Unit 7 APHG

Low cost labor

cheap labor in LDC's that typically produce products for consumers in MDC's. (LOW-SKILL)

HDI 3 factors

decent standard of living: GNI per capita long and healthy life: life expectancy at birth access to knowledge: average years of schooling and expected years of schooling

NAFTA (North American Free Trade Agreement)(1944)

eliminated most barriers to moving goods among Mex, US, Canada. B/c Mexico is nearest low-wage country to the US, it attracts industries concerned with both a site factor (low-cost labor) and situation factor (proximity to US markets)

2. Preconditions for takeoff

elite group initiates innovative economic activities, under influence of well-educated leaders, the country starts to invest in new tech/infrastructure. Support from int. funding sources emphasizes importance of new infrastructure(water supplies, transportation systems). Infrastructure projects ultimately stimulate an increase in productivity

per capita

per person

Per Capita GNI or any single indicator cannot...

perfectly measure a country's development. Not everyone is wealthy in a developed country/or poor in developing. Per capita GNI measures average wealth, not the distribution of wealth. If only a few ppl receive much of the GNI, then the standard of living for the majority may be lower than the average figure implies. The higher the per capita GNI, greater the potential for ensuring all citizens have a comfortable life

Empowerment

refers to the ability of women to achieve improvements in their own status (o achieve economic/political power) measured by the % of seats held by women in national legislature & % of women who have completed secondary school. In every country (d and ding) fewer women than men hold positions of political power (Only RWANDA is exception) lowest rates in SA AND NA. Worldwide 54% of women have completed some secondary school, (64% of men). More equal to complete in developed, boys much more likely in ding. Ul. Gap in education especially high in South Asia

Single Market Manufacturers

specialized manufacturers with only one or two customers. Optimal location for these factories is in close proximity to customers. Example: producer of buttons/specialized components attached to clothing: clothing manufacturers may need additional supplies of pieces on very short notice. Customers=manufacturers of clothing

'Free Trade Zones'

that ease world trade and eliminate barriers - Singapore, Hong Kong Free Trade Organizations: European Union, NAFTA (North American Free Trade Agreement) - now USMCA Free trade: no tariffs/taxes/quotas

World Trade Organization (WTO)

the World Trade Organization (WTO) works to reduce barriers to international trade in two principal ways: Countries negotiate reduction or elimination of international trade restrictions on manufactured goods, such as government subsidies for exports, quotas for imports, and tariffs on both imports and exports. They also work to reduce restrictions on international movement of money by banks, corporations, and wealthy individuals. They also promote international trade by enforcing agreements. The WTO faces criticism from those who believe decisions are made behind closed doors and often promote the interests of large corporations rather than poor people. To promote int. trade model, countries representing 97% of world trade established the WTO in 1995. Works to reduce barriers to int trade in 2 principal ways. 1st=through he WTO, countries negotiate reduction/elimination of int trade restrictions on manufactured goods, such as gov subsidies for exports, quotas for imports and tariffs on both imports and exports. Also reduced/eliminated are restrictions on int movement of money by banks, corporations and wealthy individuals 2nd= also promotes int trade by enforcing agreements. One country can bring to the WTO an accusation that another country has violated a WTC agreement. WTO authorized to rule on validity of charge and norder remedies. TWO also protects intellectual property in the age of the internet. An individual or corporation can bring changes to the WTO that someone in another country has violated a copyright or patent, and the WTO can order illegal actions to stop. Progressive critics charge that the WO is anti democratic b/c decisions made by corporate elites promote interests of large corps rather than poor people. Conservative critics charge WTO compromises power/sovereignty of individual countries b/c it can order changes in taxes/laws it considers unfair trading practices

Recycling: Remanufacturing:

the separation, collection, processing, marketing, and reuse of unwanted material the rebuilding of a product to specifications of the original manufactured product using a combination of reused, repaired, and new parts

First, Second and Third World countries was a measurement developed during the Cold War

- 'first world' referred to capitalistic western countries, 'second world' referred to countries developing communism, and third world referred to politically neutral countries but became synonymous to less developed countries. This isn't really used anymore as a measurement of development because it is no longer accurate

Europe's Sovereign Debt Crisis

- economic difficulties call into question the region's ability to continue supporting the international trade development path - the adoption of the euro by countries with weaker economies burdened the European economy Europe has faced an especially difficult challenge in responding to the sharp economic slowdown of the early 21st century. Economic difficulties call into question the region's ability to continue supporting the international trade development path. Most European countries adopted the euro as common currency in 1999 b/c they believed trade would increase in the region w/ a common currency. Once severe economic downturn of 2008 hit, having each country with the same currency was a burden for countries in Europe w/ weaker economics. Example: Germany has a strong economy, Greece lower. Export of Germany's cars, electronics bring revenue into the country, w/ both using the same currency Greece can't devalue its currency against Germany: if the 2 had different currencies, Greece could lower drachma currency to German Mark=so german economic goods were more expensive, greek less expensive=stimulating greek economic activity. Wealthier North Euro countries argue that south euro countries with weaker economies need to adopt austerity policies/south argue north should fund stimulus programs that would lead to more prosperity in whole of Europe in the long run. Prior to 2008, Greece and Germany. had similar patterns of economic growth, suffered sharp declines in GDP per capita during the sever recession. Under austerity programs, Greece worsened, Germany recovered and then stagnated. The US has continued w/ modest economic growth.

