APHUG Unit 7
Rust Belt
(because of rusting metal) region of US hit hardest by deindustrialization (Northeast and lands around the Great Lakes)
Industrial Revolution
-A bunch of technological improvements that changed the process of manufacturing -Started in late 1700s in the UK -Cottage Industry System
Ecotourism
-A form of tourism, based on the enjoyment of natural environments, that aims to provide an experience of nature or culture in an environmentally sustainable way -Preserves the natural environment -Educates the public about sustainability -Funds efforts towards preservation -Provides jobs for the local population
Free Trade Agreements
-A pact between two or more nations to reduce barriers to imports and exports among them -Little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange
Neo-Malthusian
-Adapted his basic ideas to modern conditions -Argue that global overpop. Is a problem -Depletion of nonrenewable resources -Pollution of air, water -Shortages of food
Foreign Direct Investment
-An investment made by a firm or individual in one country into business interests located in another country -EX: transnational corporations
Weber's Assumptions
-Area is uniform (the same) -Making one thing to send to one known market -Multiple sources of raw materials -Labor available but immobile -Transport uses shortest distance, so costs reflect the weight/distance
Stages of Economic Growth Model
-Assumed that all countries want to modernize -"Linear" progression (Stage 1, 2, etc.) -Final stage: high mass consumption -Generalization based on US + Europe
The Brandt Line
-Australia + New Zealand are considered part of the "North" -Most wealthy countries: N. America, Europe -Most poor countries: S. America, Sub-Saharan Africa, and S. Asia
Creation of the EU
-Benefits of EU membership: one large market =an economic bloc -Most significant economic growth of all supranational organizations due to elimination of tariffs
Outsourcing
-Contracting work out to non-company employees or other companies
Proximity for Factories
-Cost of transporting raw materials expensive -Put plant closer to materials than markets -Bulk-gaining industry: makes something that gains volume or weight
Asian Tigers
-Countries that focused on creating consumer goods for export -EX: S. Korea, Taiwan, Hong Kong, Singapore
Human Development Index (HDI)
-Created by the UN in 1990 to measure development of a country -Combines economic measure (GNI) with several social measures (life expectancy + average education level)
Stage 4: Drive to Maturity
-Creates new industries while strengthening existing ones -Improves energy, transportation, and communication systems -Sees economic growth greater than population growth -Invests in social infrastructure (schools, hospitals, etc.)
Stage 1: Traditional Society
-Depends on primary sector for activities (hunting, farming, fishing) for subsistence. -Uses limited technology. -Carries out local or regional trading. -Enjoys limited socio-economic mobility
Offshoring & Outsourcing
-Designed by Boeing in Seattle -Nose section outsourced to a company in Kansas -Wing-tips made in S. Korea by Korean Air -Wings assembled by Boeing in Canada -Final assembly by Boeing outside Seattle
Henry Ford
-Developed the assembly line -Each worker performed a different task repeatedly. -Allowed companies to produce more faster -Allowed companies to hire less skilled workers
Cities Grew Horizontally
-Diffusion + expansion of industrial activities -Trains, cars, trucks -Allowed cities to spread farther from downtown core -People could live farther and commute -Food could be transported from countryside into cities
Diffusion of Industrial Revolution
-Displaced farm workers moved to towns and cities -Developing regions (not as industrialized) have a higher percentage of their populations engaged in food production -Farm tools=LARGER FOOD SUPPLY + increased population
Contemporary Neo-Malthusians
-Faster growth in developing nations than he anticipated due to more access to medical care→ LARGER resource gap than anticipated -Food is not the only thing running out→ other resources are too
Malthus' Theory and Reality
-Food production grown faster than NIR since 1950 -Malthus' predictions, but wheat production has increased 2x as fast
Quinary Sector
-Highest levels of decision-making -Includes the top officials in various levels of government/ business -Decision made by a person in a quinary sector (president, etc.) can affect millions of people.
