APHG - Unit 6 (Chapters 11 & 10)

Industrial Revolution

A movement towards new sources of energy (i.e steam, coal, petroleum) that started in Great Britain in the late 1700’s and took hold throughout Europe and the U.S. in the 1800’s.

Cottage Industries

home based family manufacturing had become common in 1500’s and 1600’s (i.e. cotton and wool thread spun at home). Richard Arkwright invented a running-water-powered machine that untangled cotton prior to the spinning process in 1768.

Steam Engine

Engine created in 1769 that could supply power much more efficiently than running water or human and animal power because coal - energy source for the engines - was plentiful in the UK.

Railroads in the Industrial Revolution

Iron manufacturing took off thanks to the steam engine and was able to be mass produced. Because of this, a railroad system - using steam powered locomotives - both derived from industrial revolution advances and diffused the practices throughout Europe.

Infrastructure

The services and facilities needed for an economy to function (i.e. buildings, roads, electricity, water, waste disposal).

Economies of Scale

Increase in efficiency as the number of goods increases, which means that larger companies can produce more cheaply.

Commodity Chain

The series of links connecting the many places of production and distribution that results in a commodity which is sold to a large market.

Locations of 3/4 of the World’s Manufacturing

Europe, North America, and East Asia account for 1/4 each of the world’s manufacturing.

Rhine Valley Manufacturing

Near large coal fields, so iron and steel production stimulated other production. This made it the most important, central industrial area.

First Manufacturing in the US

Manufacturing arrived in the US later than in Europe, but it grew significantly quicker. The first manufacturing was the textile industry, and iron and coal supplies in the US northeast helped industry grow. Industry in the US also spread west thanks to efficient transportation.

New England Manufacturing

The oldest industrial area of the US. Cotton was imported from the southern states, and finished products were shipped to Europe.

Middle Atlantic Manufacturing

The largest U.S, market; its industries need proximity to consumers (i.e. finance, communications, and entertainment)

Pittsburgh Manufacturing

The leading steel producer of the 1800’s due to its proximity to Appalachian iron and coal.

Western Great Lakes Manufacturing

Centered on Chicago to take advantage of convergence of transportation routes (i.e. railroad, water, air, highway) and produced machinery, automobiles, and furniture.

Manufacturing in Japan

became an industrial power in the 1950’s and 60’s selling low cost goods and paying low wages but shifted to high quality and highly skilled technical manufacturing in the 1970’s.

Manufacturing in China

Has the largest supply of low cost labor and is the largest supplier of textiles, clothes, and steel. Opened their labor market to transnational corporations in the 1990s.

High-Tech Corridors

Areas along or near major transportation arteries that are devoted to the research, development and sale of high-technology products (i.e. Silicon Valley)

Technopole

A center of high tech and information technology

Call Centers

Centralized offices used for the purpose of receiving and transmitting a large volume of phone calls. With increased networking, call centers can be anywhere in the U.S. and world, but are located in places with low labor costs (i.e. India)

Maquiladoras

Large American owned factories that produce and assemble goods for export back to the U.S. NAFTA allowed the growth of these.

Least-Cost Theory

Theory of *industrialization* that demonstrates how industries attempt to locate their manufacturing at the place where different costs can be brought as low as possible.

**L:** labor

**A:** agglomeration

**T:** transportation

Agglomeration

The concentration of many industries and services in one area (many industries and services complement each other).

Situation/Site Factors

**Site Factors:** location factors related to the costs of factors of production inside a plant

**Situation Factors:** location factors relating to the transportation of materials into and from a factory

Spatially Variable Costs

Costs that change depending on how close one is to a particular part of industry.

Proximity to Inputs

May be cheaper to locate closer to the inputs when an industry is a bulk reducing industry.

Bulk-Reducing Industry

An industrial process which reduces the bulk of the inputs through the process of manufacturing. (i.e. copper, in which the mining of copper ore eliminates the waste, resulting in fine copper particles; steel mills)

Proximity to Markets

Manufacturing tries to locate close to markets if they are a bulk-gaining industry.

