed below that will determine where a particular operations will locate. Which one or two are more important will depend on the particular economic activity, but most all are considered in the final decision.
Factors involved to achieve this goal include: Location in regards to Inputs (raw materials): * For many activities being close to the raw materials needed is the most important factor in reducing costs. So for the steel industry being near the iron ore or the coal deposits . Most factories were built near the coal fields and had the iron ore transported in. For example, early U.S. steel operations were near Pittsburgh, PA near the coal fields. * Timber operations are where there area trees, and so on. Location of Labor force (workers): * Varies with industry, but the economic activity will locate where in can find the skill level of workers it needs. * Textile operations usually locate near large urban centers because they need large numbers of relatively unskilled, inexpensive labor. * A computer company will likely locate where there more highly skilled workers. * All operations will look for locations that offer the workers of the desired skill level necessary for the lowest price (wage/salary). Location of Markets: * An activity does not want to be too far from the people or other industries to whom it wishes to sell its products. * Perishable products, like many foods, may need to be near the consumer of those foods. Modern technology has changed this however for many items. * Steel products are not as perishable and so the steel factories do not need to be near as near to its consumers. * Some specialized industries may wish to be closer to their consumers for convenience or to reduce transportation costs such
as car parts factories near car assembly plants. Location to needed Transportation & Transportation costs: * The costs of getting the raw materials in and the finished products out to the consumer are always a concern.
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- Spring '14
- Geography, Tertiary sector of the economy, tertiary sector