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Introduction to Geography, 8/e
Arthur Getis, San Diego State University
Judith Getis
Jerome D. Fellmann, University of Illinois, Urbana-Champaign

Economic Geography

Problems

Web Page Questions:

Answer the following questions using the web pages listed in the chapter.

1. U.S. Department of Agriculture - http://www.usda.gov/
What are the six mandates from the USDA?

1) _________________________________________________________________________________

2) _________________________________________________________________________________

3) _________________________________________________________________________________

4) _________________________________________________________________________________

5) _________________________________________________________________________________

6) _________________________________________________________________________________

 

2. Organization for Economic Cooperation and Development - http://www.oecd.org

a. How many OECD centers are there worldwide and where are they located?

_____________________________________________________________________________________

b. How many countries belong to the OECD and who are the newest members?

___________________________________________________________________________________

__________________________________________________________________________________

Problems:

1. This exercise examines the effects of various costs, especially transportation costs and climate constraints on the spatial organization of agricultural activities located around a central market. This demonstrates the applicability of von Thunen's rent theory to agricultural problems.

In order to produce a map showing the distribution of crops within an area, three assumptions must be considered:

1. This is an isolated region within which all agricultural produce is sold at a central market town.

2. The variety of crops is limited to dairy products, vegetables, corn, cotton and wheat due to climatic and prevailing market conditions.

3. The farmers are rational-economic producers, that is, they will produce those products which yield the greatest profit on their land.

 

a) Using the following formula for calculating economic rent:

ECONOMIC RENT (R) = E (p - a) - E f k

where:

E = yield in units per acre

p = market price per unit of output

a = cost of production per unit per acre

f = transport cost per unit per mile

k = distance from the market in miles

and the following cost data from agricultural activities, determine the rent for each of the activities for each of the five distance zones (k = 2 miles, 4 miles and so on).

Cost Data for Agricultural Activities

     

Determine Rent for each value of k

 a($)Epf246810
Cotton.25100.60.03     
Wheat.45125.65.02     
Dairy.25200.55.04     
Corn.20300.30.01     
Vegetables.20200.70.10     

 

 

b. For that activity which yields the highest rent for a particular distance (e.g., up to 2 miles) check the environmental constraint table to see if temperature and precipitation permit it to exist in that band or any part of it. Using the appropriate symbol for that activity, draw on the map that area where the activity should be found based upon its rent and climate needs. If there is still unallocated space within the zone, go to the activity which yields the next highest rent, check the environmental constraints for it and draw its symbol in the area where the first activity cannot be produced. If there is still unallocated space, go to the next highest rent yielding activity and so on until the zone is completely allocated to agricultural activities.

Proceed to the next distance band (4 miles) and allocate land uses in the same manner until all land uses are allocated. Do this for every one of the five distance bands until all the activities have been allocated.

If two activities yield the same rent for a particular area, and are permitted by climate conditions, then insert both symbols to show that they both might be found there. If any of your calculations produce a negative value for Rent, treat it as though it were zero.

 

Environmental Constraints
ActivityTemperaturePrecipitation
CottonHot30 - 55 inches
WheatMild15 - 55 inches
DairyCool - Mild25 - 55 inches
CornMild - Hot20 - 55 inches
VegetablesMild - Hot28 - 48 inches

 

 

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::Rent Districting::/sites/dl/free/0072367229/9470/image10_01.gif','popWin', 'width=518,height=669,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">Rent Districting (10.0K)</a>Rent Districting

2. The least cost theory of industrial location states that industries will locate wherever costs are the lowest, particularly transportation costs. By referring to the section entitled "Least-Cost Theory" and using the information from the diagram and table below, you can calculate the optimum location, based solely on transportation costs.

The diagram shows the locations of various factors: raw material 1 (S1), raw material 2 (S2), an independent site for manufacturing (P) and the market for the finished product (M). The distance in miles between each of the locations is also provided. The finished product may be manufactured at one of the four locations, but there will be differing transportation costs associated with each. You are given a table of transportation costs, both terminal and line-haul, for the raw materials and the finished product.

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::Location Diagram::/sites/dl/free/0072367229/9470/image10_02.gif','popWin', 'width=400,height=346,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">Location Diagram (24.0K)</a>Location Diagram

 

Transportation Costs per Ton(in dollars):

 Raw Material 1Raw Material 2Finished Product

Loading

1.251.001.50
Shipping/mile.50.75.85
Unloading.60.601.50

 

Production of the finished product requires 3000 tons of raw material 1 which has a weight loss of 1/3 of the original weight and 4000 tons of raw material 2 which has a weight loss of 5/8 of the original weight.

a. Calculate the total costs of shipping the raw materials and finished product, for each of the four locations, using the information provided.

b. Indicate the optimum location for the manufacture of the finished product, and provide a reason for choosing that location.

#1 Location: S1

Raw Material 1Raw Material 2Finished Product
Loading   
Unloading   
Line-Haul   
Total   

Total Transportation Costs _______________

#1 Location: S2

Raw Material 1Raw Material 2Finished Product
Loading   
Unloading   
Line-Haul   
Total   

Total Transportation Costs _______________

#1 Location: S3

Raw Material 1Raw Material 2Finished Product
Loading   
Unloading   
Line-Haul   
Total   

Total Transportation Costs _______________

#1 Location: S4

Raw Material 1Raw Material 2Finished Product
Loading   
Unloading   
Line-Haul   
Total   

Total Transportation Costs _______________

 

Optimum Location for Production is: ____________________________________________________

The reason for selecting this site: ________________________________________________________________

____________________________________________________________________________________________

 

 

Critical Thinking Questions

  1. Your client wants to invest a billion dollars to create a year-round resort in a very mountainous area in a Dfa-Humid Continental climate region. Your assignment from your supervisor is to describe the region's physical characteristics, the potential impact of natural atmospheric and geologic processes on the site, and the ease of access within the region. Include two topographic features of mountain regions, two characteristics of Dfa climates, one topographical hazard of mountain regions, and one atmospheric hazard of these regions. Lastly, discuss potential human impact on the region should the resort be built.
  2. You have been asked by your supervisor to provide a client with information concerning the siting of a factory. This manufacturing operation requires much land area, tons of raw materials, a complicated process that produces much waste and by-products (solid, liquid and airborne), a strong technical support staff. Using geographic principles of location, describe the physical, economic, political and social factors the client must consider when weighing options to locate the plant.
  3. The Green Revolution has saved an estimated one billion people from starvation and many more from death. It has also helped to reduce infant mortality rates and increase the number of live births. In light of the population problems discussed in Chapter 6, discuss the pros and cons of the Green Revolution.
  4. Discuss the erroneous statement "Once least-cost sites for industry are developed, they remain permanently as most advantageous locations."
  5. Explain why the Humid Subtropical climate (Cfa) is one of the world's most agriculturally productive climates and also one of the most densely populated.