Bulk-Gaining Industry

An industrial process that adds bulk to the inputs through the process of manufacturing. (i.e. fabricated machines plants; beverages and bottling plants)

Just-in-Time Delivery

Parts delivered as close to the time needed as possible (desirable for items that the purchasers don’t want to take up space in inventory). (i.e. car seat manufacturers)

Four Different Transportation Types

**Truck:** for short distances, especially one day delivery

**Train:** many day travel, particularly coast to coast (no driver rest needed)

**Ship:** slow, but very economical for very long distances

**Plane:** most expensive for all distances; speedy delivery of small-bulk, high value goods

Containerization

Standardization of shipping into shipping containers that can be shipped via sea, air or rail.

Break-of-Bulk Point

Locations where transfer between transportation modes is possible.

Three Leading Energy Sources Now

**Coal:** as North America and Europe developed rapidly in the late 1800s, coal supplanted wood as the leading energy source in these regions.

**Natural Gas:** originally burned off as a waste product of petroleum drilling, natural gas is now used to heat homes and to produce electricity.

**Petroleum:** first pumped in 1859, petroleum did not become an important source of energy until the diffusion of motor vehicles in the twentieth century.

Fossil Fuels

An energy source formed from the residue of plants and animals buried millions of years ago.

Locations of the Largest Reserves of Fossil Fuels

**Coal:** China produces nearly one-half of the world’s coal, other developing countries one-fourth, and developed countries (primarily the United States) the remaining one-fourth.

**Natural Gas:** One-third of natural gas production is supplied by Russia and Southwest Asia, one-third by other developing regions, and one-third by developed countries (primarily the United States).

**Petroleum:** Russia and Saudi Arabia together supply one-fourth of the world’s petroleum, other developing countries (primarily in Southwest and Central Asia) one-half, and developed countries (primarily the United States) the remaining one-fourth.

Labor Intensive Industry

An industry in which wages to workers are a high percentage of costs.

High Wage Industry

An industry in which wages to workers are higher.

Textile Manufacturing

The textile industry is a labor-intensive industry that has three steps to it.

**Spinning cotton:** has been moved to low-wage countries (i.e. China 2/3 of world’s cotton spinning)

**Textile weaving:** low wage (93% in LDC’s; China - 60%, India - 30%).

**Textile Assembly:** because most consumers in MDC’s, much more assembly manufacturing in MDC’s (i.e. garments, carpets, home products, and industrial items)

Factors - Change in Land/Desirable Sites

Cities used to be the most desirable site for building due to the access to a large market, large labor pool, and rail lines. Factories used to be multi-story to save space. Rural land is now more desirable because it is cheaper and more easily accessed by trucks along city beltway highways, and factories are now built as one heart.

Factors - Environmental

Industry is attracted to low cost energy sources (i.e. hydroelectric power attracts the most energy intensive industries like aluminum)

Factors - Capital

Manufacturers often go where loans can be obtained from banks, and there are different amounts of willingness to offer loans to particular industries in different regions of the country owing to the different values of the people and agglomeration (i.e. Silicon Valley)

US Interregional Shift in Manufacturing

The northeastern U.S. lost 6 million manufacturing jobs between 1950 and 2009, and 2 million manufacturing jobs were added to the South. The South lacked infrastructure before 1950; they had fewer rails, roads, agglomeration, and some parts had lacked electricity.

Ancillary Activities

Activities that support industries such as food service and shipping.

Rural Electrification

The building of new infrastructure in the rural South, and new roads brought new resources.

Unions and Right-to-Work States

RTW laws give states the right to enact a law that prohibits unions from forcing membership or the payment of union dues, and they also protect employees from being excluded from employment or terminated for not joining a union.

Deindustrialization

The decline in industrial activity in a region or economy.

