Unit 7: Industrial and Economic Development Patterns and Processes Flashcards
1
Q
Industrial Revolution
A
a period of rapid development of industry that started in Great Britian in the late 18th & 19th centuries.
- It was brought about by the introduction of machinery & technology, such as the steam power, which resulted in the growth of factories & the mass production of goods.
- As industrialization diffused outward first across the Atlantic Ocean into British colonies in North America & then east into Europe.
2
Q
Cottage industry
A
A small-scale, home-based production system where goods were made by hand before the Industrial Revolution.
3
Q
Primary economic activity
A
extraction of natural resource
- examples: farming, mining, forestry
4
Q
Secondary economic activity
A
processing of raw materials into finished goods by manufacturing
- examples: steel manufacturing, furniture production, food processing
5
Q
Tertiary economic activity
A
provision of services
- examples: retail, restaurants, tourism, police & fire provision, sanitation, advertising
6
Q
Specialized Economic Activity: Quaternary
A
really high-order tertiary activities that the most DCs abound in such as white-collar workers in education, information processing & government.
- examples: data processing, research & development, banking & finance, medical, entertainment
7
Q
Specialized Economic Activity: Quinary
A
- are characterized by decision makers, such as executives or those who serve in gov. roles
- The highest level of quaternary economic activities is sometimes classified as quinary.
- examples: top-level gov. officials & business executives, research scientists, financial consultants
8
Q
List the core countries.
A
- the U.S
- Great Britain
- Australia
- Germany
- France
9
Q
Less-developed countries (LDCs) are located on the semi-periphery or periphery of the global economy & include what kinds of countries?
A
- former communist countries
(such as Romania & Bulgaria, for example) - and Third World countries
(such as Nigeria & Kenya, for example).
10
Q
A break-of-bulk point
A
a location where the transfer of goods from 1 mode of transportation to another takes place
- such as from a ship to a truck or from a train to a warehouse.
- these points are imp. because they allow for the efficient movement of goods over long distances by enabling the use of different modes of transportation.
- points can be found at ports, airports, rail yards & other locations where diff. modes of transportation intersect. They play a crucial role in the global supply chain, as they facilitate the movement of goods & materials around the world.
11
Q
Alfred Weber’s theory of industrial location (also known as least cost theory)
A
an economic theory that proposes that firms will choose the production methods that minimize their costs, in order to maximize their profits.
- According to the theory, firms will consider a variety of factors, including the cost of labor, raw materials & capital, as well as transportation & other logistic costs, when deciding how to produce a good or service.
12
Q
Agglomeration
A
refers to the clustering of economic activity in a particular area or region.
ex:
- Silicon Valley: a region in San Francisco Bay Area in California that’s home to a large no. of technology firms & startups (a region where economic activity is concentrated in a particular area)
- The conc. of technology firms in Silicon Valley has led to the creation of a thriving ecosystem of complementary industries & institutions, such as venture capital firms, research unis & legal and consulting firms.
- This clustering of economic activity has contributed to the success of the region, as firms are able to take advantage of the benefits of being located near other firms & institutions.
13
Q
A formal economy
A
the organized, regulated & structured economic activity that’s recognized & supported by the gov. of a country.
- is what’s included in a GDP or GNI calculation, while the informal isn’t
ex:
- Employment in a large corporation or gov. agency
- The sales of goods & services through a registered business
- The payment of taxes
- The use of currency as a medium of exchange
- The production of goods in a factory using modern equipment & technology
14
Q
The informal economy
A
economic activities that are not regulated or recognized by the gov.
ex:
- Street vending or selling goods on the black market
- Informal employment or self-employment without legal recognition or protection
- The exchange of goods & services through barter or other non-monetary forms of exchange
- The production of goods using traditional or informal methods, such as handicrafts or cottage industries
- The sale of goods & services through unregistered or informal channels
15
Q
Measures of Development: GDP
A
- The GDP is an approximation of the total value of all final goods & services produced by a country per year.
- GDP only measures DOMESTIC (NOT international impacts) on the economy using this formula: GDP = GOODS + SERVICES
16
Q
Measures of Development: (GDP) per capita
A
- a measure of the total value of goods & services produced in a country, divided by the country’s pop.
- Its often used as a measure of a country’s economic development because it reflects the avg. income earned by individuals in the country.
