1 Flashcards
When did the industrial revolution begin in Great Britain?
1760
Diffusion of the Industrial revolution:
What did Britain lead the way in?
-Transportation
(Ships and trains)
Consequences of the Industrial revolution
-increased food production; population growth
-migration from rural to urban
-large farm proliferation is rewarded
Malthusian Catastrophe
when the amount of food is too little to sustain the number of people.
New social and spatial forms
-New social classes and relations
New division of labor
-Mass production and assembly line “deskilling”
-Division of labor and gender
-work vs home life and uniformity
-Workers only learn one thing and then become very replaceable as a consequence
International competition for resources
-Great Britain and India
-Berlin conference/scramble for Africa
International competition for markets
-foreign markets and the international division of labor
Developed Country
has progressed further along the development continuum
Developing country
has made less than desired progress along the development continuum
-progress varies between developing countries so the UN divides them into high, medium and low developing
Development
is the process of improving the conditions of people through diffusion of knowledge and technology
Human Development Index (HDI)
measures the level of development for a country through the combination of:
-living standards, a long healthy life, education, and access to knowledge
Developing regions of the world
Latin America, Siberia, Southwest Asia/North Africa, Central Asia, East Asia, Sub-Saharan Africa, South Asia, Southeast Asia
Developed regions of the world
-North America, Europe
Gross national income (GNI)
is the value of the output of goods and services produced in a country in a year (including money that leaves/enters the country)
Purchasing power parity (PPP)
is the adjustment made to the GNI to account for differences among countries in the cost of goods and services
Gross domestic product (GDP)
the value of the output goods and services produced in a country in a year (does not include money that leaves/enters the country)
Primary sector
includes extracting materials from the earth by mining, fishing, farming, forestry, hunting/gathering, and nomadic herding.
-3% US jobs
-paid less/mostly in deving countries
Secondary sector
includes manufacturing: processing, transforming, and assembling raw materials into products.
-industry
Tertiary sector
includes the provision of goods and services to people in exchange for payment: retailing, banking, law, education, and government. Examples: marketing, loans, repairs, waiting, tables, entertainment, tourism, teaching
-80% of U.S. jobs
Quaternary sector
-Deals with money and processing of information
-Examples of these types of jobs are banking, insurance, and real estate
Quinary sector
The upper echelon- presidents and kings n kick
Quinary sector
Jobs that deal with decision-making and leadership
-executives, government officials, school principals
Productivity
is the value of the product compared with the amount of labor needed to make it
-Developed countries can produce more with less effort: access to tractors
-Developed: more productivity
Years of schooling
the number of years the average over 25 has spent in school
-Developed countries: 12.2 year avg
-Developing countries: 7.3 year avg
Expected years of schooling for today’s youth
the number of years that the UN expects an average 5 year old will spend in school.
-Developed countries: 16.4 years (half of 5 year olds graduate college)
-Developing countries: 10.1 years
Gender Development Index (GDI)
Indicator that measures the gender gap
Gender Inequality Index (GII)
Indicator that measures the gender gap in the level of achievement in three dimensions: reproductive health, empowerment, and the labor market
labor-intensive industry
is an industry in which wages and other compensation paid to employees constitute a high percentage of expenses.
-$35 per hour for developed, less than $2 in China/India
Post-Fordist production
is often used to describe flexible production. This organizes workers into teams that perform a variety of tasks and solve problems through consensus (computer literacy, college degrees)
Bulk-reducing industry
An industry in which the inputs weigh more than the final products
-minimize transport costs by locating near its sources of inputs
Proximity to markets
The optimal plant location is as close as possible to the customer if the cost of transporting raw materials to the factory is less than the cost of transporting the product to consumers
Proximity to Input
The optimal plant location is as close to possible to inputs if the cost of transporting raw materials to the factory is greater than the cost of transporting the product to consumers
situation factors
location factors relating to the transportation of materials into and from a factory.
Bulk-gaining industry
makes something that gains volume or weight during production. -minimize transport costs by locating near its sources of inputs
-Steel/Metal fabrication, Automobiles, Beverage industry
Single-market manufacturers
are specialized manufacturers with only one or two customers.
Break-in-bulk point
a place where goods are transferred from one mode of transport to another
-docks where goods transfer from ship to truck.