Rust Belt/Steel Belt

After the shift to the South during the late 1900s, the Steel Belt has been referred to as the Rust Belt due to the deindustrialization in the region.

Backwash Effect

A harmful economic effect on one region resulting from economic success in another region.

Deagglomeration

The process of breaking up or dispersing that which has agglomerated, or aggregated, or clustered together.

Postindustrial Economies

The economy after an industrial era, typically service-based (i.e. research and development, marketing, sales, telecommunications). These jobs typically provide a much higher standard of living, but require much more training/education.

Service Industries

Service based economies (high and low skill) have left a vanishing middle class, leaving an abundance of low bar service industries (retail, fast food).

Convergence Regions

A new tide of movement away from Britain and the Rhine where industrialization traditionally had been concentrated to these new areas.

Transnational Industries

Industries that extend/operate across national borders (i.e. Apple, McDonald's, Coca-Cola, Nike, and Amazon).

Outsourcing

Allocating production to low wage countries.

New International Division of Labor (NIDoL)

The selective transfer of some jobs to LDC’s

Vertical Integration

Owning as many parts of the process as possible to cut costs (i.e. inputs, manufacturing, distribution).

Free Trade Zones

Zones without tariffs (i.e. NAFTA/USMCA, EU)

Special Economic Zones (SEZs)

Specific area within a country in which tax and investment incentives are implemented to attract foreign (and domestic) businesses and investment.

Export Processing Zones (EPZs)

A kind of SEZ established by many countries in which they offer favorable tax, regulatory, and trade arrangements to attract business and investment. (labor is cheaper and environmental restrictions are relatively weak)

NIDoL and the Auto Industry

Parts of the auto industry have been moved to different parts of the world

North Atlantic Free Trade Association (NAFTA)/United States Mexico Canada (USMCA)

NAFTA has moved many auto part assembly factories to Mexico.

Proximity to Skilled Labor

In the NIDoL, high skill labor still resides in MDC’s. (i.e. computer manufacturing industry is in the Bay Area of California and the University of Texas at Austin; “high end” clothes are still assembled in the US)

Fordist Production

Mass production lines with one specific task assigned to each worker and had employed more than 100,000 workers needing little education or job skills (i.e. migrants from Europe or the southern US).

Post-Fordist Production

Team members figure out problems for themselves and have a variety of tasks, a problem is solved through consensus of all on the team, and workers and managers are treated much more similarly (less hierarchical).

Footloose Industries

Industries that can operate almost anywhere as inputs are not specific to a few areas because the cost of transporting inputs and outputs is not a large factor (i.e. call centers).

BRIC

**China & India:** world’s largest labor force

**Russia & Brazil:** rich in inputs critical for industry

Global Warming

The gradual warming of the Earth due to ozone depletion.

The Greenhouse Effect

Responsible for heating up the Earth by carbon dioxide trapping some of the radiation emitted by the surface.

Sources of Water Pollution

Most often, high energy industries (such as the aluminum industry). Water pollution occurs because it is easy to throw waste in a river and let it flow downstream and become someone else’s problem.

Toxic Waste

Chemical waste material capable of causing death or injury to life. According to the toxics release inventory published by the U.S. Environmental Protection Agency (EPA), 2.2 billion pounds of toxic chemicals were released into the land in 2016.

Radioactive Waste

A hazardous waste that contains radioactive material. Most often coming from nuclear reactors, fuel processing plants, hospitals, and research facilities.

Types of Renewable Energy

Solar energy, wind energy, geothermal energy, hydropower, and bioenergy.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. The ultimate source for sustainable development is using solar energy.

Biodiversity

The variety of life on Earth at all its levels, from genes to ecosystems, and can encompass the evolutionary, ecological, and cultural processes that sustain life.

First, Second, and Third World Countries

Classifying development by these terms is outdated.

