Studied by 47 peopleIndustry
The process of using machines and large-scale processes to convert raw materials into manufactured goods,
Raw Materials
The basic substances such as minerals and crops needed to manufacture finished goods.
Market
A place where products are sold
Cottage Industries
These industries depended on intensive human labor since people used simple spinning wheels, looms, and other tools.
Industrial Revolution (IR)
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
Scale of production, scale of labor force, method of production, typical building, capital investment, speed of production, efficiency, and market were all the characteristics.
Global-scale diffusion of IR vs. local scale of IR diffusion
Diffused globally starting from Great Britain then to Belgium, France and other countries eventually. Diffused on the local with energy resources, minerals, agricultural products and transportation routes.
Social, economic, and geographic changes to cities as they grow
The industrial changes made factories more abundant which drew people to the cities and attracted more people, which caused a rapid urban growth in cities and a massive increase of middle class people, it also caused problems in environment, health and problems with space.
Impact of IR on imperialism and colonies
Made wealthy countries even wealthier, leading to a freater divide between the advanced, industrialized states and the underdeveloped, nonindustrialized states.
Industrial Belt
industrialized regions were often found in large urban areas that provided a significant workforce and along coasts or rivers which provided easy transportation to global markets.
Deindustrialize
Decreasing reliance on manufacturing jobs. As a result of improved technology, companies needed fewer employees to produce the same quantity of goods
Rust Belt
Regions that have large numbers of closed factories
Primary Economic Sector
This economic sector handles the extraction of natural resources from the earth (farming, mining, fishing, forestry)
Secondary Economic Sector
This economic sector handles the making of products from natural resources (manufacturing, building)
Tertiary Economic Sector
This economic sector provides information and services to people (retail saled, medicine, housekeeping)
Quaternary Economic Sector
This economic sector handles the managing and processing information job (financial analysis, software development, data science)
Quinary Economic Sector
This economic sector handles the creation of information and making high-level decisions (research, top managers in corporation or government)
Structural Changes in Economies (Chart)
Division of labor varies by level of economic development.
Labor Force by Sectors (Chart)
The composition of the labor force changes as the level of economic development changes.
Multiplier Effect
The potential of a job to produce additional job (when an auto manufacturer expands a plant and adds 100 new jobs in a community, the new workers will have more money to spend on food, clothes, and movies, leading to the expansion of other businesses and jobs.)
Weber's Least Cost Theory
To explain the key decisions made by businesses about where to locate factories.
Agglomeration
Proposed that factory owners would locate their factories where they could minimize their total costs by balancing three factors: • minimizing transportation costs, such as getting raw materials to the factory and moving finished products to where they will be sold • minimizing labor costs, such as the wages and salaries of employees • maximizing agglomeration economies, the spatial grouping of several businesses to share costs, such as an access road to a public highway or development ofa workforce with special skills
Locational Triangle
Weber's model can be shown with this. The three points of the triangle are the market for a good and two resources needed to make the good.
Bulk-reducing Industries
These types of industry are also known as weight-losing, raw material-oriented, or raw-material-dependent industry. (Since transporting the extracted material is more expensive than transporting the finished product, a company can save money by moving production close to the sources of that raw material.)
Bulk-gaining Industries
Weight-gaining, market-oriented, or market-dependent industries
Comparing Weber's Theory to Reality
Model had the benefit of focusing attention on key parts ofa complex process. However, this benefit came with limitations. In response to these limitations, later scholars refined Weber's model by adding other considerations to it. However, the basic model remains useful. It recognizes patterns that can help people make decisions about the spatial distribution of factories, offices, and all types of business that employ workers.
Labor-oriented Industry
Is highly dependent on a workforce and will want to be near a source of those workers.
Break of Bulk
The 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
Meaning they can be carried on a truck, train, ship, or plane.
