AP HG Unit 7

Industrial Revolution

period of rapid growth in the use of machines in manufacturing and production that bean in the mid-1700s

Where the Industrial Revolution first began

began in England with the invention of the steam engine and diffused out from the hearth

Benefits of the Industrial Revolution

caused an increase in food production (new technological advances occurred in farming) and caused more people to move to the cities; increased the gap in wages between the poor and wealthy; increased imperialism and colonialism because of the need for raw materials (coal, lumber, cotton, etc.)

imperialism

the idea of political and economic dominance over another country

colonialism

the practice of establishing a colony in a foreign land

primary sector

extraction of raw materials (mining, fishing, lumber)

secondary sector

processing natural materials into finished goods (manufacturing, construction)

tertiary sector

offering services to consumers (retail, tourism)

quaternary sector

research and administration involved often associated with technological innovation (finance, marketing)

quinary sector

highest levels of decision-making in a society or economy (CEO, school superintendent)

site factors

industrial location factors related to the costs of the factors of produciton inside the factory

land

cheap (cheaper in suburbs and rural aresa right outside of urban ones), wnat to be close to highway and other transportation routes

capital

funds to establish new factories or expand existing ones; most important site factor in certain industries (high-tech), more difficult for developing countires to gain access to capital

labor

most important site factor globally

labor-intensive industry

wages and other comopensation paid to employees constitute a high percentage of expenses

break-of-bulk-point

a location where transfer is possible from one mode of transportation to another (cargo ship to train)

weber’s least cost theory

minimize three categories of costs to increase profits: transportation (weight and distance), labor (cheap labor), and agglomeration

bulk gaining

makes something that gains volume or weight during produciton; to minimize transportation costs, they focus on proximity to markets

bulk reducing

makes something that loses volume or weight during produciton; to minimize transportation costs, they focus on proximity to inputs

agglomeration

clustering of productive activities and people for mutual advantage (ex. mall)

labor, transportation (including shipping containers), the break-of-bulk point, least cost theory, markets, and resources influence the location of manufacturing such as core, semi periphery, and periphery locations

Gross Domestic Product (GDP)

value of the total number of goods and services produced in a country in a given time period (normally one year)

Gross National Product (GNP)

one of the most widely used and quoted statistics in economic geography, particularly in popular parlance; it refers to the total monetary value, in US dollars, of all the goods, services, and investments produced by a country in a year

Gross National Income (GNI) per capita

value of the output of goods and services produced in a country in a year, including money that leaves and enters the country

Gender Inequality Index (GII)

measure of the extent of each country’s gender inequality

Human Development Index (HDI), literacy rate, fertility rates, infant mortality rates

indicator of level of development for each country, constructed by the United Nations, combining income, literacy, education, and life expectancy

microloans

small credit or loans given to people in developing countries to start small businesses and help improve the economy

enduring understanding

economic and social development happen at different times and rates in different places

Rostow’s Stages of Economic Growth

assumed that all countries wanted to modernize, and that all would, though at different speeds; Rostow also saw economic development as a linear progression in which countries moved from one stage to the next until they reached high mass consumption

Traditional Society

subsistence, barter, agriculture; dependent on rural economy

Transitional Stage

specialization, surpluses, infrastructure; dependent on social appreciation of education and skill development

Take Off

industrialization, growing investment, regional growth, political change; dependent on Sub-urban Economy

Drive to Maturity

diversification, innovation, less reliance on imports, investments

High Mass Consumption

consumer oriented, durable goods, flourish, service sector becomes dominant

Dependency theory

holds that LDCs are highly dependent on foreign factories and technologies from MDCs to provide employment and infrastructure; LDCs in this theory get stuck in the continuous cycle of dependency on the MDCs which never allow their economies to fully develop

Wallerstein’s World Systems Theory

attempts to explain the relationship between the core and periphery countries; core benefits from the periphery and semi-periphery; semi-periphery can benefit from the periphery while still benefiting the core

complementarity advantage

one place must have what another wants and can secure (ex, flow of seasonal fruits and vegetables from California’s valley to urban markets of the American Midwest and East)

comparative advantage

ability of a fimr or individual to produce goods and/or services at a lower opportunity cost than other firms or individuals; a complementary good is a good whose use is related to the use of an associated or parie dgood

neoliberal policies

economic policies that are predicated on an minimalist role for the state, assuming the desirability of free markets as the ideal condition not only for economic organization but also for political and social life

free trade agreements

to eliminate the barriers to trade in, and facilitate the cross border movment of goods and services between the countries

European Union (EU)

a politico-economic union of 28 member states that are located primarily in Europe; operates through a system of supranational institutionsand intergovernmental negotiated decisions by the member states

world trade organization (WTO)

works to negotiate rules of trade among the member states

mercosur

a sub-regional bloc comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela; its associate countires are Chile, Bolivia, Colombia, Ecoador and Peru

oraganization of petroleum exporting countires (OPEC)

international organization; purpose: to contorl worldwide prices of gas

tariffs

taxes on items leaving or entering a country, often used to raise the price of imported goods

international monetary fund (IMF)

provides loans to countires experiencing balance-of-payment problems that threaten expansion of international trade

microlending

extension of very small loans (mircoloans) to impoverished borrowers who typically lack collateral, steady employment and a verifiable credit history; it is designed not only to support entrepreneurship and alleviate poverty, but also in many cases to empower women and uplift entire communities by extension

enduring understanding

environmental problems stemming from industrialization may be remedied through sustainable development strategies

outsourcing

a desicion by a corporation to turn over much of the responsiblity for production to independent suppliers

newly industrializing countries (NICs)

are Brazil, Russia, India, China, South America, and Mexico (BRIC SAM); new asian tigers is a term used to describe a new industrial region of asia that grew because of manufacturing to become highly developed economies and these countries are: Hong Kong, South Korea, Taiwan, and Singapore

special economic zone (SEZ)

geographically delineated area subject to differentiated regulation and adminstration from the host country in which it resides, for the purpose of attracting goreign direct investment in economic acitivty that could not otherwise be achieved

free-trade zones (FTZ)

no tariffs between countires —> special zones in which all trade barriers between two countires are eliminated; the FTZs usually consit of labor intensive manufacturing plants, such as the maquiladoras

export processing zones

are areas found in many regions of the developing world; they provide incentives for foreign companies to conduct their business in developing regions; they provide benefits to the developing world in the form of foreign investments and improved employment opportunities

international division of labor

transfer of some types of jobs, especially those requiring low-paid less skilled workers, from more developed to less developed countries

fordism

form of mass produciton in which each worker is assigned one specific task to perform repeatedly

post-fordism

adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks

economies of scale

increase in efficiency of production as the number of goods being produced increases (ex, ford motor companies)

just-in-time delivery

where the shipment of part (input) arrives at the facotry moments before they are needed to reduce the space that inventory takes up

service sector

the portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment