Chapter 18: The Growth and Diffusion of Industrialization

7.1 Explain how the Industrial Revolution facilitated the growth and diffusion of industrialization.

  • 7.1.1 Industrialization began due to new technologies and the availability of natural resources.
  • 7.1.2 Industrialization led to increased food supplies, population growth, new industrial jobs in cities, and changes in class structures.
  • 7.1.3 Investors sought more raw materials and new markets, contributing to colonialism and imperialism.

Timeline of Topics (Chronological Order):

  • First Agricultural Revolution
  • Third Agricultural Revolution
  • Industrial Revolution begins in Britain
  • Second Agricultural Revolution
  • Industrial Revolution Spreads to the U.S. and continent of Europe
  • Second Industrial Revolution
  • Third Industrial Revolution
  • Imperialism & Colonialism

Introduction

  • European colonization started in the 15th and 16th centuries with the Age of Exploration, marking the encounter between people from the Eastern and Western hemispheres.

18.1 Processes of Industrialization

  • Industry: Any economic activity that uses machinery on a large scale to process raw materials into finished goods.
  • Industry can also refer to a collection of productive organizations that work with the same materials or produce similar products.
  • Raw Materials: Metals, wood, plant products, animal products, or other substances that are used to make goods intended for sale.
  • Natural Resources: Coal, iron ore, water, copper, tin.
  • Industrialization: The process by which the interaction of social and economic factors leads to the development of industries across a community, region, or country.

The Industrial Revolution

  • Began in Britain in the 18th century and spread to other countries in Western Europe and North America in the 19th century.
  • Before the Industrial Revolution, goods needed in large quantities were produced by cottage industries where families worked in their homes.
  • The Industrial Revolution marked the shift from small-scale, hand-crafted production to power-driven mass production.
  • Before the Industrial Revolution, industry was dispersed and small-scale; items were produced at home or in small shops for sale at the local market or for barter. Such in-home/localized production was called COTTAGE INDUSTRY.
  • Modern industry is a product of the INDUSTRIAL REVOLUTION- a series of rapid improvements to industrial technology that drastically changed the process of manufacturing goods.
  • New technologies drove the Industrial Revolution.
  • Increased the quantity and variety of goods that could be produced
  • Expanded the market for these goods through new modes of transportation
  • Increased the quantities of natural resources needed for production
  • The spatial patterns of early industrialization were determined by the high cost of equipment and the need to maintain machinery which led to the development of the factory system.
  • Coal was a key energy source for technology developed during the Industrial Revolution.

The Spread of Industrialization

  • Industrialization diffused in Europe and North America through expansion diffusion and relocation diffusion.
  • Countries and regions with rich coal deposits and waterways for transportation were in a better position to industrialize.
  • By the middle of the 19th century, location on waterways was less important as industrializing countries built canal systems and extensive rail networks.
  • The First Industrial Revolution was powered by steam, coal, and waterpower.
  • Focused on the textile, iron, and coal industries
  • The Second Industrial Revolution was powered by electricity and the internal combustion engine.
  • Growth of the steel, automobile, and airplane industries, as well as the chemical industry and the development of consumer appliances
  • The Third Industrial Revolution began after the end of World War II.
  • Reliance on electronics and information technology systems
  • Automation of production processes

The Age of Imperialism

  • The Age of Imperialism was a direct result of the Industrial Revolution.
  • Natural Resources, Raw materials, new markets
  • New Inventions
  • Had the technology and power to conquer and control and empire
  • In the 19th century, industrialization became interlinked with Imperialism and Colonialism.
  • Colonized areas provided sources of raw materials and guaranteed exclusive access to new markets.
  • Harsh conditions prevailed in colonies controlled by Europeans.
  • In the 19th and early 20th centuries, industrialization remained concentrated in Europe.

Industrial Diffusion and Populations

  • The first agricultural revolution:
  • Began about 11,000 years ago and lasted for several thousand years
  • Shift from foraging—or searching for food—to farming
  • Occurred in different hearths at different times
  • The second agricultural revolution: 1700’s-1800’s in Britain
  • Produced growth in agricultural output
  • population growth and declining death rates
  • small farmers forced off their land
  • The Industrial Revolution brought about changes in population patterns and social systems.
  • Rapid increase in rural-to-urban migration
  • Growth of the middle class
  • Rise in leisure time for the middle class
  • Many of the features of modern urban life arose in the wake of the Industrial Revolution.
  • Public water and sewage systems, professional police forces and fire departments, electric lighting
  • In Europe: rising wages, better health, higher levels of schooling, and more comfortable lives for many
  • Public education systems in core countries to support literacy needed for jobs