Developed countries have higher access to consumer goods/services b/c of greater wealth

-Access to cars/telephones/computers -produces that promote better transport/communication are accessible to most in developed/vital to economy. Developing, don't play a vital role, but may be desirable for wealth/status/helpfulness -gap can emerge between haves/have-nots in developing countries. Elite have them, since majority denied this may provoke political unrest -Urban in developing=wealthier, products more important in urban areas b/c of dispersion of areas. Tech change reduces gap in access to communications. Cell phones expanding rapidly (b/c of no wires to individual buildings, more can obtain service from tower/satellite)

Developing countries face 2 fundamental obstacles in trying to encourage more rapid development that would reduce disparities between rich and poor countries:

-adopting policies that successfully promote development -finding funds to pay for development

2 challenges regarding resources

-we deplete scare resources, especially petroleum, natural gas, and coal for energy production -we destroy resources through pollution of air, water, and soil

The world is divided into 2 developed, 7 developing regions based on each regions overall HDI score

1. North America 2. Europe 3. Latin America 4. East Asia 5. Southwest Asia and North Africa 6. Central Asia 6. Southeast Asia (tie) 8. South Asia 9. Sub-Saharan Africa In addition, 3 other distinct areas are present. South Korea/Japan separated(much higher Level of Development than neighbors) South Pacific is much less populous area than 9 regions, Australia and NZ are developed/rest are developing Russia had limited progress under/since Soviet Union, so UN now classifies it as high developing

Weber's Least Cost Theory attempts to describe and predict the location of manufacturing industries based on three factors: transportation costs, labor cost, and the benefit of agglomeration (clustering with similar, interdependent businesses). Of these, he considered transportation costs to be the dominant factor in determining where an industry would choose to locate.

1. Weber's Least Cost Theory is based on two site factors (labor and existence of similar industries in the vicinity (agglomeration) and one dominant situation factor: transportation costs. 2. Bulk-reducing industries such as steel or paper production in which the final product is easier to transport than the raw materials that go into their production will be located as near as possible to the raw materials (more expensive to transport inputs than the product). 3. Bulk-gaining industries, such as soft drink bottlers or automobiles in which the final product is more difficult to transport than the raw materials that go into their production will be located as near as possible to the customers (more expensive to transport the product than the inputs). 4. Weber realized that in some cases, savings from low cost labor or benefits from agglomeration (sharing skills, talents, and facilities with similar nearby industries) might convince an industry to locate farther from inputs or markets despite higher transportation costs. But transportation costs in this model are the dominant factor in the location of manufacturing industries. Agglomeration - when a group of industries cluster for mutual benefit - shared services, facilities, etc. Leads to lower costs.

Geographers try to explain why one location may be more profitable for a factory than others.

2 geographic costs: -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 consumers -Site Factors: Result from the unique characteristics of a location. These are labor, capital and land

Distribution of clothing production

3 principal steps in textile/apparel production: -spinning of fibers to make yarn -weaving/knitting of yarn into fabric -assembly of fabric into products Labor intensive industry Spinning: is labor intensive, done in low wage countries (China/India) Weaving: by hand on looms, done traditionally by men b/c of hard work. For mechanized weaving: labor a high % of total production cost, clustered in low-wage countries(China/India). Low labor costs offset expense of shipping Assembly: sewing by hand is an old human activity, 1st sewing machine by Thimonnier in 1830, Singer made in 1850s 1st commercially successful one in the US. Developed have a higher role in assembly (Most consumers in developed), but most still assembled in developing, production costs lower b/c lower labor costs than developed offset shipping/taxation

Unconventional resources

: resources are considered unconventional if we lack economically feasible or environmentally sound tech w/ which to extract them. As demand increases for a resource and prices rise, exploiting an unconventional source can become profitable Oil Sands: Alberta, Canada and Venezuela and Russia. Oil Sands are saturated w/ thick petro commonly called tar b/c of dark color and strong odor. The mining has become profitable in Alberta, reclassified to proven reserves from potential. Now Canada thought to have 11% of the world's petro proven reserves, 2nd behind Saudi Arabia Hydraulic Fracturing: Rocks break/gas can fill the space between them. Hydraulic fracturing, commonly called fracking, involves pumping water at high pressure to further break apart rocks and there by release more gas that can be extracted. The US has extensive natural gas fields, some of which are now being exploited through fracking. Critics say pumping high-pressure water is a dangerous thing underground and that high water demand is bad/wastes water that could be for humans/agriculture. Within the US, principal natural gas fields are in Texas, Oklahoma, and the Appalachian Mountains.

Developing Country (LDC)

A country that has made some progress towards development, though less than the developed countries

Developed Country (MDC)

A country that has progressed relatively far along a continuum of development.

renewable resource

A natural resource that can be replaced at the same rate at which the resource is consumed

Development

A process of improvement in the material conditions of people through diffusion of knowledge and technology. the process of improving the conditions of people through diffusion of knowledge and tech. Every place lies at the same point along a continuum of development. The development process is continuous, involving never-ending acttions to improve healtth/prosperitty of the people

resource

A substance in the environment that is useful to people, is economically and technologically feasible to access, and is socially acceptable to use.

supranational organization

A venture involving three or more nation-states involving formal political, economic, and/or cultural cooperation to promote shared objectives. The European Union is one such organization

India as a self-sufficiency example

After gaining independence from Britain in 1947, for several decades it was an example. Policies=limiting foreign companies from importing into India and exercising strong control over companies operating in India Limitations on Imports: -To import into It, foreign companies had to secure a license(cumbersome process) -a company with a license was severely restricted in how much it could actually import into India -heavy taxes on imported goods (raised prices consumers had to pay) -Indian money could not be converted to other currencies Controls over Indian companies: -business needs gov permission to sell a new product, modernize a factory, expand production, set prices, hire/fire workers, and changed job classification of existing workers -unprofitable business receives gov subsidies: cheap electricity/elimination of debts -gov owned communications, transportation, power companies(common) but also insurance companies/automakers )usually left to private sector in most countries)

Pollution: when more waste is added than air, water, and land resources can handle Airpollution: a concentration of trace substances at a greater level than occurs in average air, concentrations of these trace gases can damage property and adversely affect the health of people, animals, plants. Most generated from factories/power plants and motor vehicles

