HGAP 7.1 - 7.4

Industry

process of using machines and large-scale processes to convert raw materials into manufactured goods has stimulated social, political, demographic, and economic changes in societies at all scales

Raw Materials

basic substances such as minerals and crops needed to manufacture finished goods

Market

a place where products are sold

Cottage Industries

small home-based businesses that made goods

Industrial Revolution (IR)

Starting in the 18th century, a series of technological advances resulted in more complex machinery driven by water or steam power that could make products faster and at lower costs than could cottage industries

Characteristics of cottage industry vs. factory manufacturing

Cottage Industry:

• Small-scale production

• Work done at home

• Simple tools and machinery

• Skilled labor

• Slow production rate

Factory Manufacturing:

• Large-scale production

• Work done in a centralized location

• Complex machinery and tools

• Unskilled labor

• High production rate

Global-scale diffusion of IR vs. local scale of IR diffusion

Global-scale diffusion of IR refers to the spread of ideas, technologies, or practices across multiple countries or regions.

Local-scale of IR diffusion, on the other hand, refers to the spread of ideas, technologies, or practices within a specific community or region.

While global-scale diffusion can lead to the rapid adoption of new ideas, it may also face resistance from local cultures and traditions.

Local-scale of diffusion, on the other hand, can be more effective in promoting long-term change and sustainable development within a community.

Social, economic, and geographic changes to cities as they grow

Social changes: more diversity, cultural exchange, and social stratification

Economic `changes`: more job opportunities, economic growth, and income inequality

Geographic changes: urban sprawl, traffic congestion, and environmental degradation.

Impact of IR on imperialism and colonies

provided various resources to former colonies:

• raw materials such as sugar, cotton, foodstuffs, lumber, and minerals for use in mills and factories

• labor to extract raw materials

• markets where manufacturers could sell finished products

• ports where trading ships could stop to get resupplied

• capital from profits for investing in new factories, canals, and railroads

Industrial Belt

industrialized regions that provided significant workforce and coastal transportation that stretched across the midlatitudes of the Northern Hemisphere

Deindustrialize

a process of decreasing reliance on manufacturing jobs

Rust Belt

regions that have large numbers of closed factories

Primary Economic Sector

Extracting natural resources from the earth.

Examples include: Farming, Mining, Fishing, and Forestry

Economic Characteristics:

• Dominated the economy until the late 1800s

• Includes many high-risk jobs

• A small part of today’s economy

• Few high-paying jobs

• Most jobs require physical skill

Secondary Economic Sector

Making products from natural resources.

Examples Include: Manufacturing and Building

Economic Characteristics:

• Significant growth from the 1840s to the 1960s

• Wages vary greatly

Tertiary Economic Sector

Providing information and services to people.

Examples Include: Retail sales, Medicine, and Housekeeping

Economic Characteristics:

• A small part of the economy until the mid-1900s

• Most people in the U.S. labor force today

• Wages vary widely

Quaternary Economic Sector

Managing and processing information.

Examples Include: Financial Analysis, Software Development, and Data Science

Economic Characteristics:

• Small percentage of employees

• Most jobs require advanced education or technical skills

• High wages

• Considered part of the tertiary sector until recently

Quinary Economic Sector

Creating information and making high-level decisions.

Examples Include: Research and Top managers in corporations or government

Economic Characteristics:

• Very small percentage of employees

• Very high income

• Decisions can affect millions of people

• Considered part of the tertiary sector until recently

Structural Changes in Economies (Chart)

In periphery countries, the primary sector is very high and is starting to decline with secondary and tertiary on the rise

In semi periphery countries, secondary has reached its peak and primary is getting lower than tertiary and secondary with tertiary increasing above secondary, quaternary and quinary has shown up a bit

In core countries, tertiary is high and leveled off, primary is very low with secondary going under quaternary and quinary as it continues to increase

Labor Force by Sectors (Chart)

In core countries, the tertiary sector is more than half with the primary sector being a sliver and barely seen, the secondary has a bit although not much

In semi periphery countries, everything is divided equally with tertiary being a bit more than secondary and primary being the smallest

In periphery countries, the primary sector has taken up way more than tertiary had in core countries, tertiary is a bit bigger than secondary

Multiplier Effect

the potential of a job to produce additional jobs

Weber’s Least Cost Model

explains the key decisions made by businesses about where to locate factories

Agglomeration

the spatial grouping of several businesses to share costs, such as an access road to a public highway or development of a workforce with special skills

Locational Triangle

The three points of the triangle are the market for a good and two resources needed to make the good

Bulk-reducing Industry

types of industry that are known as weight-losing, raw material-oriented, or raw-material-dependent industry

Bulk-gaining Industry

weight-gaining, market-oriented, or market-dependent industries and factories locate close to the market

Comparing Weber’s Theory to Reality

The area is considered an isotropic plain, which means that human and physical geographic features are uniform throughout the area. Isotropic plains rarely exist. Mountains, densely populated urban areas, and other features can alter transportation costs.

Sufficient labor is available in fixed locations and it is immobile. Automation reduces the need for labor. Labor is relatively mobile.

Raw materials are found only in certain fixed locations. Raw materials are often available in many locations. The *substitution principle* allows for alternative inputs.

There is one good produced, and it is for a single market in a fixed location. Goods are sold in more than one location. Globalization may result in numerous markets.

Transportation costs are directly related to the distance of travel and to the weight of the items. Cost per mile may decrease as the distance increases. *Space-time compression* can reduce the overall cost of transportation

Economic factors dominate the decision about where to locate a factory. Emotional factors, such as tradition, a desire to have the factory close to where the owner lives or the presence of existing facilities can influence where a factory is opened.