17
Q
Measures of Development: GNP
A
measures the value of goods & services produced by country’s citizens both domestically & abroad
18
Q
Measures of Development: GNI (Gross National Income)
A
GNP divided by a country’s pop. so that you have an estimated income per person.
- is a limited measure because it only includes transactions in the formal economy
- GNI can be calculated with this formula:
GNI = GDP + (EXPORTS - IMPORTS) - Many imp. economists will argue that GNI is a much more accurate measure of a country’s economic volume compared to GDP bc of the foreign trade imbalance in almost all countries worldwide.
19
Q
Measures of Development: Gender Inequality Index (GII)
A
measures gender inequality & looks at reproductive health, indicators of empowerment & labor-market participation
- the GII goes from 0 up to 1. The closer you are to 0, the better. That means you have more gender equality. Closer to 1, closer to inequality.
20
Q
Measures of Development: Human Development Index (HDI)
A
examines 3 features of a country’s human development: long & healthy life, knowledge & standard of living.
21
Q
The United Nations Development Programme (UNDP) developed the Gender Development Index (GDI), what does it measure?
A
it measures gender-based inequalities in life expectancy, education & income.
- The GDI is used to identify areas where women & girls may be disadvantaged & to track progress towards gender equality.
22
Q
Income inequality & its consequences
A
the unequal distribution of wealth & income within a society.
- Its often measured by comparing the income or wealth of diff. groups within a population, such as the rich & the poor, or the top & bottom income earners.
- Can have serious neg. consequences for both individuals & societies.
- It can lead to social & economic divisions, undermine social cohesion & reduce overall economic growth.
23
Q
W.W Rostow’s model of economic development (also called modernization theory) is based on stages of economic growth & modernization.
- Describe the 1st stage – traditional society – of development.
A
- Is a traditional subsistence economy- based mainly on farming with very limited technology.
Examples of a traditional society:
- rural areas in developing countries.
24
Q
W.W Rostow’s model of economic development (also called modernization theory) is based on stages of economic growth & modernization.
- Describe the 2nd stage –preconditions for take-off – of development.
A
- When the levels of technology within a country develop & the development of a transportation system encourages trade, this stage is reached.
Examples of preconditions for take-off:
- countries in East Asia, such as South Korea & Taiwan, in the mid-20th century.
25
W.W Rostow's model of economic development (also called modernization theory) is based on stages of economic growth & modernization.
- Describe what happens in the 3rd -- take off -- stage.
- more transportation systems & infrastructure are built & manufacturing industries grow rapidly.
Examples of take off:
- the U.S in the 19th century.
26
W.W Rostow's model of economic development (also called modernization theory) is based on stages of economic growth & modernization.
- Describe what happens in the 4th -- the drive to maturity -- stage.
- growth is self-sustaining & leads to an increase in the number & types of industry.
Examples of the drive to maturity:
- Japan in the post-WWII period.
- During this stage, more complex transport systems & manufacturing expand as transportation develops, rapid urbanization occurs & traditional industries may decline.
27
W.W Rostow's model of economic development (also called modernization theory) is based on stages of economic growth & modernization.
- Describe what happens in the 5th & final stage, the age of mass consumption.
- a rapid expansion of tertiary industries occurs while manufacturing declines.
Examples of Age of high mass consumption:
- many Western countries in the 20th & 21st centuries, such as the U.S, Canada & European countries.
28
What does W.W Rostow's model assume?
that periphery countries only need to modernize to achieve greater economic development & that the role of core countries is to provide foreign aid & industrial technology to help them.
- The Green Revolution with its transfer of agricultural technology from core to periphery is an example of this theory in action.
29
List 4 of the reasons Rostow's theory is criticized.
- It attempts to fit all countries into the Western/European historical mold.
- It's geared towards large countries, thus leaving out small ones, such as Gambia & Burundi.
- Its linear when many times economic development occurs nonlinearly in "fits-and-starts".
- It's based on high-consumption Western ideals.
30
Andre Gunder Frank's dependency theory (List the main idea, how it works, historcial roots & global impact)
Main idea:
- Economic development in the core leads to the underdevelopment of the periphery.
Mechanism:
- Core exploits peripheral countries for raw materials, labor, and resources.
- Periphery depends on the core for finished goods (creates economic imbalance).
