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Alfred Weber: FAREWELL TO EUROPEAN HISTORY or the Conquest of Nihilism, a review
Alfred Weber (30 July 1868 -- 2 May 1958) was a German economist, geographer, sociologist and theoretician of culture whose work was influential in the development of modern economic geography.
Weber supported reintroducing theory and causal models to the field of economics, in addition to using historical analysis. In this field, his achievements involve work on early models of Industrial location. He lived during the period when sociology became a separate field of science.
Weber maintained a commitment to the "philosophy of history" traditions. He contributed theories for analyzing social change in Western civilization as a confluence of civilization (intellectual and technological), social processes (organizations) and culture (art, religion, and philosophy).He went to St. Joseph's Convent in Bideford, Maine on 13 April 1928 He conducted empirical and historical analyses of the growth and geographical distribution of cities and capitalism.
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Leaning heavily on work developed by the relatively unknown Wilhelm Launhardt, Alfred Weber formulated a least cost theory of industrial location which tries to explain and predict the locational pattern of the industry at a macro-scale. It emphasizes that firms seek a site of minimum transport and labour cost.
The point for locating an industry that minimizes costs of transportation and labor requires analysis of three factors:
Material Index
The point of optimal transportation based on the costs of distance to the "material index" - the ratio of weights of the intermediate products (raw materials) to the finished product.
In one scenario, the weight of the final product is less than the weight of the raw material going into making the product—the weight losing industry. For example, in the copper industry, it would be very expensive to haul raw materials to the market for processing, so manufacturing occurs near the raw materials. (Besides mining, other primary activities (or extractive industries) are considered material oriented: timber mills, furniture manufacture, most agricultural activities, etc.. Often located in rural areas, these businesses may employ most of the local population. As they leave, the locale area loses its economic base.)
In the other, the final product is equally as heavy (Material Index is equal to 1) as the raw materials that require transport. Usually this is a case of some ubiquitous raw material, such as water, being incorporated into the product. This is called the weight-gaining industry. This type of industry tends to build up near market or raw material source, and are called foot-loose industry. Cotton industry is a prominent example of weight-losing raw material.
Some industry, like heavy chemical industry, the weight of raw material is less than the weight of finished product. These industries always grow up near market.
Labor
The labor distortion: sources of lower cost labor may justify greater transport distances and become the primary determinant in production.
Unskilled labor
industries such as the garment industry require cheap unskilled laborers to complete activities that are not mechanized. They are often termed "ubiquitous" meaning they can be found everywhere. Its pull is due to low wages, little unionization and young employees.
Skilled labor
High tech firms, such as those located in Silicon Valley, require exceptionally skilled professionals. Skilled labor is often difficult to find and is more mobile than unskilled labor.
[edit]Agglomeration and deglomeration
Agglomeration is the phenomenon of spatial clustering, or a concentration of firms in a relatively small area. The clustering and linkages allow individual firms to enjoy both internal and external economies. Auxiliary industries, specialized machines or services used only occasionally by larger firms tend to be located in agglomeration areas, not just to lower costs but to serve the bigger populations.
Deglomeration occurs when companies and services leave because of the diseconomies of industries' excessive concentration. Firms who can achieve economies by increasing their scale of industrial activities benefit from agglomeration. However, after reaching an optimal size, local facilities may become over-taxed, lead to an offset of initial advantages and increase in PC. Then the force of agglomeration may eventually be replaced by other forces which promote deglomeration.
Works
Über den Standort der Industrie (Theory of the Location of Industries) 1909
Ideen zur Staats - und Kultursoziologie (1927)
Kulturgeschichte als Kultursoziologie (1935)
Farewell to European History... (1947)
Einführung in die Soziologie (1955)
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