AP Human Geo Unit VI

Agrarian Economy

an economic system primarily based on agriculture and farming, where the production of crops and livestock is the main source of income.

Guild System

Gov’t supported org.s limit access to craftsmen professions. Apprentice > Master. Manages competition.

Putting-out System

Traders outsource production to small non-guild manufacturers.

Enclosure Movement

Close commons areas to rural peasants. Creates cheap labor supply b/c agri production made more efficient by landowners consolidating small plots of land into larger enclosed farms and using more efficient farming techniques like crop rotation and selective breeding, meaning less farmers needed. Those farmers go to cities for livelihood and provide workforce for factories. Surplus of agriculture + efficiency up = capital = invest in new industry. More food supports growing urban pop. Shift from communal to private land = capitalist economy groundwork laid, promoted market-oriented agriculture and investment in technology.

Capitalism/free trade

an economic system where private individuals or businesses own capital goods and production is guided by the profit motive. Discourages guilds, opens up free trade (economic policy that allows goods and services to be traded across borders with little to no government interference, such as tariffs or quotas).

Industrial Revolution

Pull resources, manufacturing & markets all closer together. New inventions rapidly increase production, lower skill needed (water frame, power loom, steam engine). Factories employ wage-laborers in growing urban areas (Lancashire - Manchester).

Wage-laborer

individual working for an employer in exchange for payment, typically on an hourly, daily, or contractual basis.

Steam Engine

Made machines no longer dependent on water supply.

Industrial Diffusion

To Europe: Competition w/ GB pushes rapid innovation in 19th century (ex: Napoleon’s Continental System). To America: After new methods introduced, vast resources & free market allow industry to flourish.Slater, Lowell; American System (tariffs to boost domestic industry, national bank to foster commerce, federal subsidies for internal improvements aka transport to make profitable markets for agriculture).To Asia: Desire for access to big markets causes western powers to push for opening of trade (ex: Matthew Perry & the convention of kanagawa. To Latin America, delayed b/c local economies focused on resource extraction, small domestic market, underdev. infrastructure.

Primary Sector Activity

Activity which involves extracting raw materials from the earth. ex: Agriculture, fishing, forestry, mining.

Raw materials

basic substances that are extracted or harvested from the earth and are used in the production of goods and services (ex: iron).

Carbon energy resources

oil, gas, biofuels like algae, and coal.

Non-metallic minerals

composed of chemical elements that don't have the properties of any metals. Includes building stones, diamonds, etc.

Metallic minerals

Minerals containing one or more forms of metals in a definite composition. Can be ferrous alloys (contains iron, chromium, tin) or nonferrous metals (no iron, f/ ex: copper or lead). especially valuable for fashioning machinery, vehicles, and other essential elements of contemporary life.

Mineral deposits

a place in Earth's crust where geologic processes have concentrated one or more minerals at greater abundance than in the average crust. Examples include the D.R. Congo, the U.S., Australia, South Africa, China, etc.

Alfred Weber Least Cost Theory of Industrial Location

When trying to locate the ideal site for a plant, manufacturers prioritize Minimizing transportation costs (proximity to inputs and proximity to markets), minimizing labor costs, and maximizing agglomeration (large number of companies and industries cluster together and benefit from the cost reductions and gains in efficiency that result from this proximity).

Proximity to inputs vs proximity to markets

Will determine where to locate industry. Generally, if the product being manufactured gains weight or volume during manufacturing locate closer to market. If the opposite, closer to source (inputs).

Bulk-reducing products

Lose weight/volume (steel)

Bulk-gaining products

Gain weight/volume during manufacturing (e.g. drinks)

Train vs truck vs ship vs air

Truck – Cheap, quick, easy, limited by bulk & distance

Train – Good for distance & bulk, limited by time & access

Ship – Great for distance & bulk, limited by time & access

Air – Best for distance & time, limited by cost & bulk

Break-of-bulk point

Point @ which transport methods are switched – optimal location is best since very costly to break bulk.

Containerization

process of using standardized containers to transport goods efficiently by land, sea, or air. revolutionized global trade by allowing cargo to be easily transferred between different modes of transportation without needing to unpack and repack the contents, significantly speeding up shipping times and reducing costs.

Secondary Sector Activity

Economic activity involving the manufacturing of goods/ products from raw materials. Must consider site (actual location aka urban vs suburban/rural and labor which includes skill needed, union activity, gov’t reg, and cost of living) and situation (wealth, which is capital and disposable income).

Manufacturing

the process of transforming raw materials into finished goods through the use of labor, machines, tools, and chemical or biological processing.

Urban vs rural/suburban factories

Urban area: Thin, multi –story factories close to trains, labor pool, markets. Declining since the 1960s to now.

Suburban/rural area: Wide, single-story plants near roads, cheaper land.

Labor intensive industry

production involves labor costs as a high % of net production cost. ex: textiles, especially silk.

Capital intensive industry

involves high machinery costs rather than labor costs. ex: automobiles.

Automation

using technology and machines to perform tasks previously done by humans automatically, without direct human intervention.

Labor unions

organized groups of workers who come together to collectively negotiate wages, benefits, and working conditions with employers. Play a large role in determining worker experience.

“Right to work” laws

laws that prohibit agreements between employers and labor unions that say all employees need to joining the union. ex: Indiana, Texas, Florida, Virginia, the Dakotas, etc.

Agglomeration

Effect where a large number of companies and industries cluster together and benefit from the cost reductions and gains in efficiency that result from this proximity. ex: a business locates near a McDonald’s so all the employees can go there for lunch.

