Unit 7 Test Review Mr. Sinn

Topic 7.1 – Industrial Revolution

• Where did the Industrial Revolution begin?

  • The Industrial Revolution began in Great Britain.

• Identify three factors that lead to the Industrial Revolution.

  • Factors include:

    • Access to raw materials like coal and iron ore.

    • Technological innovation, such as the steam engine and power loom.

    • A stable government and legal system that protected private property and encouraged investment.

• Briefly describe one way in which the steam engine transformed society.

  • The steam engine revolutionized transportation and manufacturing, enabling factories to be located anywhere and powering trains and ships.

• What two inventions dramatically increased the production of textiles?

  • Spinning Jenny and Power Loom.

• Define a cottage industry.

  • A cottage industry is a business or manufacturing activity carried on in a person's home.

• How did the Industrial Revolution impact social classes and population growth?

  • It led to the growth of the middle class and increased social stratification. Population growth occurred due to improved living conditions and medical advancements.

• How did the Industrial Revolution impact the population distribution of countries?

  • It caused a shift in population from rural to urban areas as people moved to cities for work.

• Describe how the enclosure movement impacts urban areas.

  • The enclosure movement forced many small farmers off their land, leading them to seek work in urban factories and contributing to urbanization.

• What did industrialized countries hope to acquire through colonialism and imperialism?

  • Raw materials, new markets for their manufactured goods, and cheap labor.

• Identify three positives to the Industrial Revolution.

  • Increased production and availability of goods.

  • Technological advancements and innovation.

  • Economic growth and higher standards of living for some.

• Identify three negatives to the Industrial Revolution.

  • Environmental pollution and resource depletion.

  • Poor working conditions and exploitation of labor.

  • Increased social inequality.

Topic 7.2- Economic Sectors and Patterns

• Complete the table below

  • Primary

    • Description: Extraction of raw materials

    • Jobs: Farming, mining, fishing, forestry

    • Location: Rural areas, resource-rich regions

  • Secondary

    • Description: Manufacturing and processing of raw materials into finished goods

    • Jobs: Factory workers, construction, manufacturing

    • Location: Industrial areas, urban centers

  • Tertiary

    • Description: Providing services to consumers and businesses

    • Jobs: Retail, healthcare, education, transportation

    • Location: Urban and suburban areas

  • Quaternary

    • Description: Information and knowledge-based services

    • Jobs: Research and development, IT, consulting

    • Location: Urban centers, research parks

  • Quinary

    • Description: High-level decision-making and policy-making

    • Jobs: Government officials, CEOs, top executives

    • Location: Major cities, government centers

• What is a value-added product?

  • A value-added product is one that has been processed or manufactured to increase its worth.

• Explain what happens to countries' workforce as the country develops economically.

  • As a country develops, the workforce shifts from primary to secondary and tertiary sectors.

• What is a multinational corporation?

  • A multinational corporation (MNC) is a company that operates in multiple countries.

• Define deindustrialization.

  • Deindustrialization is the decline of manufacturing industries in a region or country.

• What is a break-of-bulk point?

  • A break-of-bulk point is a location where goods are transferred from one mode of transportation to another.

• Complete the table below

  • Core country

    • Description: High levels of industrialization, advanced economies, and strong political power

  • Semi-periphery country

    • Description: Emerging economies with some industrialization and a mix of core and periphery characteristics

  • Periphery country

    • Description: Less developed economies that rely on exporting raw materials to core countries

• What three factors does Weber’s Least Cost Theory use when determining where to locate production?

  • Transportation costs, labor costs, and agglomeration.

• Explain the difference between a bulk-gaining product and a bulk-reducing product.

  • A bulk-gaining product increases in weight or volume during production, while a bulk-reducing product decreases.

• Bulk-gaining products have their production located , while bulk-reducing products have their production located .

  • Bulk-gaining products have their production located near the market, while bulk-reducing products have their production located near the source of raw materials.

