Unit 7 Flashcards
(103 cards)
1
Q
- Where did the Industrial Revolution begin?
A
England, in the late 1700s.
2
Q
- Identify three factors that led to the Industrial Revolution.
A
1) New larger workforce 2) Access to resources 3) Access to new capital 4) New inventions and technologies
3
Q
- Briefly describe one way in which the steam engine transformed society.
A
The steam engine allowed factories to operate with large assembly lines and facilitated the movement of people and goods over large areas
4
Q
- What two inventions dramatically increased the production of textiles?
A
The spinning jenny and the power loom
5
Q
- Define a cottage industry.
A
A small-scale business, usually operated out of a person’s home, in which individuals typically use traditional techniques and tools to produce custom goods by hand
6
Q
- How did the Industrial Revolution impact social classes and population growth?
A
The Industrial Revolution allowed for the emergence of the middle class and increased the population growth of society as economic development occurred
7
Q
- How did the Industrial Revolution impact the population distribution of countries?
A
Birth rates remained high while deaths dropped. This created a population boom, which enabled cities to expand and the middle class to emerge. All of this was due to new technologies and a new food surplus
8
Q
- Describe how the enclosure movement impacts urban areas.
A
Farmers started to migrate to urban areas in search of economic opportunities in the cities. This migration happened as the communal land was privatized, and people were forced to look for work elsewhere
9
Q
- What did industrialized countries hope to acquire through colonialism and imperialism?
A
1) Raw resources 2) Labor 3) New markets
10
Q
- Identify three positives to the Industrial Revolution.
A
1) Increased standard of living 2) New middle class 3) Greater food surplus
11
Q
- Identify three negatives to the Industrial Revolution.
A
1) Unequal economic development 2) Increased child labor 3) Resource exploitation Topic
12
Q
Term Primary
A
Primary: Jobs and activities that involve extracting natural resources from the Earth: Farming, coal mining, logging: Near natural resources
13
Q
Secondary
A
Secondary: Jobs and activities that take raw resources to produce or manufacture products of greater value: Processing wheat into flour, manufacturing, textile industry: Located near raw materials or close to the market. (Depends on the cost of shipping)
14
Q
Tertiary
A
Tertiary: Jobs and activities that provide a service for other individuals: Lawyers, doctors, Uber drivers, salespeople: Located where services are required. (Generally urban areas)
15
Q
Quaternary
A
Quaternary: Jobs and activities that revolve around acquiring, processing, and sharing information: Teachers, researchers, journalists: Improved communication/ technology allows these services to be located anywhere
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Q
Quinary
A
Quinary: Jobs and activities that revolve around making decisions: CEOs of businesses, government officials: Improved communication/ technology allows these services to be located anywhere
16
Q
- What is a value-added product?
A
A product that has been processed in a way that increases its overall value. (The final product is worth more than the original raw materials used to make it)
17
Q
- Explain what happens to a country’s workforce as the country develops economically.
A
Preindustrial countries have the majority of their workforce in the primary sector of the economy. As the countries develop economically and industrialize, they start to see more jobs open up in the secondary sector of the economy. Eventually, the countries will continue to develop and become postindustrial economies. At this point they might experience deindustrialization, as jobs in the secondary sector are eliminated and are replaced with jobs in the tertiary sector of the economy
18
Q
- What is a multinational corporation?
A
A company that has business operations in at least one country other than the country in which it is based
19
Q
- Define “deindustrialization.”
A
The decline of industrial production and manufacturing in an economy or region
20
Q
- What is a break-of-bulk point?
A
A location where goods are transferred from one mode of transportation to another. (Most common are ports or airports
21
Q
- What three factors does Webers least cost theory use when determining where to locate production?
A
1) Transportation costs 2) Labor costs 3) Agglomeration
21
Q
- Explain the difference between a bulk-gaining product and a bulk-reducing product.
A
Bulk-reducing products become lighter and easier to transport after they are produced, which allows those industries to locate themselves near the heavier raw resources. Bulk-gaining products become heavier after they are produced, making them more expensive to transport. Accordingly, these industries locate themselves closer to the market
22
Q
- Explain how Weber’s least cost theory describes the location of industries and resources.
