Unit 7: Industrial and Economic Development - Quick Review Notes

May 6th, 2025 @8:00AM
Two sections:
- Section 1: 60 multiple choice questions (50% of the exam score, 60 minutes)
- Section 2: 3 Free-response questions (50% of the exam score, 75 minutes)

Why does economic and social development happen at different times and rates in different places?
How might environmental problems stemming from industrialization be remedied through sustainable development strategies?
Why has industrialization helped improve standards of living while also contributing to geographically uneven development?

Originated in England in the 1730s.
- Geographic Advantages: Island-not invaded, Resources-coal, iron ore, water power, rivers
- Political Advantages: Stable government- encouraged business
- Cultural Advantages: Entrepreneurs willing to take a risk & inventors, A monopoly of skilled workers

Primary: Harvesting or extracting natural resources.
Secondary: Processing raw materials into finished products.
Tertiary: Providing a service associated with a product.
Quaternary: Intellectual and information services (e.g., research and development).
Quinary: High-level management decisions in business, government, education, and science.

Meeting the needs of current generations without compromising the needs of future generations.
Balance between economic growth, social well-being, and environmental care.

Agglomeration Economies: Industries cluster together for mutual benefit.
Bulk/weight-reducing Industry: Original input materials weigh more than the finished product.
Commodity: A primary agricultural product or raw material that is bought, sold, and traded.
Cottage Industry: A business or manufacturing process that occurs in a home of the laborer.
Ecotourism: Travel to natural areas of ecological value in support of conservation efforts and socially beneficial growth.
Fordism: Production of standardized goods, high labor union membership, full-time employment, and high wages.
Just-in-time Delivery: Production of small batches of goods as needed by customer demand.
New International Division of Labor: Shift of manufacturing from developed countries to developing countries.
Outsourcing: Transfer of part of a firm’s internal operations to a third party, usually globally.
Technopoles: A technology cluster that serves as the center of high-tech manufacturing and information-based quaternary industry.

Gross Domestic Product (GDP): Total value of goods and services produced in a country during one year.
Gross National Income (GNI): Total income of a country’s residents and businesses, including investments, regardless of where it was earned as well as foreign investment.
Gross National Product (GNP): Total value of goods and services made by a country’s residents and business regardless of where it was made.

Base Industry: Industry upon which other industries and employment depend.
Break-of-Bulk points: Location where cargo is transferred from one mode of transportation to another.

John Borchert’s American Metropolitan Evolution model proposed growth evolved in stages (epochs) as transportation and technology improved.

Core (MDC) countries control resources provided by peripheral (LDC) countries.
Semi-periphery countries are located somewhere in between.
Regions are connected to the world economy through imperialism and colonialism.
- International Division of Labor
  - Periphery – primary sector
  - Core – tertiary sector
  - Semi-periphery – mix of all three sectors

Human Development Index (HDI): Measurement of human achievement by country (life expectancy, education, GNI per capita).
Gender Inequality Index (GII): Measures differences between women and men in reproductive health, empowerment, and labor market participation.

Specialization: concentrates on a single activity
Division of Labor: stages of production completed by those with specific skill(s).
Comparative advantage: The ability to produce a good at a lower opportunity cost than another country.

Special Economic Zones: areas where trade laws are applied differently.
- Export Processing Zones –incentives are used to attract foreign investment to where production costs are lower, and regulations are minimal.
- Free-Trade zones – specially identified areas free from tariffs or trade barriers that provide warehousing, storage and distribution facilities.

World Trade Organization: Regulates and supports free trade.
International Monetary Fund: Promotes monetary cooperation, financial stability, and international trade.
The World Bank: Provides funding and advisement to promote sustainable economic growth.

North American Free Trade Agreement (NAFTA, now the USMCA): Canada, the United States and Mexico agreed to remove trade barriers.
European Union: 27 Member Trading Bloc of European countries formed in 1957 to support trade between European countries.