CAMBRIDGE GEOGRAPHY A2 REVISION - PRODUCTION, LOCATION AND CHANGE: 11.3 MANUFACTURING AND RELATED SERVICE INDUSTRY. It contains: key terms and definitions, topic summary, additional work and suggested websites.

1. A2GEOGRAPHYREVISION
PRODUCTIONLOCATIONANDCHANGE
11.3 MANUFACTURINGAND
RELATEDSERVICEINDUSTRY

2. KEYTERMSANDDEFINITIONS
Processing industries are industries that use raw materials directly.
Weight loss refers to industries for which the finished product is lighter than
the weight of the raw materials required to manufacture it.
Tidewater locations are port locations where freight can be transferred from
road, rail and pipeline to water transport.
Break of bulk is a location, such as a seaport, where freight has to be
transferred from one mode of transport (usually an oceangoing bulk carrier)
to another (usually rail or road).

4. Industrial revolution is the transformation in the late eighteenth and the
nineteenth centuries of first Britain and then other European countries and
the USA from agricultural into industrial nations.
Hard infrastructure is the basic utilities (road, rail, air links; water, sewage
and telephone systems, etc.) that provide a network that benefits business
and the community.
Soft infrastructure is other services such as health, education, banking and
retailing that are important to business and the community.
Industrial inertia is the continued presence of an industry in an area even
though the factors that caused it to locate there originally no longer apply.
KEYTERMSANDDEFINITIONS

6. Footloose industry is industry that is not tied to certain areas because of its
energy requirement, raw materials or other factors.
Fixed (terminal) costs are costs accrued by the equipment used to handle
and store goods, and the costs of providing the transport system.
Line haul costs are the costs of actually moving the goods and are largely
composed of fuel costs and wages.
Capital represents the finance invested to start up a business and to keep it
in production.
KEYTERMSANDDEFINITIONS

7. Sectoral spatial division of labour is the concentration of specific industrial
skills in particular regions or countries.
Geographical mobility of labour is the relative ability of labour to move
from one geographical region to another.
Occupational mobility is the relative ability of people to move from one
occupation to another.
Internal economies of scale occur when an increase in production results
in a lowering of unit costs.
Diseconomies of scale are when an increase in production results in rising
unit costs.
KEYTERMSANDDEFINITIONS

8. External economies of scale (agglomeration economies) are the benefits
that accrue to a firm by locating in an established industrial area. External
economies of scale can be subdivided into urbanisation economies and
localisation economies.
Industrial agglomeration is the clustering together and association of
economic activities in close proximity to one another.
Industrial estate is an area zoned and planned for the purpose of industrial
development.
KEYTERMSANDDEFINITIONS

10. Export processing zones are industrial zones with special incentives set up
to attract foreign investors, in which imported materials undergo some
degree of processing before being reexported.
Jobs in the formal sector will be known to the government department
responsible for taxation and to other government offices.
Informal sector is that part of the economy operating outside official
government recognition.
Functional linkages are the links between industries, like tyre
manufacturers and car makers
KEYTERMSANDDEFINITIONS

12. TOPICSUMMARY
The factors affecting industrial location will differ from industry to industry
and their relative importance is subject to change over time.
Industries that use raw materials directly, such as oil refining and metal
smelting, are known as processing industries.
The processes involved in turning a raw material into a manufactured
product usually result in weight loss.
Tidewater locations are particularly popular with industries using
significant quantities of imported raw materials.
Where a firm sells its products may well have a considerable influence on
where the factory is located.

14. TOPICSUMMARY
Although once a major locational factor, the share of industry’s total costs
accounted for by transportation has fallen steadily over time.
The space requirements of different industries, and also of firms within the
same industry, vary enormously. Technological advance has made modern
industry much more space-efficient than in the past.
Capital represents the finance invested to start up a business and to keep it
in production. That part of capital invested in plant and machinery is known
as fixed capital as it is not mobile compared with working capital (money).
The interlinked attributes of labour that influence locational decision-
making are cost, quality, availability and reputation.

15. TOPICSUMMARY
Internal economies of scale occur when an increase in production results
in a lowering of unit costs.
External economies of scale (agglomeration economies) are the benefits
that accrue to a firm by locating in an established industrial area.
Governments influence industrial location for economic, social and political
reasons. Regional economic policy largely developed after the Second
World War, although examples of legislation with a regional element can be
found before this time.
Advances in technology can stimulate new industrial clusters as has
happened with biotechnology in a number of countries.

16. TOPICSUMMARY
Car manufacturing is one of the world’s largest industries. Within the EU,
investment in car manufacturing has shifted from western to eastern
Europe in recent years as countries like Slovakia have joined the EU.
Industrial agglomeration is the clustering together and association of
economic activities in close proximity to one another. Agglomeration can
result in companies enjoying the benefits of external economies of scale.

17. TOPICSUMMARY
An industrial estate is an area zoned and planned for the purpose of
industrial development. Industrial estates are also known as industrial
parks and trading estates.
There are a number of different types of export processing zones (EPZs),
which include free trade zones, special economic zones, bonded
warehouses, and free ports.
The concept of the informal sector was introduced into international usage
in 1972 by the International Labour Organization (ILO).

18. ADDITIONALWORKS
1. For the largest manufacturing industry nearest to where you live,
research the factors that influenced its location.
2. Make a list of the most important raw materials produced by the country
in which you live. What proportion of raw material production is used
domestically and how much is exported?
3. How has the government influenced industrial location in the country in
which you live?
4. Are there any examples of the informal sector operating in your local
area?

19. SUGGESTEDWEBSITES
www.wiego.org
www.ilo.org
www.unrisd.org