AP Human Geography Unit 7

Industrial Revolution

Industrial Revolution

The move from a human/animal-powered labor and cottage industry to water-powered mills and eventually steam engine production in factories

• first occurred in England

• First diffused to places such as France, Germany, and the US

Made the Industrial Revolution possible

• new technologies (spinning jenny, water-frame, cotton gin)

• Resources (coal and iron-ore)

• Steam-power

Mercantilism

An economic theory that trade generates wealth and is stimulated by the accumulation of profitable balances, which a government should encourage by means of protectionism

Effects of the Industrial Revolution

• increased food production

• Population increase

• Urbanization

• New class structure

• Colonialism

Informal economy

a part of the economy that is not taxed or monitored by the government

Primary sector

Activities involving the extraction of natural resources

• dominates in pre-industrial societies

Secondary structure

The production of goods from the raw materials extracted or harvested in the primary sector

• dominates in industrial societies

Tertiary sector

Service sector; provides services rather than finished goods

• dominates in post-industrial societies

Quaternary sector

The portion of tertiary sector activities that require workers to process and handle information and environmental technology

Quinary sector

Found within the quaternary sector; a specialized subcategory of work involving the top leaders in government, science, universities, nonprofit organizations, health care, culture, and media

Gross domestic product (GDP)

Total value of the goods and services produced by a country’s citizens and companies within the country in a year

Gross National Product (GNP)

Total value of goods and services produced by a country’s citizens and companies both domestically and internationally in a year

Gross national income (GNI)

Per capita the total value of goods and services globally produced by a country in a year divided by the country’s population

• does not account for wealth inequality

Social indicators of economic development

• fertility rates

• Infant mortality rates

• Literacy rates

• Access to health care

• Energy consumption

Human development index (HDI)

Used by the United Nations to determine overall development of a country using:

• health

• Education

• Economics

Gender inequality index (GII)

Reflects gender-based disadvantage in three dimensions:

• reproductive health

• Empowerment

• Labor market

Gender development index (GDI)

Calculates gender disparity in health, knowledge, and standard of living

Discrimination

In the workplace, women may experience unequal pay for the same work, limited opportunities for promotion and leadership, and gender-based harassment and violence

Unpaid care work

Women often bear a disproportionate burden of childcare or elder care

Microloans

Small, short-term loans with low interest

Rostow’s Stages of Economic growth

• traditional society

• Preconditions for takeoff

• Takeoff

• Drive to maturity

• Age of mass consumption (modern society)

Traditional society

• local political power

• Family plays a dominant role

• Economy revolves around subsistence farming

• Modern science and technology are nonexistent

Preconditions for takeoff

• new times of enterprises emerge

• Investment increases and output rises

• Infrastructure improves

• Workforce shifts from agricultural to manufacturing

Takeoff

• Frameworks of society change

• Urbanization increases

• Infrastructure improves

• Production capacity surges

• Technology advances

Drive to maturity

• growth is self-sustained

• Increased income leads to a shift in consumption patterns

• Entrepreneurial leadership moves from individual industrialists to a managerial bureaucracy

High mass consumption

• Urban modern societies centered on wage labor and organized into states

• Production shifts from industrial manufacturing to consumer goods and services

• Trade expands

Criticisms/limitations of Rostow’s theory

• based on assumption of capitalist society and free-market

• Highly urban and mass consuming may not be the society’s goal

• Resource-base of the country must be sufficient enough to support the growth and the diversification of the economy

Wallerstein’s World systems theory

An approach to world history and social change that suggests there is a world economic system in which some countries are exploited

• developed in 1974 in response to Rostow’s stages of development

• Countries are dependent on each other and don’t develop in isolation

• Some countries dominate and others are exploited

• Structured as core, semi-periphery, and periphery

Core countries

Most industrialized, technologically advanced, and economic influence

Periphery countries

Less industrialized, more dependent on core countries, mostly engaged in the production of raw materials and goods

• “LDCs”

Semi-periphery countries

Intermediate between core and periphery countries

BRICS

Acronym for “Brazil, Russia, China, and South Africa”

NICs (newly industrialized countries)

Developing economies that have advanced towards industrialization and might become developed at some point in the near future

Uneven development

The increasing gap in economic conditions between core and peripheral regions as a result of globalization

Economic imperialism

A situation in which one country has a lot of economic power or influence over others

Neocolonialism

The control of less-developed countries by developed countries through indirect means

