Industrial and Economic Development Patterns and Processes
Unit 7: Industrial and Economic Development Patterns and Processes
7.1: The Industrial Revolution
Learning Objective: Explain how the Industrial Revolution facilitated the growth and diffusion of industrialization.
Definition of Industrial Revolution:
A transition from an agrarian economy to one dominated by industry and machine manufacturing.
Originated in Britain during the 1700s, then spread globally.
Reasons for Britain's Early Industrialization:
The Second Agricultural Revolution led to food surpluses, reducing the need for farm labor, thus providing unemployed farmers for factory work.
Abundant natural resources, particularly coal and iron.
Established banking system willing to invest in industrial developments.
Climate favorable for sheep farming, supplying raw materials for textiles.
Technological Advances:
Early inventions revolutionary for mass production and transport, such as:
Spinny Jenny (for spinning yarn)
Steam Engine (for transport and machinery)
Power Loom (for weaving cloth)
Transition from wood and water to fossil fuels for power, particularly coal.
7.2: Economic Sectors and Patterns
Learning Objective: Explain the spatial patterns of industrial production and development.
Economic Sectors Defined:
Primary: Extraction of raw materials (e.g., fishing, farming).
Secondary: Processing and manufacturing of raw materials (e.g., construction).
Tertiary: Service sector providing services to consumers (e.g., education, retail).
Quaternary: Knowledge-based services (e.g., IT, research).
Quinary: High-level decision-making and services (e.g., government, education).
Development Correlation with Economic Sectors:
Countries with more labor in primary sectors are less developed and often exploited by more developed nations for resources.
Countries with greater labor in tertiary and quaternary sectors are typically more developed.
Weber’s Least Cost Theory:
Location of manufacturing depends on:
Transportation costs
Labor costs
Agglomeration economies (benefits of clustering similar industries)
Differences between bulk-gaining (closer to market) and bulk-reducing (closer to raw materials) industries.
7.3: Measures of Development
Learning Objective: Describe social and economic measures of development.
Economic Measures of Development:
GDP (Gross Domestic Product) per capita as an economic indicator of wealth and growth.
GNP (Gross National Product) and GNI (Gross National Income) includes output by nationals and residents.
Sectoral structure indicating labor force distribution among sectors influences development levels.
Social Measures of Development:
Fertility Rates: Average number of children women have.
Infant Mortality Rates: Deaths per 1,000 live births.
Access to healthcare as a determinant of societal wellbeing.
Literacy Rates: Percentages of population that can read and write.
Gender Equality Index (GII): Measures discrepancies in achievements between genders in health, education, and labor.
7.4: Women and Economic Development
Learning Objective: Explain changes in economic development contributing to gender parity.
History of Gender Roles:
Evolved from hunter-gatherer societies without strict gender roles to patriarchal structures after the agricultural revolution.
Women's Economic Empowerment:
Increased workforce participation leads to delayed marriages and fewer children, enhancing women’s societal roles.
Gender Empowerment Measure (GEM): Assesses disparities in political and economic participation between sexes.
Gender Wage Disparity:
Average ratio of women’s earnings to men’s earnings is approximately $0.82 to the dollar (2022 data).
7.5: Theories of Development
Learning Objective: Explain different theories of economic and social development.
Rostow's Stages of Economic Growth:
Traditional Society: Subsistence agriculture.
Preconditions for Takeoff: Infrastructure development.
Takeoff: Industrialization and urbanization.
Drive to Maturity: Economic growth reaches all sectors.
High Mass Consumption: Consumer-based society.
Wallerstein’s World Systems Theory:
Core countries: Exploit labor and resources from less developed countries (LDCs).
Semi-periphery countries: Newly industrialized but still exploit LDCs.
Periphery countries: Least developed, exploited for raw resources.
7.6: Trade and the World Economy
Learning Objective: Explain causes and consequences of international trade and economic changes.
Complementary vs Comparative Advantage:
Complementary Advantage: Regions meet each other’s needs through trade.
Comparative Advantage: Lower cost of production for certain goods.
Free Trade Agreements:
Organizations like WTO, NAFTA, and OPEC to regulate global trade.
7.7: Changes as a Result of the World Economy
Economic Restructuring:
Outsourcing: Exporting jobs to lower-cost labor markets.
Offshoring: Transferring tasks to foreign suppliers.
Deindustrialization: Transition from manufacturing to service economies, often causing temporary unemployment.
7.8: Sustainable Development
Learning Objective: Explain sustainability principles in relation to industrialization.
Sustainable Development Definition:
Meeting current needs without compromising the ability of future generations to meet theirs.
Climate Change & Ecotourism:
Strategies for maintaining environmental health while promoting economic growth through sustainable practices.
UN Sustainable Development Goals:
17 goals set in 2015 aimed at addressing global challenges by 2030.
Vocab!!!!
Industrial Revolution: A transition from an agrarian economy to one dominated by industry and machine manufacturing that originated in Britain during the 1700s, then spread globally.
Sector: Divisions of the economy based on the type of economic activity.
Primary Sector: Extraction of raw materials (e.g., fishing, farming).
Secondary Sector: Processing and manufacturing of raw materials (e.g., construction).
Tertiary Sector: Service sector providing services to consumers (e.g., education, retail).
Quaternary Sector: Knowledge-based services (e.g., IT, research).
Quinary Sector: High-level decision-making and services (e.g., government, education).
Weber's Least Cost Theory: The location of manufacturing depends on transportation costs, labor costs, and agglomeration economies (benefits of clustering industries).
Bulk-gaining: Industries that gain volume or weight as they produce their goods and are located closer to the market.