Stage 2: Pre-Condition for Take-Off
-Improves infrastructure (roads, electrical grid, water systems, etc.) -Improves farming techniques and shifts toward commercial agriculture -Exports agricultural and raw materials (international trade) -Diffuses technology more widely -Starts individual socio-economic mobility
Core
-Includes the economically advantaged area of the world and the center of world businesses and finances; headquarters of most large multinational companies are located in core countries. -Focuses on higher skill, capital-intensive production -Promotes capital accumulation -Dominates periphery and semiperiphery economically and politically, and by paying low wages and exploiting weak environmental laws -Benefits greatly from international trade
Periphery
-Includes the least-developed countries -Has a high percentage of jobs in low-skill, labor-intensive production and extraction of raw materials -Provides the core and semi-periphery with inexpensive raw materials, labor, and agricultural production -Receives jobs but few profits from manufacturing -Often have weak laws protecting workers and the environment
Semi-Periphery
-Includes the middle-income countries -Sometimes known as the emerging economies -Provides the core with manufactured goods and services that the core once provided for itself, but no longer does
Industrial Regions Today: Asia
-Japan: exports -East Coast China: cheap labor, exports -Southern Coast South Korea: ship building
Quaternary Sector
-Knowledge-based -Includes research & development, business consulting, financial services, education, public administration, software development -Pay higher-than-average wages
Sectoral Distribution of the Workforce.
-Least developed= higher % in the primary sector -More developed=higher % in the tertiary sector
Farming Improvements
-Machinery -Techniques -England's Enclosure Movement -Decreasing need for human & animal power -Decreasing number of rural jobs
Imperialism
-Made wealthy countries wealthier -Lead to a great divide between industrialized and underdeveloped, non industrialized states.
Bulk-gaining Industry
-Makes something that gains volume or weight -EX: Automobile manufacturing and beer bottling
Gini coefficient (Gini index)
-Measures the distribution of income within a population -Values: 0-1 -A 0 means everyone's income is the same. -Higher # = higher degree of inequality -Higher in developing regions -Lower in developed regions (W. Europe)
Tertiary
-Mostly in core -Providing services rather than working with natural resources -Marketing, banking, design -Most people in the U.S. labor force today
Primary
-Mostly in periphery -Farming, Mining, Fishing, Forestry -Extracting natural resources -Dominated the economy until the Civil War
Secondary
-Mostly in semiperiphery -Processing natural resources -Manufacturing, Building -Significant labor growth 1840s to 1960s -Has the greatest multiplier effect of all sectors
Location of Factories
-Near cities (markets!) → this is actually situational... -Environmental laws→ what are your factory's emissions? -Labor availability, transportation, markets
Industrial Regions Today: North America
-New England: cotton, coal -Great Lakes: steel -West Coast: textiles, food, furniture
Stage 3: Take Off
-Open to major technological innovations -Starts industrialization and primary sector begins to shrink -Spreads entrepreneurial mentality -Begins to urbanize -Initiates self-sustaining growth
Thomas Malthus
-People need food to survive. -Food production increases arithmetically. -Population increases geometrically (exponentially) -"Checks" on the population: famine, disease, etc. -J curve model
Spin-off Effects
-Positive outcomes in addition to the main outcome -Can help communities far beyond the growth pole itself
Economic Sectors
-Primary, secondary, tertiary, quaternary, and quinary -Are characterized by distinct development patterns.
Neoliberal Policies
-Pro-market -Anti-government position on economy -Promotes privatization -Promote free trade
Microcredit or Microfinance
-Provide small loans to start/expand a business -Provided to people who would not normally qualify for credit from traditional sources -Increased financial clout of women→ more influence in homes and communities
Cities Grew Vertically
-Public health measures grew in importance plumbing had to go up, and people were physically close to each other. -Elevators→ available due to more steel -Techniques to construct stronger foundations
Colonies Provided
-Raw materials: sugar, cotton, foodstuffs, lumber, minerals for use in mills & factories -Labor to extract raw materials -Markets where manufacturers could sell finished products -Ports where trading ships could stop to get resupplied Profits to use for investing in new factories, canals, and railroads
Gender Inequality Index (GII)
-Reproductive health, empowerment, labor market participation -Measure % of potential human development lost due to gender inequality -Switzerland: GII = 0.028 = highly dev. -Niger: GII=0.713 = one of the least dev.
Malthus' Critics
-Resource depletion -Population growth
Growth of Population and Cities
-Rural to urban migration = rapidly growing cities -London: 1 million (1800) → 6 million (1900) -Old systems overwhelmed -Pollution Increased -Stronger government action in public health
Measures of Wealth
-Sectoral (job) structure of the labor force -Consumption per capita -Income distribution -Energy use per capita
Stage 5: High Mass Consumption
-Spends money on nonessential goods (consumerism) -Purchases of higher order goods become common -Desires to create an egalitarian society -Supports a strong tertiary sector
Ester Boserup
-Theory of agricultural intensification, also known as Boserup's theory→ population change drives the intensity of agricultural production -Countered the Malthusian theory that agricultural methods determine population via limits on food supply.
