AP HUG - Unit 7 (Industrial and Economic Development)

Industrial Revolution

The historical process by which agrarian economies (economies characterized by agriculture) were transformed into individual economies.

-Began in middle of 18th century.

Mass Production

The process of manufacturing large quantities of goods using standardized processes and assembly line techniques.

Economies of Scale

The cost advantage experienced by industries when they increase their level of production, resulting in a lower average cost per unit.

Seed Drill

Agricultural technology that enabled seeds to be planted with greater precision.

Mechanical Reaper

Agricultural technology that increased the pace of harvesting crops.

Steel Plow

Agricultural technology that made planting faster and more precise.

Factory System

A method of production that replaced cottage industries with centralized, machinery-driven, large-scale manufacturing.

Water Frame

Tool positioned in moving water to provide power for machines.

Steam Engine

Tool that created power for machines without running water.

Spinning Jenny

Tool that mechanized the process of making textiles on a mass scale.

Core Countries

Highly developed, industrialized nations that dominate the global economy through high-skill, capital-intensive production.

-As the Industrial Revolution took hold in Britain, Europe, and the U.S., their economies transitioned from primary to secondary to tertiary.

Periphery Countries

Less economically developed nations with low industrialization, weak infrastructure, and a reliance on exporting raw materials to core countries.

-Economies characterized by primary sector work.

-Industrial Revolution created division, world became dominated by a few powerful core countries while rest of world remained in primary sector.

Semi-Periphery Countries

As core countries outsourced manufacturing to peripheral countries, some of them, like Mexico and India, developed beyond primary and secondary sectors and have seen rise in tertiary jobs.

-Have significant characteristics of both core and peripheral countries.

Capitalist Class

Those who owned the factories.

Working Class

Those who worked day-to-day in the factories.

Middle Class

Professionals like lawyers, teachers, and office workers.

-19th century rise

Berlin Conference

A meeting held in 1884-1885 where European powers convened to discuss the partition and colonialization of Africa.

Textile

A fabric of cloth woven from the fibers of wool, cotton, or flax.

Labor Productivity

The average amount of goods or services produced per worker per unit of time.

Fossil Fuels

Natural fuel derived from the fossilized remains of living organisms.

Labor Unions

Associations of workers in particular industries established to collectively bargain with capitalists.

Development

A country's relative level of economic well-being.

Economic Sector

The kind of products produced in a place and the kind of jobs available to its workforce.

Primary Sector

Economic sector that extracts raw materials through activities like mining, fishing, farming, logging, etc.

Secondary Sector

Economic sector that processes raw materials extracted from primary sector.

Tertiary Sector

Economic sector that provides services to businesses or consumers.

Quaternary Sector

Economic sector that provides services which require a much higher degree of education and expertise.

Quinary Sector

Economic sector that includes most influential economic influencers like top government officials and powerful CEOs of the world's largest corporations.

Least Cost Theory

Model developed by Alfred Weber which suggested that factories would locate themselves in places that would be most cost-efficient for their business operations.

Break of Bulk Points

Sea-ports and other major transportation hubs like airports and railroad stations that ship and deliver bulk quantities of unpackaged goods like coal or timber.

Shipping Containers / Containerization

Standardized metal boxes that can be stacked uniformly for shipping non-bulk cargo like food or clothing, or in some cases, raw materials.

Gross National Product (GNP)

Total value of all the goods and services a nation's citizens produce in a given period of time REGARDLESS OF WHERE those goods and services are produced.

-Measures economic output of a country's citizens.

-Emphasis on product, not location!

Gross Domestic Product (GDP)

Total value of all goods and services produced WITHIN THE BORDERS of a country in a given period of time.

-Measures economic output based on geographic area regardless of whether citizens produce those goods or not.

Gross National Product (GNI)

Measures the total income earned by a country's businesses and labor force.

-Includes country's GSP as well as its citizens' earnings produced overseas.

-Focuses on value of income earned through economic activity and foreign investment.

Gross National Product per Capita

Divides GNI by country's population and shows the level, on average, of each citizen's individual income.