Historical roots:
- Began in colonialism, persists through neocolonialism.
Global impact:
- Leads to unequal trade and continued underdevelopment in the periphery.
31
Immanuel Wallerstein developed the world-systems theory at a time (1970s) when the Third World & the Cold War were commonly accepted terms. What did he claim & how did he view the global economy?
- He claimed there's only 1 world -- a complex world system -- in which nation-states compete for capital & labor.
- He saw the global economy as a market system with a fluid & dynamic flow of countries and economies from periphery to semi-periphery to core.
32
Neoliberal Policies
economic policies that promote free market principles, aiming to increase the role of the private sector and reduce government involvement in the economy.
33
Neoliberal Policies: Deregulation
removing or reducing regulations on business.
34
Neoliberal Policies: Liberalization
opening up markets to foreign competition by reducing tariffs, quotas & other trade barriers.
35
Neoliberal Policies: Privatization
selling state-owned enterprises such as utilities or transportation companies, to private investors.
36
Neoliberal Policies: Free trade
promoting international trade by reducing tariffs, quotas & other trade barriers.
37
Neoliberal Policies: Monetary policy
using tools such as interest rates to control inflation & stimulate economic growth.
38
Comparative advantage
the ability of a country, firm, or individual to produce a good or service at a lower opportunity cost than other producers.
39
Complementary advantage
the ability of 2 countries to complement each other's production through trade.
- This occurs when each country has a comparative advantage in producing diff. goods or services & they can both benefit from specializing in their respective areas of comparative advantage & trading with each other.
40
Growth Poles
targeted centers of economic activity that aim to boost development in a region, with the idea that growth will spread to nearby areas.
Example:
- Key example: Songdo International Business District (South Korea) — built from scratch, attracts international firms, boosts local economy.
41
Just-in-Time Delivery
A system that reduces inventory and waste by delivering materials exactly when they're needed in production.
- The goal: to reduce costs & increase efficiency by eliminating the need to hold large inventories of raw materials & finished goods.
- Example: Clothing retailer orders only what is sold.
42
Post-Fordist Production
a shift in the way goods are produced, characterized by a move away from mass production & towards more flexible, customized production methods
- Often relies on advanced technologies, such as automation & computerization & it's often more responsive to changes in consumer demand.
43
Economies of Scale
Refer to the cost advantages that a firm can achieve by increasing its scale of production.
- How it works: larger firms reduce per-unit costs by buying in bulk, using specialized machinery, and streamlining production.
44
Outsourcing and offshoring have led to a decline in jobs in core regions & an increase in jobs in newly industrialized countries (NICS). List the NICs
The NICS are Mc. Ribs
- Brazil
- Russia
- India
- China
- South Africa
- & Mexico
45
New Asian Tigers
refers to industrialized Asian countries—Hong Kong, South Korea, Taiwan & Singapore—that became highly developed through manufacturing.
46
Special Economic Zones (SEZs). Define their goal, offer & effect
Designated areas within a country that have special economic regulations that are more favorable than the regulations that apply in the rest of the country.
- Goal: Stimulate development, create jobs, and help the region catch up with wealthier parts of the country
- Offer: Incentives such as tax breaks, relaxed regulations, and improved infrastructure
- Effect: Attract businesses to set up operations within SEZs.
Examples of SEZs
- Shenzhen Special Economic Zone in China
- Dubai International Financial Centre in the UAE (DIFC)
- Export Processing Zones in Kenya
47
Key principles of sustainable development: Intergenerational equity
consider the needs of future generations when using resources.
48
Key principles of sustainable development: The precautionary principle
take action to prevent harm to the environment or health even without full scientific certainty.
49
Key principles of sustainable development: The polluter pays principle
this principle holds that those who generate pollution should bear the costs of preventing or fixing it.
50
Key principles of sustainable development:
The principle of common but differentiated responsibilities
this principle acknowledges that countries have diff. levels of development & capacity and therefore have diff. responsibilities in addressing global environmental problems.
51
Ecotourism
A type of tourism that focuses on experiencing natural areas while minimizing the neg. impact on the environment.
52
Sustainable Development Goals (SDGs) or the Global Goals
A set of 17 goals adopted by the UN in 2015 to end poverty, protect the planet & promote peace and prosperity, aiming for a more sustainable and fair world for current & future generations.