Bulk-reducing: Industries that lose weight in the production process and are typically located closer to raw materials.
Break of Bulk Point: A location where goods are transferred from one mode of transportation to another; crucial for minimizing transportation costs.
GDP (Gross Domestic Product): The total value of goods produced and services provided in a country during one year, often measured per capita.
GNP (Gross National Product): The total value of all final goods and services produced by a country's residents in a given period, including income from abroad.
GNI (Gross National Income): Similar to GNP, it includes all income earned by residents of a country, regardless of where it is earned.
Gender Equality: The state of equal access to rights and opportunities regardless of gender, essential for economic development.
Gender Inequality Index (GII): A measure that reflects inequalities between genders in three dimensions: reproductive health, empowerment, and labor market participation.
Microloans: Small loans extended to entrepreneurs or small businesses, often used to empower low-income individuals or communities.
Free Trade: An economic policy that allows goods and services to be traded across international borders with minimal government intervention, tariffs, or restrictions, promoting open markets and increased economic growth
Human Development Index (HDI): A composite index measuring average achievement in three basic aspects of human development: health (life expectancy at birth), education (mean years of schooling and expected years of schooling), and standard of living (GNI per capita).
Gender Empowerment Measure (GEM): Assesses disparities in political and economic participation between genders, reflecting women's opportunities and the status they hold in society.
Gender Wage Disparity: The average ratio of women's earnings compared to men's earnings; currently approximately $0.82 to the dollar (2022 data).
Rostow’s Stages of Economic Growth: A model of economic growth with five stages: Traditional Society, Preconditions for Takeoff, Takeoff, Drive to Maturity, and High Mass Consumption.
Wallerstein’s World Systems Theory (Dependency Theory): A theory that categorizes countries into core, semi-periphery, and periphery based on their economic relationships and levels of development.
Complementary Advantage: A situation where different regions trade to fulfill each other’s needs, enhancing mutual benefits.
Comparative Advantage: The economic principle suggesting that regions specialize in producing goods they can produce more efficiently than others, allowing for trade benefits.
Tariffs: Taxes imposed on imported goods, intended to protect domestic industries and generate revenue.
Trade Embargo: A government-imposed prohibition on trade with specific countries, often for political or economic reasons.
Outsourcing: The practice of contracting out specific business functions or services to external suppliers, often to reduce costs.
Offshoring: The relocation of business processes or services to another country, often to lower labor costs or access resources.
Deindustrialization: The process of reducing industrial activity in a region, often leading to the decline of manufacturing jobs as economies shift toward service-oriented industries.
Special Economic Zones (SEZs): Designated areas within a country that have different economic regulations to attract foreign investments and promote economic growth.
Export Processing Zones (EPZs): Enclaves for manufacturing aimed at exporting goods with favorable regulatory environments to boost international trade.
New International Division of Labor: The new patterns of global labor distribution influenced by globalization and technological shifts, affecting where and how goods are produced.
Post Fordism: An economic and social system characterized by flexible production processes and workforce arrangements, contrasting with the mass production methods of Fordism.
Agglomeration: The clustering of businesses and industries in specific areas, benefiting from shared resources, services, and workforce.
Ecotourism: A responsible travel approach to natural areas that conserves the environment, sustains the well-being of local people, and promotes education and cultural understanding.
Review!!!
Weber's Least Cost Theory
Break of Bulk Point: A location where goods are transferred from one mode of transportation to another, crucial for minimizing transportation costs.
Bulk-gaining: Industries that gain volume or weight as they produce their goods and are located closer to the market.
Bulk-reducing: Industries that lose weight in the production process and are typically located closer to raw materials.
Agglomeration: The clustering of businesses and industries in specific areas, benefiting from shared resources, services, and workforce.
Free Trade
Organizations that provide free trade include the World Trade Organization (WTO) among others.
Reasons for Market Relocation
Comparative Advantage: Regions specialize in producing goods they can produce more efficiently.
Complementary Advantage: Different regions trade to fulfill each other’s needs, enhancing mutual benefits.
Rostow's Theory vs. Wallerstein's Theory
Understand the differences and stages of each theory.
Assess strengths and weaknesses of both theories.
Deindustrialization
The process of reducing industrial activity in a region, often happens in countries transitioning toward service-oriented economies.
This can occur due to economic shifting or globalization.
Levels of Development
Gender Inequality Index (GII): A higher number indicates more inequality between genders.
GDP (Gross Domestic Product) and GNP (Gross National Product): Indicators of a country’s economic performance.
Human Development Index (HDI): A high number indicates better human development; low numbers indicate poorer conditions.
Factors for HDI include life expectancy, education levels, and living standards.
Special Economic Zones (SEZs) and Export Processing Zones (EPZs)
SEZs: Designated areas with different economic regulations to attract foreign investment.
EPZs: Areas specifically for manufacturing aimed at exporting goods with favorable regulations.
Industrial Revolution
A major transformation in the economy from agrarian to industrial that began in Britain in the 1700s.
Ecotourism
A responsible travel approach focusing on environmental conservation and sustainable practices.
Outsourcing vs. Offshoring
Outsourcing: Contracting external suppliers for specific business functions.
Offshoring: Relocating business processes to another country, often for cost savings.
Industrialization Patterns
Understand the differences in industrialization between More Developed Countries (MDCs) and Less Developed Countries (LDCs).
Sustainable Development Goals (SDGs)
Recognize the interconnections between HDI levels and the objectives of the SDGs.
Formal and Informal Economies
Understand the differences in structure, regulation, and impact on development between formal
LDCS
NICS
MDCS