The Industrial Revolution:

• 1760-1840

• Manual labor and craft production → machine-based

• New technology: engine, power loom, railroads, metal and steel-making

• Natural resources: coal & steam power as energy

• Hearth: Britain

• First diffused to: Rest of Europe, Japan

• Better transportation: led to the diffusion and expansion of industrial activities

Effects of the Industrial Revolution:

• Growing population: shift to stage 2 of the DTM/ lowered CDR

• Increased food supply: 2nd Agricultural revolution

• Rural to Urban migration: industrial jobs in cities

• creation of the middle class

• Investors needed more raw materials and new markets → rise of colonialism and imperialism in Africa and Asia.

• Led to uneven geographic development today based on when different regions industrialized

Economic Sectors:

• Primary: Extraction and production of raw materials

  • Farming, Coal mining

• Secondary: Processing of raw materials into finished goods

  • manufacturing, factories

• Tertiary: Service jobs

  • retail, server

• Quaternary: Jobs requiring higher levels of knowledge and expertise

  • Doctor, IT, Nurse, Lawyer

• Quinary: Decision-making and policy making jobs

  • CEO, President, Lawmaker

Weber’s Least Cost Theory:

• Shape: Location Triangle

• Goal: Select location of industry based on lowest transportation & labor costs

• Bulk Reducing Industry:

  • Locate manufacturing closer to the inputs: raw materials

  • copper mining, ethanol

• Bulk Gaining Industry:

  • Locate manufacturing closer to market

  • Car production, bottling plants

Measures of Development:

• Gross Domestic Product: The value of all goods & services made in a country’s borders regardless of who made it.

• Gross National Product: The value of all goods & services made by a country’s citizens, regardless of where it was made

• Gross National Income: The total income of a country’s residents & businesses, including investments and/or foreign investments

• Per capita: divided by total population

• Formal economy: work and income recorded by government

• Informal: work and income not monitored or taxed (paid in cash)

• Income distribution: assesses economic inequalities in a state

• Use of fossil fuels and renewable energy:

Measures of Health and Social Development:

• Access to healthcare

  • availability and affordability

• Fertility Rates

• Infant Mortality Rates

• Literacy Rates

Women and Economic Development:

• Role as countries develop economically:

  • less primary sector and informal sector jobs

  • Better family planning: lower TFR

  • Increase in education & higher income

• Pay Parity:

  • No state has gender parity (equal pay)

    • the gap is shrinking

  • “Glass ceiling”: women less likely to be promoted to management jobs

• Microloans: small loans to help a person start/expand a small business

  • Often given to women in LDCs by NGOs (non-government org.)

  • Used to invest in education, improve living conditions

  • Has risks

    • May not be able to pay off if not used well

Gender Inequality Index:

• shows gender-based disadvantages

• 0-1 scale

• lower score=less inequalities

• Based on:

  • Reproductive health: MMR, adolescent birth

  • Empowerment: education, women in government

  • Labor market: jobs in formal economy

• US: has a higher GII score due to high cost of healthcare and less women in legislature

Human Development Index:

• Shows human development in a state

• Scored on scale 0-1

• higher score = more developed

• Based on:

  • Health

  • Education

  • Income

Neoliberal policies:

• favor free market economics & privatization rather than government ownership & control

• Lower government barriers encourage trade

• Free Trade Agreement: a treaty between two or more countries to reduce tariffs and promote foreign investment

  • EU: formed a single market & powerful economic bloc with the Euro

  • USMCA: More trade and economic prosperity

  • MERCOSUR: South American trade bloc; no tariffs to increase trade

• World Trade Organization:

  • sets rules & standards for international trade

• OPEC: Coordinates and unifies petroleum policies among countries

Globalization & Trade:

• International Monetary Fund:

  • provides loans to member countries to help stabilize their economies

• Complementary Advantage: How well a country’s export profile matches another’s import profile

• Comparative Advantage: a state’s ability to produce a product much more efficiently than others

  • Economies of Scale

Outsourcing: when a company moves parts of its operations outside of the state where company is located

• can lead to loss of jobs for core countries

• Maquiladoras in Northern Mexico

• Deindustrialization: shift in MDC urban areas from manufacturing to service sector

Manufacturing zones:

• International division of labor: developing countries have lower-paying jobs

• Special Economic Zones: areas within a country where the business & trade laws are different from the rest of the state

• Free Trade Zone: Duty free areas for warehousing and redistribution of trade goods

• Export Processing Zone: type of FTZ within developing countries that offer incentives to locate manufacturing there

Modern Economics:

• Post Fordist Methods:

  • flexible, spatially dispersed production of goods

• Multiplier Effects: creation of jobs in other industries due to investment in another

• Agglomeration: clustering of related economic activities in a particular area or region

  • Growth pole: geographic areas organized around one major industry

  • Silicon Valley

• Just in time delivery: production of small batches of goods based on customer demand

• High tech industries: industries that use advanced technology and the highest level of R&D

Sustainable Development:

• Resource depletion: using natural resources faster than they can be replenished

• Solutions:

  • Pollution Control Laws:

    • US: Clean Air & Clean Water Act

  • Renewable Energy Production:

    • wind, solar, geothermal, hydropower

  • Carbon neutrality or carbon offsets

    • reforestation projects

Ecotourism: travel to natural areas to support conservation efforts & socially just economic development

• Costa Rica, Africa

• Pros:

  • creates local jobs and revenue

  • preserves natural landscape

  • educates tourists

• Cons:

  • locals can be exploited for cheaper labor

  • companies can pay low wages

UN Sustainable Development Goals:

• No poverty, zero hunger, good health and well being, quality education, gender equality, clean water, clean energy

  • 10% of people in extreme poverty

    • poverty levels have decreased in recent decades

  • Food is unequally distributed

  • 71 years is average life-expectancy

  • 20% of adults cannot read or write

  • Almost 0 states have had more women in legislature than men

  • 33% of people don’t have access to clean toilets

  • 24% of greenhouse gases are from agriculture