APHUG Unit 7

industrial revolution

industrial revolution

rapid transformation of the economy through the introduction of machines, new power sources, new chemical processes, in Europe & US (originated in Britain)

texile

a fabric or cloth woven from the fibers of wool, cotton, or flax; products of home-based industry (worked in homes independently)

early mechanization

craftsman invented spinners & looms, textile mills, one person operated multiple machines

labor productivity

average amount of goods and services produced per unit of time

New transportation

steel vessels steam engines & railroad systems

fossil fueals

natural fuels derived from the fossilized remains of organisms (coal)

crude oil

yellow-ish black liquid fossil fuel found in geologic deposits. efficient and transportable source of power, refined into petroleum products

rural-to-urban migration

move to cities for work in factories

urbanization

process of concentrating greater proportions of a population into cites, consequence of industrialization (growth of cities & transformation of small towns into booming cities)

commercial farmer

raise crops & livestock to sell in marker at a profit

capitalist class

employers, who owned the means of production and paid wages

middle class

salaried professionals (lawyers, educators, physicians, office workers, etc)

working class

people who depend on wage labor to purchase the necessities of everyday life

wage labor

distinctive capitalism, socioeconomic relationship in which employer pays a worker to complete task , by day or by hour

labor unions

associations of workers in particular industries created to collectively bargain with capitalists (formed bc higher classes wanted to keep costs low)

mass production

machine manufacture of large quantities of identical products

assembly line

system of manufacturing in which parts & procedures are added one step at a time thru sense of work stations until product is finished

Berlin Conference of 1884

European governments gained control of distant lands for resources, partitioning of Africa

mass consumption

the purchase of large amounts of mass produced goods by larger number of people

international division of labor

labor of different countries & world regions play complementary roles in interdependent global economy

economic sector

groupings of industries based on what is produced and the activates of the workforce

primary sector

industries that extract natural resources from the environment (extractive industries) (logging, harvesting)

secondary sector

process the raw materials extracted by primary industries, transforming them into finished usable forms (logs to lumber, fish to canned fish)

“light industry”

furnature

“heavy industry”

auto manufacturing

tertiary sector

dedicated to providing services to businesses and consumers, including g movement and delivery of goods/resources (checkout clerks, college professors)

quaternary sector

intellectual & informational services, innovation & invention, mostly scientific research & development leads to parenting of new procedures and goods

quinary sector

highest level management decisions in the areas of business, government, education, science (global scale significance, CEO)

base industry

industry of disproportionate economic importance, other industries & employment sectors depend on

semi-periphery

composed of countries/regions whos economies have elements of both core & periphery, mediating politically & economically between core and peripheriey

Factors that determine where factory/business will be located

energy, materials, labor, markets, transportation access

jet cargo

1/3 value of world trade, manufacturing located near international airports

shipping containers

standardized, stackable, intermodal metal boxes used to transport by rail, truck, or boat

containerization

system of intermodal freight transport using shipping containers

least-cost-theory

Alfred Webber’s theory that transportation costs & labor costs play strong role in determining the location of manufacturing facilities; facilities located at lowest cost spot

location triangle

2 locations for materials and 1 location for market; based on distance and weight

weight gaining market

product produced in heavier

weight reducing market

material of product is heavier

Rostow’s Stages of Economic Growth

all countries will inevitably progress in similar fashion through the same 5 development stages, ending in wealthy mass-consumption societies

Traditional society (Rostow’s Stages of Economic Growth)

substence, barter, agriculture

Transitional Stage (Rostow’s Stages of Economic Growth)

specialization, surpluses, infrastructure

Take-Off (Rostow’s Stages of Economic Growth)

industrialization, investment, regional growth, political change

Drive to maturity (Rostow’s Stages of Economic Growth)

diversification, innovation, less reliance on imports

High Mass Consumption (Rostow’s Stages of Economic Growth)

consumer durable goods flourish, service sector becomes dominant

world systems theory

world history moving thru a series of socioeconomic system, divides countries of the world into three groups based on political power, social standing, and economic and technological development

core world regions

those that industrialized first, most advanced tech, highest level of consumption

periphery

economies focused on agriculture & extraction, low lever of consumption

dependency theory

periphery was poor because it wasn’t economically dependent on core in disadvantages relationship established under colonialism & imperialism

