What is the Industrial Revolution?
Profound technological and economic changes that arose in England during the late eighteenth century and rapidly spread to other parts of Europe and North America
What came and started because of the Industrial Revolution?
Modern factories, mass-produced goods, and modern forms of capital investment
What is Industrialization?
The process of industrial development in which countries evolve economically from producing basic, primary goods to using modern factories for mass-producing goods
What were the Industrializing countries in the twentieth century?
Britain, France, Germany, Japan, Russia, and the United States
What did Industrialization do to for people?
Created concentrations of jobs outside of home
How did urbanization increase?
Job availability in cities, along with the requirement on commuting to work from home
What is the Cottage Industry?
The industry in which production of goods and services is based in homes, as opposed to factories
What are Secondary Economic Activities?
Activities concerned with the processing of raw materials; include manufacturing, construction, and power generation
What is the location like in Primary Economic Activities?
It is limited to where resource exists
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What is the location like in Secondary Economic Activities?
The location of factories are more flexible than just where the resource is
What is Fordism?
The system of standardized mass production attributed to Henry Ford
What is the first thing that is considered for the location of a Factory?
Must have easy access to materials that are necessary for production
What is the second thing that is considered for the location of a Factory?
Must have an adequate supply of labor
What is the third thing that is considered for the location of a Factory?
Must have proximal to shipping and markets
What is the fourth thing that is considered for the location of a Factory?
The sites should minimize production costs (through cheap labor and land)
What is the fifth thing that is considered for the location of a Factory?
Physical geography
What is the sixth thing that is considered for the location of a Factory?
History and a leader's personal inclinations
What are Spatially Fixed Costs?
Input costs in manufacturing that remain constant wherever production is location (ex: water)
What are Spatially Variable Costs?
Input costs that change significantly from place to place in their total amount and relative share of total costs (ex: cost of land)
What is Hotelling's Model also known as?
The locational interdependence approach
What is Hotelling's Model?
The description of an industry's location when multiple similar producers are involved and have identical production costs and inelastic market demand
What is the Weber's Least Cost Theory?
The description of optimal location of a manufacturing establishment in relation to costs of transport, labor, and relative advantages of agglomeration
What is a Bulk-gaining Industry?
Industries that produce goods that weigh more after assembly than in their constituent parts
Where do Bulk-gaining Industries tend to be located?
Closer to the market to minimize transport costs
What is a Bulk-reducing Industry?
Industries that produce goods that weigh less than their constituent parts
Where do Bulk-reducing Industries tend to be located?
Closer to the natural resources to minimize transport costs
What is the Break of Bulk Point?
The location where large shipments of goods are broken up into smaller containers, for example, ports
What is Transferability?
The cost of moving a commodity relative to that commodity's ability to bear the cost of moving
What items are easy to move?
Items with high transferability; the factory location is less influenced with these transport costs
What items are harder to move?
Items with low transferability, they're usually very heavy, large, or perishable
What are Intervening Opportunities?
Closer, alternative supply sources between demand points and the original supply source
What is Regionalization?
The description of the process by which specific regions develop economic activities that differentiate them from others within the same country
What is the Principle of Comparative Advantage?
Areas or regions should produce goods for which they have the greatest relative advantage over other areas
How is the Principle of Comparative Advantage used with Secondary Economic Activities?
It dictates that certain industries locate near necessary raw materials
How is the Principle of Comparative Advantage used with Tertiary Economic Activities?
The industry is located where the labor is cheapest
What is a Manufacturing Region?
A region where manufacturing activities have clustered together
What is a Footloose Industry?
Manufacturing or other industry in which cost of transporting both raw materials and finished product is not important for determining the location of the firm
What is a Brick and Mortar Business?
Traditional businesses with actual stores in which trade or retail occurs
What is an E-commerce Business?
Web-based economic activities
Does an E-commerce or a Brick and Mortar business have to consider their factory or retail location?
Brick and Mortar Business
What kind of industry is an E-commerce business?
Footloose
What are Specialty Goods?
Goods that are not mass-produced but rather assembled individually or in small quantities
What are Formal Economic Activities?
Activities that are legally registered and taxed; the profit is included in the country's GDP
What are Informal Economic Activities?
Strong parts of economies in developing regions where the income from them is not legally registered
What is a Basic Sector?
A part of a local economy that includes any industry that brings in money from outside of the area
What is a Nonbasic Sector?
All industry that supports and services the local community; the money is not generated from the outside, but rather circulated among local community members.
What is Base Ratio?
The ratio of basic to nonbasic employees in a local area, typically an urban area
How does the Base Ratio expand?
With the increasing population
What is Agglomeration?
The grouping together of many firms in a single area for collective or cooperative use of infrastructure and sharing of labor resources
What are Localization Economies?
A type of agglomeration economy in which similar industries concentrate together in one area or region
What are Urbanization Economies?
A type of agglomeration economy describing the clustering of industrial activity, of any type, in urban areas
What are Ancillary Activities?
Economic activities that surround and support large-scale industries
What is Infrastructure?
The set of technological support and services that maintain and advance a society
What is Cumulative Causation?
An economic term used to describe the positive effect of agglomeration
What is Cumulative Causation similar to?
The multiplier effect
What are Agglomeration Diseconomies?
Negative economic and social effects stemming from concentration of industry in a particular area
What is Deglomeration?
The dispersal of an industry that formerly existed in an established agglomeration
What is the Backwash Effect?
Negative effects on one region that result from economic growth within another region
What are Economic Backwaters?
Regions that experience the negative effect of the Backwash Effect
What is Deindustrialization?
The loss of industrial activity in a region, typically because of relocation to developing countries with cheaper labor and relaxed environmental standards
What is an example of Deindustrialization in the US?
