Unit 7 Industrial and Economic Development Patterns and Processes

Unit 7 AP HuG

Industrial Revolution

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

Industrialization

the development of industries in a country or region on a wide scale. This happened as a result of new technologies and was facilitated by natural resources

colonialism

Attempt by one country to establish settlements and to impose its political, economic, and cultural principles in another territory.

imperialism

domination by one country of the political, economic, or cultural life of another country or region

Primary Sector

The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry. Ex: farming, drilling for oil

Secondary Sector

Portion of the economy concerned with manufacturing the process, transformation, and assembly of raw materials into useful products ex: Factory work, building cars etc

Tertiary Sector

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

Quarternary Sector

the knowledge-based sector including research and development, business consulting, financial services, education, public administration, and software development. ex: Financial planning

Quinary Sector

The most advanced form of Quaternary activities consisting of high-level decision making for large corporations or high-level scientific research. ex: CEO of a company

Break-of-bulk point

A location along a transport route where goods must be transferred from one carrier to another. ex: In a port, the cargoes of oceangoing ships are unloaded and put on trains, trucks, or perhaps smaller riverboats for inland distribution.

least-cost theory (Weber)

Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.

core country

Highly industrialized and wealthy countries. ex: US, Japan, Australia (most of Europe).

semi-periphery

countries in the process of developing industry but are less wealthy than core countries. places that are exploited by the core but in turn exploit the periphery- ex: China, India, Brazil, Mexico

periphery countries

countries are more reliant on producing raw materials than on industry. the least developed and least powerful nations; often exploited by the core countries as sources of raw materials, cheap labor, and markets ex: Bangladesh, Bolivia, Cambodia and most countries in Africa

Gross Domestic Product (GDP)

The dollar amount of all final goods and services within a country in one year. (money generated by people and businesses) Only money earned inside the country. ex: profits from a foreign owned factory on US soil, businesses located in the US.

Gross National Product (GNP) and Gross National Income (GNI)- used interchangeably.

The dollar amount of all goods and services produced by a country's citizens in one year. This is regardless of where they are or live. Ex: the income of American citizens working in South Korea and the profits from an American owned factory in Mexico.

per capita

per person

Formal Economy

The legal economy that is taxed and monitored by a government and is included in a government's Gross National Product; as opposed to an informal economy ex: going to work and paying taxes

informal economy

Economic activity that is neither taxed nor monitored by a government; and is not included in that government's Gross National Product; as opposed to a formal economy. ex yard sales, black market, drug cartel

income distribution

The way the national income is divided into "shares" ranging from the poor to the rich.

Access to health care

access to hospitals, doctors, essential medicine and preventative health care

fossil fuels

Coal, oil, natural gas, and other fuels that are ancient remains of plants and animals.

renewable energy

A resource that has a theoretically unlimited supply and is not depleted when used by humans. ex Wind, solar

gender inequality

Although women are in the workforce, they do not have equity in wages or employment opportunities. ex: pay gap

Gender Inequality Index (GII)

An indicator constructed by the U.N. to measure the extent of each country's gender inequality in terms of reproductive health, empowerment, and the labor market.

Reproductive Health

issues of safe sex, prevention and treatment of STIs, contraception, fertility and infertility, sexual health, pregnancy, and childbirth

labor-market participation

A statistic that determines what percentage of an age group or gender is currently working

Human Development Index (HDI)

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

Microloan

a very small, short-term loan often associated with entrepreneurs in developing countries ; many times offered to women

Rostow's Stages of Economic Growth

A model of economic development that describes a country's progression which occurs in five stages transforming them from least-developed to most-developed countries.

Wallerstein's World Systems Theory

1. The world economy has one market and a global division of labor.

2. Although the world has multiple states, almost everything takes place within the context of the world economy.

3. The world economy has a three-tier structure. (Peripheral, Semi-peripheral, Core)

Dependency Theory

the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former.

commodity dependence

An economy that relies on the export of primary commodities for a large share of its export earnings and hence economic growth

Complementarity

when two regions through an exchange of commodities can specifically satisfy each others demands

neoliberal economic policies

Reforms that focus on the free market with few restrictions on business and property rights.: ex: wanting less government involved in economics

Free Trade Agreement

member countries agree to remove duties and trade barriers on products traded among them

European Union

An international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members.

