Transportation is a pervasive and very important part of all developed economies and is a key ingredient for underdeveloped countries to progress to economic development and independence.
• The history of the United States is replete with evidence of the close correlation of advances in transportation technology with our advancing economic development from the Erie Canal to our modern highways and air systems.
• Transportation systems are the lifelines of cities and the surrounding suburbs. Tons of products are moved into cities every day to promote the health and welfare of its citizens. Also, products which are produced in the cities are moved out for shipment elsewhere.
• Transportation contributes to the value of goods by providing time and place utility. That is, effective and efficient transportation moves products to points where there is a demand for the product and at a time when it is needed.
• Geographic and labor specialization are important cornerstones of industrialized countries and transportation provides one of the necessary ingredients for this to occur.
• The more efficient the transportation system, the greater the possibility of scale economies and increased market areas.
• Improved transportation in an area will usually increase land values because of the improved accessibility to raw materials and markets.
• The flow and patterns for commerce influence transportation infrastructure patterns of developing countries.
• Transportation expenditures for freight and passengers are an important part of the gross domestic product in the United States.
• While transportation provides many benefits, it can also contribute to environmental problems including pollution, poor air quality, acid rain, and global climate changes.
QUESTIONS
1. There is much discussion on the local, state, and federal levels about the need to repair and improve the Interstate Highway System. Provide a rationale for this need.
2. “Transportation is the most important economic factor for economic development.” Do you agree or disagree with this statement? Why or why not?
3. The opening of the Erie Canal and the building of the transcontinental railroads in the 19th century were described as significant milestones for the economic development in the United States. Explain their importance individually and collectively.
4. The highways and other transportation networks that serve major metropolitan areas are frequently described as the lifelines of the metropolitan area. Do you agree with this statement? Why or why not?
5. Compare and contrast time and place utility, and explain how they contribute to the value of products. What is the importance of time and place utility in our global economy?