Capital

$ available to businesses for initial startup costs. Come from investors and banks. A Situation Consideration.

Disposable income

A Situation Consideration. Spending $ available to potential consumers (after taxes taken out)

Consumer demand

The frequency with which customers are purchasing goods; affected by…

1) Need

2) Advertising

3) Consumer Confidence

Consumer Confidence

a measure of how optimistic or pessimistic consumers feel about the overall state of the economy and their personal financial situation. Optimism = more likely to spend.

Market share

Net company sales/net industry sales

Single-market industry

Specialized manufacturers with only one or two customers. Optimal location for factories is often in close proximity to the customers. Only has one market, need to be close to the customer(s) so can meet their demands better, have inspection, etc. ex: Producers of specialized components attached to clothing e.g. buttons, zippers, or pins. Makers of parts for motor vehicles.

Tertiary Sector Activity

Involves the facilitation of consumption & economic activity (services).

Consumer Services

Meet the various needs & desires of individual consumers. ex: Retail & Wholesale, Education Services, Health & Social Services, Leisure & Hospitality - Bars, restaurants, hotels, the arts, entertainment, Religion kind of.

Public Services

Serve the public welfare – Police, fire, sanitation, legislation, etc.

Business Services

Assist the activities of other businesses. Includes Professional Services (Technical: Legal, design, engineering, accounting, etc. & Support: Clerical, custodial), Financial Services: Finance, Insurance & Real Estate, InInfrastructure & Transport: Shipping, storage, publishing, broadcasting, utilities).

Quaternary Services

Compile info for societal use. Financial planning, information generation, consultancy, information technologies, designing, and research and development.

Multiplier effects

an increase in spending ultimately leads to a far bigger change in GDP than the amount spent. ex: Apple invest in new call center and pay for construction + workers => those workers now have more money, go spend => this supports local businesses whose workers now also have more money to spend => they spend it, supporting more economic activity.

Economies of scale

As company grows able to reduce average cost to produce its product. More access to capital which allows them to scale production and produce more at cheaper. Automation is a good example.

Foreign Direct Investment

Investments made by private companies or foreign gov’ts in the economies of foreign nations. typically by establishing business operations or acquiring assets. facilitates the flow of capital, technology, and expertise across borders, which can lead to economic growth and development in host countries.

World Bank

Provides loans to finance development

International Monetary Fund

Loans $ to stabilize debt & currency issues

Microfinance/microloans

Small amount loans to individuals & small businesses; typically non-profit. particularly significant in supporting low-income populations, especially women, by empowering them economically and enabling entrepreneurial activities that can lead to improved living standards. For those who lack access to traditional banking.

Post-Fordist production

Mass customization, focus on demand (what does the customer want), global markets, expand through outsourcing and offshoring, integrated supply chains (all parts of the supply chain coordinated), short product life cycles (length of time from a product first being introduced to consumers until it is removed from the market/goes under) (months).

Fordism

mass production and consumption that emerged in the early 20th century, characterized by assembly line manufacturing, standardized products, and a focus on high wages for workers. Mass production, focus on supply (making things), regional markets, expand through vertical and horizontal integration, discontinuous supply chains, long product life cycles (years).

Discontinuous vs. Integrated Supply Chains

Fordist (Discontinuous): Sequential, segmented steps with clear boundaries between processes. Inflexible, high volume of standardized production. Each step in isolation. Clear boundaries, minimum real-time coord or feedback btwn. stages.
Post-Fordist (Integrated): Networked, fluid stages with continuous communication and coordination. seamless, interconnected network. This integration allows companies to quickly adjust to market fluctuations, customize products, and reduce inventory costs. emphasize flexibility, responsiveness, and tight coordination across all stages of production

Vertical Integration

business strategy where a company expands its operations by acquiring or merging with other companies at different stages of production within the same industry. This approach allows businesses to gain control over their supply chain, reduce costs, and increase efficiency. esp. for agri.

Horizontal Integration

strategy in which companies gain ownership of other related companies in the same industry. Reduce competition, strengthen company’s position in industry.

Just-in-time-delivery

a method of managing inventory that provides products only as they are needed, rather than storing them. secondary and tertiary sector. ex: Little Caesar’s make on demand pizza.

Formal vs informal economic activity

Formal: organized, regulated sector of economic activity that is officially recognized by the government. It includes jobs and businesses that adhere to legal standards, pay taxes, and follow labor laws. gov. reg, legally recognized and registered officially, taxed and employees get benefits like health insurance usually, and contributes to GDP or GNI.

Informal: economic activities that are not regulated by the government or covered by formal labor laws and protections. Unregistered, no taxation on biz and no formal employment benefits, flexible (small-scale, seasonal, or casual) like street vending, casual labor, etc. No contrib. to GDP or GNI.

Growth poles

area with, or concentration of, technically advanced industry that stimulate economic development in businesses connected to those industries. ex: silicon valley.

Quinary Sector

segment of the economy that involves high-level decision making and specialized services. jobs in the federal, state, and local governments, etc. Aka managment (?)

HDI

measures the status of life in any given place based off of life expectancy, education levels, and income per capita.

High technology industry

industries that are centered around advanced technological processes, innovation, and knowledge-intensive work. global integration (production, distribution, supply chains), big economic impact b/c competitive advantage and high productivity potentials (at least in advanced econ), r & d investment, skilled workforce, high capital intensity. ex: biotech.