Unit 7 - Industrial & Economic Development Patterns & Processes Flashcards
before the industrial revolution
rural communities, farming and cottage industries, manual and animal labor, simple tools, eat what you grow, few possessions, live and work as a family, large families but relatively high IMR, slow communication across long distances, lack means of transportation.
after the industrial revolution
large urban centers as more and more people move to cities, large percentage of people work in manufacturing/factories (40-60%), often with dangerous working conditions, automated (not human or animal powered) and complex machinery, home and workplace become separate, buy what you eat, working class live in extreme poverty with horrible living conditions, high birth rates but falling IMR, effective communication across long distances, effective means of transportation available to those who can afford it
which two components of steel spurred the industrial revolution
coal & iron ore
what two events spurred a rapid increase in population
the Industrial Revolution and the 2nd Agricultural Revolution
primary sector
direct extraction/harvesting of the earth’s natural resources including agriculture, fishing, mining, forestry, etc
secondary sector
manufacturing. Taking those raw materials and improving/adding value to them by making them something that consumers can purchase
tertiary sector
services. The go-between between the producers and consumers (taking what is produced by the manufacturers and selling it to the consumers or taking the research and knowledge produced in the quaternary sector and providing it to consumers such as teachers, nurses, doctors, etc.)
quaternary sector
research and development – creating new knowledge and technology
quinary sector
top executives or officials in such fields as government, science, universities, nonprofits, health care, culture, and the media. These people make decisions that influence public policy and the economy.
unskilled labor
occupations typically don’t require workers to have any kind of special training or skill (ex: cashier, custodians)
informal economy
the provision of products and/or services which are neither taxed nor included in the GDP and Gross national product (GNP) of a country. This may include legal services such as babysitting, garage sales, hiring the teenager next door to mow your lawn; as well as illegal activities such as paying someone to do otherwise legal work “under the table”
line costs
the costs of fuel, insurance, wagers for the operators (truck driver, ship’s crew, pilots and flight attendants, etc.), maintenance of the vehicle, costs of using the roadways/rail lines, etc (tolls, or if the infrastructure is publically maintained
there are licensing and registration fees associated with permissions to use the lines.
terminal costs
the costs associated with the end points – the airport, port,
etc. the cost of building and maintaining buildings and capital (machinery) as well as the wages of the workers who work at these end points.
ocean liners
high terminal costs (ports, machinery, labor), extremely low line $$ (large load capacity), longest shipping time & move longest distance
rail transport
moderate terminal & line $$, cost/unit is a little higher than ocean liners, best for moving goods the longest dist on land
tractor trailers
low terminal, high line costs (fuel, wages, limited cargo), used for varying distances –long & short due to their flexibility
delivery cars/vans
high cost/unit, almost non-existent terminal costs, best for city & region transportation as they can only carry a small load
air transport
most expensive bc of high terminal (airport) & line (pilots) costs, fastest mode of transportation
break of bulk point
a location where you can transfer goods from one mode of transportation to another
entrepot
a port, city, or trading post where merchandise may be imported, stored or traded, usually to be exported again [holding area before reexport]
least cost theory
businesses will seek to locate their enterprises at a point of “least-cost” considering the factors of tranportation, labor costs, and agglomeration
agglomeration
grouping together (ex: tire factory locating near car factory)
substitution principle
to lower one cost, one must be willing to pay more for the other cost
least cost theory factors include
transportation**, labor costs, agglomeration
bulk-gaining production
located near the market, final products GAINS size/weight as it is produced, **ANYTHING WITH WATER, ex: soft drinks
bulk-reducing production
final product weighs LESS than the total input, located near raw material
smelting
the product of removing a metal from its ore {bulk-reducing}
Wallerstein’s World Systems Theory key ideas
- core, periphery, & semi-periphery area
- core exploit periphery for labor & raw materials
- peripherals are dependent on core countries for capital
- semi-peripheral share characteristics of both
- emphasizes the social structure of global inequality
modern core countries examples
western europe, north america, japan, and australia
bulk gaining productions examples
soft drinks, homes, cars, anything with water
GDP [gross domestic product]
the total value of a country’s economic production (goods & services) produced within a country’s borders. This includes foreign-owned companies(multinational companies)
GNP [gross national product]
the total value of a country’s economic production produced by any citizen (national) of that country, whether within the country’s borders or abroad (in another country). This calculation excludes the value of goods and services produced within
the country’s borders if the profits are sent back to another country (i.e., if a foreign owned company, such as Toyota, locates factories within the US, their profits are
excluded because that money is sent back to Japan and included in Japan’s GNP).