World Trade Organization (WTO)

a permanent global institution to promote international trade and to settle international trade disputes

Mercosur (Common Market of the South)

(1991) free trade within, and a common external tariff for, Argentina, Brazil, Paraguay, Uruguay, and Venezuela; accounts for 70 percent of South America's total economy

Organization of Petroleum Exporting Countries

an international economic organization whose member countries all produce and export oil /an international economic organization whose member countries all produce and export oil

Globalization

the process by which businesses or other organizations develop international influence or start operating on an international scale.

Tarriff

A tax on imported goods

Global Financial Crisis

The economic crashes that happened internationally due to the globalization of the world's economy. Problems in some countries (Europe and the United States), caused financial problems in countries that trade with them.

Microlending

The practice of loaning small amounts of money to help people in less developed countries start small businesses.

Outsourcing

A decision by a corporation to turn over much of the responsibility for production to independent suppliers.

economic restructuring

changes in the way the economy, firms, and employment relations are organized

newly industrialized countries

Refers to countries that are building up their industries and infrastructure. These countries are generally shifting from an agricultural to an industrial economy.

Special Economic Zones

specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment ex: China has these

export processing zones (EPZs)

zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment

international division of labor

The process where the assembing procedures for a product are spread out through different parts of the world the specialization, by countries, in particular products for export.

Post-Fordism Production

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

multiplier effect

An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.

economies of scale

the property whereby long-run average total cost falls as the quantity of output increases

Agglomeration

Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources.

Just-in-time delivery

Method of inventory management made possible by efficient transportation and communication systems, whereby companies keep on hand just what they need for near-term production, planning that what they need for longer-term production will arrive when needed./Shipment of parts and materials to arrive at a factory moments before they are needed

high-technology industries

Companies that support the growth and development of sophisticated technologies. It is a very new industry that has rapidly transformed many cities and countries.

growth pole

industries designed to stimulate growth through the establishment of various supporting industries

sustainable development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Mass Consumption

The use or purchase of goods or services by a large number of people

climate change

a change in global or regional climate patterns, in particular a change apparent from the mid to late 20th century onwards and attributed largely to the increased levels of atmospheric carbon dioxide produced by the use of fossil fuels.

Ecotourism

A form of tourism, based on the enjoyment of scenic areas or natural wonders, that aims to provide an experience of nature or culture in an environmentally sustainable way.

Postindustrial

economy that emphasizes services and technology rather than industry and manufacturing

maquiladoras

factories built by US companies in Mexico, along the US border to take advantage of low labor costs in Mexico

Bulk-gaining industry

An industry in which the final product weighs more or comprises a greater volume than the inputs.

High-tech corridor (technopole)

areas along or near major transportation arteries that are devoted to the research, development, and sale of high-technology products

Gross National Income (GNI)

consists of GDP plus the net income earned from investments abroad (minus any payments made to nonresidents who contribute to the domestic economy)

Footloose industry

Industry not bound by locational constraints and able to choose to locate wherever it wants. ex: call centers

modernization model

model of economic development maintains that all countries go through five stages of development

Entrepot

a port, city, or other center to which goods are brought for import and export, and for collection and distribution.

Literacy Rate

The percentage of a country's people who can read and write.

comparative advantage

the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors

Government Initiatives

when government puts a plan/law/regulation in place

international lending agencies

Agencies like banks loan money to different people in other countries

free trade zone

a region where a group of countries agrees to reduce or eliminate trade barriers

Sustainable Development Goals (SDGs)

Goals resulting from a UN-led effort to end extreme poverty by focusing on 17 key indicators, the top five of which are no poverty, zero hunger, good health, quality education, and gender equality, with key benchmarks for 2030.

Bulk-reducing industry

An industry in which the final product weighs less or comprises a lower volume than the inputs.

commodity

a raw material or primary agricultural product that can be bought and sold, such as copper or coffee.