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What factors lead to the Industrial Revolution?
Growing workforce, access to new raw resources (such as coal and iron), access to new capital, inventions, and technology
What effect did the steam engine have on the Industrial Revolution?
Allowed for more factories to operate with assembly lines and machines rather than relying solely on workers completing tasks by hand. Also impacted trade by allowing ships to travel further and at faster speeds.
What are some important inventions of the Industrial Revolution?
The spinning Jenny and the power loom
What was the spinning Jenny and the power loom?
The spinning Jenny transformed the textile industry because it allowed for several spools of thread to be spun at once. The power loom could weave clothes and tapestries, and allowed for mass production in the textile industry. Both inventions reduced production costs and increased affordability of different garments.
What is a cottage industry?
Small scale businesses that typically operate out of a persons house (individuals typically use traditional techniques and had tools to produce custom goods by hand) most cottage businesses were put out of business after the Industrial Revolution.
What class emerged from the Industrial Revolution?
The middle class emerged because people were up to move up the social ladder for the first time in a history bevause of the increase in job availability.
What were some negative effects of the Industrial Revolution?
Many laborers experienced worker abuse, low wages, and poor working conditions. Workers were often exploited by factory workers.
What effects did the revolution have on agriculture?
Increased output of crops, reliance on human labor, mechanized farming, and allowed for faster and further transportation. Also allowed for global and local participation in the food market
How did industrialization contribute to the rise of colonialism and imperialism?
Industrialized countries (core countries and MDC’s) sought more raw resources, labor, and markets to expand into. Countries used their colonies to gain access to vast resources in countries such as Africa, like rubber, gold, and iron
What is an example of how industrialization impacted colonialism?
The Berlin conference — lead to creation of infrastructure and political systems that were designed not to create a stable state, but for the exportation of goods out of the area.
What is the quaternary sector?
It is a sub sector of the tertiary sector which includes jobs that revolve around acquiring, processing, and sharing information. Examples include teachers, journalists, and jobs in finance.
What is the quinary sector?
Jobs and activities that revolve around making decisions. Examples include CEO’s, government officials, etc.
What is gross domestic product (GDP)?
Total value of all goods and services produced in a country’s boundaries over a certain period of time. Includes consumption, investment, government spending, imports + exports.
How did advancements in transportation impact commodity chains?
Advancements in transportation allowed for easier transport and export of raw resources, which lead to creation of complex commodity chains.
What is the break of bulk point?
Location where goods are transported from one mode of transportation to another, get transported to distribution centers or places where products will be sold.
What is Weber’s least cost theory?
Looks at how the location of an industry is influenced by three main factors: transportation, labor costs, and agglomeration
What is agglomeration?
Clustering of different economic activities and industries in a specific geographic area.
What is a benefit of agglomeration for businesses?
Agglomeration allows businesses to reduce their overall costs by taking advantage of larger labor forces; benefitting from their existing infrastructure in an area and allowing businesses to use the different services ans knowledge base in that area.
What is an example of agglomeration?
Silicon Valley is an example of agglomeration. Numerous tech companies locate to the Californian region in order to be at the tech center of the world.
What are bulk reducing goods?
Products that become lighter and easier to transport as production occurs — have heavy resources that are used in the production of the good.
What is a bulk gaining good?
Product that becomes heavier and more difficult to transport as production occurs— often made up of resources that usually lighter and more maneuverable compared to the final product.
How does the type of product effect where it is located?
Bulk gaining goods are usually more likely to have their production closer to the market (reduces transportation costs/amount and production costs) while bulk reducing goods are usually more odd likely to have their resources closer to raw resources. This is because it is easier to ship the product farther distances that it is to ship the raw resources.
What does Weber’s least cost theory fail to consider?
Government policies, cultural preferences, and environmental concerns.
What does it mean when the GDP decreases?
Can be due to economic contractions or a possible recession. Decrease in GDP often indicates that businesses may be struggling, jobs are being lost and consumers are spending less money.
What is GNP?
The total economic output produced by a country’s business and residents regardless of their location, during a specific period of time. Factors in production of a country’s citizens living abroad, countries with high GNP indicate that a large chunk of their population is living abroad.
What does it mean when the GNP is higher than the GDP?