A
Industries will first locate their production based on the transportation costs of the raw materials and the final goods. Other factors that impact the decision of where to locate are the labor costs and economic benefits of agglomeration
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12. Identify three things that Weber's model does not take into consideration.
1) Government policies 2) Cultural preferences 3) Environmental concerns.
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Core country
A country with advanced economies and the highest standard of living.
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Semi periphery country
Countries that have emerging economies and are industrializing.
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Periphery country
Countries that still rely heavily on the exportation of raw resources to more economically developed countries(lowest standard of living)
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1. What is the difference between the formal economy and the informal economy?
The formal economy consists of economic activities that are recognized by law and are overseen by the government. The informal economy consists of economic activities and jobs that are not regulated or protected by the government
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2. Identify two things that people who work in the informal economy lack.
1) Healthcare 2) Paid sick leave 3) Social protections (e.g. minimum wage laws)
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3. What are two examples of jobs in the informal economy?
1) Domestic work 2) Illegal businesses 3) Unregistered small businesses
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Gross Domestic Product GDP:
The total value of all goods and services produced within a country's borders over a specific period of time
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Human Development Index HDI:
An index that is used to measure the social and economic development of a country by analyzing a country's life expectancy, expected years of schooling, and gross national income per capita
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Gross National Product GNP:
The total economic output produced by a country's residents and businesses, regardless of their location
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Gross National Income GNI:
The total amount of income generated by a country's residents and businesses, both domestically and abroad, in a given year
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Gross National Income Per Capita GNI per capita:
Measures the standard of living of a population by giving an estimate of the average income earned by each individual in a society
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Gender Inequality Index GII:
A composite index that measures gender-based inequalities in health, education, and economic participation
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6. What index would you use to better understand the standard of living in the country?
GDP
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7. Which HDi score reflects more economic and social development 0.98 or 0.30? Explain.
A score of 0.98 reflects a more developed society. The highest score a country can get is 1.0
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8. Which country has less gender inequality-Country A, with a GIl of 3, or Country B, with a GIl of 8?
Country B has more inequalities between men and women, since the score is closer to 1.
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5. What is the difference between the maternal mortality ratio and the adolescent fertility rate?
The maternal mortality ratio measures the number of maternal deaths per 100,000 live births that occur due to pregnancy or childbirth-related complications. The adolescent fertility rate is the number of live births per 1.000 women aged 15-19 years old in a given year.
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1. Around the world, women disproportionately make up a higher percentage of.
- The informal economy
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2. What sectors of the economy do women in less economically developed countries tend to work in?
The primary and secondary sectors
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3. What sectors) of the economy do women in more economically developed countries tend to work in?
The tertiary, quaternary, and quinary sectors
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4. What is a microloan?
A small loan provided to individuals who are typically excluded from traditional financial services
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5. Describe the purpose of microloans.
They are utilized to finance smail businesses, such as street vendors or subsistence farmers, in economically developing regions to create jobs for individuals and allow them to become financially independent
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6. What is microfinancing?
A category of financial services that are for individuals and small businesses who lack access to traditional banking services. (Often includes access to a savings account, insurance, or money transfer service)
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7. Who provides microfinancing?
Non-governmental organizations and community-based organizations
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8. Explain how microloans support women in developing countries.
Microloans are given to individuals residing in a country, not the country itself. This allows people to establish small businesses and get the supplies they need to succeed. These loans provide new opportunities for women and allow them to become financially independent
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9. Which countries traditionally have less gender inequality and which countries have more?
Countries that are more economically developed see less gender inequality compared to less economically developed countries
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Rostow's Model of Development: Traditional:
Society relies primarily on subsistence agriculture: productivity is low: the majority of the workforce is in the primary sector
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Rostow's Model of Development: Preconditions for takeoff:
Society starts to see a demand from outside states for raw materials. This new demand creates change in the political and economic climate. New opportunities are created, starting a shift for society from the primary sector to the secondary sector
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Rostow's Model of Development: Takeoff:
Urbanization starts to occur as the secondary sector begins to take off. New technology is introduced into society, allowing for more production. Society continues to sell resources on the world market. (Resources might be exploited)
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Rostow's Model of Development: Drive to maturity
Society starts to see specialization, global trade, and a diverse economy. More jobs open in the tertiary sector. Outside countries still influence the economy, but society is becoming more independent
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Rostow's Model of Development: Age of Mass Consumption:
Society now produces products beyond those that serve basic needs. Most jobs in society are now in the tertiary sector of the economy. Outside states have less influence.