Factors in locating industry - national scale of analysis
Proximity to the market of the densely populated northeastern United States • Proximity to raw materials • Availability of sufficient labor with the right mix of skills • Lower than average wages for the United States • Access to global transportation network through the Atlantic Ocean and the Panama Canal • Adequate and affordable supply of power (Southeastern United States )
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 United States • High quality of education, recreational, affordable housing and medical facilities (Charleston, South Carolina)
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 (Industrial park site beside harbor )
Footloose
They can pack up and leave for a new location quickly and easily.
Back Office
Less expensive office spaces (Employees)
Front Office
Are designed to impress clients. (top executives on the expensive upper floors of a skyscraper in a large city.)
Gross National Product (GNP)
They involve the money generated by citizens and businesses ofa country, regardless of where the citizens are, or live, when money is earned. ( the income of American citizens working in South Korea and the profits from an American-owned factory in Mexico would both count as part of the United States ___)
Gross National Income (GNI)
They involve the money generated by citizens and businesses ofa country, regardless of where the citizens are, or live, when money is earned. ( the income of American citizens working in South Korea and the profits from an American-owned factory in Mexico would both count as part of the United States ___)
Gross Domestic Product (GDP)
The dollar amount ofall final goods and services produced within a country in one year
Remittances
The profits from a foreign-owned company were leaving the country and going back to the home country.
Per Capita
To adjust for the number of people in a country, each country's total output can be divided by the country's total population. This produces an amount per person
Purchasing Power Parity (PPP)
A measure of what similar goods cost in different countries.
Comparing Terms for Level of Development (Chart)
The vast number and variety of terms related to levels of development indicate the challenges of both trying to measure development and categorizing it.
Formal Economic Sector
The portion of the economy that is monitored by government, so people in it follow regulations and pay taxes.
Informal Economic Sector
The portion of the economy that is not monitored by government. It includes several types of economic activities: • Some activities are done without any 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
The More Devopled a contry is the more energy it uses. (Map on pg 466)
Gini Coefficient
The values range between 0 and 1. higher the number, the higher the degree of income inequality. A Gini coefficient of0 would mean the population had no inequality—everyone's income was exactly the same. A Gini coefficient of I would indicate total inequality—one person had all the income in a population and everyone else had none.
Regional patterns of economic development
Africa and South America account for 20% of the world population but only 8% of global GDP. Asia has seen the largest income gains in the past five decades due to strong government support for education and business. North America and Europe have been relatively prosperous over the past century, producing about 55% of global GDP. Development can be uneven within countries, with rural or peripheral regions often being less developed than core urban areas.
Social measures of development
The TFR (Total Ferility Rate) | Infant mortality rate (INR) | Life Expectance | Literacy rate
Life Expectancy
The number of years a person is expected to live, has a positive correlation with development.
Literacy Rate
Is the percentage of population that can read and write, usually at an 8th grade level or higher.
Gender Gap
Differences in the privileges afforded to males and females in a society are the
Gender Inequality Index (GII)
A composite measure of several factors indicating gender disparity (Reproductive health | Empowerment (the share of government seats held by each gender and the proportion of adult females and males with at least some secondary education ) | Labor market participation (% of 15+ that work))
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
Urban areas often have higher gender equity than rural areas. Overall, conditions are improving but obstacles to gender equity for women still exist: • 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.
Increased opportunities for women
Women have made progress toward gender equality despite the significant obstacles they face. Govern ments of many countries, transnational corporations, non-governmental organizations, and international organizations, such as the United Nations, have aided the efforts to reduce gender inequality.
Non-governmental Organizations
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
Due to industrialization the middle class populatoin grew tremendously so the Industrial Revolution created new neighborhods for middle class by building a sense of unity in the new class difficult and made new neighborhoods for the working class as well by forcing them to live in less-desirable urban neighvorhoods located outside the central business districts in crammed places right beside factories for easy access to factories and this led them to form labor unions, which gave them power to push for higher wages and better working conditions.
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