Von Thünen Model: Agricultural Land Use

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Questions and Answers

Which of the following best describes the relationship between land cost and transportation costs according to Von Thünen's model?

  • Land cost increases and transportation costs decrease as distance from the market increases.
  • Land cost decreases and transportation costs increase as distance from the market increases. (correct)
  • Land cost increases and transportation costs increase as distance from the market increases.
  • Land cost decreases and transportation costs decrease as distance from the market increases.

In Von Thünen's model, which agricultural product would most likely be located closest to the market center?

  • Livestock
  • Dairy (correct)
  • Lumber
  • Wheat

Which of the following is a limitation of the Von Thünen model's applicability in modern economies?

  • The increasing irrelevance of transportation costs.
  • The model's assumption of uniform soil fertility.
  • Technological advancements in transportation and storage. (correct)
  • The model's focus on agricultural activities.

Which of the following best describes a 'weight-losing' industry in Weber's Least Cost Theory?

<p>An industry that locates near the source of raw materials to reduce transportation costs. (B)</p> Signup and view all the answers

According to Weber's Least Cost Theory, which of the following factors would most likely encourage a company to locate in a specific region?

<p>Access to skilled labor and shared infrastructure. (D)</p> Signup and view all the answers

Which of the following is the best example of agglomeration in industrial location?

<p>Multiple car manufacturers locating near each other to share suppliers and specialized labor. (D)</p> Signup and view all the answers

Which type of industry is most likely to be considered a 'footloose' industry?

<p>A software development company. (D)</p> Signup and view all the answers

Which of the following characteristics best describe the 'informal sector'?

<p>Labor intensive, simple technology, self-employment, casual employment. (B)</p> Signup and view all the answers

Which of the following is an advantage of industrial agglomeration?

<p>Shared resources and infrastructure. (A)</p> Signup and view all the answers

What is a potential disadvantage of industrial agglomeration?

<p>Increased pollution and environmental damage. (A)</p> Signup and view all the answers

Which factor is most critical for a weight-losing industry when determining its location?

<p>Access to raw material sources. (D)</p> Signup and view all the answers

Which of the following industry classifications involves extracting raw materials directly from the earth or sea?

<p>Primary Industry (D)</p> Signup and view all the answers

Which of the following describes a product best suited for airplane transport?

<p>High-value electronic components with a tight delivery deadline. (B)</p> Signup and view all the answers

Which of the following is a key factor that influences the cost of transportation?

<p>The distance, capacity, and accessibility. (A)</p> Signup and view all the answers

In Rostow's Stages of Economic Growth, what is a characteristic of the 'Traditional Society' stage?

<p>Subsistence-based agriculture with limited technology. (B)</p> Signup and view all the answers

According to Rostow's model, which of the following typically emerges during the 'Pre-conditions for Take Off' stage?

<p>Dominance of a single industry, often textiles. (A)</p> Signup and view all the answers

Which criticism of Rostow's model suggests that its stages may be difficult to achieve due to external factors?

<p>The model ignores the impact of debt repayments on development. (A)</p> Signup and view all the answers

Which transportation method is most suitable for transporting heavy primary or secondary goods over long distances?

<p>Train (C)</p> Signup and view all the answers

Why are ships typically used for transporting goods that do not require urgent delivery?

<p>Ships are very slow and suitable for non-urgent goods. (D)</p> Signup and view all the answers

What is a major disadvantage of using airplanes for transporting goods?

<p>Airplanes have a small cargo capacity and cannot carry heavy loads. (A)</p> Signup and view all the answers

Why did European metropoles seek control over colonies?

<p>To gain access to raw materials and food. (B)</p> Signup and view all the answers

What is the trade imbalance trap that satellites often face?

<p>They get less for their exports than they pay for imports. (A)</p> Signup and view all the answers

Which sector expands rapidly in Rostow's 'High Mass Consumption' stage?

<p>Tertiary Industry (B)</p> Signup and view all the answers

Which of the following is a criticism of Rostow's model?

<p>It is outdated and oversimplified. (B)</p> Signup and view all the answers

According to Weber's Least Cost Theory, what is the primary goal of industrial location decisions?

<p>Minimizing costs. (A)</p> Signup and view all the answers

What type of industry processes and manufactures primary products?

<p>Secondary Industry (D)</p> Signup and view all the answers

Which of the following is an example of a tertiary industry?

<p>Retailing. (D)</p> Signup and view all the answers

What role do metropoles play in the dependency theory?

<p>They control the economies of satellites. (B)</p> Signup and view all the answers

According to Rostow's model, what leads to large-scale rural-urban migration during the 'Take-off' stage?

<p>Workers switching from the land to manufacturing. (C)</p> Signup and view all the answers

A company is deciding where to locate a factory. Which of these human factors would be most important to consider?

