Unit 7 HGAP

Industrial Revolution

The rapid transformation of the economy through the introduction of machines, new power sources, and new chemical processes in Europe and the United States between 1760 and 1830.

Textile

A fabric or cloth woven from the fibers of wool, cotton, or flax.

Labor productivity

The average amount of goods or services produced per worker per unit of time.

Fossil fuels

Natural fuels derived from the fossilized remains of living organisms.

Coal

A heavy, bulky fossil fuel that is difficult to transport, causing manufacturing industries that relied heavily on coal to flock to coalfields (e.g. steelmaking in Pittsburgh, Pennsylvania).

Crude oil

A yellowish-black liquid fossil fuel found in geologic deposits, that provided an even more efficient and transportable source of power for industrialization.

Raw materials inputs

Iron for steel, water for boilers, and lumber, stone, sand, brick clay, and limestone to build factories.

Major demographic and social consequences of industrialization

Increased food supplies and population, rural-to-urban migration, new social and spatial forms, new divisions of labor, effects on the family, and new experiences of space and time.

Commercial farmers

Farmers who raise crops and livestock to sell in the market at a profit rather than raising them for their own consumption.

Wage labor

A socioeconomic relationship in which an employer pays a worker to complete a task, sometimes by the day or by the hour.

Capitalist class

People who own the means of production and pay the wages of workers.

Middle class

People who are either salaried professionals (such as lawyers, educators, and physicians) or office wage workers (such as bank tellers and store clerks).

Working class

The people in an industrial economy who depend on wage labor to obtain the necessities of life.

The new separation of classes in the industrial age

The capitalist class owned the means of production and paid wages, the middle class included salaried professionals and office wage workers, and the working class depended on wage labor.

Labor unions

Associations of workers in particular industries established to collectively bargain with capitalists.

Mass production

The machine manufacture of large quantities of identical products.

Assembly line

A system of manufacturing in which parts and procedures are added one step at a time through a series of workstations until a finished product is assembled.

Mass consumption

The purchase of large amounts of mass-produced goods by large numbers of people.

International division of labor

The situation in which the labor forces of different countries and world regions play complementary roles in an interdependent global economy.

European colonialism and imperialism in the industrial age

Acquiring colonies in South and Southeast Asia, the Berlin Conference of 1884.

Berlin Conference of 1884

Divided Africa into European national spheres of influence.

Economic sectors

Groupings of industries based on what is produced and the activities of the workforce.

Primary sector

Industries that extract natural resources from the environment.

List examples of activities from the primary sector

Fishing, hunting, farming, logging, oil extraction, quarrying, and mining

Secondary sector

Industries that process the raw materials extracted by primary industries, transforming them into finished, usable forms.

List examples of activities from the secondary sector

Processing, manufacturing, and furnishing

Tertiary sector

Industries that provide services to businesses and consumers, including all the different types of work necessary to transport and deliver goods and resources.

List the subtypes of the tertiary sector

Transportation/communication services, producer services, and consumer services

Quaternary sector

The portion of the economy dedicated to intellectual and informational services, such as scientific research and development.

List examples of activities from the quaternary sector

Information technology, research, development, and data analysis

Quinary sector

The portion of the economy where the highest-level management decisions are made in the areas of business, government, education, and science.

Base industry

An industry of disproportionate economic importance and on whose existence other industries and employment sectors depend.

Semi-periphery

Countries or regions whose economies have elements of both the core and the periphery.

Break-of-bulk point

A location where cargo is transferred from one mode of transportation to another.

Shipping containers

Standardized, stackable, intermodal metal boxes used to transport goods by ship, railroad, or truck.

Containerization

The system of intermodal freight transport using shipping containers.

Least-cost theory

Alfred Weber's theory that transportation costs and labor costs play a strong role in determining the location of manufacturing facilities.

Factors that influence the location of manufacturing

Energy, materials, markets, and transportation.

Weight of final product vs raw materials

When the weight of the final product is heavier the firm would choose locations closer to the market, whereas if the weight of the final product is lighter the firm would choose locations closer to the raw materials.

Rostow's stages of economic growth

Model of economic development suggesting that all countries will inevitably progress in similar fashion through the same five development stages.

Stage 1

Traditional Society

• subsistence

• barter

• agriculture

Stage 2

Transitional Stage

• specialization

• surpluses

• infrastructure

Stage 3

Take-Off

• industrialization, investment

• regional growth

• political change

Stage 4

Drive to Maturity

• diversification

• innovation

• less reliance on imports

Stage 5

Age of High Mass Consumption

• high mass consumption

• consumer durable goods flourish

• service sector becomes dominant

Criticisms of Rostow's model

geographically uneven development, interference from other countries

World systems theory

Wallerstein's theory of economic development that regards world history as moving through a series of socioeconomic systems, culminating in the modern world system by about the year 1900.

Criticism of world systems theory

global focus, glosses over regional and local complexities

Contrast world systems theory with Rostow's stages of economic growth

World systems theory suggests countries do not inevitably march through a set of stages, it is dynamic, recognizing that a country's status can change over time, positively or negatively, core regions actively underdeveloped other regions; however, its global focus glosses over the complexities of development at regional and local scales.

Dependency theory

The theory that the periphery is poor because it was economically dependent on the core in a disadvantageous relationship originally established under colonialism and imperialism.

Criticism of dependency theory

paying too little attention to the social and cultural variations within the periphery and core themselves.

Commodity dependence

Occurs when commodities account for more than 60 percent of the value of a country's total exports.

Gross national product (GNP)

The total value of all the goods and services made by a country's residents and businesses in a specific time period regardless of the country or location in which they were made.

