World Economic Geography

Chapter One:
The Conceptual Foundation

Instructor: Dr. Nguyen Thi Phuong Chau

Course email: [email protected]
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01. Conceptual foundations

Aims:
 To understand the assumptions used by economists in
understanding the economy.
 To recognize the limitations of economic approaches to the
economy
 To appreciate key concepts in economic geography

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Concept of geography

The studies of the phenomena,

processes and patterns of natural
environment and the spatial
organization of human life as a whole.

• Phenomena: Facts or events of nature (rain, temperature …) or society

(COVID-19_coronavirus)  what is the pattern of rain/temperature?
• Processes: flows of rain, temperature  How does the rain/ temperature
run/move from area to area?
• Patterns of rain, temperature … 3
https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd
40299423467b48e9ecf6 accessed on 17 March 2020
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 Three fundamental questions

1. Where?: Where did/are the phenomenon, processes,

patterns happened/happening?

2. Why there?: Why did/are they happened/happening

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there? (not at a different/another place?)

3. How?: How are they in relation to those in other

places, and affect or are affected by human life and
the natural environment?
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 spatial/geographical thinking

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Coffee regions

http://www.nationalgeographic.c
om/coffee/map.html

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World population map 2017
Key words

1. SPACE
2. LOCATION
3. DISTANCE
4. PLACE
5. SCALE
6. SIZE
7. SHAPE
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1. Space

 Territoriality and form

 Location within space
 Flows across space
 Unevenness of wealth and
development across space

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2. Location

1. Absolute Location
2. Relative Location

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2. Location

1. Absolute Location
 being unique to each described place
 measuring the distance separating places
 finding directions between places on the earth’s surface.
 One of systems (also called mathematic location): a positioning system of precise
and accepted identification of a place accurately described by reference to its
degrees, minutes, and seconds of latitude and longitude.
• Ex: Vietnam is located at
– latitude: 8010’ to 23024’ N
– longitude:1020 09’ to 109030’ E
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Vietnam is located at: latitude: 8010’ to 23024’ N and longitude: 1020 09’ to 109030’ E 12
 2. Location – Absolute location

 Other precise and accepted system: survey system on a regional level.

 Depends on any other characteristics, it has:
– Legal description of the place,
– Measuring the distance separating places,
– Finding directions between places on the earth’s surface.
 Example:
– Vietnam National University: the 6th site, Linh Trung ward, Thu Duc district, HCMC
– HCMC International University:
– University of Oxford: University Offices, Wellington Square, Oxford OX1 2JD UK

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 2. Location – Relative location

 The position of a place in relation to that of other places or activities

 It explains spatial interconnection and interdependence
– Ex: location of the library, cafeteria … to your classroom

 In another sense, it tells us that people, things, and places exist in the
world of physical and cultural characteristics that differ from place
to place
– Ex: Vietnam is located in the southeastern extremity of the Indochinese
Peninsula, nearby the maritime cross-road of the world

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2. Location – Relative location

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3. Distance
1. Absolute distance
 refers to the spatial separation between two points on the earth’s
surface
 measured by standard unit: miles or kilometers, feet or meters (for
more closely spaced points).
3.2. Relative distance
 Transforms measurements into other units, more meaningful for
the space relationship in the question.
– Miles, kilometers, meters  hours, minutes, monetary
system, or psychological transformation (unfamiliar,
dangerous/familiar, friendly, etc.)
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4. Place
 specificity
 uniqueness of places
 specific context
 different scale
internal characteristics of a
place Ex: specific places within
Niger
 Spatial interaction among places
in the comprehensive ways.
 Their processes and patterns are
described by words ‘connectivity’
and ‘accessibility’
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4. Place – Spatial interaction amongst places

http://www.wisdom.caf.dlr.de/en/content/po
pulation-density-mekong-delta-2004.html
http://mekongriver.info/
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 4. Place – Interaction among places: Connectivity
 Refers to distance
 A broader concept of accessibility
1 2
implying all tangible and intangible
ways in which places are connected
– Tangible: telephone lines, street and road
systems, pipelines and sewers, etc.
– Intangible: radio and TV broadcasts,
telecommunications, etc. 3 4