GNI [gross national income]
similar to GNP, but also includes the revenue from taxes and foreign direct investment. This revenue is not included in the value of economic output as
calculated by GDP and GNP. GNI is a better measurement of economic production in 2 countries whose economies include substantial foreign investment
gini coefficient
a measure of statistical dispersion intended to represent the income distribution of a nation’s residents, and is the most commonly used measure of inequality
what does a high gini index indicate
greater inequality with high-income ppl receiving much larger % of the total income of pop
HDI [human development index]
a statistic composite index of life
expectancy, education, and per capita income indicators, which are used to rank
countries into four tiers of human development
what does a high HDI mean
higher standard of living, more waste generation
Brandt Line
an imaginary division that has provided a rough way of dividing all of the countries in the world in to the rich north and poor south. Historically, the global north developed first, and is where most of the world’s “core” countries are located (+ Australia, which is very closely linked economically to the UK as it was a British Colony at the same level as Canada). The countries south of the line were the “periphery” and “semi periphery” countries, mostly LDCs. This pattern existed until
fairly recently in our history.
GII [gender inequality index]
measurement of gender disparity
what does a high GII mean
higher inequalities between men & women & thus higher loss of human development
what 2 indicators is the “empowerment” dimension of GII measured by?
% of seats in parliament held by women & educational attainment (secondary/post-secondary)
microloans
small loans targeted to help empower women
Which of the following has a negative correlation (as one factor increases, another decreases) to GDP per capita?
infant mortality rates
Which of the following changes in early global economic patterns occurred due to innovations such as the invention of the steam engine, which in turn led to new transportation technology such as railroads and steam ships?
Early adopters of new transportation technology, such as England and Spain, began to increase colonization in search of new sources of raw materials for manufacturing goods
Which of the following best explains the relationship of a country’s economic sector employment to its development level?
Core countries have the highest percentage of workers in the tertiary sector and the lowest percentage of workers in the primary sector because of the economic emphasis on services
The Second Agricultural Revolution in Britain and the Industrial Revolution were tied together in that
The agricultural revolution resulted in a surplus population of displaced agricultural workers who provided labor for factories
is copper a bulk-gaining or reducing industry
bulk-reducing
Which of the following factors best explains why measures of economic development such as Gross Domestic Product or Gross National Income are reported per capita (per person) for comparison purposes rather than using the total economic productivity of a country?
Countries have different population sizes, making per capita reports more accurate for comparisons across countries
Which of the following theories below incorporate transportation costs into the equation of the model?
Von Thunen & Weber’s Least Cost theories
which of the following locations is the BEST place to locate the factory of a bulk-gaining Industry?
near the market
Which of the following arguments help explain why seventy-five percent of those employed in Export Processing Zones are women?
women are paid less than men, many employers consider women to be dexterous (agile, nimble-fingered) than men
The literacy rate of any country correlates most closely with which of the following?
per capita income
According to Wallerstein’s World-system theory, the modern network of global economic interdependence and competition began
When European nations began exploring outside their continent in the 1600s
The higher gross domestic product (GDP) per capita in some less developed countries such as Brazil, South Africa, and Malaysia is best explained by increases in the value of the country’s
Manufacturing output and service industry employment
Which of the following is positively correlated with gross domestic product (GDP) per capita?
carbon dioxide emissions per capita
contemporary manufacturing is characterized by
spatial disaggregation (in different areas) of the production process as factories move to NICs
Which of the following statements explains one of the limitations associated with utilizing the measures of development within the HDI and GII?
All the statistics aggregate (compile and generalized) data to the country level. Frequently, there is a great deal of variation in development within countries that is hidden by aggregated data
Which of the following best explains the relationship between GDP per capita and world systems theory?
There is an uneven distribution of economic development and geographical division of labor in the world
Which of the following explains the spatial patterns of economic development for most countries in Southeast Asia, including Indonesia, Malaysia, Thailand, and Vietnam?
Most Southeast Asian countries are considered to be a part of the semi-periphery because of the extensive growth of the secondary economic sector
In Latin America, data for employment in many large urban areas are most likely to be incomplete because
many people work in the informal sector
Which of the following variables has an inverse or negative relationship with the level of economic development of a country?
birth rate
Rostow’s Stages of Economic Growth
summarises economic growth of countries into five different stages: traditional society - characterised by subsistence farming or hunter-gathering. preconditions for take off - manufacturing industry begins to develop, and a country develops an international outlook.