• Explain how Weber’s Least Cost Theory describes the location of industries and resources.

  • Weber’s theory suggests that industries will locate where transportation costs, labor costs, and agglomeration offer the lowest overall cost.

• Identify three things that Weber’s model does not take into consideration.

  • Demand, government policies, and environmental factors.

Topic 7.3- Measures of Development

• What is the difference between the formal and informal economy?

  • The formal economy includes activities that are regulated and taxed by the government, while the informal economy includes activities that are not.

• Identify two things that people who work in the informal economy lack.

  • Job security and benefits.

• What are two examples of jobs in the informal economy?

  • Street vending and domestic work.

• Complete the table below

  • GDP

    • Description: Gross Domestic Product - The total value of goods and services produced within a country's borders in a specific time period.

  • GNP

    • Description: Gross National Product - The total value of goods and services produced by a country's citizens and businesses, both domestically and abroad, in a specific time period.

  • GNI

    • Description: Gross National Income - The total income earned by a country's citizens and businesses, including income from abroad, in a specific time period.

  • GNI per capita

    • Description: Gross National Income Per Capita - The total income earned by a country's citizens and businesses divided by the population, providing an average income per person.

  • GII

    • Description: Gender Inequality Index - A measure of gender inequality based on reproductive health, empowerment, and labor market participation.

  • HDI

    • Description: Human Development Index - A composite index measuring life expectancy, education, and income to assess a country's level of human development.

• What is the difference between the maternal mortality ratio and adolescent fertility rate?

  • The maternal mortality ratio is the number of women who die during childbirth per 100,000 live births, while the adolescent fertility rate is the number of births per 1,000 women aged 15-19.

• What index would you use to better understand the standard of living in the country?

  • Human Development Index (HDI).

• Does an HDI score of .98 or .30 reflect more economic and social development? Explain.

  • An HDI score of 0.98 reflects more economic and social development because the HDI ranges from 0 to 1, with higher scores indicating better development.

• Which country has less gender inequality? Country A with a GII of .3 or Country B with a GII of .8.

  • Country A with a GII of 0.3 has less gender inequality because the GII ranges from 0 to 1, with lower scores indicating less inequality.

Topic 7.4- Women and Economic Development

• Around the world women disproportionately make up a higher percentage of __.

  • the poor.

• What sectors of the economy do women in less economically developed countries tend to work in?

  • Agriculture and the informal economy.

• What sector(s) of the economy do women in more economically developed countries tend to work in?

  • Services and professional sectors.

• What is a microloan?

  • A microloan is a small loan provided to individuals or small businesses, typically in developing countries.

• Describe the purpose of microloans.

  • The purpose of microloans is to provide access to capital for people who lack collateral or credit history.

• What is microfiancing?

  • Microfinancing is the provision of financial services to low-income individuals or small businesses.

• Who provides microfiancing?

  • Microfinance institutions (MFIs), NGOs, and banks.

• Explain how microloans support women in developing countries.

  • Microloans empower women by providing them with the resources to start or expand businesses, increase their income, and improve their families' well-being.

• Which countries in the world traditionally have less gender inequality and which countries have more?

  • Scandinavian countries and other developed nations tend to have less gender inequality, while many countries in the Middle East, Africa, and South Asia have more.

Topic 7.5- Theories of Development

• Complete the table below.

  • Rostow’s Model of Development

    • Traditional society

      • Description: Subsistence agriculture, limited technology, and hierarchical social structure

    • Preconditions for takeoff

      • Description: Increased investment in infrastructure, education, and technology

    • Takeoff

      • Description: Rapid industrial growth, urbanization, and technological breakthroughs

    • Drive to maturity

      • Description: Diversification of the economy, increased international trade, and higher living standards

    • Age of mass consumption

      • Description: High levels of consumption, durable goods, and a service-based economy

    • What are two criticisms of Rostow’s model?

      • It assumes that all countries can develop in the same linear path, ignoring historical and geographical context.

      • It does not address issues of inequality or environmental sustainability.

    • What similarities are there between Rostow’s stages of economic growth model and the demographic transition model?

      • Both models describe a linear progression through stages, with each stage characterized by specific economic and demographic patterns.

    • Describe the dependency theory.

      • The dependency theory argues that periphery countries are dependent on core countries for capital and markets, which perpetuates their underdevelopment.

    • What does it mean to have a commodity dependence? Provide an example.

      • Commodity dependence means that a country's economy relies heavily on the export of one or two primary commodities. Example: Oil in Saudi Arabia

    • Describe what could happen if a country becomes dependent on one or two commodities.

      • If prices of those commodities decline, the country's economy could suffer severely.

    • Briefly describe core, semi-periphery, and periphery countries.

      • Core countries are industrialized, wealthy nations. Semi-periphery countries are emerging economies with some industry. Periphery countries are less developed and rely on exporting raw materials.

    • Explain how Wallerstein’s World System Theory Model explains global trade.

      • Wallerstein’s model divides the world into a core, semi-periphery, and periphery, and explains that core countries exploit periphery countries for labor and raw materials.

    • What conclusion did Wallerstein come to when creating his model?

      • The world economic system is designed to benefit core countries at the expense of periphery countries.

Topic 7.6- Trade and the World Economy

• Describe globalization.

  • Globalization is the increasing interconnectedness and interdependence of countries through trade, investment, and cultural exchange.

• What is the complementarity index?

  • The complementarity index measures the degree to which two countries' economies can benefit from trade due to their differing resources and needs.

• Describe what a complementarity index of 98 would mean for two countries?

  • It suggests a high degree of economic complementarity, indicating that the two countries could greatly benefit from trading with each other.

• What does it mean when a country has a comparative advantage?

  • It means that a country can produce a good or service at a lower opportunity cost compared to other countries.

• Define neoliberalism.

  • Neoliberalism is an economic ideology that promotes free markets, deregulation, and privatization.

• Complete the table below

  • NAFTA/ USMCA

    • Description: A trade agreement between the United States, Canada, and Mexico.

  • Mercosur

    • Description: A trade bloc in South America.

  • European Union

    • Description: A political and economic union of European countries

  • World Trade Organization (WTO)

    • Description: An international organization that regulates global trade.

  • International Monetary Fund (IMF)

    • Description: An international organization that provides financial assistance to countries in need.

  • OPEC

    • Description: An organization of oil-producing countries that coordinates petroleum policies.

Topic 7.6- Trade and the World Economy (Continued)

• Describe one downside to having a globally connected economy. Provide an example.

  • Increased competition can lead to job losses in some industries. Example: Manufacturing jobs moving from developed to developing countries .

• Describe how a globalized world can impact people and the economy at each of the following scales.

  • Local

    • Increased access to goods and services.

  • National

    • Economic growth through trade.

  • Global

    • Interdependence and economic stability.

• Explain what a tariff is and why it would be used.

  • A tariff is a tax on imported goods, used to protect domestic industries or generate revenue.

Topic 7.7- Changes as a Result of the World Economy

• Explain the concept of economic restructuring.

  • Economic restructuring is the shift in a country's economy from one type of activity to another.

• Provide an example of economic restructuring that is occurring in the world.

  • The decline of manufacturing in developed countries and the growth of the service sector.

• Describe what is happening with the location of online customer service jobs (tertiary).

  • Online customer service jobs are increasingly being outsourced to countries with lower labor costs.

• What is the international division of labor?

  • The international division of labor is the specialization of countries in particular economic activities.

• Complete the table below

  • Special economic zone

    • Description: An area within a country that has different economic regulations than other areas.

  • Free-trade zone

    • Description: A region where tariffs and quotas are eliminated.

  • Export processing zone

    • Description: An area where goods are processed and exported without tariffs.

• Explain how the multiplier effect works.

  • The multiplier effect is the increased economic activity that results from an initial injection of spending.

• Explain the difference between offshoring and outsourcing.

