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12: Economic Geography

  • Page ID
    241219
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    Economics is the social science focused on the production, distribution, and consumption of goods and services. It includes a wide range of our daily activities, including what we do for a living and how we spend our money. Nearly every economic exchange has a spatial dimension to it, and exchanges occur at multiple spatial scales. Economic geography helps us understand how wealth is created, distributed and moves between individuals, communities and even countries.

    A solid grasp of how the economy works is essential to understanding how almost any aspect of our society works. People who have a robust understanding of the mechanisms of our economy can often understand many issues that involve culture, politics, religion, ethnicity, and dozens of other topics. Economics was no doubt a key factor in your decision to come to college. It probably explains a significant part of why you are in this class or attending this college. If you see the power of money, and the influence of the economic system in the operation of daily life, you might find some value in the political-economic ideology of Marxism. You may find the Marxist social science methodology known as Historical Materialism useful. If you’re not careful though, you might be accused of falling into the trap of economic determinism, which like some of the other deterministic views introduced elsewhere in this text, can lead to an over-reliance on a single causal variable. If you have been reading this text carefully, you will have recognized that the author is sympathetic to historical materialism as a tool for understanding social and cultural conditions. This chapter, however, focuses on applied economic geography.

    • 12.1: Economic Sectors
      This page discusses how regional economic activities shape local job markets through the interaction of basic and non-basic industries. Basic industries attract external buyers, fostering wealth and economic independence, while non-basic industries rely on local consumption. A lack of viable basic industries can lead to economic decline and potential population migration out of affected regions.
    • 12.2: Primary Sector
      This page discusses how communities centered on extractive industries, such as farming, mining, and logging, face uneven economic development due to resource distribution. While these sectors create jobs and wealth, over-reliance may lead to environmental damage and economic dependency.
    • 12.3: Secondary Sector
      This page discusses the relationship between the extractive industry and manufacturing jobs, highlighting how the transformation of raw materials into products can generate profits for workers if managed well. It identifies key factors of production that influence profitability and location, noting the trend of industries relocating to lower-cost areas for low-skill labor. Additionally, it traces the evolution of textile manufacturing in the U.S.
    • 12.4: Free Trade and Protectionism
      This page analyzes the impacts of NAFTA on the textile and manufacturing sectors, emphasizing job losses and the role of containerization. It discusses factors affecting industrial location, including logistics and cost, highlighting the shift to just-in-time manufacturing and outsourcing in the automotive industry, as well as the rise of the service sector and income inequality.
    • 12.5: Business Geography
      This page discusses the importance of geography in selecting business locations to avoid financial losses and expand customer bases. It highlights economic base analysis, specifically the location quotient, as a method to assess industry roles by comparing local and state averages. This analysis identifies competition and market opportunities, benefiting new businesses. Despite some criticisms, the location quotient remains a valuable tool for understanding economic activities.
    • 12.6: Site LocationAnalysis
      This page explores the importance of site location analysis for business success, emphasizing geographers' role in site selection and models predicting consumer behavior. It also addresses marketing geography in targeting and branding, with examples from companies like Abercrombie & Fitch. Additionally, it examines hamburger restaurant design, tracing its evolution from hygienic aesthetics to nostalgic themes, showing how consumer perceptions of quality and cleanliness have adapted over time.

    Thumbnail: Metallurgist working by the blast furnaces in Třinec Iron and Steel Works. (Třinecké železárny allows anyone to use it for any purpose, provided that the copyright holder is properly attributed. Redistribution, derivative work, commercial use, and all other use is permitted; Třinecké železárny via Wikipedia)


    This page titled 12: Economic Geography is shared under a CC BY-NC 4.0 license and was authored, remixed, and/or curated by Steven M. Graves via source content that was edited to the style and standards of the LibreTexts platform.