Owners want to minimize costs. Owners maximize revenue and establish predictable future costs to generate profit.

Labor-oriented Industry

highly dependent on a workforce and will want to be near a source of those workers

Break of bulk

procedure of transferring cargo from one mode of transportation to another

Containerization

the system in which goods are loaded into a standardized shipping unit

Intermodal

means they can be carried on a truck, train, ship, or plane

Factors in locating industry - national scale of analysis

Proximity to the market of densely populated northeastern US

Proximity to raw materials

Availability of sufficient labor with the right mix of skills

Lower than average wages for the US

Access to global transportation network through the Atlantic Ocean and Panama Canal

Adequate and affordable supply of power

Factors in locating industry - regional scale of analysis

Favorable government regulations such as tax incentives

Agglomeration economies from nearby factories

Access to global and national transportation networks: Large airport, container ship port, 2 major rail lines, and 3 interstate highways

Local universities and tech schools provide skilled workers

Lower than average energy costs for the US

High quality of education, recreational, affordable housing and medical facilities

Factors in locating industry - local scale of analysis

Large, flat piece of land that is easy to build on

Adequate water and sewer lines

Waterfront access and a dock available for ships

Rail spur line connecting to the main rail system

Good road system connecting to major highways and airport

Adequate space for easy truck loading and unloading

Adequate parking space for employees

Footloose

meaning they can pack up and leave for a new location quickly and easily

Back office

the rest of the employees in less expensive office spaces

Front office

designed to impress clients, has top executives in expensive upper floors

Gross National Product (GNP) or Gross National Income (GNI)

The dollar amount of all goods and services produced by a country’s citizens in one year

Gross Domestic Product (GDP)

The dollar amount of all final goods and services produced within a country in one year

Remittances

profits from a foreign-owned company leaving the country and going back to the home country

Per Capita

a country’s total output divided by the country’s total population

Purchasing Power Parity (PPP)

a measure of what similar goods cost in different countries

Formal Economic Sector

portion of the economy that is monitored by the government, so people in it follow regulations and pay taxes. Measure by GNP, GNI, and GDP.

Informal Economic Sector

portion of the economy that is not monitored by the government, includes:

Activities done without pay, such as cleaning your own house or cooking meals for a friend who is sick. Similar services done for money are part of the formal economy.

Some activities are legal if reported to the government but are often not reported. For example, restaurant workers can legally accept tips, but not reporting the income from tips on a tax return is illegal

Some activities are always illegal, such as drug dealing and identity theft

Global energy consumption trends

As people become more prosperous, they consume more because they can afford to purchase more goods and they live longer. While the spatial pattern of consumption is strongly skewed toward the developed world, the environmental impact of the consumption is spread more broadly

Gini Coefficient

one measure of the distribution of income within a population

Regional patterns of development

Developments can be very uneven within countries. In general, rural or peripheral regions of a country are often less developed than core urban areas.

Social measures of development

The total fertility rate is the number of babies a woman is expected to have in her lifetime. It shows a negative or inverse correlation with wealth and development. As income and development go up, then the TFR goes down

The infant mortality rate is the rate at which babies die before the age of one. It also has an inverse correlation with with development.

Life expectancy, the number of years a person is expected to live, has a positive correleation with development. Life expectancy is also related to the availability of adequate healthcare. Poor countries that have invested in health care have increased their life expectancy.

The literacy rate is the percentage of population that can read and write, usually at an 8th grade level or higher. In 2015, it topped 90 percent of the world population and 99 percent in highly developed countries. Most who were not literate were females living in less developed countries.

Life Expectancy

the number of years a person is expected to live

Literacy Rate

the percentage of population that can read and write

Gender Gap

difference in the privileges afforded to males and females in a society

Gender Inequality Index (GII)

a composite measure of several factors indicating gender disparity:

• Reproductive health, which includes maternal mortality rates (death of a mother during birth) and adolescent (under 19 years old) fertility rates.

• Empowerment, which includes the share of governemnt seats held by each gender and the proportion of adult females and males with at least some secondary education

• Labor market participation, which includes the labor force participation rate of female and male populations aged 15 years and older

Human Development Index (HDI)

combines one economic measure (GNI per capita) with three social measures (life expectancy, expected years of schooling, and average years of schooling).

Barriers to gender equality

Cultural barriers often inhibit participation in the economy

Lack of educational opportunities can reduce employment options

Limited access to loans and other resources makes starting or expanding a business difficult

Glass Ceiling

Another trend reflecting employment discrimination toward women is that women rarely obtain upper-level jobs in companies, the civil service, or in governments, particularly in developing countries

Increased opportunities for women

Women have made progress toward gender equality despite the significant obstacles they face. Governments of many countries, transnational corporations, non-governmental organizations, and international organizations, such as the UN, have aided the efforts to reduce gender inequality

Non-governmental Organizations

several programs enacted by governments and international non-profit agencies that empower women to find jobs outside the home

Microloans / Microcredit 

to provide loans often to women to start or expand a business

How the IR created new neighborhoods for middle and working classes

Most members of the growing middle class lived and worked in urban areas, but in widely scattered locations. Some could afford to live in the center of the city. Others lived in new areas built on the outskirts of urban areas. And some lived above their shops, wherever they were located.

The working class found housing in less-desirable urban neighborhoods located outside the central business districts. The spatial dimensions of their lives, toiling side-by-side in large groups in factories and living near each other in distinctive neighborhoods, created strong social bonds among them.