Gross domestic product (GDP)

The total value of all goods and services produced within a country over a specific period, regardless of the producer's national origin

Gross national income (GNI)

The total income of a country's residents and businesses, including investment income, regardless of where it was earned, as well as money received from abroad such as foreign investment and development aid.

GDP per capita

A country's GDP divided by its total population

Purchasing power parity (PPP)

Measures how much a common "basket of goods" costs locally in the currency of each country being compared

Gender Inequality Index (GII)

A statistical measure of gender inequality that combines data on reproductive health, empowerment, and labor-market participation.

Limitations of GII

Empowerment measures include only national parliamentary representation, neglecting local government levels and participation in nongovernmental public life.

The labor-market measure does not consider the quality of jobs for women versus men, nor does it count unpaid labor in caregiving and house-keeping, which fall primarily on women.

Human Development Index (HDI)`

A statistical measure of human achievement that combines data on life expectancy at birth, education levels, and GNI per capital (PPP) population.

Evaluates how much of a country's wealth is directed toward individual human achievement and well-being.

Limitations of HDI

It does not capture many quality-of-life factors such as individuals' feelings of security or their sense of personal empowerment; it has little to say about persistent poverty, and it does not measure the existence of inequalities among genders, ethnicities, and the adherents to different religions.

Formal sector

The part of the economy that is officially recorded with the government

Informal sector

The part of any economy that is not officially recorded, monitored, or taxed by the government

Presents problems for measuring levels of development like GDP, GNP, and GNI.

Income distribution

How a country's total GDP is distributed among the individuals in its population

Identify ways in which women's roles in society change as countries develop economically.

Improved female education, delayed marriage and declining fertility rates, and improved geographic mobility

Gender Empowerment Measure (GEM)

A measurement of gender equality that includes the proportion of seats held by women in national parliaments, the percentage of women in economic decision-making points, and women's versus men's share of earned income

Gender parity

A way of documenting progress towards gender equality using measures such as relative access to education, average incomes for women versus men, and workforce participation

"women's work"

unpaid labor at home

Contrast differences between less and more developed countries regarding gender parity.

Countries with the lowest GDP per capita tend to have high rates of women working in agriculture, whereas countries with the highest and lowest GDPs per capita have the highest rates of women's participation in the workforce

Microloan

A very small loan to people with little income or collateral intended to help them establish or expand a small business.

Microcredit

A system of giving microloans to women

Contrast differences between the perception of "men's work" and "women's work" over time.

In the first waves of industrialization, manufacturing jobs were "men's jobs," whereas new manufacturing sector jobs in developing countries may be considered "women's work"

Mercantilism

A theory of trade stating that each country strives to export more than it imports in order to accumulate wealth

Protectionism

Trade rules that restrict imports in order to protect domestic industries

Absolute advantage

A country's ability to produce a good or service more efficiently than another country.

Comparative advantage

A country's ability to produce one product much more efficiently than it can produce other products within its economy.

Complementarity

A measure of how well one country's export profile matches another country's import profile

Transnational corporation (TNC)

A firm with the power to coordinate and control operations in more than. one country, even if it does not own those operations.

Competitive advantage

A firm's relative ability to outperform other TNCs in its industry.

Identify the three global trade organizations.

International Monetary Fund (IMF), World Bank, World Trade Organization (WTO)

Free-trade agreement

A treaty between two or more countries that reduces tariffs and promotes foreign investment.

Tariff

Tax on imported goods and services

Customs union

A free trade agreement among two or more member countries, combined with a single, common external trade policy for nonmembers.

Organization of the Petroleum Exporting Countries (OPEC)

An international trade agreement designed to regulate the output of oil, controls 44% of world oil production.

Trade embargo

An official ban on trade with a specific country or of a specific good.

Financial market

Marketplace where financial instruments are traded; stock markets, bond markets, and foreign exchange markets

Debt crisis

Occurs when a government's debts exceed its tax revenues to the point that it cannot meet its loan payments

1980s Latin America debt crisis

Debt crisis in Latin American countries resulting from a 1973 OPEC oil embargo creating a surplus of petrodollars.

Global financial crisis of 2007-2008

Debt crisis resulting from banks offering mortgages to people with few resources and they bundled the home loans together leading to housing prices to plunge.

Fordism

The economic and social arrangement based on the mass production of standardized goods, high labor union membership rates, stable and full-time manufacturing employment, and high factory wages that enable mass consumption.

Corporate disinvestment

A process in which companies stop investing in factory construction, equipment, and improvement and begin selling off assets, such as machinery, buildings, and land.

Deindustrialization

The decline, and sometimes complete disappearance, of employment in the manufacturing sector in the core's industrial centers.

Offshoring

The relocation of manufacturing and support services from one country to another.

Outsourcing

The transfer of part of a firm's internal operations to a third party.

Special economic zone (SEZ)

Specific area within a country's borders where business and trade laws are different from those in the rest of the country.

Export processing zone (EPZ)

Industrial zone with special incentives to attract foreign investment to places where imported materials undergo processing or assembly before being re-exported

Free-trade zone (FTZ)

Specially designated duty-free area that provides warehousing, storage, and distribution facilities for goods intended for trade or re-export.

New international division of labor

The spatial shift of manufacturing from developed countries to developing countries, including the global scaling of labor markets and industrial sites.

Post-Fordism

The shifts from manufacturing centers to spatially dispersed production sites, from standardized mass production to specialized batch production, and from a permanent workforce to temporary and contract workers.

Just-in-time manufacturing (JIT)

The production of small batches of goods as needed. by customer demand.