  • Offshoring is the relocation of a business process to another country, while outsourcing is the contracting of a business process to an external provider.

Topic 7.7- Changes as a Result of the World Economy (Continued)

• Explain how the production process works under fordism.

  • Fordism involves mass production using assembly lines and standardized parts.

• Explain how the production process works under post-fordism.

  • Post-fordism involves flexible production, customization, and niche markets.

• Complete the table below.

  • Just-in-time delivery

    • Description: A system in which materials are delivered only when needed.

  • Economies of scale

    • Description: The cost advantages that a business obtains due to expansion.

  • Agglomeration

    • Description: The clustering of businesses in a particular location.

  • Growth poles

    • Description: Areas of economic growth that stimulate development in surrounding areas.

• Describe one risk of using just-in-time delivery.

  • Disruptions in the supply chain can lead to production delays.

• Explain how agglomeration can help companies become more profitable.

  • Agglomeration allows companies to share resources, reduce transportation costs, and access a larger pool of skilled labor.

• Explain why agglomeration happens and how globalization could lead to deagglomeration.

  • Agglomeration happens because companies benefit from proximity to each other. Globalization can lead to deagglomeration as companies seek lower costs in other locations.

• Provide an example of a growth pole.

  • Silicon Valley.

Topic 7.8- Sustainable Development

• Define sustainability.

  • Sustainability is meeting the needs of the present without compromising the ability of future generations to meet their own needs.

• What is resource depletion?

  • Resource depletion is the consumption of resources at a rate faster than they can be replenished.

• Describe ecotourism.

  • Ecotourism is tourism that is environmentally responsible and promotes conservation.

• What are three things unique to ecotourism?

  • Environmental conservation, community involvement, and education.

• What are the UN’s sustainable development goals?

  • The UN’s sustainable development goals are a set of 17 global goals aimed at addressing social, economic, and environmental challenges.

• Explain what would happen to the standard of living in a country if they strived to achieve the UN’s sustainable development goals.

  • The standard of living would likely improve due to better health, education, and environmental conditions.

In the world of development theories, we’ve got two key players to discuss: Rostow’s Model and Wallerstein’s World Systems Theory. Think of Rostow as the hot rookie in the league.

Rostow's Model breaks down economic development into five stages like a season:

1. Traditional Society: The early benchwarmers—subsistence agriculture and low tech.

2. Preconditions for Takeoff: Getting ready for game day with investments in infrastructure and education—this is where players start to make a name.

3. Takeoff: The breakout season—rapid industrial growth, urbanization, and innovation take center stage.

4. Drive to Maturity: This is where teams diversify their play, increasing international trade and improving living standards.

5. Age of Mass Consumption: When all cylinders are firing—high consumption rates and a shift to a service-based economy.

However, Rostow has some haters (critics) who point out that not every team (country) can follow the same playbook to success. Plus, he often ignores the underlying issues like inequality.

Now, switch gears and let's talk about Wallerstein’s World Systems Theory, which is like the league hierarchy. Think of it as a trade that redefines the dynamics in the world economy.

• Core countries are the star players, raking in profits and dominating the market. They’re wealthy and industrialized.

• Semi-periphery countries are like up-and-coming teams; they’re trying to climb the ranks, showing some industrial growth but still lagging.

• Periphery countries are struggling teams, dependent on core countries for resources, often exporting raw materials like a team trading away their star for cash.

Wallerstein’s model explains how core teams exploit periphery teams, keeping them from advancing like a trade that leaves the weaker team in the dust. If the periphery teams become too dependent – think of relying on just one superstar – they risk their entire economy if that star gets injured (or if their resources dry up).

Remember, in this league of global trade, the rules are skewed to benefit the core countries, leaving a lot of talent and potential on the periphery.

So, whether it's about Rostow's progression up the development ladder or Wallerstein's heavy-hitting exploitation play, keep an eye on these dynamics—just like watching trade rumors unfold in the NBA!