Perishable-Products Companies
-located near their markets
-bread, milk
-food production
-Canned food isn’t as perishable
(IHDI)
Inequality-adjusted Human Development Index (IHDI): Inequality within Human Development
world-systems theory
According to Wallerstein’s world-systems theory, in an increasingly unified world economy, developed countries form an inner core area, whereas developing countries occupy peripheral locations
Rostow’s Model
Stage One
Stage One: Traditional Society
Trade: Local exchange
Labor Market: Primary Sector (subsistence farming) (personal farming
Wealth: little ability to “move up”
Examples: Medevil Europe
Rostow’s Model
Stage two
Stage Two: Preconditions for Takeoff
Trade: Small scale international trade developing
Labor Market: shift to secondary sector; beginning of industrialization
Wealth: Increased Investment in business and infastructure
Examples: Bangladesh, Cambodia, Ethiopia
Rostow’s Model
Stage three
Stage Three: Takeoff
Trade: Major export industry, increased international trade
Labor Market: Full industrialization and high output
Wealth: Businesses make money -> shift to patteerens of consumption
Examples: NICS: Newly Industrialized Countries: Philippines, India, Vietnam
Rostow’s Model
Stage four
Stage Four: Drive to Maturity
Trade: larger variety of exports
Labor Market: industry, skilled workers, education widespread, tertiary sector
Wealth: Investment in social infastructure: schools, hospitals, etc.
Examples: Brazil, Russia, China
Rostow’s Model
Stage five
Stage Five: High Mass Consumption
Trade: global trade leader
Labor Market: most tertiary sector
Wealth: More money spent by citizens on nonessential goods
Examples: Japan, Western Europe, US, Canada
Core-periphery model - core, semi-periphery, periphery countries
Core: US, UK, Japan, Australia, Germany
Semi-Periphery: Brazil, Russia, India, China, Mexico, South Africa
Periphery: Peru, Nigeria, Haiti, every sub-saharan african country ever
Dependency Theory:
Resources=Raw materials
-Move from Periphery to Semi periphery to Core
-Cheap Labor in Periphery/SP
Commodity Dependence
the percentage of money gained from exporting goods
Global North and Global South -> North more to developed (including Europe, NA, AUS)
Self-Sufficiency Model:
(The internal and more selfish approach) discouraging foreign ownership of resources, and protecting their businesses from international competition
Import limit examples
high taxes on imported goods, limiting the quantity of imported goods, and licensees restricting the number of legal importers
Insulation
Fledgling businesses are nursed to success by being isolated from competititon with large international corporations. Such insulation from the potentially adverse impacts of decisions made by businesses and governments in developed countries encourages a country’s fragile business to achieve independence
Equal investment
investment spread equally within a country’s economy and regions
Equal income: Incomes in the countryside keep pace with those in the city and reducing
Four Dragons:
South Korea, Singapore, Taiwan, and Hong Kong were among the first countries to adopt the international trade path
Petroleum-rich Arabian Peninsula States
Kuwait, Bahrain, Qatar, Oman, and the UAE; were among the world’s least developed countries, until the escalating petroleum prices beginnings in the 1970s.
Foreign Direct Investment (FDI)
International trade requires corporations based in a particular country to invest in other countries.
-although this does not flow equally around the world
-one third went to China, another one third to Singapore, Brazil, Russia, and Mexico
Microfinances
are an alternative source of loans for would-be business owners in developing countries that are too poor to qualify for regular bank loans.
Complementarity
interaction between two countries that provide resources, goods, and services that meet the need of the oher (60% of US oil is from Canada)
Comparative Advantage
specialize in one particular thing you are best at making
Trade surplus: Exporting more than importing
Trade deficit
Importing more than exporting
Trade surplus
Exporting more than importing
Tariff
tax paid on imports or exports but “passed on to consumers”
-Trade War: making it harder to trade (Russia, Cuba)
-Embargoes
World Trade Organization
WTO (est .1995): World Trade Organization
-ensure that trade flows as smoothly as possible
-global system of trade rules
Merrcosur
Merrcosur (est. 1991): South American trade market
-regional agreement
-Venezuela suspended lmao
-French Guiana not included
OPEC
OPEC (est. 1960): Organization of the Petroleum Export Countries
-Produces 40% of the world’s oil
-agreeing on the supply of oil (NOT the price)
International Finance
International Finance
-aids developing countries
-Free trade, open markets
BRICS
Brazil, Russia, India, China, South Africa - countries chilling together potentially ruling the global economy in the future
Outsourcing
is when transnational corporations allocate production to low-wage countries.
-important in the electronics industry
Vertical integration
is the traditional approach of mass production, in which one company would control every stage of production
SEZs
Special Economic Zones (SEZs)
-SEZs are geographically delimited areas within which governments promote industrial activity through fiscal and regulatory incentives and infrastructure support. They go by many different names, including free-trade zones and industrial parks
-Objectives: foreign investment, employment, economic reform, policy testing
Government role in economy:
-Taxes, education/training, support agglomeration economies (silicon valley, Motown), Tariffs, international agreements (NAFTA, USMCA)
Maquiladoras
Mexican assembly plant that imports materials and equipment from companies in the U.S. to assemble and export back as finished products
Division of Labor
-changing locations of industry
-Developing in your own house
-multiple floors
-advances to the assembly line model
-nowadays usually not everything is done in one country
Capital of Tonga
Nuku’Alofa
Bedroom in Spanish
dormitorio
quieres?
tacos