<p>Availability of skilled workers. (B)</p> Signup and view all the answers

What is meant by the term 'satellites' in the context of Development, Dependency, and Trade?

<p>Poor, less industrialized countries. (B)</p> Signup and view all the answers

Which of the following could modify Von Thünen's model?

<p>Differential transportation costs (B)</p> Signup and view all the answers

What is the main concept behind the Bid Rent theory?

<p>Land is more expensive closer to a city. (C)</p> Signup and view all the answers

What is a typical characteristic of a Heavy Industry?

<p>Uses heavy, bulk raw products. (B)</p> Signup and view all the answers

What is a significant disadvantage of industries clustering together (industrial agglomeration)?

<p>Labor shortages and wage inflation (D)</p> Signup and view all the answers

Which of the following scenarios best illustrates Weber's weight-gaining case in the Least Cost Industrial Location Model?

<p>A beverage company locates near its consumer market. (D)</p> Signup and view all the answers

What is most likely to be transported by ships?

<p>Bulk raw materials like iron ore. (C)</p> Signup and view all the answers

Which of the following industries is classified as quaternary?

<p>Micro-electronics and R&amp;D (C)</p> Signup and view all the answers

What is Rostow's model primarily based upon?

<p>A study of mainly European countries (D)</p> Signup and view all the answers

Flashcards

Market Gardening and Milk Production

Farming focused on vegetables, dairy, and fruit, requiring quick market access.

Firewood and Lumber Production

Production of wood for fuel and construction; heavy and difficult to transport.

Crop Farming (with/without fallow) / Three-Field System

Grain farming, lighter than fuel, with longer-lasting products, sometimes using a crop rotation.

Livestock Farming

Farming involving animals that can walk themselves to market.

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Von Thũnen Theory

A model where farmers maximize profit based on land use and transport costs.

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Transport Cost

The cost to move goods, dependent on distance and product characteristics.

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Crop worth based von Thunen

The idea that a crop's worth depends on its distance from the city, balanced by land and transport costs.

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Von Thũnen Model Weaknesses

Differences in transportation costs, topography, soil fertility, demand changes, or government policies.

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Land cost near cities

The cost of land increases closer to an urban area.

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Bid-Rent Theory

Land is more expensive, or costs more, where it is scarce.

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Weber’s Least Cost Industrial Location Model

A model explaining industrial locations based on minimizing transportation, labor, and agglomeration costs.

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Transportation Costs (Weber)

The cost of moving raw materials and finished products.

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Agglomeration

Refers to the benefits firms get by locating near each other, like shared services.

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Weight-Losing Case (Weber)

Locating near raw materials to reduce transportation costs when raw materials are heavier than the final product.

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Weight-Gaining Case (Weber)

Locating near the market because the final product is heavier than the raw materials.

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Primary Industry

Industries that extract raw materials directly from the earth or sea.

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Secondary Industry

Industries that process and manufacture products from primary industries.

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Tertiary Industry

Industries that provide services.

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Quaternary Industry

Industries that provide information and expertise.

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Heavy Industry

An industry that uses heavy, bulky raw products and produces heavy, bulky goods.

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Light Industry

An industry that uses light, small raw materials and produces light and small finished products.

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Fixed Industry

An industry with limited location choices due to reliance on a specific raw material.

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Footloose Industry

An industry that can locate in various places due to light raw materials and easy transport.

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Formal Industry/Sector

Capital-intensive, using advanced technology, with workers employed regularly.

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Informal Industry/Sector

Labor-intensive, using simple technology, with self-employment or casual employment.

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Advantages of Industrial Agglomeration

Sharing resources, labor pool, knowledge, lower costs, improves supply chains.

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Disadvantages of Industrial Agglomeration

High demand for resources, pollution, increased wages, vulnerable to specific crises, scarcity of space.

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Physical Factors in Industrial Location

Proximity to raw materials, transportation, climate, space availability, and natural resources.

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Human Factors in Industrial Location

Skilled labor force, labor costs, worker's well-being, political stability and social environment.

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Economic Factors in Industrial Location

Closeness to consumer market, land costs, taxes, government regulations and incentives, economic environment.

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Metropoles

Rich industrialized nations that control economies of poorer countries.

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Satellites

Poorer, less industrialized countries dependent on richer nations.

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Trade Imbalance Trap

Countries are caught in a trade imbalance paying more for imports than they earn from exports.

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The Rostow Model

A model suggesting all countries can develop through 5 linear stages.

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Traditional Society (Rostow)

Subsistence farming, barter trade, limited technology.

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Pre-conditions for Take Off (Rostow)

Emerging transport, commercialized agriculture, growing savings and investment.

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Take off

Increased industrialization, rural-urban migration, concentrated growth in a few regions.

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The Drive to Maturity (Rostow)

Diverse growth, technological innovation, economic development spreads.

