● New International Division of Labor (What is it? Why has it happened (site and situation costs)?
What effects has it had on different socioeconomic groups in MDCs and LDCs? What are other
effects relating to the NIDL)
● Weber’s Least Cost Theory (“Bulk-gaining and bulk-reducing industries”. Be able to apply this
theory to a set of facts and explain/describe real world examples of different types of industries)
Unit 6 topics:
New International Division of Labor: process by which companies move low skill industrial jobs to other
regions with cheap labor while retaining high-skilled jobs
● Happened because of globalization and advances in transportation and communication
technology; companies can now operate in different countries and take advantage of lower
labor costs in semi-periphery countries
○ Site factors: labor costs, natural resources, infrastructure, and proximity to markets
○ Situation factors: access to transportation, communication technology, and political
stability
○ Companies often choose to locate their operations in countries that offer favorable
site and situation factors which can help them be more competitive and successful
● 4 groups . . .
○ High skilled people in MDCs - experienced the most money growth
○ Low skilled people in MDCs - make the least money growth
○ LDC residents connected to international trade - large group of people, usually
experience largest % monetary growth
, ○ LDC residents not connected to international trade - able to develop but decline in
monetary growth
● There has been a displacement of GDP per capita to people can be more
close to the industry
○ Ex. In Mexico, many people have a higher income close to the
border because that is where the industry is, the US (Bulk-gainingYeah industry)
○ EX. In China, many people live on the coast because the factories
are connected to the port to transport the goods (bulk-reducing
industry)
Weber’s Least Cost Theory: compares the cost of transportation raw materials vs.
finished goods to market
● Bulk-gaining industry: end product is heavy/larger than the inputs
○ Provided benefits to both the developed and developing country
○ Ex. Car manufacturing, beveraging
● Bulk-reducing industry: end product is lighter/less bulky and easier to transport than inputs
○ Ex. Paper products, smelting
Unit 7 topics:
● Christaller’s Central Place Theory (understand its settlement hierarchy and how it affects the
distribution of services. Be able to differentiate between different levels of services and give
examples. Be able to apply this decision-making process of where someone might access a
certain level of service to a real world scenario)
● Concentric Zone Model and Density Gradient (understand the built landscape and population
density gradient for the Concentric Zone Model and be able to EXPLAIN changes to those factors
since the model was originally conceived.)
Unit 7 topics:
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