Economic+Models

= = = Models for the Industrial and Economic Development Unit =

Webers Model!


Weber's Model

Weight Gaining vs. Weight Losing 1. Final product weighs less than materials (weight losing) 2. Final product weighs more (weight gaining) Weber's Model puts the production site of the product closer to the Market than closer to the raw materials because the cost of shipment of the materials is a lot less than the shipment of the product.

Hotelling’s model!



Hotelling created Locational interdependence. This theory argues that the location of competing markets influences where the new market is located. (The hot dog stand on the beach is the example we used in class)

Losch’s model! This model finds the zone of profitability which identifies a zone (not just a point) where income will outpace costs.

Rostow’s Modernization Model!



Rostow’s theory indicated that to successfully gain economic growth you must go through these five steps in the picture above.

Wallerstein’s World Systems Theory!



1. Core

The most economically diversified, wealthy, and powerful
**2. Semi-Periphery **

nations that are midway between the core and periphery **3. Periphery ** Least economically diversified/ developed

Time-space compression



Time-Space Compression occurs when technology or different advances reach to places in unproportional time delays.

The Bid Rent theory refers to how land is more valuable closest to the CBD.
Sectors !



Primary- Mining, farming, agriculture Secondary- Textile production, industry, construction, manufacturing  Tertiary- Retail, tourism, law, Banking, entertainment  Quaternary- Education, Government, libraries, Scientific Research  Quinary- Top executives in government or top science universities

SPECIAL ECONOMIC ZONES! ====‍ These are areas that are designated for special economic regulations, such as foreign investment and trade.

China has perfect examples of these because they are built in poor areas for foreign trade.



HDI! HUMAN DEVELOPMENT INDEX! Back to Industrialization and Economic Development