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High Mass Consumption (Rostow)

Rapid expansion of tertiary industry, production of durable consumer goods.

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Trains for Transport

Trains transport primary or secondary heavy goods long distances.

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Ships for Transport

Ships transport large quantities of goods, but are very slow.

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Airplanes for Transport

Airplanes carry high-value goods quickly.

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Trucks for Transport

Trucks transport finished products to market when the distance is not very far.

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Study Notes

  • Market gardening and milk production necessitate quick market access due to the perishability of vegetables, dairy, and fruit.
  • Firewood and lumber production are essential for fuel, but their weight and transportation difficulties pose challenges.
  • Crop farming, especially with grains using systems like the Three-Field System, benefits from grains being lighter than fuel with longer shelf life.
  • Livestock farming involves animals transporting themselves to market for slaughter.

Von Thünen Theory

  • Farmers aim to maximize profits based on land use and transport costs.
  • Transport cost is dependent on distance, product bulk, and perishability.
  • Cultivation is only worthwhile within certain distances from the city
  • Beyond that cost of land gets too high, or transport costs increase, or there is a more profitable product.

Weaknesses and Criticism of the Model

  • The model assumes an isolated state.
  • It disregards differences in local physical conditions, differential transportation costs, variations in topography, soil fertility, changes in demand or price, and government policies.
  • Modern refrigerators allow perishable products to be transported longer distances.
  • The theory remains relevant by illustrating the balance between land cost and transportation costs.

Bid Rent Theory

  • Land is scarce so rent is more expensive in an urban area.
  • The closer one is to the city, the more expensive it is to be there.

Weber's Least Cost Industrial Location Model

  • Industries locate to minimize costs in transportation, labor, and agglomeration.
  • Minimizing costs in three categories: Transportation, Labour, and Agglomeration

Least Cost Theory

  • Weight-losing industries locate near raw materials to minimize transportation costs.
  • Weight-gaining industries locate closer to the market to reduce costs.

Industry Classifications

  • Primary industries extract raw materials: farming, fishing, forestry, mining.
  • Secondary industries process and manufacture primary products: steel, shipbuilding, furniture making, and construction.
  • Tertiary industries provide services: health, education, government, retailing, and transport.
  • Quaternary industries provide information and expertise: micro-electronics and R&D.

Types of Industry

  • Heavy industries use heavy, bulky raw products and produce heavy, bulky goods.
  • Light industries use light, small raw materials with light, small finished products.
  • Fixed industries have limited location choices due to reliance on heavy raw materials.
  • Footloose industries can locate in many places due to light, easily transported raw materials.

Sector Classifications

  • Formal industries are capital intensive, use advanced technology, and employ workers regularly.
  • Informal industries are labor intensive, use simple technology, and involve self-employment or casual employment.

Industrial Agglomeration: Advantages and Disadvantages

  • Advantages include shared resources, labor pool, innovation/knowledge sharing, lower transaction costs, and consumer attraction.
  • Disadvantages include high resource demand, pollution, labor shortages/wage inflation, industry-specific crises, and scarcity of space.

Factors Involved in Deciding Industrial Location

  • Physical factors such as proximity to raw materials, climate, availability of resources, and suitable land are crucial.
  • Human factors include the availability of skilled labor, labor costs, living standards, and political stability.
  • Economic factors are proximity to markets, land costs, access to finance, government policies, and the overall economic environment.

Development, Dependency, and Trade

  • Rich industrialized countries are metropoles; poor, less industrialized countries are satellites.
  • During the 1960s and 1970s most colonies won political independence but are still, even today, dependent on the metropoles.
  • Metropoles control the economies of satellites, creating a trade imbalance.

The Rostow Model - The Stages of Economic Growth

  • Rostow's model suggests countries develop through five linear stages.
  • Traditional Society: Subsistence farming, limited technology, and barter trade.
  • Pre-conditions for Take Off: Emergence of surpluses, transport infrastructure, commercialized agriculture, and entrepreneurship.
  • Take off: Increased industrialization, rural-urban migration, and new political/social institutions.
  • The Drive to Maturity: Diversified growth, technological innovation, and economic development spreads.
  • High Mass Consumption: Expansion of tertiary industry and production of durable consumer goods.

The Rostow Model - Criticisms

  • Outdated (1960) and oversimplified
  • Model assumes same starting level and resources for all countries.
  • The model underestimates the extent to which the development of some countries in the past was at the expense of others through colonization and imperialism.

Transportation

  • Trains: Suitable for long-distance transport of heavy primary/secondary goods.
  • Ships: Ships give transportation for goods without strict time limits.
  • Airplane: For high-value or urgent goods despite small cargo capacity.
  • Truck: For finished products being transported easily to market over short distances.
  • Transportation costs vary by country, distance, goods, speed, capacity, and accessibility.

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