Unit 7: Economics (Industrial and Economic Development Patterns and Processes) Flashcards
Expansion Diffusion
Series of innovations spreads outwards but remains strong in original place.
Relocation Diffusion
Spread of ideas or innovations through movement of people
Why was the diffusion of the Industrial Revolution was delayed for certain countries?
-Political/Economical conditions
-Availability of resources
Describe each Industrial Revelution.
(Time, related to what?)
First I.R: 18th-19th century, powered by steam, coal, and water power. Focused on textile, iron, and coal industries.
Second I.R: 19th Century, powered by electricity and internal combustion engine, focused on steel, automobile, and information tech systems.
Third I.R: After WWII (1950+),
reliance on electronics and information tech systems, and by automation of production processes.
Fourth I.R: Now, growth of robotics, information, biomedical industries
What are the 3 economic sectors? Sub-sectors? Describe each’s role.
Primary: extracting raw materials, food, gas, oil, and metal productions.
Secondary: Production of goods used from raw materials. Manufacturing, processing, construction, etc.
Tertiary: Provides services. Transportation, storage, marketing, selling of goods.
Sub-sectors:
Quaternary: work that process and handle information and environmental technology. (Government, libraries, education, research)
Quinary: Top leaders. High education, leader of all important things. (Government, science, universities, health care, medicine.)
People with small industrialization are…
Mostly agricultural, poor, “underdeveloped”
Describe each type of economical country
Peripheral: Main focus is primary sector, usually poor, underdeveloped
Semi-periphery: focus is secondary sector. Supplies cheap labor.
Core: Focus is tertiary and services. Strong second sector. Developed the most. Employment is mostly in Tertiary sector.
Gross Domestic Process (GDP)
Total value of all goods and services produced by a countries citizens and companies within the country for one year
Dual economies
Two distinct divisions of economy across the economic sectors.
Profit
Money that remains after costs have been subtracted from revenues. Money Earned
Weber’s Least Cost Theory
Companies focus on three factors to set location up. Transportation, labor, and degree of Agglomeration. Weight gaining industries have their production point close to market and vice versa.
Agglomeration
Advantage for companies in the same or similar industries in locating near each other.
Break of Bulk Points
Smarter to break down raw materials into smaller units before shipping.
Is a location where transfer among transportation modes is possible. (Seaports and airports)
Bulk-Reducing Industry
Raw materials cost more to transport than finished goods. Industry closer to raw material.
Bulk-Gaining Industry
Raw materials cost less to transport than finished goods.
Industry closer to market.
Limitations to Least Cost Theory
Markets are everywhere, tariffs, quotas, new vehicles for transport, goods have changed volume, higher wagers needed, higher skill needed.
Industrial Park
collection of manufacturing facilities
Gross Domestic Process (GDP)
Total value of all goods and services produced by a countries citizens and companies within the country for one year
Gross National Income (GNI)
Per capita the total value of goods and services globally produced by a country in a year divided by a countries population.
Describe both Economic sectors
Formal Sector: Government supervision, taxed, protected (Business, enterprise, etc)
Informal Sector: Any part of economy outside of government monitoring. (Street vendors, cleaning, etc)
Measures of Development
Use of fossil fuels, fertility rates, infant mortality rates, life expectancy, literacy rates, school enrollment rate, access to health care.
Human Development Index (HDI)
determines overall levels of development of country. Uses health, education, economic dimensions to measure.
Parity
Balance between two groups of people
Equality
Same levels of resources and opportunities for everyone
Equity
Fairness, lack of resources affects undeserved people, groups, or communities.
Gender Development Index (GDI)
-Calculates gender disparity in three basic dimensions of development.
-Compares level of development between sexes.
-Same measures as HDI
-High GDI means both sexes achieved high development and vice versa.
Gender Inequality Index
Calculates inequality
Women’s Empowerment
Women’s options and access to participate fully in social and economical sphere of society.
Labor-Market Participation
measures and economy’s active labor force, calculated by taking sum of all employed workers and dividing by working age population
Gender Roles
The excepted or normal roles that genders do.
Rostow’s Stages of Economic Growth
- Traditional Society:
-Primary sector, limited socio-economic mobility. - Preconditions for take off:
Improves infrastructure, exports materials. - Take off:
-Start Industrialization, Spreads entrepreneurial mentality - Drive to maturity:
-Social infrastructure, new industries. - High mass consumption:
-Consumerism, egalitarian, + tertiary sector.
-Each country is categorized into a stage; and moves up from there.
-Some countries can’t be placed on scale, and sometimes economic growth doesn’t flow like that.
Dependency Theory
Describes development challenges and limits fixed by poorer countries and how they relate and interact with rich ones. Some poor periphery countries struggle to develop due to core countries.
