Chapter 18 | The Growth and Diffusion of Industrialization

Industry

Industry

Any economic activity using machinery on a large scale to process raw materials into products

Raw materials

Any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods

Industrialization

The process in which the interaction of social and economic factors causes the development of industries on a wide scale

Industrial Revolution

The radical change in manufacturing methods that began in Great Britain in the mid-18th century and was marked by the shift from small-scale, hand-crafted, muscle-powered production to power-driven mass production

Cottage industries

Preindustrial form of manufacture in which members of families spread out through rural areas worked in their homes to make goods

Economic sectors

Collections of industries engaged in similar economic activities based on the creation of raw materials, the production of goods, the provision of services, or other activities

Primary sector

Economic sector associated with removing or harvesting products from the earth; includes agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas

Secondary sector

Economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction

Tertiary sector

Economic sector that includes a host of activities that involve the transport, storage, marketing, and selling of goods or services; also called the service sector

Quaternary sector

Economic sector that is a subset of tertiary sector activities that require workers to process and handle information and environmental technology

Quinary sector

Economic sector that is a subset of the quaternary sector; involves the top leaders in government, science, universities, nonprofits, health care, culture, and media

Postindustrial economy

An economic pattern marked by predominant tertiary sector employment, with a good share of quaternary and quinary jobs

Gross Domestic Product (GDP)

The total value of all goods and services produced by a country’s economy in a year

Dual economies

Economies with two distinct distributions of economic activity across the economic sectors

Least-cost theory

Industrial location theory proposed by Alfred Weber suggesting that businesses locate their facilities in a particular place because that location minimizes the costs of production

Agglomeration

The tendency of enterprises in the same industry to cluster in the same area in order to take advantage of specialized labor, materials, and services.

Break-of-bulk point

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

Bulk-reducing industry

Industry in which the raw materials cost more to transport than the finished goods

Bulk-gaining industry

Industry in which the finished goods cost more to transport than the raw materials

Industrial park

A collection of manufacturing facilities in a particular area that is typically found in suburbs and is located close to highways to facilitate the movement of raw materials and finished products