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2. What are two criticisms of Rostow's model?
1) It fails to consider external political and social factors 2) It fails to consider environmental constraints
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3. What similarities are there between Rostow's stages of economic growth model and the demographic transition model?
Both models illustrate the transitions in agriculture, economic development, mobility within society, and standard of living
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4. Describe the dependency theory.
A theory suggesting that economically developing countries are dependent on economically developed countries for their economic growth
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5. What does it mean to have a commodity dependence?
Provide an example. This is when more than 60% of a countrys total exports are commodities. For example, crude petroleum and refined petroleum comprise more than 65% of Venezuelas exports
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6. Describe what could happen if a country becomes dependent on one or two commodities.
The market for those commodities could fluctuate, causing the local economy to crash or become unstable. The country will also see stagnation in other economic sectors
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7. Briefly describe core, semi-periphery, and periphery countries.
Core countries are economically developed countries with an abundance of wealth. Semi-periphery countries are starting to become more industrialized but still lack an abundance of wealth. Periphery countries are poor countries that are dependent on other nations for a stabilized economy
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8. Explain how Wallerstein's world systems theory model explains global trade.
Core countries purchase consumption goods from the semi-periphery and periphery countries. Periphery countries provide cheap labor and raw materials for the core countries and semi-periphery countries.
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9. What conclusion did Wallerstein come to when creating his model?
Periphery countries will become dependent on a few core countries. Core countries will take advantage of less economically developed countries cheap labor and raw materials. This global trade disproportionately benefits the more economically developed word, as countries in the developing world are often exploited, making it harder for less economically developed countries to advance.
43
1. Describe globalization.
The process of increasing the amount of interactions between different countries and people around the world. It leads to a more interconnected world that has both positive and negative impacts
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2. What is the complementarity index?
A measure used in economics and trade to assess the compatibility between the products and services that two countries produce and trade with each other. (Compares the export patterns of a country and the import pattern of another country)
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3. Describe what a complementarity index of 98 would mean for two countries?
A score of 98 would mean that the two countries should trade since their exports and imports almost perfectly match
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4. What does it mean when a country has a comparative advantage?
It means that the country can produce a good or service at a lower opportunity cost compared to another. The country is more efficient in producing the good or service than other countries
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5. Define neoliberalism.
An economic and political ideology that emphasizes individual freedom, free markets, and free trade over control.
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NAFTA/USMCA:
NAFTA, which promoted free trade between the United States, Canada, and Mexico, has now been changed to the NAALC, which promotes improved labor standards for each country
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Mercosur:
The South American trade bloc, seeks to create a common space for generating business and investment opportunities. It promotes free trade between member countries
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European Union:
A political/economic union of states that promotes peace and a unified economic system
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World Trade Organization (WTO):
A worldwide organization that oversees global trade between nations. It seeks to reduce obstacles to international trade and create a level playing field to promote economic development in all countries
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International Monetary Fund (IMF):
A global organization with three main goals: 1) furthering international monetary cooperation, 2) encouraging the expansion of trade and economic growth, and 3) discouraging policies that would harm prosperity
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OPEC:
A coordinated group of countries that seek to unify their petroleum policies in order to secure fair and stable prices for petroleum
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1. Explain the concept of economic restructuring.
A significant shift in production, employment, investment, trade patterns, or underlying economic systems and processes that occurs due to technological changes, globalization, new consumer preferences, or shifts in government policies
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4. What is the international division of labor?
A concept that describes how countries utilize their comparative advantage to specialize in different economic activities, resources, and capabilities.
specialize in different economic activities, resources; and capabilities
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3. Describe what is happening with the location of online customer service jobs (tertiary sector).
Online customer service jobs are moving to regions with less economic development and a workforce proficient in English
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9. Explain what a tariff is and why it would be used
A tariff is a tax imposed by a government on goods and services imported into the country. The goal is to make goods/services produced outside the country more expensive to promote domestic production
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7. Describe one downside to having a globally connected economy. Provide an example.