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4. Place – Connectivity

East Taihang District/Wechat

The Donghai Bridge, a cross-sea bridge in China, is

one of the longest bridges in the world with a length 20
of
 4. Place – Interaction among places: Accessibility
 Refers to location
 Consideration of location and
distance implies assessment of
accessibility.
 Question: How easy or difficult is it
to surmount/overcome the barrier
of the time and space separation of
places?
– Internal place: transport network…
– External place: airplane, ship, train,
etc.

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5. Scale

Refers to:
 Size and shape
 Levels of global, nation,
sub-nation, and local

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5. Scale

Refers to:
 Size and shape
 Levels of global, nation,
sub-nation, and local

 Think global, Act local

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 Why should we “Think Global, Act Local”?

Now, nearly 100 years after Patrick Geddes published Cities in Evolution,
the book many assert gave rise to the concept of “Think Globally, Act
Locally,” that phrase now may have actual, practical meaning.

Among the most interesting parts of the National Climate Assessment is its
emphasis on what local and state governments can do to adapt to climate
change and minimize its potential ravages.
Source: http://www.nationaljournal.com/all-powers/think-globally-act-locally-20140506

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Interaction amongst space, place, and scale

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6. Size

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6. Size – Ex: 2,500,000 sq.km

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6. Size – Ex: 350,000 to 2,500,000 sq.km

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6. Size – Ex: 150,000 to 350,000 sq.km

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6. Size – Ex: 25,000 to 150,000 sq.km

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6. Size – Ex: less than 25,000 sq.km

NAURU 32
7. Shape

1. Compact 6. Land-locked
2. Elongated 7. Enclave
3. Proprute-Protruded 8. Exclave
4. Fragmented  Each shape of state has
5. Perforated advantages, as well as
disadvantages

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 7. Shape – Compact
 A compact shaped state is small
and centralized, simplest to
manage.
 It keeps the country together by
making communications easier
within it.
 However, it is primarily small in
size, and therefore may not have as
many natural resources as larger
states have.
 A perfect example of a compact
state would be Poland.

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 7. Shape – Elongated
 An elongated shaped
state is long and narrow.
 This type of state has
many disadvantages.
 Such as Chile, makes for
difficult governance of
the peripheral areas in
the north and south.
 However, an elongated
state encompasses a
variety of landscapes.

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 German West and East

Berlin West and East 35

 7. Shape – Proprute-protruded
 A prorupted state has a long
extension, or an extended
arm of territory.
 This protrusion gives the
state several advantages. For
example, the state gets easy
access to the coast and the
local resources around it.
 In addition, prorupted states
are also able to prevent a
rival access.
 An example would be
Thailand.

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7. Shape – Fragment

 A state that is separated by a physical or

human barrier.
 Many portions of the state are separated by
oceans, lakes, and mountains.
 It is difficult to govern, such as Indonesia.
 In addition, communication is difficult within
the state.

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7. Shape – Perforated (hình bán nhân)

A perforated state completely surrounds another. A classic example would be

South Africa since it surrounds Lesotho. The surrounded nation can only be
reached by going through one country. More problems can arise if there is hostility
between the two nations. This makes it difficult to enter the surrounding nation.

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7. Shape – Enclave ( hình nhân bánh)
 A country or part of a country that is
surrounded by another.
 However, an enclave does not have
political affinity to the surrounding
state, and does not belong to
another country.
 For example, the Vatican City is an
enclave of Rome. The Vatican City has
its own government and is
independent from Rome and Italy.
 Therefore, it is not bound by the
rules of Rome, as well as Italy.

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7. Shape – Exclave

A territory legally or politically attached to a territory with

which it is not physically contiguous

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7. Shape – Land-locked

Approximately one-fifth of the world's countries are landlocked and

have no access to the oceans. There are 43 landlocked countries that
do not have direct access to an ocean or ocean-accessible sea (such as
the Mediterranean Sea). They have the disadvantageous situation of
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needing to rely upon neighboring countries for access to seaports.
7. Shape – Land-locked
For example, Ethiopia relies on
Eritrea for access to the Red Sea
and recent conflicts have made
that access difficult.