“delink”

separate periphery from exploitatively trade relationships with core countries

commodity dependence

commodities account for more than 60% of value of coutry’s total expencesco

commodity

primary agricultural product or raw material that is bought, sold, traded (oil, gold, cobalt, coffee, cotton)

Gross National Product (GNP)

measures total value of all goods & services made by a country’s residents and businesses in specific time period regardless of the location they were made

Gross Domestic Product (GDP)

value of all good & services produced in a country over a specific period, regardless of producer’s national origin

Gross National Income (GNI)

total income of a country’s residents and businesses, regardless of where it was earned (abroad, foreign aid/investment), total income rather than total value of goods & services produced

GDP per capita

country’s GDP divided by its total population, countries produce more goods/services than others

purchasing power party (PPP)

measures how much a common “basket of goods” costs locally in currency of each country being compared

“basket of goods”

set of commonly purchased goods & services

Gender Inequality Index (GII)

statistical measure of gender equality that combines date on reproductive heath, empowerment, and labor-market participation

reproductive health

maternal mortality ratio & adolescents birth rates

empowerment

proportion of parliamentary seats occupied by women & proportion of adult females & males aged 25+ with secondary education

labor-market participation

economic status of women and is measured as the labor-force participation rates of female & male populations aged 15+

Human Development Index (HDI)

statistical measure of human achievement that combines data on life expectancy of birth, education levels, and GNI per capita

informal sector

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

formal sector

the part of economy officially recorded with the government

income distribution

how a country’s total GDP is distributed among the individuals in its population

heath care

recognized as a general measure of well being, family’s physical & mental health; measured as availability and affordibility

renewable energy

wind, water, sun; decrease cost of importing fuels, establishment of renewable industry

female education

parents believe sons will have higher incomes and will better help the family, invest their resources for education for boys

delayed marriage

women bear fewer children in lifetime, education increase& expected from both genders

women’s public life

assigned to private domestic spaces, now includes all public life

men’s public life

primarily assigned to public spaces

geographic mobility

one’s relative ability to move through space, measure of individual liberty and privilege

Gender Empowerment Measure (GEM)

measurement of gender equality that includes the proportion of seats held by women in national parliaments, % of women in economic decision making positions; women’s vs men’s share of earned income

gender parity

way of documenting progress toward gender equality using measures such as relative access to education, average incomes for women vs men, workforce participation

“women’s work”

unpaid labor at home, responsible for domestic spaces, restricts women’s full participation in formal workforce, worse labor worse wageswage

wage disparity

consequence of women’s earnings, wages lower than men even in the same job, women earn less regardless of what labor they do

microcredit

a system of giving microloans to women

microloans

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

mercantilism

theory where 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

comparaitve advantage

country’s ability to produce a good or service more efficiently than another country, free movement of traded goods

absolute advantage

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

complementarity

measure of how well one country’s export profile matches another country’s import profile, high degree provides basis for successful trade

transnational corporation (TNC)

firm with the power to coordinate and control operations in more than one country, even if it does not own those operations, dominant players in global trade

competitive advantage

firm’s relative ability to out preform other TNCs in its industry

China

leader in trade of goods

USA

leader in commercial services

United Nations (UN)

creates an international regulatory system to promote free trade

international monetary fund (IMF)

seeks to foster global monetary cooperation, achieve financial stability, facilitate international trade

World Bank

international financial institution that provides funding and expertise to promote sustainable economic growth in developing countries

General Agreement on Tariffs and Trade (GATT)

series of international meetings to bring down trade barriers

World Trade Organization (WTO)

regulates trade among 184 member states, providing a framework for negotiating agreements and resolving trade disputes

free-trade agreements

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

Tariffs (duties)

taxes on imported goods and services, percentage of total cost of the produce, including shipping, raising price of imported product

United States-Mexico-Canada Agreement (USMCA)

eliminated some tariffs and trade barriers among 3 countries, increased international trade

European Union (EU)

free trade agreement at core, all tariffs and nontariff trade barriers removed

custom unions

free-trade agreements among 2+ member countries, combined with single common external trade policy for nonmembers

Organization of the Petroleum Exporting Countries (OPEC)

international trade agreement designed to regulate the output of oil

tariff war

government uses tariff to negotiate favorable trade agreements, targeted at specific countries & exports, opposite country retaliates with tariffs of its own

trade embargo

official ban on trade with a specific country or of a specific good, period of heightened political conflict