10.1 Economic geography of North America

North America's economic activities are unevenly spread across the continent. Factors like history, resources, transportation, and government policies shape this distribution. The core-periphery model shows a dense, advanced core from the Northeast to Midwest, with less developed peripheral regions.

Urban centers are crucial economic hubs, while transportation networks like highways facilitate movement. Natural resources, human capital, infrastructure, and policies influence regional development. Trade agreements like NAFTA and USMCA have reshaped North America's economic geography, impacting trade and production patterns.

Economic Activities Across North America

Uneven Distribution and Influencing Factors

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• North America's economic activities are unevenly distributed across the continent, with concentrations in specific regions and urban centers
  • Factors shaping this spatial distribution include history, resource availability (oil, minerals), transportation networks (interstate highways, Trans-Canada Highway), and government policies
• The core-periphery model can be applied to North America
  • Core region extends from the Northeast to the Midwest, characterized by high population density, advanced infrastructure, and a concentration of high-value economic activities (finance, technology, specialized manufacturing)
  • Peripheral regions (Great Plains, Rocky Mountains, parts of the South) have lower population densities, less developed infrastructure, and a greater reliance on resource-based industries (agriculture, mining, forestry)

Role of Urban Centers and Transportation Networks

• Urban centers play a crucial role in the spatial distribution of economic activities, serving as hubs for innovation, trade, and services
  • Major metropolitan areas (New York, Los Angeles, Chicago, Toronto) are key drivers of economic growth and development
• The spatial distribution of economic activities in North America is influenced by transportation networks
  • Interstate highway system in the United States and the Trans-Canada Highway facilitate the movement of goods, people, and ideas across the continent

Factors Influencing Regional Development

Natural Resources and Human Capital

• Regional economic development in North America is influenced by a complex interplay of factors
  • Natural resource endowments (oil, gas, minerals, fertile agricultural land) have historically shaped the economic development of regions (American South, Canadian Prairies, Gulf Coast)
  • Human capital, including the education, skills, and expertise of the workforce, is a critical factor in regional economic development
    • Regions with high concentrations of skilled labor and innovative industries (Silicon Valley, Research Triangle in North Carolina) have experienced significant economic growth

Infrastructure and Government Policies

• Infrastructure (transportation networks, energy systems, telecommunications) plays a vital role in facilitating economic development
  • Regions with well-developed infrastructure are better positioned to attract investment, support business growth, and connect to global markets
• Government policies (tax incentives, regulatory frameworks, investment in education and research) can significantly influence regional economic development
  • Canadian government's support for the oil sands industry has driven economic growth in Alberta
  • State-level policies have encouraged the growth of the technology sector in Texas and Washington
• Agglomeration economies, arising from the clustering of related industries and supporting services, can create self-reinforcing cycles of economic growth in specific regions (automotive industry in the Great Lakes region, entertainment industry in Los Angeles)

Trade Agreements and Economic Geography

Impact of NAFTA and USMCA

• Trade agreements (North American Free Trade Agreement (NAFTA), United States-Mexico-Canada Agreement (USMCA)) have had significant impacts on the economic geography of North America by altering patterns of trade, investment, and production
• NAFTA, implemented in 1994, created a free trade zone encompassing the United States, Canada, and Mexico, reducing tariffs and other barriers to trade
  • Led to increased economic integration and cross-border supply chains, particularly in industries such as automotive manufacturing and agriculture
  • Had mixed effects on regional economies, with some areas experiencing job losses due to increased competition and outsourcing, while others benefited from expanded market access and foreign direct investment

Maquiladora Program and Agricultural Trade

• The maquiladora program allows foreign companies to establish factories in Mexico to take advantage of lower labor costs
  • Led to the growth of manufacturing clusters along the US-Mexico border, altering the economic geography of the region
• Trade agreements have also influenced the spatial distribution of agricultural production
  • Increased specialization and trade in products (corn, wheat, livestock) between the three countries
• The USMCA, which replaced NAFTA in 2020, introduced changes to rules of origin, labor standards, and digital trade
  • Long-term impacts on the economic geography of North America remain to be seen but are likely to affect patterns of investment, production, and trade in the region

Natural Resources and the Economic Landscape

Agricultural Land and Energy Resources

• Natural resources have played a crucial role in shaping the economic landscape of North America, influencing the location and development of industries, cities, and regions
• The abundance of fertile agricultural land in the Great Plains and the Canadian Prairies has made North America a major producer and exporter of crops (wheat, corn, soybeans), shaping the economic geography of these regions
• The discovery and exploitation of oil and gas reserves (Texas, Alberta, Gulf of Mexico) have driven economic growth and shaped the development of energy-related industries and infrastructure in these areas

Mineral Resources and Forests

• Mineral resources (iron ore in the Great Lakes region, gold in California and the Yukon) have historically attracted settlement, investment, and industrial development, leaving lasting imprints on the economic landscape
• Forests in the Pacific Northwest, the Southeast, and parts of Canada have supported significant lumber and paper industries, influencing the economic geography of these regions

Water Resources and Regional Disparities

• The availability of water resources (Great Lakes, major river systems like the Mississippi and the St. Lawrence) has influenced the location of industries, cities, and transportation networks, shaping the economic landscape of North America
• The uneven distribution of natural resources has contributed to regional disparities in economic development
  • Resource-rich areas often experience booms and busts tied to global commodity prices
  • Other regions have had to diversify their economies to reduce their reliance on resource extraction