Air Pollution causes and effects: Global Scale: burning of ffs in factories and vehicles lead to increase in avg temp of earth's surface=climate change. fossil fuel burn=carbon dioxide in air, can delay the return of some of the heat leaving Earth's surface heading for space=higher temps, CD traps radiation emitted by the surface=greenhouse effect. Climate Change. Ozone is a gas/absorbs UV in Stratosphere, if not there, UV damages earth too much. Pollutants called CFCs can threaten the ozone layer, once widely used as coolants in fridges/ACs/now not used or being fazed out Regional Scale: may damage a region's vegetation/water supply through acid deposition=the accumulation of acids on Earth's surface. Acid Precipitation can happen, damages lakes/plants/monuments, the acid rain may also migrate. Local Scale: severe where emission sources concentrates, such as urban areas, air above polluted b/c of all the pollution in an area. Carbon monoxide, Hydrocarbons, Particulates. Really badly harm human health, Delhi, India the worst air pollution

Fossil Fuels

An energy source formed from the residue of plants and animals buried millions of years ago. As sediment accumulated over these remains, intense pressure and chemical reactions slowly converted them into fossil fuels that are currently used. When burned, energy stored in the plants/animals is released. 5/6 of world's energy needs supplied by 3 fossil fuels COAL: As NA/EURO developed rapidly in late 1800s, coal supplemented wood as the leading energy source. PETROLEUM: 1st pumped 1859, didn't become an important energy source until the diffusion of motor vehicles in the 20th century) NATURAL GAS: originally burned off as waste product of petroleum drilling, now used to heat homes and produce electricity. Fossil fuels are nonrenewable, so for sustainable development, necessitate increased future reliance on renewable sources instead FOSSIL FUELS HAVE BECOME THE PRIMARY/LARGEST SOURCE OF ENERGY FOR THE WORLD

Stimulus Strategy

Argues that during a downturn, governments should spend more money than they collect in taxes, Govs should stimulate the economy by putting people to work building infrastructure. Once the economy recovers, people and business will in a position to pay more taxes and pay off the debt

Agglomeration: A localized economy in which a large number of companies and industries cluster together and benefit from the cost reductions and gains in efficiency that result from this proximity.

Benefits arise from the spatial agglomeration of physical capital, companies, consumers and workers: Low transport costs A great (local) market A large supply of labor and thus the increased chance of supply and demand for labor, particularly for specialists to compensate for fast matching, lower search costs The accumulation of knowledge and human capital leads to knowledge spillovers between firms Examples of this include Los Angeles for movies, Houston for energy, or Silicon Valley for computer technology. If there is a film production equipment factory, and several actors, sound engineers, costume designers, and film directors in one place, this cuts costs for all film companies like Disney, Pixar, Universal, Dreamworks, and WarnerBros.

Use of landfills declined in the US

Better compaction methods, expansion in the land area of some of the large regional dumps=expanded landfill capacity. Small town dumps closed and replaced by a small # of larger regional ones

Fossil fuels are unevenly distributed throughout the world: where are most reserves for each fossil fuel:

Coal: Formed in tropical locations, now in the mid-latitudes due to earth's slow drifting continents tropical swaps relocating to the mid-latitudes. World's main reserves of coal are in the mid-latitude countries. China is the leading producer, coal produced #2=US/ China produces 1/2 of coal, other developing 1/4, developed (primarily US) remaining 1/4) Petroleum: Formed millions of years ago from residue deposited on the seafloor. Some still under Persian Gulf/North Sea, other reserves located beneath land underwater millions of years ago. Russia, Saudi Arabia, US leading producers of petroleum for energy production. Russia and Saudi Arabia supply 1/4 of the world's petro, other ding(primarily Southwest and central Asia) 1/2, developed(primarily the US) remaining 1/4 Natural Gas: Formed millions of years ago from sediment deposited on the seafloor, like petroleum. US/RUSSIA leading produced of natural gas. 1/3 production supplied by Russia and Southwest Asia), 1/3 other developing, 1/3 by developed (primarily the US) US highly dependent on the 3 fossil fuels(all 3 together account for nearly 90% of all energy supplied in the US): wood principal energy source in the 19th, coal most important late 19th, petro/natural gas gained prominence during the 2nd half of 20th century

Countries are more connected now than ever before and it is critical for industries to thrive so the entire world can benefit from each other

Countries are interdependent and reliant on each other They have resources and skills to offer but also lack resources and skills which leads to trade which leads to specialization Trade complementarity - trade index that looks at the interaction between two countries that provide goods and services or resources to meet the demands of another country The US imports oil from around the world - Canada is our largest supplier that fills our large need for oil - therefore we complement each other Comparative advantage - every country, business and person is better at various tasks than others - countries that have comparative advantage should be and tend to be the main producer of that good and trade with other countries as an advantage Majority of economies have some degree of a free market - countries tend to favor free market more than command economies (state controlled economies) Neoliberalism - policies that favor free markets over command markets Make trade between various countries easier and encourage privatization over business - leads to supranational organizations meant to break down any trade barriers (NAFTA/USMCA and EU)

International Trade path

Countries open themselves to foreign investments & international markets. More popular form beginning in late 20th century. Calls for a country to identify its distinctive or unique economic asset (what it has in abundance, that other countries are willing to buy) Sales bring funds to finance development in country often smaller countries adopt b/c of lack of natural resources

Other changes as a result of the IR other than industrialization:

Created an unprecedented expansion in productivity/resulted in substantially higher living standards b/c of more wealth. IR resulted in social, economic, political inventions. Changes involved a gradual diffusion of new ideas and techniques over decades rather than an instantaneous revolution

Human Development Index (HDI)