The Rust Belt
What is the Global Breakdown of Employment in Different Sectors of the Economy?
As countries become more economically developed, they typically transition from being focused on primary and secondary economic activities to being concentrated in tertiary and quaternary activities
What is Globalization?
The idea that the world is becoming integrated on a global scale such that smaller scales of political and economic life are becoming obsolete
What are Transnational Corporations (TNCs)?
The taking advantage of geographic indifferences in wages, labor laws, environmental regulations, taxes, and the distribution of natural resources by location various aspects of production in different countries
What are Export Processing Zones (EPZs)?
Areas where governments create favorable investment and trading conditions to attract export-oriented industries
What is Outsourcing?
The sending of industrial processes out for external production, typically where labor is cheaper than internal labor
What do Tertiary Economic Activities do?
They provide the market exchange of goods and bring together consumers and providers of services such as retail, transportation, government, and personal and professional services
What are Quaternary Economic Activities?
Service-based activities concerned with research, information gathering, and administration
What are Quinary Economic Activities?
The most advanced form of quaternary activities consisting of high-level decision making for large corporations or high-level scientific research
What is Service Offshoring?
The practice of hiring foreign workers or contracting with an international third-party service provider to run service-based functions of a particular industry
What are Call Centers?
Industries that experience a large volume of telephone-related interactions, increasingly set up operations in developing countries with highly educated population but lower wage standards
What are Foreign Direct Investments?
Overseas Business Investments made by private companies; typically involves purchase or construction of factories by transnational corporations in areas where labor is typically cheaper than on homeland
What are Offshore Financial Centers?
Areas that have been specially designed to promote business transactions, making them centers for banking and finance
What is Digital Divide?
The term used to describe tremendous gap in access to communications technologies typically between the highly developed and least developed regions of the globe
What is the Geography of Tourism?
Developing countries concentrate in primary and secondary economic activities, but increasing amount of revenue pouring into developing regions through tourism
What is one benefit of Globalization for Developing and Least Developed Regions?
Greater access to previously inaccessible areas, which can stimulate local economies
What is Ecotourism?
A form of tourism based on the enjoyment of scenic areas or natural wonders
What is Economic Development?
The process of economic growth, expansion, or realization of regional resource potential
What does the Core-Periphery Model do?
It models the spatial structure of development in which underdeveloped countries are defined by their dependence on a developed core
What are Core Countries?
National or global regions where economic power in terms of wealth, innovation, and technology is concentrated
What are Periphery Countries?
Countries with low levels of economic productivity, low per capita incomes, and generally low standards of living
What are Semiperiphery Countries?
Newly industrialized countries with median standards of living
What does the economy of Least-Developed Countries rely on?
Primary Economic Activities
What are the names of the Stages for Rostow's Stages of Development?
Traditional, Preconditions for Take-Off, Take-Off, The Drive to Maturity, and the Age of High Mass Consumption
What is the first stage of Rostow's Stages of Development?
Traditional; The country is dominated by primary economic activites
What is the second stage of Rostow's Stages of Development?
Preconditions for Take-Off; The preconditions for Take-off Emerge, including commercialization of agriculture
What is the third stage of Rostow's Stages of Development?
Take-Off; Foreign investment pours in, jump-starting an economy prepped for growth
What is the fourth stage of Rostow's Stages of Development?
Drive to Maturity; A broad manufacturing and commercial base is developed
What is the fifth stage of Rostow's Stages of Development?
Age of High Mass Consumption; A country is characterized by high mass consumption and high per capita income
What is the first problem with Rostow's Model?
It describes the development process in America and Europe, but does not work for many other countries
What is the second problem with Rostow's Model?
It assumes that economies will naturally pass through the five stages, which neglect factories such as global politics, colonialism, physical geography, war, culture, and ethnic conflict
What is the third problem with Rostow's Model?
It automatically associates high levels of development and high mass consumption. Environmentalists argue that development does not equal consumption but can rather indicate increased social welfare or ecological sustainability
What is the fourth problem with Rostow's Model?
It does not account for deindustrialization
Who is the World Systems Theory developed by?
Immanuel Wallerstein
What does the World Systems Theory do?
It describes the emergence of a core, periphery, and semiperiphery in terms of economic and political connections first established at beginning of exploration in the late fifteenth century
What is the Fast World?
Inclusion of areas of the world, usually in the economic core, that experience greater levels of connection due to high-speed telecommunications and transportation technologies
What is the Slow World?
Inclusion of the developing world that does not experience the benefits of high-speed telecommunications and transportation technology
What is Gross Domestic Product (GDP)?
The total value of goods and services produced within the borders of a country during a specific time period, usually one year
What is Gross National Product (GDP)?
The total value of goods and services, including income received from abroad, produced by residents of a country within a specific time period, usually one year
What is Purchasing Power Parity (PPP)?
The monetary measurement of development that takes into account what money buys in different countries
What are the areas with the highest GNP?
The core regions
What is Net National Product (NNP)?
The measure of all goods and services produced by a country in one year, including production from its investments abroad, minus loss or degradation or natural resource capital as a result of productivity
What is the Human Development Index (HDI)?
The measure used by the United nations that calculates development in terms of human welfare rather than money or productivity
How does the Human Development Index (HDI) evalue human welfare?
By looking at life expectancy, education, and income
What is Gender Equity?
The measure of opportunities given to women compared to men within a given country
What is Sustainable Development?
The idea that people living today should be able to meet their needs without prohibiting the ability of future generations to do the same
What are the Downfalls of the Sustainable Development Model?
It is anthropogenic, focusing only on humans, without the consideration of other animals or ecosystems humans depend on
What countries are the Four Tigers?
Hong Kong, Singapore, Taiwan, and South Korea
What is another term for the Four Tigers?
The Four Asian Tigers