Indicates a significant number of citizens living abroad, and a lot of foreign investment and production inside the country’s boundary,
What is GNI?
The total amount of income generated by a country’s residents and businesses, both domestically and abroad, in a given year, regardless of where they live. GNI focuses on income, while GNP focuses on production.
What does a high GNI indicate?
More economic opportunities available in society, although it doesn’t. Include factors such as income inequality, quality of life, or other social aspects.
What is the gender inequality index?
Measures reproductive health, labor market participation, and empowerment. Maternal and reproductive health is measures by maternal mortality rate and adolescent fertility rate. Empowerment is measured by # of government positions held by each gender, and amount of secondary and higher education.
What is the human development index?
Measured by life expectancy, years of schooling, and gross national income per capita. Measured from 0 to 1 (higher is better)
What are some countries with High HDI?
Norway, Iceland, Hong Kong, and Australia.
What is the global gender gap index?
Measures economic participation and activity, health and survival, and political empowerment.
(True or false) Women make up a larger percentage of workers in the informal economy
True
What are some examples of jobs in the informal economy?
Street vendors, subsistence farmers, domestic workers, and other jobs without legal protection and government oversight.
What benefits do jobs in the informal economy lack?
Healthcare, paid sick leave, guaranteed minimum wage, and sexual harassment laws.
What are microloans?
Small loans provided to individuals or small businesses who are typically excluded from traditional banking services.
What is micro financing?
Category of financial services that are for individuals or small businesses that are typically excluded from traditional bank services.
What factors lead to the Industrial Revolution?
Growing workforce, access to new raw resources (such as coal and iron), access to new capital, inventions, and technology
Who usually provides micro financing
NGOS or community based Organizations
What is the first stage of Rostow's Stages of Economic Growth?
Traditional Society: Characterized by a subsistence economy, reliance on primary sector, low economic growth
What is the second stage of RSEG?
Preconditions for Take-Off: Characterized by investments in infrastructure and technology, increasing agricultural productivity, and the
What is the third stage of Rostow's Stages of Economic Growth?
Take-Off: Characterized by rapid economic growth, industrialization, and urbanization
What is the fourth stage of Rostow's Stages of Economic Growth?
Drive to Maturity: Characterized by diversification of the economy, innovation, and technological advancement
What is the fifth stage of Rostow's Stages of Economic Growth?
Age of Mass Consumption: Characterized by high levels of mass consumption, durable goods, and a shift towards service industries
What are some criticisms of Rostow's Stages of Economic Growth?
The model assumes that all countries have the potential to reach the highest stage of economic growth, which is not always the case. It also fails to consider external factors such as colonialism, dependency, and global power dynamics. The model also doesn’t account for environmental limits like carrying capacity.
What is the world theory?
A theory that divides the world into core, periphery, and semi-periphery
What is an effect of having a commodity dependent economy
Countries are volume ramble to any changes in the price of the commodity as well as the number of exports and exports. Changes can lead to economic decline and instability in the countries, and can cause them to neglect other parts of their country, all of which limits their diversification and development into other sectors of the economy.
What is Comparative advantage
The ability of a country or firm to produce a particular good or service at a lower opportunity cost than another country or firm.
What is a special economic zone?
Designated areas within a country that have more liberal economic regulations than other areas in the same country.
What is a free trade zone?
A geographic area where goods may be transported and traded without being subject to tariffs or trade barriers
What is an export processing zone?
Areas within a country that offer special incentives to attract foreign investment and promote export-oriented industries.
What is an example of an EPZ?
maquiladoras- manufacturing plants in Mexico with the parent company's administration facility in the United States. Maquiladoras allow companies to capitalize on the less expensive labor force in Mexico and also receive the benefits of doing business in the United States.
Growth Poles
Economic development is not uniform across a region, but instead takes place around a specific cluster (or "pole") of high-growth industries or companies. These poles attract other businesses and investments, spreading development outward.
Offshoring
A type of outsourcing where a company relocates parts of its operations to another country to take advantage of lower costs, favorable regulations, or access to global markets.
Outsourcing
Hiring external companies or individuals to perform services or produce goods that were traditionally done in-house. Often used to reduce costs or focus on core business activities.
Economic Restructuring
The shift in an economy from manufacturing-based to service-based industries, often involving job losses in traditional sectors and growth in technology, finance, and information services.