Created by the UN to measure the level of development of every country. Highest HDI is 1.0 (100%). Development is a function of 3 factors according to the UN 1. Decent standard of living 2. Long and healthy life 3. Access to knowledge The development process enlarges people's ability to have these 3 factors. With access to these=greater opportunities to be creative and productive and o enjoy personal self-respect and guaranteed human rights. UN measures the standard of living through GNI per capita at PPP

THE HEARTH OF MODERN INDUSTRY

Industry: the manufacturing of goods in a factory. Northern England and Southern Scotland during the second 1/2 of the 18 century, From that hearth, industry diffused to Europe and North America in the 19th century and to other regions in the 20th

4 types of consumption that demand the most energy:

Industries(Factories use roughly 40% natural gas/30% coal and petro each) natural gas/petro burned directly coal consumed primarily through purchasing electricity Transportation(almost all transportation systems run on petroleum products) Homes(Natural gas/coal provide roughly equal shares of home needs. Natural gas is the principal source of home heating/air conditioning, whereas electricity generated primarily from coal is the principal source of electricity) Commercial(stores and offices have uses and sources similar to those for homes)

New international division of labor

Despite a greater transport action cost, transnational corporations can profitable transfer some work to ding, given their substantially lower wages compared to those in developed countries. At the same time, operations that require highly skilled workers remains in places with these peoples(trad. industrial regions and factories in developed countries)

Wallerstein's Core-Periphery Model

Developed countries form an inner-core area, developing occupy peripheral locations. Uneven development=increasing gap in economic conditions between core/periphery regions as a result of globalization of the economy. Ding in the periphery have less access to the world centers of economics in the core. Semi-periphery countries-intermediate in economic development/or situated close o core/periphery regions. Latin American development prospects tied to North America, Africa and east euro tied to western euro. Asia to Japan. As countries like China/India/Brazil develop, relationships between core/periphery change, line between may need to be redrawn All locked together by capitalism Periphery:Least developed countries Exploited by the core for cheap labor, natural resources, and agricultural production Depend on the core countries for investment Semi-Periphery:Intermediate states Exploited by the core, but exploit the periphery Expanding manufacturing Taking on industries that the core countries no longer find profitable The Core:The Exploiters Military, social, and economic power to enforce inequality Use cheap labor, low quality of care towards consumers and producers. Internal wealth accumulation Taxation used to fund development by private institutions Centers of research and services

Changing patterns of oil trade and demand:

Developed countries supply a large share of fossil fuels, but still demand more energy than they produce, so they must import fossil fuels, especially petro, from ding. US imports of petro changed since 1973, Canada/Saudi Arabia now supply much higher shares that in the past. Demand for fossil fuels increasing in developing, so developed have greater competition. Declining demand for Petro from LA to the US, SWA to Europe/other asian countries. NG/non fossil fuel energy use expected to increase/coal/petro unchanged mainly unless price increase so less use/more if decrease in price. As ffs run out(extraction becomes too expensive/environmentally damaging) use of alternative energy sources accelerate. As petro consumption increases in ding(china/India)=d less influence on supply and demand=so sustainable energy a goal for all to have access to energy.

Manufacturing depends on the availability of abundant low-cost energy

Developed countries use energy to run factories, produce food, keep homes comfortable, transport people and goods, developing countries expect to use more energy to improve the lives of citizens A. Animate Power(Historically relied upon= power supplied by animals or people) B. Biomass Fuel(Wood, plant material, animal waste burned directly or converted to charcoal, alcohol, methane gas, still important fuel source in some developing countries, but in the past 200 years developed converted to using primarily fossil fuels)

How do developing countries get financing for development?

Developing countries lack money to fund development, so they obtain financial support from developed countries in one of two ways: Direct investment or loans

What do FDI/WB/IMF investments do?

Ding countries borrow money to build new infrastructure. Theory is that new infrastructure will make conditions more favorable to domestic and foreign businesses to open or expand (No business wants to located where there is no paved roads, running water, electricity) In principle, new or expanded businesses are attracted to an area b/c improved infrastructure will contribute additional taxes that the ding will use in part to repay loans and improve its citizens living conditions. Potential negative effects of investments: WB itself judge 1/2 of projects in Africa to be failures -projects don't function b/c of faulty engineering -recipient nations squander/or spend the air on military weapons and equipment (armaments) or the aid is stolen -new infrastructure does not attract other investment Some countries have been unable to repay interest on loans or principal even(amount borrowed before interest). DEBT exceeds annual income in some. When they can't repay debts, financial institutions in developed refuse to make further loans, so construction of need infrastructure stops. Inability to repay loans also damages financial institutions stability of banks in developed countries

Basic differences between various mineral resources

Earth has 92 natural elements, 99% of crust composed of 8 of them. When combined w/ rare ones=approx 3000 different minerals w/ impt. industrial uses. Alloys(combined metals) either ferrous(with iron) or nonferrous. Nonmetallic/metallic. Not distributed uniformly across earth

Using water as an energy source is more difficult than other sources of energy:

Easy to be polluted(flowing/moving) heavy human demand for water. Polluted water can harm aquatic life, needs oxygen that waste can kill for plants/animals, humans can be infected by eating infected fish.

