Unit 7: Industrial and Economic Processes

specific regions where manufacturing and production activities are concentrated, often characterized by factories, warehouses, and infrastructure to support economic activities.

Industrial belt

Deindustrialize

Rust belt

the economic division that involves the extraction and harvesting of raw materials directly from the natural environment. This includes activities like agriculture, forestry, mining, and fishing.

Primary sector

the part of the economy that transforms raw materials from the primary sector into finished or semi-finished goods through manufacturing, construction, and processing. Examples include turning timber into furniture, ore into steel, or crude oil into gasoline

Secondary sector

the part of the economy focused on providing services rather than goods, including activities like retail, healthcare, finance, entertainment in media, and education

Tertiary sector

the knowledge-based part of the economy focused on services that require a higher degree of education, like research and development, information technology, and financial planning. This sector is characterized by intellectual activities and specialized skills, driving innovation and economic growth in developed countries.

(Ex: Information technology, financial services, education, research and development, and consulting.)

Quatenary sector

the highest level of services involving the most influential economic influencers, like scientific research, top CEOS, and other jobs with specialized, high-skill labor, often seen as an extension of the quaternary sector (information/knowledge) but focused on elite expertise, encompassing roles in government, healthcare, education, and non-profits

Quinary sector

the phenomenon of how an initial economic input (like a new factory or government spending) creates a larger, ripple-effect increase in overall economic activity, jobs, and income for a region, as money circulates locally through spending and re-spending, fueling basic and non-basic industries

(Ex: A government spent on road construction, money will go to builders in wages. These builders spend some additional income on for example clothes, and also save some. The clothes seller earns more money, and spends some of this. The effect goes on.)

Multiplier effect

an economic principle that explains industries choose locations to minimize costs, focusing on transportation (raw materials vs. finished goods), labor (cheaper wages), and agglomeration (clustering benefits), aiming to maximize profits by finding the cheapest triangle of production, especially useful for bulk-losing (steel) or bulk-gaining (beverage) industries, though globalization challenges its simplicity. 

Least cost theory

the benefits (like lower costs, shared labor, specialized suppliers, innovation) that companies gain by clustering together in a specific area

Agglomeration economies

Locational triangle

GNP (Gross National Product)

GDP (Gross Domestic Product)

Purchasing Power Parity (PPP)

Formal vs Informal sector

Gini coefficient

GII (Gender Inequality Index)

HDI (Human Development Index)

Microcredit/Microfinance

Stages of economic growth model

Traditional Society

Preconditions for Take-Off

Take-Off

Drive to Maturity

High Mass Consumption

World Systems Theory

Core countries

Semi-Periphery Countries

Periphery Countries

Dependency Model

NGO (non-governmental organization)

Commodity dependence

Outsourcing

Offshoring

Reshoring

New international division of labor

Basic v. non-basic economic activity

TNCs v. MNCs (transnational corps. V multinational corps. )

EPZs (export processing zones)

SEZs (Special economic zones) / FTZs (free trade zones) / Maquiladores

Postindustrial economy

Substitution principle

Locational interdependence

Technooles

Growth poles

Spin-off benefits

Backwash effects

Compare the two images. What do the technologies shown demonstrate about the Industrial Revolution?

The increased transportation technology has enabled the diffusion and expansion of industrial activities.

In the context of industrialization, how does the use of the building materials in Image 1 compare to the use of building materials in Image 2 ?

The development of the metals industry led to the construction of higher and longer bridges, a reduced need for stone as a building material, and rapid industrialization.

The two images illustrate advancements in technology resulting from the Industrial Revolution. Comparing the images, which of the following statements best illustrates an impact of the Industrial Revolution on society?

The invention of the steam engine and the construction of steel bridges to carry trains across various physical features led to ever-increasing demand for the materials and labor to build more trains and tracks.

The port of Los Angeles is the busiest port in the United States and a major break-of-bulk point. Which of the following statements correctly explains why Los Angeles is a break-of-bulk point?

The port can accommodate large container ships that can be unloaded quickly so that containers can be transferred onto carriers that use California’s highway and rail systems.

Which of the following best explains the relationship between GDP per capita and world system theory?

There is an uneven distribution of economic development and geographical division of labor in the world.

Which of the following explains the spatial patterns of economic development for most countries in Southeast Asia, including Indonesia, Malaysia, Thailand, and Vietnam?

Most Southeast Asian countries are considered to be part of the semiperiphery because of the extensive growth of the secondary economic sector.

Which of the following statements explains one of the limitations associated with utilizing the measures of development shown in the table above?

All the statistics aggregate data to the country level. Frequently, there is a great deal of variation in development within countries that is hidden by aggregated data.

Using the data in the table, which of the following explains a limitation of using gross national income (GNI) per capita as the only measure of a country's level of development?

A country can have a high level of economic and social development that is not reflected in annual production and trade data.

Based on the data in the table, which of the following statements is accurate?

Increased levels of economic development often conceal gender inequities.

Which of the following statements is most consistent with the data shown in the table?

There are a large number of women in the Spanish legislature, but few women have been elected in Kuwait.

Which of the following conclusions is best supported by the data shown in the table?

Countries with the highest HDI rankings do not necessarily have the highest rates of women’s labor-market participation.

Australia, Ireland, and Germany have the highest GII values in the table shown. What do these countries' high GII values indicate when compared to their HDI values?

These countries have less gender equality despite high levels of education and health care.