Transportation: critical in the economy

HISTORICAL
1. Sir Witson Churchill:
  1. "Transport was the basis for all that could be accomplished in the war".
2. Air transport infraestructure:
  1. --> Political. --> Military
ECONOMIC SIGNIFICANCE
1. Value of Goods.
  1. Place Utility
    1. Reduction in transportation costs between 2 points.
    2. Greater for longer distances because of the fixes charges.
    3. Law of Squares - Lardner.
  2. Quantity Utility
    1. Assurance that the goods´ll arrive w/no damage in the right Q.
  3. Transp. system: determine the economic value of products.
  4. Time quality
    1. The demand for a particular commodity may exist only during certain period of time.
      1. No demand = No value
2. Utility of Goods
  1. Geographic specialization
    1. Each nation, city, produces products & services for its citizens w/its capital, labor & raw m.
    2. (cluster)
  2. Large-scale production
    1. Economy of scale.
      1. Are the result of more efficient operations.
        The large scale production is demanded at distances away from the production site.
        Transport efficiency
        bigger potential mket area
  3. Increase competition
  4. Land Values
  5. Lower consumer prices & more profit.
3. Transportation Patterns
  1. Reflect the flow of people & commerce.
  2. It simulates commerce & movement.
4. Gross Domestic Product (GDP)
  1. Freight transportation
    1. 8-9% of GDP.
    2. Decreasing due to new equipment & network scheduling.
  2. Modal split
    1. Analytical tool for study of transport.
      1. = (Transportation market for passenger & freight movements) / the major modes of transportation.
  3. Passenger transportation.
    1. Grows as GDP does.
    2. DOT. Department of Transportation
5. Life support system of the citizens
ENVIRONMENTAL SIGNIFICANCE
1. The Environment
  1. Air Quality & Acid rain
    1. Combustion engine emissions.
      1. Urban air quality (pollution).
      2. Produce acid rain.
      3. Global climate changes.
    2. Ozone reduction.
      1. Ultraviolet radiation.
  2. Maritime & Water Quality
    1. Oil spills, garbage from ships, hazardous material losses.
  3. Noise
    1. Airplanes
    2. Motor vehicles
2. Safety
  1. 95%
MODERN TRANSPORTATION
1. Product decision
  1. Availability of transportation and adequancy to move the goods.
2. Interaction
  1. User
    1. Make decisions that maximize the relevant consumer oriented goals.
  2. Provider
    1. Determine the demands of the system and services to be offered.
POLITICAL SIGNIFICANCE
1. Origin & maintenance.
2. Eminent Domain
  1. Acquire land for public use.
3. Conduct their business & meet social needs.
SOCIAL SIGNIFICANCE

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Transportation: critical in the economy

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