Studied by 13 peopleIndustrialization
leads to population growth, mass production of resources, transportation developments, and scientific advancements
Cottage industry
small-scale production in homes or village workshops
Seed drill
Jethro Tull’s invention which simplified planting and farming
Reaper
Cyrus McCormick’s invention which cuts and gathers crops
Flying Shuttle
improved weaving thread strands to form textiles; John Kay in 1733
Spinning Jenny
spun cotton into thread; James Hargreaves 1764
Cotton gin
Eli Whitney’s invention which separated cotton seeds from fibers
Factories
large urban infrastructure for raw materials, machines, and workers
Tenements
small, limited apartments for housing working class families
Labor/trade unions
workers in specific industries used collective bargaining to improve conditions
Sectors of production
economic categories based on steps of production
Primary production
involves cultivation of Earth and its natural resources
Secondary production
processing of natural resources and raw materials from primary sector
Manufacturing
processing raw materials into finished goods, part of the secondary sector
Tertiary production
involves movement, marketing, and commercial retailing of goods for consumers
Quaternary activities
modern financial aspects of the economy
Quinary activities
include more direct involvement with consumers in the services sector
Horn of Africa
Ethiopia, Eritrea, Somalia, and Kenya
primarily agrarian developing societies
Famine
mortality rates increase due to malnourishment and starvation
Commodity chains
systems and processes that collect, manufacture, package, and distribute goods and resources
Fair Trade
products designated with a label that were produced under lawful, non-exploitative conditions
Energy extraction
natural fuel is extracted from the Earth for human use
Fossil fuel
non-renewable natural fuel formed from past organisms
Resource-dependent countries
lack economic diversification and rely on a primary natural resource for the economy
Alternative energy sources
nuclear, wind, solar, tidal, and geothermal power
Value-added processing
calculating the factors that go into the cost of a finished product
Synthetic
man-made, artificial
Utility
usefulness of a product
Durable goods
a finished product designed to last a year or more
Nondurable goods
intended to be used once and then disposed of
Resource processing
secondary economic activity involving processing natural resources into products for human consumption
Services
industries involving intangible goods fueled by human interaction and attention
Low benefit service jobs
require little skill and have poor pay
High benefit service jobs
reliant on technology and receive good wages and benefits
Deindustrialization
developed nations outsource industrial manufacturing
Offshoring/outsourcing
movement of jobs outside the country where the company creating jobs is located
First World nations
industrialized during the 19th century with free markets and service-based economies
Second World nations
formerly communist nations still undergoing economic restructuring
Third World nations
lack strong infrastructure, organized government, and modern economic development
Rust Belt
formerly the Steel Belt in the northeast and midwest US responsible for manufacturing
Gini calculations
ranks nations based on levels of development
high number = greater wealth disparity
“Fouth World” status
countries set back severely by issues including armed conflict, natural disasters, and political instability
Failed state
a nation’s inability to maintain organized government or development a successful economy
MDCs
more developed countries
LDCs
less developed countries
NICs
newly industrialized countries
Wawasan 2020 (Malaysia)
government project started in 1990 for Malaysia to reach status of a first world nation
World Bank & International Monetary Fund
organizations aiding in assistance and stability of economic systems
Meiji Restoration
period of modernization and development into nation-state
Syngman Rhee
president of South Korea; helped development of technology and machinery
Lee Kuan Yew
founding president of Singapore; stabilized politically and developed economy
“Old Tigers” of Asia
Japan, South Korea, Taiwan, Hong Kong, Singapore
countries early in economic development
“New Tigers” of Asia
China, India, Malaysia, Vietnam, Thailand, Indonesia
newer to economically develop
Baht
Thailand’s currency that experienced Mass devaluation
1997 Asian Financial Crisis
banking crash began in South Korea and many currencies devalued
countries changed economic structures and had to undergo reform
Economic indicators
measurements used to describe and categorize a country’s standing in terms of economic development
Gross Domestic Product (GDP)
monetary value of final goods and services; common calculation of economic development
Gross National Income (GNI)
total money earned by people and businesses
Trade deficit
a country’s imports exceed the value of exports
Per capita
per person or resident in a country
Gross National Income Purchasing Power Parity (GNI PPP)
GNI converted using price differences across countries
Walt Rostow
American economist who formulated a five stage theory on economic development
Rostow’s Stage One
farming, fishing, basic exploitation of land
Rostow’s Stage Two
begins with increased political interest in developing the economy
government provides resources to improve infrastructure, trade opportunities, educational and employment opportunities
Rostow’s Stage Three
economy begins taking off, but with uneven levels of development
Rostow’s Stage Four
advancements in technology and greater access to higher education
further diversification of the economy, increased education, and reaching domestic needs and exporting goals
Rostow’s Stage Five
height of mass consumption and service-based economy
increased education, strong middle class, less extreme poverty
Raul Prebisch’s “Dependency Theory”
argued less developed and newly developed countries remained too dependent on developed countries and foreign-owned businesses and investments
Import Substitution Industrialization (ISI)
a nation attempts to industrialize to be self-sufficient rather than relying on imports and foreign goods
Mohammad Mossadegh
Iranian prime minister who attempted to nationalize the oil industry
Internationalization of economic capital
companies are require to reinvest in local banks or credit funds
Ecotourism
tourism focusing on an area’s natural amenities
Free Trade
removal of tariffs and import regulations in an agreement between nations
NAFTA
North American Free Trade Agreement (US, Canada, Mexico)
“Special Economic Zones” (SEZs)
areas where foreign firms are granted special tax status
Alfred Weber
German economist who published Theory of Industrial Location
“Weight losing” industries
a single natural resources loses mass during production process
Distant elastic products
an element can move short or long distances without impacting flow of processing
“Weight gaining” industries
combining several elements into a finished product brought to markets
Supply chain
steps of distributing a commodity or commercial product
Ubiquitous industry
having universal value across time and space
Vertical Integration
single commercial entity owns all aspects of production, marketing, and distribution
Henry Ford
founder of Ford Motor Company
Sprawl (urban)
building extends continuously over a broad land area
Retail location theory
a city’s market area has a threshold (minimum numbers of consumers who support) and a range (minimum number of consumers willing to travel).
Retail (Or service provider) threshold
minimum number of consumers to support the business.
Spatial margin of profitability
the area where the demand for a service can generate revenue exceeding cost of operation
Service location theory
locations of high-benefit and physical position
High benefit services
finance, research, architecture, and specialized medicine
Agglomeration
high concentration of certain activities or enterprises in a general location
Deglomeration
overload of related industries in an area
The Industrial Revolution
began in Great Britain in the 18th and 19th centuries
“Five Year Plans” (USSR)
Joseph Stalin’s plan to industrialize the USSR
Marshall Plan
provided economic recovery and aid to rebuild industry and infrastructure in Western Europe
“Made in Germany”
national brand designating items of high quality
Nokia
one of the first cell phone companies developed in Finland
“Right to Work” states (US)
businesses regulations limit labor unions and result in lower pay and fewer benefits
“Glass ceiling”
limits and barriers to economic advancement for women and minorities in the workforce
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