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44
Land-locked country in Southeast Asia?

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Compact

Proprute-protruded Elongate Fragment

Enclave

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Perforate Land-locked Exclave
Location, size, and shape of nation support for national economy?

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Theory

 Location theory and the  Behavioral approach (1960s-

neoclassical approach 1980s)
– Explain patterns and – Behavioral economic
order in geographers examined the role
the distribution of economic of cognitive information
activities across space. – and human choices in
– Alfred Weber’s industrial determining decision-making
location theory (1909) and locational outcomes
– August Lösch (1950s-1960s), – Focus remained on locational
profit maximization issues and spatial behavior
approach
– …

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Least-cost theory
Alfred Weber (1868 – 1958)

• It called Weberian analysis.

• It explains the optimum location of plant in terms of
minimization of three basis expenses:
– Relative transport costs,
– Labor costs, and
– Agglomeration costs: refer the clustering of productive
activities and people for mutual advantage. In diseconomies
such as higher rents or wage resulting from
competition for these resources may also occur.
The optimum production point, P, is
seen to lie within the triangle,
where total transport costs would
be less than at corner locations. The
exact location of P would depend on
the weight-loss characteristics of
the two material inputs if only
transport charges were involved. P
would, of course, be pulled toward
the material whose weight is most
reduced.
Weber assumed that:
• Transport costs are uniform but labour costs are spatially
variable because of different wage and efficiency of
workforces.
• Therefore, the cheap labour might be attractive.
• The long-term trend in transportation costs is downward,
labour locations will be increasingly attractive for all
industries.
• With the agglomeration, the specific cost terms and transport
costs for firms might seek separated locations.
 Profit-maximization approaches
August Lösch (1906 – 1945)

• Dissatisfaction with the simplicities and rigidities of the least-

cost and the locational interdependence explanations.
• The correct location of a firm lies where the net profit is
greatest.
Profit = sale incomes – production costs
• The substitution principle allows to replace a declining amount
of one input (labour, materials…) to increase another
(automated equipment, or increase transport costs while
reducing land rent…)
• Therefore, number of different points may be optimal
locations.
• Profit maximization occur only at one point (O) where the excess of total
revenue is greatest.
• The whole series points exists within a spatial margin of profitability is
possible. They are less than optimal, but still acceptable, called
satisficing
location.
• Some firms the costs of transport, labour… are the negligible factors in
production and marketing, called footloose – neither resource nor market
oriented.
Profit (AB) = sale incomes (AC) – production costs (BC)

Break-even Point
Maximum profit

Loss Profit A Loss

Price

o
Distance Distance
C
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Agglomeration economies

• The cumulative and reinforcing attractions of industrial

concentration and urban growth.
• Both cost-minimizing and profit-maximizing make
provision
for agglomeration.
• The spatial concentration of people and activities for mutual
benefit.
• A concentration of capital, labour, management skills,
customer base, term infrastructure will tend to attract still
more industries.
 Agglomeration economies (cont.)

• In contrast, agglomeration can yield disadvantages as well as

benefits.
• Overconcentration can result in diseconomies of congestion, high
land values, pollution, increased government regulation, and
the like.
• When costs of aggregation exceed the benefits, a firm will
actually profit by relocating to a more isolated position – called
deglomeration.
Theory

 Marxist-political economy  New economic geography

– To address adequately the (mid-1990s)
social and spatial inequities – Examined the economic
in economic development processes as separate from
and wealth social, cultural, and political
– Not focus on patterns or contexts.
location decisions, but rather – Social, cultural, and industrial
the structures of social factors can be seen as key
relations that underpinned factors in understanding
capitalism. economic dynamics.

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Back to the aim of this chapter

• What are the limitations of economic

approaches to the economy?
• What are the geographical economic approaches
to the economy?

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