Capitalism and Economics

  • Capitalism:
  • An economic therapy based on the idea of private ownership of the business.
  • Businesses operate to make a profit.
  • Free market economy (U.S. has regulated capitalism).
  • Any person is free to start a business and employ people
  • Profits and business and individuals make are reward for hard work
  • Opportunity for all

18.2 How Economies Are Structured

  • Economic sectors are collections of similar economic activities.
  • Primary Sector: Activities involving the extraction of natural resources
  • Secondary Sector: The production of goods from the raw materials extracted or harvested in the primary sector
  • Tertiary Sector: Service sector; provides services rather than finished goods
  • Quaternary Sector: The portion of tertiary sector activities that require workers to process and handle information and environmental technology
  • Quinary Sector: Found within the quaternary sector; a specialized subcategory of work involving the top leaders in government, science, universities, nonprofit organizations, health care, culture, and media

Economic Development Patterns

  • In peripheral countries, primary sector employment is dominant, with the bulk of the labor force working to produce the food they need to survive.
  • Semi-peripheral countries tend to have large portions of their workforce in the secondary sector and rely heavily on manufacturing.
  • Core countries tend to have economies with a substantial secondary sector but a dominant tertiary sector.
  • Spatial patterns of economic activity:
  • The shift to the secondary sector that comes with industrialization typically results in a population concentrated in urban areas.
  • Tertiary industries vary widely in their spatial distribution because they represent many different economic activities.
  • Information industries of the quaternary sector tend to cluster near institutions of higher learning that provide the educated workforce they need.

Postindustrial Economy

  • A postindustrial economy is an economic pattern marked by extremely low primary sector employment, relatively low secondary sector employment, and predominant tertiary sector employment with a rising share of quaternary and quinary jobs.
  • Shift from the production of goods to the production of services
  • Strong emphasis on institutions of higher learning as resources in developing and using new technologies
  • Growing role of women outside the home
  • Employment sectors can be studied for their contributions to the Gross Domestic Product (GDP)—the total value of all goods and services produced by a country’s citizens and companies within the country in a year.
  • Some peripheral and semi-peripheral countries have dual economies, or two distinct divisions of economic activity across the economic sectors.

18.3 Patterns of Industrial Location

  • Least-Cost Theory: A model devised by economist Alfred Weber to analyze spatial patterns in the secondary economic sector.
  • Proposes that businesses locate their facilities in a particular place because that location minimizes the costs of production
  • Takes into account the cost of moving raw materials to the manufacturing site and shipping finished products to market
  • Least-cost theory focuses on three factors that influence the decision of where to locate: transportation, labor, and degree of agglomeration.
  • Weber considered transportation costs to be the determining factor in where an industry is located.
  • Agglomeration describes the advantage for companies in the same or similar industries in locating near each other. Share infrastructure costs, mutually beneficial
  • Agglomeration means competitors often locate near one another.
  • In the 20th century, the core of U.S. manufacturing was in a swath of land along the Great Lakes, as companies sought the benefits of agglomeration.
  • Break-of-bulk point: location where it is more economical to break raw materials into smaller units before shipping them farther
  • In bulk-reducing industries, raw materials cost more to transport than finished goods.
  • In bulk-gaining industries, raw materials cost less to transport than finished goods.

Bulk-Reducing Industry

  • If raw materials cost more to transport than finished goods, then processing plants will be located near the source of the raw materials.
  • Examples: copper smelting, furniture manufacturing

Bulk-Gaining Industry

  • If raw materials cost less to transport than finished goods, then processing plants will be located near the market.
  • Examples: car manufacturing, bread production, construction equipment

Limitations of Least-Cost Theory

  • The theory ignores the influences of political or economic systems.
  • The theory works in capitalist societies where profit is the primary business motive.
  • Markets in the real world are not usually located at a single point.

Location Decisions Today

  • Transportation costs play a less significant role in location decisions today than they did in Weber’s time.
  • The use of airplanes, ships, and supertankers has greatly reduced transportation costs.
  • Shipping costs have gone down because goods being produced weigh less than they used to.
  • The relative cost of labor has become more significant as transportation costs have fallen.
  • Factories today are more likely to be located in industrial parks—collections of manufacturing facilities.

Key Vocabulary

  • Agglomeration
  • Break-of-bulk point
  • Bulk-reducing industry
  • Bulk-gaining industry
  • Cottage industry
  • Dual economies
  • Industry
  • Economic sectors
  • Gross Domestic Product (GDP)
  • Industrial park
  • Industrial Revolution
  • Industrialization
  • Least-cost theory
  • Postindustrial economy
  • Primary sector
  • Quaternary sector
  • Quinary sector
  • Raw materials
  • Secondary sector
  • Tertiary sector