AP Human Geo 7.1 - 7.8

Origins of Industrialization

• Industrialization began in England due to:
  • Availability of natural resources
  • Flow of money from colonies
  • Invention of the steam engine
  • Building of railroads

Diffusion of Industrial Revolution

• The Industrial Revolution (IR) led to improvements in farm machinery and increased agricultural productivity.
• More food production and population increase.
• Machines replaced people and animals, displacing agricultural workers to cities.

Growth of Industry

• Increased demand for raw materials and new markets led to colonialism and imperialism by industrial powers.
• Colonies provided raw materials, labor, new markets, ports, and profits for the Mother Country.

Economic Sectors

• The different economic sectors include:
  1. Harvest or extraction
  2. "Value added" industries
  3. "Service-sector" industries
  4. "White-collar" information services
  5. High-level decision making
• Different economic sectors are characterized by distinct development patterns.

Location of Manufacturing

• Factors influencing manufacturing location include labor, transportation, break-of-bulk points, resources, and markets.
• Least Cost Theory is used by businesses to decide whether to locate in a core, semi-periphery, or periphery location.

Labor

• Companies minimize labor costs, considering the skill level of the labor force.

Transportation

• Heavier items cost more to transport.
  • Bulk-Reducing (Resource Oriented) Industries: locate near raw materials (e.g., Copper).
  • Bulk-Gaining (Market-Oriented) Industries: locate near market (e.g., Soft Drinks).

Break-of-Bulk Points

• Sites where goods are transferred from one transportation form to another (e.g., ports).

Resources

• Early factories located on rivers for water power.
• Later, factories were located near coal sources because coal was bulky to transport.
• Electricity is mobile, making the location of energy sources less important.

Least Cost Theory - Alfred Weber (1909)

• Predicts manufacturing site location relative to raw materials and market.
• Focuses on minimizing transportation and labor costs, and maximizing agglomeration.
• Weber’s Assumptions include:
  • An isotropic plain (Reality - mountains DO affect transportation costs!).
  • Sufficient and immobile labor (Reality - Labor is mobile).
  • Raw materials in fixed locations (Reality - Substitution Principle allows alternative inputs).
  • One product, one market (Reality - products are sold in multiple locations).
  • Transportation costs related to distance and weight (Reality - Tapering Principle).
  • Economic factors dominate (Reality - Emotional factors play a role).

Measures of Development

• Economic measures are usually displayed per capita and in US dollars.
• Focus is on types of jobs, income, and economic output.
• Purchasing Power Parity (PPP) makes monetary values equal across countries.
• Economic measures include:
  • Gross Domestic Product (GDP): Total value of goods and services in a country in one year.
  • Gross National Product (GNP): Value of goods and services produced by a country's citizens, domestically and abroad.
  • Gross National Income (GNI): All income earned by a country's residents, businesses, and earnings from foreign sources.
  • $C + I + G + X$ (Personal Consumption + Business Investment + Government Spending + Net Trade).
  • Sectoral Structure of an economy, Consumption per capita, Income distribution, Energy use per capita

Gini Coefficient (Gini Index)

• Measures income distribution (0 = perfect equality, 1 = absolute inequality).
• MDCs have lower Gini Coefficients than LDCs.

Social Measures of Development

• Focus on conditions in which people live (health care, education, equality).
• Ways to measure social development include:
  • Life Expectancy
  • Access to Healthcare
  • Literacy Rate
  • Fertility Rate
  • Infant Mortality Rate
  • Use of Fossil Fuels and Renewable Energy

Gender Inequality Index (GII)

• Composite index of gender disparity considering reproductive health, female empowerment, and labor market participation.

Human Development Index (HDI)

• Combo of one economic measure with many social measures.
• Shows spatial variation in levels of development.

Women and Economic Development

• Women's roles change as countries develop economically.
• There are more women in the workforce, but without equity in wages or employment opportunities.
• Microloans provide opportunities for women to create small local businesses.

Changing Role of Women

• Expanded employment & increased educational opportunities.

