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Chapter 1 The Study of Economic Geography In this chapter, we shall take a look at how geographical analysis can be given

an economic point of view and the basics of economic geography. This part will start with an introduction to geographical analysis, then an introduction to economic geography, its subfields and the different approaches utilized in this field of geography. Economic Location Theory and globalization will also be touched here. Lastly, since geography deals with space, spatial patterns and processes will be discussed in this chapter as well. Introduction to Geographic Analysis Two human qualities lead to the creation of the field of geography: the need to know something about the local geography of an area and the natural curiosity of people about distant places. The first one, which was used with the term need, is such because it is vital for one to carry out activities effectively and efficiently that is actually deemed as a necessity for societies and the economy to work properly. The latter, on the other hand, is because we are limited by our routines that places outside our normal daily itinerary catches our interest and keeps us wanting for more of it. This, however, is being bridged bit by bit with the advent of the Internet and the technology that proximate and distance places seem to have minimal difference to us now as we can able to conveniently access both through the Web. To be able to fully understand geography, we can start by discussing two approaches to it: (1) a human-physical continuum and (2) a topical-regional continuum. The human-physical continuum includes the physical and the human environment (cultural and social). The second one, meanwhile, represents an analysis about a certain region or topic. Let us break the second one into two the regional approach focuses on various variables or characteristics of a certain area while the topical approach limits the variables based on the topic of interest. At this point, we can actually start defining geography. Geography is a discipline that analyzes variables about a certain area. Two crucial details in this definition are the description of locations on Earth and the understanding of why locations can stand out or relate to other locations. In explaining geography, it is inevitable to mention spatial analysis this is not actually much more about the history of space but the relationship of use of space with one another.

Site and situation are two basic concepts in geography. Site refers to characteristics inherent in a specific space while situation has to do with relativity of location the relationship within various related locations. So when we talk about land fertility, climate and humidity of an area, we are talking about site. Meanwhile, when we start to talk about the economic and trade relationships of southeast Asian nations, we are talking about situation. Economic geography focuses on the distribution of production, distribution and consumption activities among areas. Spatial distribution of economic activities interests an economic geographer. How economic activities interconnect particular areas and how these activities affect the areas concerns an economic geographer. Basically, economic geography is all about the spatial patterns of economic activities, and the study of how these patterns work and predicting the direction of these patterns in the long run. Economics and economic geography actually have a common ground. This overlap in study lies international trade economists, development economists, regional economists, regional scientists, locational analysts and theoretical economic geographer - all of which utilizes theories and concepts of economics to fully analyze and dissect spatial systems in regions and other spaces. Despite the overlap in economics and economic geography, subfields were still developed under economic geography. These subfields are scattered among levels of economic activities. Primary economic activities concern the extraction and utilization of resources, such as mining, forestry, hunting and agriculture. Meanwhile, secondary economic activities involve those that process, transform, assemble or manufacture goods. Tertiary economic activities, on the other hand, involve making the produced goods accessible to consumers, and quaternary economic activities concern information and research services. All these levels are being intersected by transportation and communications, without which productivity can be imaginable at this modern age. Approaches to economic geography Three major philosophical approaches are currently known to describe research in economic geography positivism, structuralism and humanism. Positivism employs the scientific method to interpret and understand issues in economic geography. It involves creating an informed guess and testing it to lead to empirical generalizations and lawlike statements. This approach normally includes the use of statistical and mathematical techniques.