Commodity dependence
When county economic health is tied to and relies on just one or two resources (60%+)
Comparative Advantage
Relative cost advantages of producing certain goods/services. Selling goods at a lower cost than other firms.
Complementarity
Mutually beneficial trade relationship between two countries that results when they have comparative advantages.
Neoliberalism
Belief that open markets, and free trade across the globe will lead to economic development every where= less tension, more democracy, and rights.
World Trade Organization (WTO)
164 members, a place to negotiate, settle disputes, and make trade flow well.
International Monetary Fund (IMF)
189 countries, ensures stability of international monetary
DeIndustrialization
Aging of infrastructure and manufacturing. Causes job loss, but leads to tertiary sector
Fordism
Make products for mass consumption faster and more efficiently.
Growth-Poles
Places of economic activity clustered around one or more high-growth industries that stimulate economic growth by capitalizing on special assets.
Tariff
Taxes to foreigner’s imported products. Reduces competition, increases jobs, and increases wages. Sometimes/Usually negative impact on economy.
Post-Fordism
Using robots and machines for production and specialization. Aims for multi disciplinary teams Spreads work to specialized jobs.
Effect of outsourcing
-Loss of jobs
-Competition threatens to drive down labor standard wages
-Companies operate better
-More profit
-Goods available for cheaper
Outsourcing:
Companies that turn work over to third party workers, usually in different, poorer countries, to cut costs.
Special Economic Zones
area within a country that has beneficial economic regulations. Meant to entice foreign businesses in.
Ecotourism
Make tourism beneficial and not harmful physically, socially, economically, or psychology.
Export processing zones
Zones where manufacturing of exports is done without tariffs.
Free Trade Zones
Area where foreign companies can important materials, manufacture goals, and export products from taxes and regulations.
Economics
What you do with what you to get what you want or need.
Cottage Industries
Groups of families worked to create certain goods. Limit on muscle, and slow.
Industry
Economic activity uses machinery at large scale to process raw goods into finished goods.
Effect of Industrial Revelution
-First factories
-New types of power
-Improved Transportation Routes and transportation
-Farming Improvements
-Growth of urban population
-Greater factories workers
-Greater consumers
-Cities grew vertically (Taller buildings, stronger foundations)
-Public Health became important
-
What do the Neo Malthusians predict?
Global overpopulation is a problem
-Depletion of non renewable resources
-Pollution of air and water
-Shortages of food
Malthusian Theory
-Food production increases arithmetically
-Population increases geometrically
-Eventually food will run out.
Wallertein’s World Systems Theory
-Core provides high profit consumer goods.
-Semi periphery provides manufactured goods and services to core.
-Periphery provides cheap labor and raw materials.
Every country depends on each other.
Faults: Fails to explain highest level of development, how countries can improve, and downplays culture.
Development
Process of improving the lives of people with diffusion of knowledge and technology.
Brandt Line
Figurative line that divides the North and South based on development. Australia is part of North.
Gini Coefficient (Gini Index)
Measures the distribution of income within a population.
Gender Gap
Difference in the privileges afforded to males and females in a culture.
Micro loans
Small loans given to women to create small businesses to improve development and standards of living.
What happens when gender Gap decreases?
Women receive better education, which leads them to getting more and better jobs, earning a higher wage, and increasing the level of development.
Birth rates decrease! and also decreased child morality rate.
What are the gender gaps?
-Educational Opportunities
-Employment
-Wages
-Voting Rights
-Health Care
-Political Empowerment
-Property rights
-Ability to drive
-Inheritance rights
-Right to make contraception decisions
Maquilador
Factory run by foreigners, then export it to country of that company.
Commodity
A raw material or primary agricultural product that can be bought and sold.
Trade
One party wants something, another party has it and is willing to part with it.
Barter
An exchange in which no money changes hand
Colonialism
The policy or practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting it economically.
Imperialism
A policy or ideology of extending a country’s rule over foreign nations, often by military force or by gaining political and economic control of other areas.
Situation Factors
Involve transporting materials to and from a factory. A firm seeks a location that minimizes the cost of transporting inputs to the factory and finished goods to the consumers.
Site Factors
Result from the unique characteristics of a location. Land, labor, and capital are the three traditional production factors that may vary among locations.
Labor-intensive industry
an industry in which wages and other compensation paid to employees constitute a high percentage of expenses.
Gender Empowerment Measure (GEM)
Compares ability of women and men to participate in economic and political decision making.
European Union
A political and economic union of 27 member states that are located primarily in Europe.
The World Trade Organization
An intergovernmental organization that is concerned with the regulation of international trade between nations.
Growth Poles
Central idea of growth poles is that economic development, or growth, is not over an entire region, but in a specific cluster or pole.
Sustainable Development
Development that meets the needs of the present without compromising the ability of future generation sot meet their own needs. Sustainable development had to recognize the importance of economic growth while conserving natural resources.