Least Cost Theory
-To explain the key decisions made by businesses about where to locate factories -Attempts to predict the location of a manufacturing site relative to the location of the resources needed to produce the product where the final product will be sold (market)
Footloose Industries
-Towns & cities trying to develop want them (low demands). -They can pack up & leave easily. -EX: Diamond manufacturing
Transportation
-Trucks: quick and cheap (for short distances) → low terminal cost (end), high line cost (along the way/unit), high route flexibility -Trains: take longer, but no stops (not flexible) -Ships: cheap! But slow -Air: most expensive, but fastest
Industrial Regions Today: Europe
-UK: steel, textiles, hi-tech -Western Europe: synthetic fibers, pharmaceuticals, coal, iron -Eastern Europe: ship building, minerals, petroleum, coal
UNSDG
17 goals written by the United Nations in 2015, with an objective of making substantial progress toward all goals by 2030, aimed at improving quality of life and human-environment interaction around the world
Mercosur
A South American trade bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Argentina, Brazil, Paraguay and Uruguay. Venezuela is a full member but has been suspended since 1 December 2016.
Offshoring
A decision by a corporation to turn over much of the responsibility to independent suppliers
European Union
A group of 28 countries that operates as a cohesive economic and political block; essentially unites Europe into ONE economy
Agglomeration
A localized economy in which a large number of companies and industries cluster together and benefit from sharing costs and customers (ex: Atlanta Airport)
Climate Change
A long-term shift in global or regional climate patterns; often refers specifically to the rise in global temperatures
Containerization
A method of shipping freight in relatively uniform, sealed, movable containers whose contents do not have to be unloaded at each point of transfer.
Post-Fordism
A more flexible set of production practices in which the components of goods are made in different places around the world and then brought together as needed to meet market demand
Deindustrialization
A process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to transition to a service economy (often leads to a period of high unemployment until workers are retrained)
Commodity
A raw material or primary agricultural product that can be bought and sold, such as copper or coffee
Industries Impacted by Industrial Revolution: Coal
After wood shortage
OPEC
An abbreviation for Organization of Petroleum Exporting Countries, which is a union of oil producing countries that regulate the amount of oil each country is able to produce. An example of OPEC members are Saudi Arabia, Iran, Iraq, and Venezuela
World Trade Organization (WTO)
An intergovernmental organization that is concerned with the regulation of international trade between nations
Export Processing Zones (EPZs)
Areas found in developing regions of the world; they provide incentives (such as tax breaks and loose environmental policies) for foreign companies to conduct their business there; provides income to the developing country through investment and employment opportunities to local residents
Wallerstein's World Systems Theory (Dependence Theory)
Argues that there is an imbalance between more developed countries and less developed countries that perpetuates economic inequality and prevents less developed countries from industrializing/developing.
Rostow's Model
Based on American and European history and defines the American norm of high mass consumption as integral to economic development process of all industrialized societies
purchasing power parity (PPP)
Based on what an amount of money will buy
BRIC Countries
Brazil, Russia, India, and China→ similar stage in economic development
Intermodal
Can be carried on a truck, train,, ship or plane
Route Flexibility
Can change direction/route easily
Industries Impacted by Industrial Revolution: Transportation
Canals and railroads
Agglomeration
Clustering of productive activities and people for mutual advantage
Gross national income (GNI)
Consists of gross domestic product, plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents
Natural Resource Depletion
Consumption of natural resources faster than it can be replenished
Line-haul Cost
Cost that are a function of the distance traveled by the freight (gas, wear and tear on vehicle, payment for labor of person transporting)
Dependency Model
Countries do not exist in isolation but are a part of an intertwined world system in which all countries are dependent on each other
Stereotype of Brownfields
Deteriorating buildings, lots of weeds, broken or boarded-up windows and rusting metal
Sustainable Development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
Virtual Businesses
Efficient & affordable delivery system nearby
Modernization Model
Focuses on the shift from traditional to modern forms of society
Willy Brandt
German politician interested in development
Trading Blocs
Groups of countries that agree to a common set of trade rules
August Losch
Higher expenses (transportation, labor, raw materials) = justifiable if higher profits
Colonialism, Imperialism, and the Industrial Revolution
