APHG Unit 7 notecards

Industrialization

The process of shifitng from hand porduction to machine-based production

How did industrialization begin:

New technologies & avalability to natrual resources

Effects of Industrialization

• Increased food production → population growth

• Urbanization (movement to cities for jobs)

• Changes in class structure (rise of middle class)

• Growth of colonialism & imperialism (search for raw materials + markets)

Economic Sectors

1. Primary

2. Secondary

3. Teritary

4. Quaternary

5. Quinary

Primary Sector

Extraction of raw materials

Ex: farming, mining, fishing

Secondary sector

Manufacturing goods

ex: factories, construction

Teritary Sector

Services

Ex: retial healthcare, education

Quaternary Sector

Information & Knowledge

Ex: Research

Quinary Sector

High-level decision making

Ex: CEOs

Location Factors for Industry

Labor (cost & skill level or workers) & transportation (cost of moving goods)

Key transportation concepts

Shipping container: standardized container that makes transport faster and cheaper (large metal container)- goods are unloaded & reloaded, now just the container itself moves

Break-of Bulk: Location where goods are transferred b/w transportation types (A port: goods go form a ship - truck)- containers increase efficentiy of break of bulk points becuase goods no longer need to be unpacked

Weber’s Least Cost Theory

Businesses choose locations to minimize costs:

• transportation

• Labor

• Agglomeration

Industry types in Weber’s model

Bulk-Reducing Industry: Loses weight during production (locates near resources)

Bulk-Gaining Industry: Gains weight (locates near markets)

Hotelling’s model

Businesses cluster together ot maixime profits

ex: fast food chains near eacother to bring in a bigger population

GDP

Gross Domestic Product: total value of goods/services produced in a country

GNP

Gross National Product: GDP + income from abroad

GNI

Gross National Income: Income earned by residents and businessess

Social Indicators of development

• Literacy Rate: Percentage of people who can read/write

• Fertility Rate: Average number of children per woman

• Infant Mortality Rate: Deaths of infants under 1 year

• Access to Healthcare: Availability of medical services

• Energy Use: Use of fossil fuels vs renewable energy

Formal Economy

Legal, taxed jobs

Informal Economy

Untaxed, unregulated jobs

Inequalitiy measures

Gini Coefficent

Gender Inequality Index (GII)

Human Development Index (HDI)

Gini Coefficent

Measures INCOME inequality

0=perfect equality

1= extreme inequality

Gender Inequality Index

Measures gender inequality using:

• Reproductive health (maternal mortality, teen births)

• Empowerment (education, political representation)

• Labor participation

0= perfect gender equaltiy

1= extreme inequality

Human Developemt Index

Based on:

• Health (life expectancy)

• Education

• Income

0= less developed

1= more devloped

What does economic devlopement mean for women?

MORE women in the workforce

Gender inequality still exists:

• Lower wages, limited oppurtunity

Microloans

• Small loans given to individuals (often women)

• Help start small businesses & improve living standards

Rostow’s stages of economic growth

1. Traditional society

2. Preconditions for takeoff

3. Takeoff

4. Drive to maturity

5. Age of mass consumption

Wallerstein’s World Systems Theory

Divides world into:

• Core – Wealthy, industrialized

• Semi-Periphery – Developing

• Periphery – Poor, resource-based

Dependeceny Theory

• Poor countries depend on rich countries

• Keeps them underdeveloped

Commodity Dependency

Ecobomy relies heavily on exporting one/few resources

Trade Concepts

• Complementarity: Countries have different resources

• Comparative Advantage: Ability to produce goods at lower opportunity cost

Neoliberals Policies

Promote globalization through:

• Free trade

• Reduced government control

Major Trade Organizations

• European Union (EU)

• World Trade Organization (WTO)

• OPEC

Tarriffs

Taxes on imports

International Monetary Fund (IMF)

Provides loans to countries

Global Financial Crisees

Economic downturns affecting many coutnires

Industrial Shifts

Outsourcing: moving jobs to cheaper labor locations

Deindustrialization: loss of manufacturing jobs in core countries

New Industrial Zones

Special Economic Zones: Areas with tax beenfits for businesses

Export Processing Zones: Focus on manufacturing for export

Free Trade Zones: No tarrifs

Post Fordism

Flexible, small scale production that replaced mass- production (fordsim)

Economies of Scale

cost advantages that large businesses gain by increasing production, where the cost per unit drops as output rises

Agglomeration

similar businesses cluster together to reduce costs and increase efficencity

LOWERS COSTS

Just-In time delivery

Recieve goods only when needed

Multiplier effect

one job creates more jobs

Growth poles

Economic centers that stimulate growth

Maquiladoras

Factoris in Mexico near US border

basic activities

Export-based jobs

non basic activies

local services

Key issues of sustainable development

• Resource depletion

• Pollution

• Climate change

Sustainable Developement

Meeting present needs without harming future generations

Tragedy of the commons

Shared resoures are overused

Ecotourism

Tourism that protects enviorment and supports locals

UN Sustainable Devleopment Goals

Global targtes for improving development

Offshoring

A business/ factory that moves to another country for lower costs