3 main industrial regions

Europe: 1st to industrialize during the 19th century, Many industrial centers emerged here North America: industry grew very fast in 19th, NA's manufacturing traditionally in NE US/SE Canada, in recent years=south(lower wages/legislation makes unions difficult for factory workers) East Asia: impt. Industrial Region in 2nd half of 20th century, beginning w/ Japan/ Into 21st, China emerged as world's leading manufacturing country) 4 countries account for 1/2 of world's industrial output: China, US, Japan, Germany

Fordist Production:

Factories assign each worker one specific task to perform repeatedly. Called FP or Mass Production because the Ford Motor company was one of the 1st companies to organize production this way in the early 20th century

Fair Trade for Consumers

Fair trade for consumers: cooperatives stores are member owned businesses that operate for the benefit of its members. It is owned by the shoppers, not a corporation, and is democratically governed Most FT products can reach through consumers through cooperative stores: A member-owned, member-governed business that operates for the benefit of its members according to common principles agreed upon by the international cooperative community. Consumer-owned coop movement originated in 19th in response to poor working conditions Most Products: Food bought and co-op groceries; 1st Era: Great Depression(ppl in poverty banded to improve their lives through self-help, brought electricity to rural areas where pop. density was too low for private companies to serve profitably); 2nd Era: 1960s and 1970s (Counter-culture movement, ppl felt alienated from profit-making corps banded to open these); 3rd Era: 2000s-now- Buy healthier, local, organic, and non-GMO; Connect with producers; Cut cost on exploitative intermediaries Most FT products: foods, coffee, tea, bananas chocolate, cocoa, juice, wine, sugar, and honey FT doesn't necessarily cost more b/c FT orgs bypass exploitative intermediaries and work directly w/ producers, they are able to cut costs and return a greater % of retail price to producers.

Fair Trade for Producers

Fair trade for producers: ensures that a greater share of the price of a product goes to the individuals making the products. Critics of international trade model charge that only a small % of the price a consumer pays for a product reaches the individuals in the developing country who are responsible for making or growing it. most goes to wholesalers, importers, distributors, advertisers, retailers, instead of the one making the produce. Fair trade returns on avg. 1/3 of the price to producer in ding. Goals: -raise income of small-scale farmers/artisans by eliminating some intermediaries -distributing profits and risks associated w/ production and sale of goods more fairly among producers, distributors, retailers and financiers -increasing the entrepreneurial and management skills of the producers -promoting safe and sustainable farming methods and working conditions: prohibiting use of dangerous pesticides/promoting production of certified organic crops Int. FT organizations set standards for implementing principles and monitor, audit, and certify that practices comply with these standards

Fair Trade for Workers (on farms and in factories):

Fair trade for workers: protects workers rights by allowing them to demand fair wages and protect their health and safety Protection of workers rights is not a high priority in international trade approach, according to critics, who charge oversight of worker conditions by governments and international lending agencies is minimal. Workers work long hours in poor conditions for low pay. Children/forced labor may be in workforce. Health problems may result from poor sanitation and injuries from inadequate safety precautions. Injured, ill, or laid-off workers not compensated. FT Requires: workers must be paid fair wages, at least enough to cover food, shelter, education, healthcare and other basic needs. Workers must be permitted o organize a union and to have the right to collective bargaining. Workers must be protected by high environmental and safety standards. Cooperatives also enable small-scale farmers and artisans to undertake fair trade production. Producer and worker cooperatives offer several advantagesL -a cooperative can qualify for credit so that funds can be borrowed to buy equipment and invest in improving farms, materials can be purchased at a lower cost, the ppl who grow or make the products democratically manage allocation of resources and assure safe and healthy working conditions, profits are reinvested in the community instead of going to absentee corporate owners How do cooperatives help consumers connect more directly with the companies and workers responsible for the items?

Explain in a thorough paragraph why female representation in government and leadership roles is essential to a country's overall devleopment.

Female representation in government and leadership roles is essential to a country's overall development because if these things happen it shows that many women are taking part in the labor force of a country and are allowed to take part in such activities. If gender equality is higher in a country, men and women are both allowed and encouraged to work in a country, leading to a wealthier nation. If a more equal nation has these opportunities open for both genders, then government/leadership roles are able to be filled by men and women. If a country has more people working in it, then it will become far wealthier and therefore more developed. A country also becomes more socially developed when equality is awarded to all members.

Fair Trade Standards

Focuses primarily on products exported from developing to developed. Sustainability is promoted by offering better trading/working conditions for producers and workers in developing countries. Fair trade organizations, backed by consumers, raise awareness of deficiencies in conventional production/trade & the role of Fair trade in improving economic, social and environmental conditions for producers and workers 3 sets of standards:

Distribution of manufacturing jobs in Europe:

Gov policies have encouraged relocation toward economically distressed peripheral areas. Manufacturing has diffused form the traditional industrial centers in northwest europe toward southern and eastern europe. Gov policies have encouraged to an extent, The EU Structural Funds provide assistance to convergence, competitive, and cooperative regions Convergence: primarily in Eastern/Southern Europe, where incomes lag behind Europe's average Competitive and Employment Regions: primarily Western Europe's traditional core industrial areas, have experienced substantial manufacturing job losses in recent years Territorial Cooperative Regions: are near borders between European Union countries and neighboring countries. Spain had most rapid manufacturing growth during the late 20th(admission for EU in 1986) Had been isolated physically and politically. Motor Vehicle Industry grown into 2nd largest in Europe(behind Germany), entirely foreign owned however), centered in Barcelona in the NE Euro Countries east of Russia/west of Germany have had great industrial investment since fall of communism in the early 1990s, Central Europe offers labor and market proximity-lower pay than in Western Europe. Very close to Western European Markets instead of cheaper countries farther away, now has an increasing share of the region's motor vehicle production

Alternative Energy Sources and the challenges to using them:

HYDROELECTRIC POWER: generating electricity from the movement of water. Popular in developing. May decline b/c few acceptable sites to build new dams remain. BIOMASS: fuel derived from plant material and animal waste, when carefully harvested is renewable. Might not increase b/c burning may be inefficient b/c energy used to grow crops maybe as much as energy supplied, already has essential purpose other than energy (food, clothing, shelter) when wood burned instead of left in forest=forest fertility decreases WINDPOWER: doesn't severely modify the environment/potential for increased use b/c only a small portion of the resources has been harnessed.Obstacle in ding=high cost of constructing wind turbines/can be noisy/lethal for birds and bats, ugly, not enough wind in some places GEOTHERMAL: Energy from hot-water/steam from natural nuclear reactions that make Earth's interior hot, volcanic areas especially hot rocks touch groundwater that can produce heated water that can be tapped by wells, feasible at places at sites where crustal plates meet(earthquakes/volcanoes) for the heating from geothermal steam SOLAR: The ultimate renewable source (good for ding b/c its free and able to acquire some tech) limitless expansion/doesn't need to be bought/no pollution. Will become more attractive as fossil fuel price rises Harvested through Active/Passive means. Passive Solar Energy Systems: capture energy without using special devices9south-facing windows and dark surfaces) Active Solar Energy Systems: collect solar energy and convert it to either heat or to electricity. Photovoltaic cells convert to electricity/solar panels made by silicon/is a direct conversion, Indirect is solar radiation-->heat-->electricity. Pipe filled w/ oil heated by concentrated rays to heat water or rocks. Store energy for night/cloudy days use. Good for areas w/ little sunlight= can also use more reflectors/lenses and larger storage containers. Solar can create elec at control station and distributed by an electricity company

Fair Trade

Has been proposed as a variation of the international trade model of development that promotes sustainability. it is international trade that provides greater equity to workers, small businesses and consumers. Are made/traded according to standards that protect workers and small businesses in developing countries Fair Trade: a variation of international trade that promotes sustainability - international trade that provides greater equity to workers, small businesses and consumers. Fair trade products are made and traded according to the standards that protect workers and small business in developing countries.

1. Traditional Society

Has not yet started the process of development. Very high percentage of people in agricultural, high percentage of national wealth allocated to non productive activities(military, religion)

Four Asian Tigers/Dragons(example of int trade model working)

Hong Kong, Singapore, South Korea, Taiwan Singapore/Hong Kong were British colonies, were large cities surrounded by very small amounts of rural land/virtually no natural resources. Lacking NRs, the 4 promoted development by concentrating on producing a handful of manufactured goods, especially clothing & electronics. Low labor costs enabled them to sell products inexpensively in developed countries. Water access/trade point location and small size lead to int trade working

industries first affected by Industrial Revolution

IRON: iron tool industry. usefulness of iron well-known, but the difficult process to produce was because ovens had to be constantly heated: difficult before the steam engine TRANSPORTATION: canals/railroads, enabled factories to bring in large numbers of workers, bring in bulky raw materials(iron ore/coal) and ship finished goods to consumers TEXTILES: production transformed from a dispersed cottage industry to a concentrated factory system during the late 18th. 1768=Richard Arkwright in England invented machines to untangle cotton prior to spinning. Too large machines for cottages. Spinning frames placed in side factories near sources of rapidly flowing water that supplied the power. Textiles are fabric business/industry CHEMICALS: chemical industry created to bleach and dye cloth in 1746, Roebuck/Garbett established a factory to bleach cotton with sulfuric acid obtained from burning coal, when combined with various metals, sulfuric acid produced Vitriol Acid, which is useful for dying clothing FOOD POISONING: in 1810, Frenchman Appert, a confectioner canned foods in glass bottles sterilized in boiling water. Canned food essential to feed factory workers who no longer lived on farms

International Trade Main points

IT=late 20th century to today Main characteristics: identify one or a few distinct or unique economic assets and resources, develop those industries, and use profits from your strong sector or sectors for more general development of country Also called: modernization Model/Rostow

Why is it more difficult to dispose of hazardous waste:

If poisonous industrial residuals are not carefully placed in protective containers, the chemicals may leach into the soil and contaminate groundwater or escape into the atmosphere. Can cause bad health. More safety protections/expense to deal with the hazardous materials that are unwanted byproducts or waste to be discarded after usage in manufacturing

Distribution of Manufacturing jobs in the US has changes:

In developed regions, industry is shifting away from the traditional industrial areas of northwest europe and the northeast United States. In the US, industry has shifted from the northeast toward the south and west. The South was very poor after the civil war and lacked infrastructure needed for industrial development. Industrial growth in the south since the 1930s stimulated by government policies to reduce historical disparities. Electricity brought and roads constructed in previously inaccessible sections. AC made living/working in the South more tolerable. Motor vehicle production attracted to the South, along w/ steel, textiles, tobacco products, furniture industries in smaller communities, ppl there work for less pay than in North/no unions; so a sought after site factor. ALSO LOWER TAXES IN CONSERVATIVE STATES. Gulf Coast= accessible to oil/natural gas. Oil refining, petrochemical manufacturing, food processing, aerospace product manufacturing along the input-filled coast)

Optional location for steel production has changed

In past, steel production was a bulk-reducing industry located near inputs. As inputs changed, the model changed. Raw materials like heavy, bulky iron ore/coal formed into a lighter processed steel/easier to ship. Now relocated to be closer to markets b/c now scrap meal is the main input into the 9recently growing) steel minimills. Minimills now generally 1 step in process of steel production, and are less expensive to build/operate, and a location near market b/c main input of scrap metal is widely available.

Self-sufficiency path to development

In the self-sufficiency model: countries encourage domestic production of goods discourage foreign ownership of businesses and resources protect their businesses from international competition Countries encourage domestic production of goods, discourage foreign ownership of businesses & resources and protect their businesses from international competition -Barriers limit import of goods from other places (high taxes(tariffs) on imported goods--> makes more expensive than domestic, fixing quotas o limit the quantity of imported goods, requiring licenses in order to restrict the # of legal importers -Fledgling businesses aided to success by being isolated from competition w/large international corporations. Insulation from adverse impacts of decisions made by businesses/govs in developed encourages a country's fragile businesses to achieve independence -Investment spread as equally as possible across all sectors of a country's economy and in all regions -Incomes in he countryside keep pace w/ those in city and reducing poverty takes precedence over encouraging a few people to become wealthy consumers

Longtime self-sufficiency advocates converted to int. trade during 1990s.