**First World:** industrialized and service based economies with free markets and a good quality of life (i.e. US, Canada, UK)

**Second World:** industrialized but under Soviet style Communist governments and an assumption of a lower quality of life (i.e. U.S.S.R., Cuba., East Germany)

**Third World:** mainly agricultural with a very low quality of life (i.e. Nepal, Haiti)

**Fourth World:** states in a crisis such as a complete economic collapse or war

**Fifth World:** countries with no functioning economy or formal government

Development

Improving the material conditions of people through the diffusion of knowledge and technology

MDCs

__**M**__**ore** __**D**__**eveloped** __**C**__**ountries:** US, UK, Canada

LDCs

__**L**__**ess** __**D**__**eveloped** __**C**__**ountries:** Afghanistan, Haiti, Ethiopia

NICs

__**N**__**ewly** __**I**__**ndustrialized** __**C**__**ountries:** Brazil, Mexico, India

HDI

__**H**__**uman** __**D**__**evelopment** __**I**__**ndex:** three factors: economic factor (GDP per capita), social factors (literacy rate and the amount of education), and demographic factor (life expectancy). The highest - and most perfect score - is a 1.0. the lowest ranking countries are clustered in sub-Saharan Africa.

GDP and GDP Per Capita

GDP stands for “gross domestic product,” which is the value of the total output of goods and services in a country. GDP per capita measures the value of output per person in a country, which indirectly indicates personal income.

Problems with GDP

GDP may not take notice of income by US citizens earning in a foreign land, consider the destruction of natural resources as depletion of capital, or will only notice formal economies.

Formal Economies vs Informal

**Formal Economy:** official economies monitored and taxed by the government

**Informal Economy:** unofficial economies often found in poorer communities

Purchasing Power Parity (PPP)

Details how much of different currencies are needed to buy a staple item.

Big Mac Index

Way to measure PPP by determining how long someone must work in a country at minimum wage to buy a big mac.

GNI and GNI Per Capita

Takes into account what is produced at home and abroad by citizens as well as taxes and dividends on investments coming into (and leaving) the country.

GNI Per Capita PPP

Taking into account the purchasing power of the wealth that is produced in that country and making the comparisons more level.

The Gini Coefficient

A/(A+B). Measures the amount of wealth owned by different percentages of the population. 0.0 is perfect inequality, with 1.0 being the worst.

Lorenz Curve

Line on the gini coefficient graph that indicates how unequally wealth is distributed.

Primary Sector

Directly extract materials from the Earth through agriculture, mining, or fishing.

Secondary Sector

Manufacturers that process, transform, and assemble raw materials into useful products.

Tertiary Sector

Provision of goods and services to people in exchange for payment (i.e. retail, sales, consumer sector).

Quaternary Sector

Knowledge based activities (education, law).

Quinary Sector

Administration and executive occupations.

Sectorization Model

Measures the variety of sectors present to evaluate the economic health of a country

Value Added

Gross value of the product minus the costs of raw materials and energy.

Social Indicators of Development

**Education:** student to teacher ratio (number of students per teacher exceeds 30 in most LDC’s; less than 20 in most MDC’s) and literacy rate (exceeds 98% in most MDC’s; less than 60% in most LDC’s).

**Health & Welfare:** calorie consumption (MDC’s consume a third more calories than needed; in LDC’s there is an average of just enough) and access to healthcare.

Demographic Indicators of Development

**Life Expectancy:** men live 10 years longer, women 13 years longer in MDC’s.

**IMR:** 99.5% survive in MDC’s, 94% in LDC’s (medicine, nutrition to survive dehydration and diarrhea).

**RNI:** 1.5% in LDC’s compared to 0.2 % in MDC’s (large parts of GDP’s in LDC’s allocated to handle growing populations).

**CBR:** 23 per thousand in LDC’s, 12 per thousand in MDC’s.

North-South Split

Most MDCs are in the north (with Australia and New Zealand being an exception), while most LDCs are in the south.

Brandt Line

The line of division in the north-south split (30°N latitude)