Chapter 18 | The Growth and Diffusion of Industrialization

**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