Industrial Revolution → built on earlier imperialism
Bulk-reducing Industry
Inputs weigh more than the final product
Pollution
Introduction of harmful materials into the environment; includes land, water, and air
Industries Impacted by Industrial Revolution: Chemicals
John Roebuck and Samuel Garbett (1746)
Periphery Countries
Least developed countries, exploited by NICs and MDCs for their raw materials and loose economic and environmental regulations
Harold Hotelling
Linear city model → behavior to two competing shops → next to each other, split the market & maximize revenue & market share
World Bank
Loans money to developing countries to help with infrastructure
International Monetary Fund
Loans money to stabilize the country's economy
Location Triangle
Market in one location, resources needed are at two other locations
Mass Consumption
Mass consumption of manufactured goods leads to a surplus ins waste that builds in quantity faster than industries can develop sustainable methods of disposal
Gross national product (GNP)
Measures the value of goods and services produced by a country's citizens domestically and abroad
Gross domestic product (GDP)
Measures the value of goods and services produced within a country's borders
Just-In-Time Delivery
Method of inventory management made possible by efficient transportation and communication systems; only keep in stock what you need for the immediate future; saves money on inventory space (ex: florists, bakery, farmers market)
Core Countries
Most developed countries, exploit LDCs for cheap labor and raw materials
First Factories
Near sources of power (rivers, coal deposits, etc.) and transportation routes
Paul Erlich
Neo-Malthusian, The Population Bomb
High Technology Industries
Newer classification of industry that focuses on high-tech products and services, related to STEM products and occupations
Semi-Periphery Countries
Newly industrialized countries, exploit LDCs for raw materials while being exploited by MDCs for their cheap labor/manufactured goods
Industries Impacted by Industrial Revolution: Food Processing
Nicolas Appert (1810)
Life Expectancy
Number of years a person is anticipated to live
Reality of Brownfields
Old buildings are often torn own, so brownfields are often empty
Development
Process of improving the lives of people with diffusion of knowledge and tech
Division of Labor
Regions played complementary roles in an interdependent global economy
Terminal Costs
Related to loading,transfers, and unloading
Industries Impacted by Industrial Revolution: Textiles
Richard Arkwright (1768)
Malthus Thoughts
Right after England had become 1st country to enter stage 2 of DTM (Industrial Revolution)
Special Economic Zones (SEZs)
Specific area within a country in which tax and investment incentives are implemented to attract foreign and domestic businesses and investment
Comparative Advantage
The ability of an individual, company, or country to produce/provide a good or service at a lower cost than other producers
Fertility Rates
The average number of a children a woman is likely to have within her lifetime
Growth Poles
The concentration of highly innovative and technically advanced industries that stimulate economic development; can benefit economies/industries that are located in different geographic areas (ex: Progress in agricultural technology can benefit an agribusiness located elsewhere.)
Multiplier Effect
The expansion of an area's economic base as a result of all of the complex industries located there
Infant Mortality Rate
The number of infant deaths per 1,000 live births
Literacy Rate
The percent of population that can read and write usually at or above an 8th grade level
Break-of-Bulk
The place where goods are transferred
Multiplier Effect
The potential of a job to produce additional jobs
Economies of Scale
The savings in cost per unit due to producing in masse
Commodity Dependence
The share of primary commodity export revenues divided by total export revenues
Agglomeration Economies
The spatial grouping of businesses in order to share costs as when several factories share the cost of building an access road to connect with a public highway
Labor Costs
The wages and salaries of employees
Weber's Analysis Goal
To minimize the cost among multiple inputs (sources) of production
Government Initiatives Promote
Tourism (Dominican Republic, Costa Rica), global manufacturing (building of infrastructure)
Complementary
Trade is greater if each side has something the other wants or needs
New International Division of Labor
Transfer of some types of jobs, specifically low-paid, less-skilled, from more developed countries to workers in less developed countries
Key Variables of Least Cost Theory
Transportation, Labor, Agglomeration
Industries Impacted by Industrial Revolution: Iron
Watt's steam engine
Commodities Trading
When an individual or business that focuses on investing in physical substances like oil, gold, or agricultural products
Complementary Advantage
When two regions specifically meet each other's needs through exchange of raw materials and/or finished goods
Footloose Industry
Your headquarters or "home base" is not as important as your access to transportation and communication systems (ex: real estate)