GGR365H5 Lecture 2: Lecture 2.docx
Document Summary
Agglomeration economies/division of labour: necessarily the man who spends all his time and trouble on the smallest task will do that task the best (xenophon) Means by which: materials, products, other tangible entities (including people) Average overland horse speed ~ 8-15 km/h (comparable to maritime transportation) Pack horse ~ 125 kg, camel ~ 200 kg. 16th c: england, stage coach ~ <5 km/h; 18th c: moving 1 ton of cargo (50 km) inland in us ~ as costly as moving it across the atlantic. Before 19th c: long-distance trade limited, cities < 20 km2, trade in perishable commodities < 50 kms, emphasis: high-value & non-perishable goods. Grain, salt, wine, wool, timber & stone (hanseatic league: silk route. Time & relative cost of moving: materials, products, people. Bulk shipping big ships that you fill with: Not one big storage space, bunch of tanks isolated from one another. Roro vessels move cars between different parts of the world (roll on/roll off)