If there is economic turmoil in one country, it could result in a ripple effect across the world. For example, in 2008, the United States housing market collapsed, causing a recession in the broader global community
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2. Provide an example of economic restructuring that is occurring in the world.
More economically developed states are seeing jobs from the secondary sector relocate to less economically developed states because less economically developed states have cheaper resources, cheaper labor, and fewer government regulations
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Describe how a globalized world can impact people and the economy at each of the following scales: Local
Workers now face competition from a global workforce, leading to a more productive workforce but also resulting in the relocation of jobs to cheaper labor markets
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Describe how a globalized world can impact people and the economy at each of the following scales: National
Government policies can restrict or promote global trade, which will influence the availability of different goods and the prices those goods are sold at
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Describe how a globalized world can impact people and the economy at each of the following scales: Global
Supranational organizations and multinational corporations can exert power over the global economy and create large supply chains, trade agreements, or partnerships that connect countries around the world
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Special economic zone
Regions within a country that provide different economic incentives with the objective of attracting foreign investment and promoting economic growth
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Free-trade zone
A region within a country where imported goods can be stored and processed without being subject to tariffs or trade barriers
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Export processing zone
Regions within a country's borders that offer special economic regulations and incentives to promote the production of goods and services for export
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6. Explain how the multiplier effect works.
An original investment by an individual, business, government, or organization leads to a chain reaction of spending and increased economic activity
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7. Explain the difference between offshoring and outsourcing.
Offshoring is the process of relocating a business process or service to a foreign country. Outsourcing is when a business contracts a service or job to an external provider
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8. Explain how the production process works under Fordism.
Production emphasizes the mass production of standard goods. Each worker is assigned to a specific task, and decision-making and production are centralized
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9. Explain how the production process works under post-Fordism.
Production is flexible, with workers trained in multiple tasks. Decisions can be made locally, and products are more customizable to meet the customer's specific wants and needs
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Just-in-time delivery
A production and inventory control system where products and materials are delivered to the manufacturing plant precisely when they are needed in the production process
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Economies of scale
As a company grows, it is able to reduce the average cost to produce its product. (As companies get larger, they have more access to more capital, which allows them to scale up production and produce more at a cheaper rate)
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Agglomeration
Clustering of different economic activities and industries in a particular geographic area
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Growth poles
Specific regions, cities, or economic sectors that are considered centers of economic growth and development
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11. Describe one risk of using just-in-time delivery.
Any miscommunication between the supplier and the manufacturer could result in delays, costing the company money and preventing the customer from receiving their product on time.
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12. Explain how agglomeration can help companies become more profitable.
It allows companies to utilize already-built infrastructure instead of building it themselves. It also helps companies benefit from a larger workforce, resource pool, and customer base. The result is lower costs and higher profits
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13. Explain why agglomeration happens and how globalization could lead to deagglomeration.
Businesses cluster with one another when it is in their best interest. Often, this helps reduce costs or increase sales. Globalization could offer new geographic areas to produce and seli products, causing companies to close down original factories or stores in favor of other markets I Provide an example of a growth pole. Silicon Valley in California (technology)
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1. Define sustainability.
The use of the Earth's resources in a way that ensures those resources will still be available in the future
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2. What is resource depletion?
The exhaustion of natural resources as a result of unsustainable practices and excessive consumption
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6. 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 increase, as would the amount of equality, economic opportunities, and opportunities for citizens.
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3. Describe ecotourism.
A form of tourism that focuses on responsible travel to natural areas that conserve the environment and improve the well-being of the local people
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4. What are three things unique to ecotourism?
1) The guided tours provide information about the local culture and environment 2) The activities promote conservation, such as wildlife watching 3) The tours are often run by small-scale, low-impact operations
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5. What are the UN's sustainable development goals?
No poverty; zero hunger: good health and well-being: quality education; gender equality, clean water and sanitation; affordable and clean energy; decent work and economic growth; industry, innovation, and infrastructure; reduced inequalities; sustainable cities and communities; responsible consumption and production, climate action; life below water life on land; peace, justice, and strong institutions; partnerships for the goals
