Economic Geography Exam 1

How do neo-classical, structuralist, and behavioralist theories differ in their assumptions about how the world works?
I. Neoclassical- provides a ready source of concepts of quantitative economic geography. Simplified assumptions to the development and testing of hypotheses and models against numerical data representing real-world conditons.
II. Structuralist- Structuralism argues that a specific domain of culture may be understood by means of a structure—modelled on language—that is distinct both from the organizations of reality and those of ideas or the imagination—the “third order”.
III. Behavioralist- Behaviorism comprises the position that all theories should have observational correlates but that there are no philosophical differences between publicly observable processes (such as actions) and privately observable processes (such as thinking and feeling).
Why are neo-classical theories considered normative and why is that criticized?
Neo-classical theories are considered normative because this is what is primarily used today. Neo-classical theory works with testing and hypotheses and models against numerical data which represent actual real world conditions.

? optimal market conditions? government policies
? built environment

Why are transportation costs a key factor in Weber’s least-cost approach?
this is simply because the further away a certain place is, and the further it takes to ship a product from one place to another effects the cost and energy taken through the transportation.
What is the difference between (1) ubiquitous, (2) pure and (3) gross raw materials and how does each effect the location of industry in the least-cost approach?
A: Pure raw materials:
? No change in weight, can locate anywhere
Gross raw materials:
? Weight loss, raw material oriented

Ubiquitous raw materials:
? Weight gain, market oriented
? Perishable goods are also market oriented

n what ways have changing transportation costs effected Weber’s least cost model?
Differences in costs determined by transportation costs:
1) Cost of assembling raw materials
2) Cost of distributing finished product
3) Total transportation costs
How do cost factors like labor, land and capital affect Weber’s least-cost model?
depending on the size of the labor force land and capital will have effect on the cost. If the labor force is high, more land is being used and it has a large capital the cost will be more expensive.
From a regulationist perspective, how do Fordism and post-Fordism represent different regimes of accumulation (wages, competitiveness, monetary system, state)
Fordism and post-fordism represent different regimes of accumulation such as wages, competitiveness, monetary system and state because Fordism looks at these regimes through mass production and consumption while post-fordism is more focused around the individual.
How might the shift from Fordist to post-Fordist modes of production impact the location of industries?
This would effect the location of industries because these markets would be more spread out in regions since through post-fordism, niches and fragments break off from these markets.
What is the Hotelling model and how does it help to explain the geographic concentration of competitors–apart from the effects of agglomeration?
through the Hotelling model, it shows that when choosing between two places selling identical thing, people will naturally go to the place closer to them. This effects competitors because even a slight difference in distance could effect the choice of which that person will go to.
n what ways does the state intervene in the economy?
Legal System, Fiscal Policy, Monetary Policy, Labor Laws, Foreign Trade, Land Use Decision
How does the political economy approach explain the relationship between capitalism and government and how can it be used to explain economic location decisions?
Considers historical/social context and stresses the importance of power/politics
I. Capitalism filled with contradictions
? companies want to keep wages down but ultimately need people to buy products
? companies want ever-increasing economies of scale but that eventually inhibits competition.
How is Harvey’s concept of a spatial fix useful in understanding how capitalist systems deal with overproduction and explaining regional production shifts?
The concept behind Harvey’s spatial fix is useful because the capitalist economy will stabilize itself where there is production and then can change the shifts of production later on if it is more beneficial to them.
What are the strengths of Krugman’s new economic geography and why have many economic geographers criticized it?
Focus is on culture and creation of economic sensibilities
? Particular focus on language & meaning
? Networks of concepts, statements & practices are known as discourses

The cultural turn has been associated with Post Modernism
? Rejection of scientific rationality
? Favoring of multiple & local knowledges
? Criticized for hyper-relativity

What problems do firms present in today’s capitalist economy
? Increased size & scale
? Ability to influence prices
? Separation of shareholders from manager
Why is money an important feature in any economy?
Two Key Features of Money=
? Measure and store of value
? Medium of exchange
How do firms typically raise capital to expand the size of their operations?
Stocks and Funds
5. Where is the financial center concentrated in the United States and what are the key emerging centers of venture capital?
Silicon Valley, California. The key emerging centers of venture capital are California, New England and New York.
How do differing degrees of mobility often pit labor and capital against one another?
This is because labor is immobile while capital is mobile.
How did the intensification of the labor process change the division of labor and why did it lead to both the deskilling of workers and increased social divisions?
the deskilling of workers came from that of Taylorism
Why is consumption becoming more significant during post-Fordism and why are measures like housing starts and trade deficits such cause for concern in this economy?
Shift away from industrial base to services
? Consumption is a greater part of our economy
? Partly explains increasing trade deficits
Consumption & Culture
? Passive consumption patterns
? Active consumption patterns
Changing Patterns of Consumption
? Fragmentation of markets
? Michael Weiss & Micro-Regions
To what extent are consumers passive and to what extent are the active?
This depends on what geographical region they are from. consumers usually wanna buy low and sell high.
What two basic functions does the state have in maintaining its economic system and what types of institutions does it use to achieve those functions
the state maintains law/order and property rights.
Why did the capitalist world economy not fully emerge until the Industrial Revolution?
This is because of the global trading system which was based on comparative advantages as well as the creation of international division of labor. *refer to slides*
Why did the theory of comparative advantage fit well with the Industrial Revolution?
The reason why the comparative advantage fir well in the industrial revolution was because of the production costs determine which products a country specialized in.
What does Michael Porter suggest are the main features that give an economy a competitive advantage?
Porter believes that there should be a increase the productivity of constituent firms or industries, and stimulating higher rates of innovation and encouraging high rates of business formation. His Diamond Model is based on the contention that clusters enhance competitiveness and productivity.
How does cumulative causation lead to uneven development?
The process of cumulative causation in a growing region is linked to the fate of surrounding ones through flows of capital and labor. From this creates uneven development of the surrounding regions of the cumulative causation.
Why does spatial dispersion of industries eventually occur, despite the presence of strong cumulative causation factors?
Spatial Dispersion of industries usually ends up occurring because it helps create a more balanced economy.
Why did the Industrial Revolution encourage regional sectoral specialization?
The reasons on why regional sectoral specialization was encouraged by the industrial revolution is because it helps keep the economy in motion. Based on RSS, this had particular regions become specialized in certain sectors of industry.
How was the Soviet Union able to achieve high levels of growth in the early part of the Fordist period and why was it not sustainable in the long run?
The reason on why the Soviet Union achieved high levels of growth in the early part of the fordist period was because they were very much focused on heavy capital goods like iron and steel and heavy enginnering rather then consumer goods.
Why did Japan grow so fast during the Fordist period and why was it an unusual case?
A: Post WW2 Japan is an American demonstration
? Japan paid $1.5b for $400b licensing & royalties from North America
? By 1980 Japan #1 producer of ships, cars, televisions and #2 in steel (USSR)

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