stage 1 of rostow’s theory
traditional economy, agricultural based, subsistence agriculture [stage 1 & 2 of DTM / LDCs & periphery]
stage 2 of rostow’s theory
precondition to take-off, major infrastructure investments will be happening, trying to industrialize the country [stage 2 & 3 DTM/ LDCs & periphery]
stage 3 of rostow’s theory
take off, stage 3 of DTM, characteristics of NICs (newly industrialized countries)
stage 4 of rostow’s theory
drive to maturity, prime industrial production, brink of MDCs, countries are about to crossover into stage 4 of DTM
stage 5 of rostow’s theory
mass consumption, core countries, characterized by mass consumption of energy, goods and products
critics of rostow
countries are presented in isolation, not all countries will pass through the stages, and doesn’t account for trade [assumes self-suffieciency]
what are the four differences between the Wallerstein’s & Rostow’s theory
- W views countries in ranking system while R views them in isolation
- W theory is based on trade, and R completely ignores trade
- W says countries can move backward & forward & R says countries can only move forward
- W theory can be applied at multiple scales of analysis, from global to local, while Rostow is only country-level
degree of complementarity
if each offers something that the other needs or wants [ex: British needs tea & India provides it to them]
comparative advantage
when a country produces a good or service for a lower opportunity cost than others
opportunity cost
when there are more benefits than disadvantages to produce a different good or service (places with lots of trees have a lower opportunity cost to producing paper)
how can you use comparative advantage to discuss Weber’s model of industrial location
places with lower labor costs will have a comparative advantages in labor-intensive manufacturing compared to places with higher labor costs.
outsourcing
Producing abroad parts or products for domestic use or sale
offshoring
moving the business itself to another country
export processing zones
products made for export (such as refined metals, inexpensive consumer goods, etc.) manufactured within these zones are exempt from export taxes. These zones are usually located within close proximity to the border of the country to which the products are to be sold
free trade zones
these areas are exempt from import/export taxes.
I.e., the US, Mexico, and Canada together are in a “free trade zone”, meaning there
are no tariffs charged for the movement of goods across the borders for trade
between these 3 countries. The EU is also a Free Trade Zone.
special economic zones
they may be part of free trade zones or contain an export processing zone, but are a little different. A SEZ describes a portion of a country that operates under different economic rules/laws than the rest of the country. When we discuss
SEZs, the prime examples are in China – Hong Kong
just in case production
production approximation, anticipated usage, large lots, high inventories, more waste, poor communication
just in time production
exact production, actual consumption, small lots, low inventories, less waste, better communication
growth poles
the concentration of highly innovative and advances that stimulate economomic development in linked businesses and industries
debt-for-nature swaps
the purchase of a developing country’s debt at a discounted balue and cancelling the debt in return for environment-related action on the part of the debtor nation.
benefits of ecotourism
- protects nature
- allows the resources to remain mostly intact while providing a revenue source for the country
challenges of ecotourism
- may displace locals
- land may be degraded
- cultural sensitivity
ancillary activities
economic activities that surround and support large-scale industries such as shipping & food service
backwash effects
the negative effects on one region that result from economic growth within another region
brick & mortar businesses
traditional businesses with actual stores in which trade or retail occurs; they don’t exist solely on the internet
commodity dependence
when peripheral economies rely too heavily on the export of raw materials, which places them on unequal terms of exchange with more-developed countries that export higher-value goods
conglomerate corporation
a firm comprising of smaller firms that serve different functions
cottage industry
an industry in which the production of goods & services is based in homes as opposed to factories
deglomeration
the dispersal of an industry that formerly existed in an established agglomeration
footloose firms
manufacturing activities in which the cost of transporting both raw materials and the finished product is not important for determining the location of the firm
Fordism
system of standardized mass production attributed to henry ford
globalization
the idea that the world is becoming increasingly interconnected on a global scale such that smaller scales of political & economic life are becoming obsolete
industrialized economies
Britain, France, USA, Russia, Germany, and Japan
purchasing power parity
a monetary measurement of development that takes into account what money buys in different countries
multiplier effects
additional economic opportunities that can be generated
in squatter settlements in many Latin American cities, poor rural to urban migrants tend to make a living in which sector of the economy
informal economy
how is microcredit related to other common economic opportunities for women in the developing world, especially work in an export processing zone.
with microloans, women can control their own businesses and therefore set their own hours and wages
sometimes _____ boundary lines, which indicate internationally recognized sovereignty over certain areas, don’t align with ethnic, linguistic, and cultural boundaries, which tend to be ______ but are often more important, as they indicate a region with a common __________
political, fuzzier, language & customs
replacing imports with goods manufactured locally falls under which philosophy of development
dependency theory
development indicators are often categorized as economic or social. how should mortality rates be categorized?
as a social indicator of development
