AP HUGO UNIT 7

Industrial Revolution

Period of mechanization and technological innovation that transformed production and society

Why Britain industrialized first

Access to coal, iron, capital, stable government, ports, and large labor supply

Role of natural resources in industrialization

Coal, iron, and water power enabled early mechanized production

Agricultural improvements effect

Increased food supply → population growth → urban migration

Urbanization cause

Workers moved to cities for industrial jobs

Industrial class changes

Rise of middle class and working class; decline of cottage industries

Link between industrialization and imperialism

Need for raw materials and markets encouraged colonial expansion

Diffusion of industrialization

Spread from Britain to Europe, US, Japan through hierarchical and contagious diffusion

Primary sector

Extraction of natural resources (farming, mining, fishing)

Secondary sector

Manufacturing and processing of raw materials

Tertiary sector

Service-based economy (retail, banking, transportation)

Quaternary sector

Knowledge-based services (IT, research, data)

Quinary sector

High-level decision-making (CEOs, government leaders)

Weber’s Least Cost Theory

Industries locate to minimize transport, labor, and agglomeration costs

Agglomeration

Clustering of related industries for shared labor and infrastructure

Deglomeration

When congestion or high costs push industries away from clusters

Break-of-bulk point

Location where goods transfer between transport modes

Core regions

High-wage, high-tech, diversified economies

Semi-periphery regions

Industrializing states with mixed development

Periphery regions

Low-wage economies focused on raw materials

GDP

Total value of goods/services produced within a country

GNI

GDP plus income earned by citizens abroad minus foreign income domestically

GNP

Total value produced by a nation’s citizens anywhere

HDI

Composite index of life expectancy, education, and GNI per capita

GII

Measures gender inequality in reproductive health, empowerment, and labor participation

Infant mortality rate

Number of infant deaths per 1,000 live births

Fertility rate

Average number of children per woman

Literacy rate

Percentage of population that can read and write

Formal economy

Taxed, regulated economic activity

Informal economy

Unregulated, untaxed economic activity

Women’s role in development

Increased education, workforce participation, and economic opportunities

Gender wage gap

Persistent inequality in pay and job access

Microloans

Small loans enabling women to start local businesses

Effect of women’s education on fertility

Higher education → lower fertility rates

Rostow Stage 1

Traditional society

Rostow Stage 2

Preconditions for takeoff

Rostow Stage 3

Takeoff (rapid industrialization)

Rostow Stage 4

Drive to maturity

Rostow Stage 5

High mass consumption

Criticism of Rostow

Eurocentric and assumes all countries follow same path

World Systems Theory core

High-tech, high-wage economies exploiting others

World Systems Theory periphery

Low-wage, raw-material economies exploited by core

World Systems Theory semi-periphery

Buffer states with mixed characteristics

Dependency theory

Poor countries remain poor due to exploitation by wealthy nations

Commodity dependence

Reliance on 1–2 primary exports, making economies vulnerable

Comparative advantage

Ability to produce a good at lower opportunity cost

Complementarity

Two regions satisfy each other’s needs through trade

Neoliberal policies

Free trade, deregulation, privatization, reduced tariffs

EU

Regional trade bloc promoting free movement of goods and people

WTO

Regulates global trade and reduces barriers

Mercosur

South American trade bloc

OPEC

Coordinates oil production and pricing

Tariffs

Taxes on imports to protect domestic industries

IMF

Provides loans with structural adjustment requirements

World Bank

Provides development loans for infrastructure and poverty reduction

Outsourcing

Shifting jobs to external or foreign providers

Economic restructuring

Shift from manufacturing to service-based economies

NICs

Newly industrialized countries with rapid economic growth

SEZ (Special Economic Zone)

Area with tax incentives to attract foreign investment

EPZ (Export Processing Zone)

Zone where goods are manufactured for export with reduced regulations

FTZ (Free Trade Zone)

Area where goods can be imported/exported without tariffs

Post-Fordist production

Flexible, specialized production replacing mass assembly lines

Just-in-time delivery

Minimizing inventory by receiving goods only when needed

Economies of scale

Lower costs due to large-scale production

Multiplier effect

One economic activity stimulates additional economic activity

Growth pole

Concentrated area of economic development that spreads outward

Sustainable development

Meeting present needs without harming future generations

Environmental problems from industrialization

Pollution, resource depletion, climate change

Ecotourism

Tourism that protects natural environments and supports local communities

UN Sustainable Development Goals

17 global goals addressing poverty, inequality, and sustainability

Renewable energy

Energy from sources that replenish naturally (solar, wind, hydro)

Mass consumption impact

Increased waste, pollution, and resource use

PSO: Why does economic and social development happen at different times and rates in different places?

Economic and social development happen at different times and rates in different places

IMP: How might environmental problems stemming from industrialization be remedied through sustainable development strategies?

Environmental problems stemming from industrialization may be remedied through sustainable development strategies; Topic 8: Sustainable Development

SPS: Why has industrialization helped improve standards of living while also contributing to geographically uneven development?

Industrialization has improved standards of living; Industrialization has contributed to geographically uneven development; Topics 1–5: Industrial Revolution, Economic Sectors and Patterns, Measures of Development, Women and Economic Development, Theories of Development

Free Trade Zone (FTZ)

An area of a country where businesses pay little to no tariffs on goods to encourage international trade

Special Economic Zone (SEZ)

An area of a country with relaxed economic regulations, such as tax benefits or no tariffs, to attract foreign business

Commodity Dependence

An economy that relies on the export of specific goods for a large share of its earnings and growth

Dependency Theory

argues that global poverty and underdevelopment are caused by the exploitation of poor "peripheral" nations by wealthy "core" nations. It asserts that resources flow from the periphery to the core, creating a cycle of dependency that inhibits development.

Key Concepts and Arguments

• Core-Periphery Structure: The global economy is divided into developed "core" countries and dependent "periphery" countries.

• Resource Extraction: Peripheral nations provide cheap labor and raw materials to the core, which sells finished products back to them at high prices.

• Uneven Development:

  The development of the core is contingent upon the underdevelopment of the periphery.

• Criticisms

  • It fails to explain the rapid growth of "East Asian Tigers".

  • It often neglects the internal factors contributing to underdevelopment, such as corrupt local policies.

  • The rigid 2-dimensional core-periphery model is considered outdated, say Reddit users.

Gender Inequality Index (GII)

Indicator used to measure the extent of each country's inequality between men and women in terms of reproductive health, empowerment, and the labor market.

Gross Domestic Product (GDP)

The total value of all the goods and services produced inside a country in a given year

Gross National Income (GNI) Per Capita

Average "per person" value of goods and services produced by all of a country's citizens (including those out of the country).

Gross National Product (GNP)

The total value of goods and services produced domestically AND internationally by a country's citizens and companies

Human Development Index (HDI)

Measurement of a country's development, combining factors such as average income, literacy, education, and life expectancy.

Labor-Market Participation (LMP)

The percentage of a country's working-age population that is actively employed

Rostow’s Stages Of Economic Growth

Economic development model suggesting that countries move through five successive phases of economic development from "traditional" to "modern" economies

Wallerstein’s World System Theory

Economic development model describing political and economic relationships between core, periphery, and semi-periphery countries in the world economy