Dependence theory

Suggests that global inequality is primarily caused by core nations exploiting peripheral nations for their resources, which keeps them poor and dependent

Commodity dependence

When 60%+ of a country’s exports and economic health are tied to one or two resources

Complementarity

An indicator of the suitability of the particular pair of places for the movement in question

• Eg. A place with surplus crop production would be in a sense compatible to a place that has a demand for food products

Neoliberalism

The belief that open markets and free trade across the globe will lead to economic development everywhere, lessen tensions between countries by fostering support for common values, and spread democracy and human rights

Liberalization

Opening up markets to foreign competition by reducing tariffs, quotas, and other trade barriers

Privatization

Selling state-owned enterprises, such as utilities or transportation companies, to private investors

Austerity

Reducing government spending, often in an effort to reduce budget deficits or debt

Free trade

Promoting international trade by reducing tariffs, quotas, and other trade barriers

Monetary policy

Using tools such as interest rates to control inflation and stimulate economic growth

European Union

A regional organization the promotes economic, political, and social integration among its member states, which are primarily located in Europe

World trade organizations

Promotes free trade and liberalization by setting rules and standards for international trade

Mercosur

South American trade bloc established by Argentina, Brazil, Paraguay, and Uruguay in 1991. It aims to promote free trade and movement of goods, people, and currency among members

Organization of petroleum exporting countries (OPEC)

An intergovernmental organization of 13 oil-producing countries that aims to coordinate and unify the petroleum policies of its member states

Tariffs

Taxes on goods that cross international borders

Quotas

A government-imposed trade restriction that limits the number of monetary value of goods that a country can import or export

Subsidy

A financial support provided by a government to a business or individual, typically to promote a specific economic or social objective

International Monetary Fund (IMF)

An organization of 188 countries, working to foster global monetary cooperation, secure, financial stability, facilitate international trade, promote high employment in sustainable, economic growth, and reduce poverty around the world

World bank

A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion in debt consolidation

Structural adjustment program

A set of economic reforms that a country must adhere to in order to secure a loan

Austerity measures

A set of economic policies, usually consisting of tax increases, spending cuts, or a combination of the two, used by big governments to reduce budget deficits

Outsourcing

The business practice of hiring an outside company to perform services or create goods that were traditionally performed in-house by the companies on employees, and staff

Offshoring

The practice of moving a businesses, operational processes, or services to another country, often to take advantage of lower costs or labor rates there

Disaggregation of production

When the production of a product takes place in many different companies, potentially all over the world

Multinational company

Is registered and operates in more than one country at a time

Market capitalization

refers to how much a company is worth as determined by the stock market. It is defined as the total market value of all outstanding shares

Post-Fordism

System of production that relies on automation using robots and computer systems and is centered on low-volume manufacturing and flexible systems that allow for quick response to changes in the market

• smaller than traditional manufacturers

Just-in-time-delivery

A production strategy that focuses on producing or delivering goods exactly when they are needed in the production process, reducing inventory cost

Multiplier effects

opportunity second potentially develop from an economic change

Economies of scale

refers to costs advantages, reaped by companies when production becomes efficient

Growth poles

economic activities that are organized around one or more high-growth industries in a particular location

Special economic zones

Designated areas in countries that have economic laws different from the rest of the country

exporting processing zone

Site where manufacturing of exports is done without tariffs

Free trade zone

Special area within a country where foreign companies can import materials, manufactured goods, and export products, free from taxes and regulations

Least-cost theory

A model devised by economics, Alfred Weber, suggesting that businesses seek to minimize three types of costs: transportation, labor, and agglomeration

• assumes firms are rational and will best minimize costs

Agglomeration

The clustering of economic activity in a particular area or region

Break-of-bulk point

Location where this more economical to break raw materials into smaller units before shipping them further

Bulk-reducing industries

Raw materials cost more to transport than finished goods

Bulk-gaining industries

Raw materials cost less to transport than finished goods

Ecotourism

A type of tourism that focuses on experiencing natural areas while minimizing the negative impact on the environment

Sustainable development goals

• no poverty

• Zero hunger

• Good health and well-being

• Quality education

• Gender equality

• Clean water and sanitation

• Affordable and clean energy

• Decent work and economic growth

• Industry, innovation, and infrastructure

• Reduced inequalities

• Sustainable cities and communities

• Responsible consumption and production

• Climate action

• Life below water

• Life on land

• Peace, justice, and strong institutions

• Partnerships for the goals