Industrialization and Global Economic Development

Industrial Revolution

A series of improvements in industrial technology that transformed manufacturing goods, transitioning from cottage industries to factories.

Hearth of the Industrial Revolution

Great Britain, where the Industrial Revolution began in the mid-to-late 18th century.

Natural Resources in Britain

Availability of coal for energy, iron ore for machinery, and water power for early textile mills.

Key Invention - Steam Engine

Revolutionized factories by allowing them to move locations and transformed transportation.

Diffusion of the Industrial Revolution

Spread from Britain to Western Europe, North America, and later to Eastern Europe and Asia.

Urbanization

The mass migration from rural areas to factory cities, associated with the Industrial Revolution.

Working Class

The industrial working class (proletariat) that emerged during and after the Industrial Revolution.

Standard of Living Post-Industrial Revolution

Increased availability of goods and food but initially poor working conditions.

Colonialism and Industrialization

European powers needed raw materials for industries, boosting imperialism in the late 19th century.

Primary Sector

The economic sector focused on extracting materials from the earth, dominant in LDCs.

Examples of Primary Sector

Agriculture, mining, fishing, forestry.

Secondary Sector

The economic sector focused on processing raw materials into finished products.

Examples of Secondary Sector

Manufacturing, assembly, construction, energy production.

Tertiary Sector

The economic sector providing services for payment, dominant in MDCs.

Examples of Tertiary Sector

Retail, transportation, restaurants, tourism.

Quaternary Sector

The economic sector focused on knowledge-based activities like research and management.

Examples of Quaternary Sector

Finance, insurance, real estate, software development.

Quinary Sector

The economic sector focused on high-level decision-making and specialized services.

Examples of Quinary Sector

Top executives, research scientists, healthcare executives.

Deindustrialization

The decline in secondary sector jobs in MDCs due to automation and outsourcing.

Weber’s Least Cost Theory

A model predicting manufacturing plant locations based on transportation, labor, and agglomeration costs.

Bulk-Reducing Industry

An industry where the inputs weigh more than the final product, located near raw materials.

Example of Bulk-Reducing Industry

Copper smelting, ethanol production.

Bulk-Gaining Industry

An industry where the product gains volume or weight during production, located near the market.

Example of Bulk-Gaining Industry

Soft drink bottling, auto assembly.

Break-of-Bulk Point

A location where transfer is possible from one mode of transportation to another.

Footloose Industry

An industry where transportation costs are low, allowing it to locate anywhere.

Agglomeration

The clustering of similar industries to share resources and infrastructure.

GDP (Gross Domestic Product)

Total value of goods/services produced within a country.

GNI (Gross National Income)

GDP plus income earned by residents working abroad.

Per Capita Measurement

Average wealth per person derived from dividing GDP or GNI by total population.

HDI (Human Development Index)

A measure of development based on living standards, life expectancy, and education.

GII (Gender Inequality Index)

Measures gender disparity in reproductive health, empowerment, and labor participation.

Gini Coefficient

Measures income distribution inequality, ranging from 0 (equality) to 100 (inequality).

Rostow’s Stages of Economic Growth

A linear model proposing five stages of development for economies.

Core in Wallerstein’s World Systems Theory

Countries characterized by high wages, high tech, and high consumption.

Periphery in Wallerstein’s Theory

Countries with low wages, low education, often dependent on exporting raw materials.

Semi-Periphery in Wallerstein’s Theory

Nations that exploit the periphery while being exploited by the core.

Dependency Theory

The theory that LDCs are poor because MDCs are rich, stemming from a history of exploitation.

Neoliberalism

Economic policies promoting free markets and reduced government intervention.

WTO (World Trade Organization)

An organization regulating international trade.

Global Trade Agreements

Treaties aimed to facilitate trade by removing tariffs and boosting economic cooperation.

Outsourcing

Contracting production responsibilities to third-party suppliers, often abroad.

Fordism

Mass production technique characterized by vertical integration and assembly lines.

Post-Fordism

Flexible production featuring specialized teams and advanced technology.

Just-in-Time Delivery

An inventory strategy to minimize storage by receiving goods only when needed.

Shift from Rust Belt to Sun Belt

The movement of manufacturing jobs from the Northeast/Midwest US to the South.

Sustainable Development Goals (SDGs)

Goals established by the UN in 2015 to address global issues like poverty and climate change.

Ecotourism

Type of tourism emphasizing environmental sustainability and conservation.

Microloans / Microfinance

Small loans provided to individuals or businesses in LDCs without access to traditional banking.

Grameen Bank

Pioneered by Muhammad Yunus, focusing on microloans primarily for women, yielding high repayment rates.