India dismantled its collection of barriers to int. trade -foreign companies allowed to set up factories and sell -tariffs/restrictions on import/export of goods reduced or eliminated w/ increased competition, Indian companies improved quality of products b/c of int. competition Countries like India converted to int. trade during the 1990s b/c of overwhelming evidence at the time that int trade better promoted development. After conversion, India's per capita GDP has grown more rapidly since leaving the self-sufficiency path The experience of India and other LDCs revealed three major problems with self-sufficiency: Too much government control left businesses with little incentive to improve Inefficiency: self-sufficiency protects inefficient industries. Companies protected from international competition do not feel pressure to keep abreast of rapid technological changes. Large bureaucracy: the second problem was the large bureaucracy needed to administer the controls. A complex administrative system encouraged abuse and corruption.

Industry/Industrialization

Industry: the process of making products by using machinery and factories. a group of businesses that provide a particular product or service. Industrialization: the development of industries in a country or region on a wide scale.

TRANSPORTATION

Inputs/Products transported via ship, rail, truck, or air. Firms seek to find the lowest-cost mode of transport. Cheapest Changes w/ distance shipped. Farther something transported=lower cost per km/mile. Must pay to load on/off vehicles, cost per km decreases at different rates for each mode b/c loading/unloading expenses differ for each mode Trucks: Most often used for short-distance, can be loaded/unloaded quickly/cheaply, better if shipped within one day. Trains: used to ship for longer than 1 day trips(between east/west coasts of the US) loading/unloading trains takes longer, but aren't required to make daily rest stops like trucks Ships: attractive for long-distances, cost per km, is very low, slower than land based, but can cross oceans Airplanes: most expensive for all distances so are usually reserved for speedy delivery of small bulk high-value packages

Situation Factors: proximity to Inputs

Inputs: minerals, materials, energy, machinery, and supporting services. Manufacturers buy from suppliers of inputs. Manufacturers sell to companies/individuals who purchase the products. Further transported=higher the cost, so a manufacturer tries o locate a factory as close as possible to its inputs and markets Closer to inputs/Markets? optimal plant location is as close as possible to inputs if cos of transporting raw materials to the factory is greater than the cost of transporting the product to consumers. The optimal plan location is as close as possible to the customer if the cost of transporting raw materials to the factory is less than the cost of transporting the product to consumers

Foreign Direct Investment

Investment made by a foreign company in the economy of another country. Int. trade requires corps based in a particular country to invest in other countries. Not evenly distributed among the world: In 2013, only 1/3 went to developing, while other 2/3 went to developed. Not evenly distributed around ding countries: 1/3 of all ding FDI went to China, another 1/3 to Singapore, Brazil, Russia, Mexico. Major sources of FDI are transnational corps that invest and operate in countries other than the 1 the company headquarters are located This is when a transnational corporation invest and operate in countries other than the one in which they are headquartered (Apple, McDonald's, Coca Cola, Canon, Toyota, Sony, etc.)

Rostow Model of Development

LDC's 1) traditional society 2) preconditions for take off 3) take off MDC's 4)drive to maturity 5) age of mass consumption WW Rostow Advocated int. trade approach, proposed 5 stages of development. According to int trade model, each country is in one of the 5 stages of development Assumes the most modern society is a liberal democracy with a capitalist economic system Based off ideas consumers save and invest personal wealth Industry needs capital to grow and make returns on investments

Mexico competing with China

Mexico's wages higher than in China, despite the higher site costs, however, Mexico still competes with China b/c it has a much lower shipping costs to the US/Euro than China. Also has signed free trade agreements w. many other countries in addition to the US.

4. Drive to Maturity

Modern technology diffuses to a wide variety of industries instead of just the original few. These industries then experience rapid growth comparable to the growth of takeoff industries. Workers become more skilled and specialized.

Site Factors in Industry: Labor, capital, land

Labor: minimizing labor costs important for some/needing a labor force. A labor-intensive industry is an industry in which wages and compensation to employees is a high % of expenses. Capital Intensive=lower expenditures on labor, developed countries: avg. to manufacturing workers is $35 an hour w/ added benefits. China/India less than $2 per hour, none/limited benefits. Motor-vehicle workers vs. Textile workers (labor intensive): motor vehicle workers payed higher hourly wages. Auto Workers earn high wages, but most of car wage accounted for by parts/machinery needed to put parts together, Labor a large % of cost of producing textiles compared w/ materials/machinery. Capital: manufacturers borrow capital(funds to establish new factories/expand). Silicon Valley clustering of high tech industries, most impt. factor in establishing here is availability of capital. Banks here are willing to provide money/where others hesitant, In developing countries if financial institutions short of funds/ they seek from developed. May not receive if in unstable country Motor vehicle industry in Michigan b/c financial institutions willing to lend/eastern banks were not Land: Land suitable for factory construction. Early on, located in cities for markets/transport rates, close to labor/capital. But didn't have land, just raw materials. Contemporary factories laid out 1-story buildings, land needed, now more likely to be in suburban/rural locations/cheaper, also transport easier w/ trucks overtaking trains, highway access not available in city/beltway access is important. Locate in industrial parks near suburban highway junctions.