The Glass Ceiling

• Women rarely obtain upper-level jobs, and a pay gap exists.

Microloans

• NGOs provide small loans to women who don’t qualify for credit.
• Enables women to start businesses, common in South America and South Asia.

Theories of Development

• Rostow’s Stages of Economic Growth (aka Modernization Model).
• Wallerstein’s World Systems Theory (aka Core-Periphery Model).

Rostow’s Stages of Economic Growth

• Assumes all countries want to modernize.
  1. Traditional Society: Local/regional political power, subsistence farming, low technology.
  2. Pre-Conditions to Take Off: Leadership invests, small-scale trade, urbanization begins, shift to secondary sector.
  3. Take Off: Major export industry, urbanization, full industrialization.
  4. Drive to Maturity: Growth declines, specialization of industry, skilled workers, investment in social infrastructure.
  5. High Mass Consumption: Decline in population, mostly tertiary sector, spending on nonessential goods.

Criticisms of the Rostow Model

• Based on industrialized, capitalist, democratic countries, and doesn't account for scale & uneven development, linear progression, equal potential to develop, sustainability, or legacy of colonialism.

Wallerstein’s World Systems Theory

• Dependency model: countries are interdependent.
  • Core: Economically and politically dominant, strong military.
  • Semi-Periphery: "Middle Income" countries with aspects of both core and periphery.
  • Periphery: Less wealth and education, export natural resources, weak infrastructure.

Criticisms of Wallerstein’s World Systems Theory

• Downplays culture, outdated (based on industry), doesn’t say how countries can change status, doesn’t recognize NGOs.

Changes as a Result of the World Economy

• Outsourcing and economic restructuring have led to a decline in jobs in core regions and an increase in jobs in newly industrialized countries (NICs).

Offshoring

• Companies move operations to countries with lower costs.

Outsourcing

• Contracting work out to other companies to save money and increase efficiency.

Economic Restructuring

• Shift from industry-based economy to service-based economy.

Result of Economic Restructuring

• Deindustrialization: Post-industrial economies no longer employ large numbers in factories.

Growing Interdependence in the World Economy

• Growth of industry outside the core has led to new manufacturing zones.
  • Special Economic Zones (SEZs)
  • Free Trade Zones (FTZs)
  • Export Processing Zones (EPZs)

Special Economic Zones (SEZs)

• Areas with tax and investment incentives to attract foreign businesses.

Free Trade Zones (FTZs)

• Areas where trade barriers between countries are eliminated.

Export Processing Zones (EPZs)

• Industrial areas with specialized policies to attract businesses.

New International Division of Labor

• Developed Countries rapidly adding quaternary sector jobs emphasizing R&D
• Developing Countries (Mexico, China, Indonesia) manufacture goods (secondary) that were developed in MDCs, export the finished goods
• LDCs have large primary sectors, export natural resources used in manufacturing

Transformation of the Contemporary Economic Landscape

• Post-Fordist Production, Multiplier Effects, Economies of Scale, Agglomeration, Just-in-Time Delivery, Growth Poles

Post-Fordist Production

• Flexible production, teams, outsourcing, automation, skilled labor.

Multiplier Effect

• Potential of a job to produce additional jobs.

Economies of Scale

• Competitive advantage for large entities due to bulk production.

Agglomeration

• Companies and industries in close proximity for cost reductions and efficiency.

Just-in-Time Delivery (JIT)

• Inputs arrive when needed, reducing inventory costs.

Growth Poles

• Concentrated high-value economic development attracting more development (e.g., Technopoles).

Sustainable Development

• Meeting present needs without compromising future generations.
• Sustainable Development policies attempt to remedy problems stemming from:
  • Natural resource depletion
  • Mass consumption
  • The effects of pollution
  • The impact of climate change.

Ecotourism

• Tourism in natural environments threatened by industrialization, providing jobs and protecting the environment.

UN’s Sustainable Development Goals

• 17 goals to end poverty, improve health and education, reduce inequality, spur economic growth, tackle climate change, and preserve oceans and forests.