-Doesn't take into account the actual distribution of income in a country which may include a significant gap between wealthy and poor citizens.

Income Distribution

Economic measure that considers the difference and proportion if wealthy to poor.

-Smaller gap = more developed (people have wider array of economic opportunities).

-Wider gap = less developed (less opportunities).

Fertility Rates (as a measure of a country's development)

Economic measure that indicates a more developed country as fertility rates fall.

Infant Mortality Rates (as a measure of a country's development)

Economic measure that indicates the infant mortality rate decreases as access to healthcare increases.

Formal Sectors

Sectors that include every business that's incorporated and registered according to state and national laws.

Informal Sectors

Sectors that include all kinds of economic activity that operate outside the boundaries of government oversight.

-E.g., Kiosks on street corners

Gender Inequality Index (GII)

A social measure of the equality or inequality of men and women in a given society.

-Considers reproductive health, empowerment, labor market participation.

-Higher GII = less developed , lower GII = more developed.

Human Development Index (HDI)

Created by the UN as a social measure of human well-being which includes economic health and a range of other measures as well.

-Uses GSP and then adds a country's life expectancy, level of education, and literacy rates to assess the social development within its borders.

Global North

Global South

Rostow's Stages of Economic Growth

Wallerstein's World Systems Theory

Dependency Theory

Commodity

Commodity Dependence

Purchasing Power Parity (PPP)

Gender Parity

The equality between men and women in terms of access to education and earned wages from work.

-Less development = less parity , more development = more parity.

Wage Gap

The average difference in income between men and women, typically with women earning less than men.

Microloans/Microlending

A practice that empowers women economically in which microloans are granted to impoverished women for the purpose of helping them start or grow a small business.

Gender Empowerment Measure (GEM)

A measurement of gender equality that includes the proportion of seats held by women in national parliaments, the percentage of women in economic decision-making positions, and women's versus men's share of earned income.

Complimentarity

Countries trade with one another because no one country has the capacity to create or extract all the goods or resources it needs for economic flourishing.

Comparative Advantage

When a country specializes in producing a certain set of goods because they are better equipped and more efficient than anyone else in producing them.

Neoliberalism

An economic and political ideology promoting free-market capitalism, deregulation, privatization, and minimal government intervention in the economy.

European Union (EU)

Mersocur (Southern Common Market)

Organization of Petroleum Exporting Countries (OPEC)

World Trade Organization (WTO)

An international organization that keeps global trade flowing smoothly by assisting in the negotiation of trade deals and acting as a moderator for various trade disputes.

Tariffs

Taxes on imported goods

International Monetary Fund (IMF)

A UN agency that provides loans to countries experiencing balance-of-payment problems that threaten expansion of international trade.

Mercantilism

A theory of trade stating that each country strives to export more than it imports in order to accumulate wealth.

Protectionism

Trade rules that restrict imports in order to protect domestic injuries.

Absolute Advantage

A country's ability to produce a good or service more efficiently than another country.

Transnational Corporation (TNC)

A firm with the power to coordinate and control operations in more than one country, even if it does not own those operations.

Free Trade Agreements

A treaty between two or more countries that reduces tariffs and promotes foreign investment.

Customs Unions

A free trade agreement among two or more member countries, combined with a single, common external trade policy for nonmembers.

-E.g., NAFTA

Trade Embargo

An official ban on trade with a specific country or on a specific good.

Debt Crisis

Occurs when a government's debts exceed its tax revenues to the point that it cannot meet its loan payments.

Deindustrialization

Fordism

Rust Belt

Special Economic Zones (SEZs)

Export Processing Zone (EPZ)

Free Trade Zone (FTZ)

Post-Fordism

Multiplier Effect

Just-in-Time Delivery

Agglomeration Economies

Corporate Divestment

Outsourcing

Offshoring

Growth Poles

Sustainability / Sustainable Development

Nonrenewable Resources

Climate Change

Ecotourism

Sustainability Development Goals (SDGs)

Resource Depletion

Point Source Pollution

Non-Point Source Pollution

Cogeneration

Carbon Neutrality

Carbon Offsets