GIS is centrally vital to this approach. This approach gained its peak popularity in the 1960s and even represents mainstream studies featured in journals at present. Structuralism, on the other hand, posits that what we see in the world does not reveal the causes of what we see. Things are beyond space and distance; the political, economic and social story behind it is more crucial in understanding things. A strand of structuralism is Marxism, which essential entered economic geography in the 1970s and focuses in particular on superstructures and social class hierarchies. Most structuralists in the field of economic geography concern themselves with industrial geography mostly tackling conflicts between management and laborers. Lastly, humanism evolved in late 1970s to early 1980s as a critique to positivism. Humanism values subjectivity human emotions, perception and experience. It treats scientific objectivity as impossible. Participant observation or ethnography are possible methodologies of humanist economic geographers as studies focus on reaction caused by human thinking and feeling. Humanist economic geographers object to the two earlier philosophies as they are deemed to mechanical in nature. Economic Location Theory The study of economic geography is approached with a set of interlocking principles or theories. These principles and theories are collectively referred to by many as location theory. Location theory seeks to explain the basic and all-encompassing factors that determine spatial decisions in economic activities, and like all bodies of theory, offer genera explanations and cannot apply exactly to all locational decisions. At this point, if predictions if a certain theory do not encompass a result of a certain study, it does not mean that the theory is wrong. Rather, it can be said that the theory does not apply well in the case. Location theories are developed and modified in a systematic process. At the base level are geographic facts or data, which requires mappable data and has a sense of place. The data can be areaspecific or point-specific. From these data, a generalization can be deduced after processing the data and discovering patterns. Then, this generalization can be crafted to apply to a general many, thus being presented in the form of a theory. The theory can be tested, finally, by bringing in contact with relevant facts once more.

Globalization Trends Globalization may be easily understood in terms of five characteristics: (1) capital has become more globally mobile so that investments are more footloose, (2) the market has become less regulated, breaking down governmental and political control, (3) powerful multinational firms are the principal agents of change, (4) the nation-state or national political forces have been weakened, giving way to multinational corporations and (5) dual trends have been set in motion, the one trend toward more homogenous global conditions as a result of widespread competition, and the other toward enhanced differences as localities strive to maintain their identities. These globalization trends, noticeably, have been made possible by the advancement of technology. With the Internet, online trade and shopping have been made possible, which is much easier than the primitive trading happening in the port areas. Transporting goods and services have been made easier with the development of efficient cars and trucks, much-developed railway systems and more advanced ships and airplanes. With this, the concept of global village is being more apparent especially in the economic sector. There exist now regional economies and a concept of the world economy. Countries are now being regularly connected by economic trade to satisfactorily fulfill demands of the citizenry that the country is not able to supplement on its own. Globalization is a concept the covers a complex set of processes, which economic geographers have been continually giving utmost importance after it gained much popularity starting 1990s. Spatial Patterns and Processes Since geography is essential concerned with space and patterns that exist in spaces, it is essential to discuss spatial patterns and processes in the first chapter. Spatial patterns basically refer to the distribution of economic activities over the earths surface or within a region. Spatial patterns come in many forms. Point patterns answer the basic question where with considerable map precision, and can be a starting point for spatial analysis. Meanwhile, linear patterns can represent any type of movement or connection between places. For example, railroads and email traffic among offices may be among the geographic data that can be represented by linear patterns. A start and an end are crucial in this pattern.

Another basic spatial pattern is presented in the choropleth map a map wherein areas of similarity are presented as having a single value that can be reflected by a single color or shading. Uniform regions may also be represented by this pattern, where the element concern in the study is more or less evenly spread out in a region. On the other hand, spatial processes answers the why question in a geographic inquiry. It aims to find logic or explain spatial patterns. In essence, the term process implies something is happening over time, so spatial process explains the logic behind geographic phenomena and the crucial turning points of it. The concept of locational inertia is crucial in this. Economic location inertia is a time-lag effect that activities experience in the adjustment to new locational influences. Like what a saying reasoned, some changes cannot be done overnight, and result come after some time. The same is true to the study of markets and spaces.

Chapter 4 The Interdependent Global Economy This chapter will discuss to world economy and different concepts related to it. We shall start at the historical atlantic alliance, then the pacific rim and then discuss the role of multi-national corporations. The concept of dependency theory and brain drain will also be discussed in this section. Lastly, we will be discussing the changing geography of global finances, which includes global banking and international stock markets and finally closing through discussing global communications.

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