Long and healthy life factors

Life expectancy at birth: the average # of years a newborn infant can expect o live at current mortality rates -people are healthier in developed countries b/c they possess resources to care for them, use wealth to protect those who can't work. Public assistance offered. Better health/welfare=longer lives. More older people, healthier babies/low infant mortality rate b/c better education for medical practices/better medical practices/access to medicine

Microfinance for Development

Many would be business owners in developing countries are too poor to qualify for regular bank loans. Alternative loan source: Microfinance, which is provision of small loans/other financial services to individuals/small businesses in developing countries that are unable to obtain loans from commercial banks. Grameen Bank: Established in 1977 by Muhammad Yonus (got Nobel Peace prize in 2006 for it). Based in Bangladesh, specializes in making loans for women (3/4 of borrowers) helps to strengthen economy/improve life quality. for women (often sole wage earners and mothers ) Only 1% of borrowers have failed to make their weekly loan repayments (very low for a bank)

Why has MV production moved to Mexico b/c of NAFTA:

Maquiladoras: production plants in Mexico near the US border(usually for motor vehicle production). Under US/MEX laws, companies receive tax breaks if they ship materials from the US, assemble components at a maquiladora in MEX, and export the finished product back to the US. Integration of North American Industry has generated fear in the US and Canada: labor leaders fear that more manufacturers will relocate production to Mexico to take advantage of low-cost labor. Labor-intensive industries(food processing, electronics, textile manufacturing) very attracted to regions w/ low wage rates

Reproductive Health

Maternal Mortality Rate: The number of women who die giving birth per 100,000 births. 16 per 100,000 live births in developed, 171 in developing. Most in SSA. Adolescent Fertility Rate:# of births per 1000 women ages 15-19. 19 births per 1000 women aged 15-19 in developed, 53 in developing In countries where effective control of reproduction is universal, women have fewer children, maternal and child health is improved. Women in developing regions are more likely than women in developed regions to die in childbirth or give birth as teens. Country's with higher reproductive health= low total fertility rate. STRESS EDUCATION FROM TAXES

Inequality-adjusted Human Development Index (IHDI)

Modifies the HDI to account for inequality within a country. Under perfect equality=the same. If IHDI is lower than he HDI, the country has some inequality. Greater difference=greater the inequality. Country where only a few people have high income, college degrees, good health care would have lower IHDI than a country where differences in income, education, access to health care are minimal. Developed countries have the lowest gap between HDI and IHDI(modest level of inequality) Lowest scores=sub saharan Africa and south Asia Regional Inequality - is all the money clustered in one area/city/state/province? Gender inequality - Do women have the same opportunities to seek an improved standard of living, access to knowledge, healthcare, and sustainable future aspirations?

BRIC

Much of the world's future growth in manufacturing is expected to cluster in a handful of countries known as BRIC (Brazil, Russia, India, China). Foreign ministers of these 4 countries started meeting in 2006, together they encompass 1/4 of the world's land area, and 3 billion of the world's inhabitants) only 1/6 of the world GDP though. China/India have 2 largest labor forces, Russia and Brazil are rich in inputs critical for industry. China/India/Russia could form a contiguous industrial region, but have long standing animosity=limited economic interaction, Brazil not contiguous as well. Still, BRIC concept is that if they work together, they can be the world's dominant industrial block in the 21st century. BRIC+acronym coined by the investment banking firm Goldman Sachs

Where factories are located

NEAR SOURCE OF INPUTS: Bulk-reducing industries NEAR MARKETS: bulk-gaining industries, single market industries, perishable product industries

Nuclear Energy challenges

Not renewable/but only need a small amount of material. Nuclear power= 14% of world's electricity. 2/3 generated in developed. Produces electricity from energy released by splitting uranium atoms in a controlled environment(fission). Radioactive waste (some lethal/dangerous)=Chernobyl(safety rly important) can't explode/but can have a meltdown(explosions in the radioactive material released into atmosphere) Earthquake/Tsunami, 3 reactors at Japan's Fukushima Daiichi nuclear power plant had a meltdown. There can be radioactive waste (No permanent storage-invented), Bomb material made of nuclear materials/diffusion of nuclear programs to terror-sympathetic countries could be dangerous. Limited reserves of uranium (proven reserves will last around 124 years at the current usage rate) uranium not distributed equally. Nuclear Power Plants also have a very high cost to built and run. Nuclear fusion a solution(fuse hydrogen to form helium) at millions of degrees (can't sustainably be done with current technology)

Post-Fordist Production:

Post-Fordist methods assembly lines are no longer filled with human beings but with machines - automation. A lean, or flexible production approach. Post-fordist-production is used to describe lean production, in contrast w/ fordist. Toyota pioneered. 4 types of work rules: -TEAMS: told to figure out how to perform a variety of tasks, workers willing to adopt more flexible work rules. Companies locate in communities w/ these workers. -PROBLEM SOLVING: problem addressed through consensus after consulting w/ affected parties rather than through filing a complaint -LEVELING: factory workers treated alike, and managers/veterans don't get special treatment, wear same uniform, eat in same cafeteria, parking in the same lot, take part in the same social activities -PRODUCTIVITY: Factories have become more productive through introduction of new machines/processes, they don't require physical strength, new machines/processes require skilled operators (typically w/ a college degree)

Rostow's Stages of Economic Growth

Primary: - extractive sector; direct extraction of natural resources from the environment; hunting and gathering, herding, fishing, mining, farming, lumbering,... Secondary: - manufacturing sector; processes raw materials & transforms them into finished industrial products; almost infinite range of commodities (toys, chemicals, buildings, etc.) Tertiary: - service sector; engaged in services (transportation, banking, education, ...) Quaternary: - concerned with collection, processing, and manipulation of information & capital (finance, administration, insurance, legal services, marketing) Quinary: - require a high level of specialized knowledge or skill (scientific research, high-level management)

Grape Example

Primary: the farm, the grapeSecondary: the raisin, the wineTertiary: the store where the grape and products of the grape are soldQuaternary: the bank where the farmer went to get a loan or the marketing company that created the commercial for the wine, or the lawyer who helped paten the wine logo.Quinary: Production of a hybrid grape, genetically altered

Contribution to GNI among primary, secondary, tertiary between developed and developing

Primary=more in developing/but decreasing Secondary=decreased in developed/now less than in developing Tertiary=high in developed and growing in developing

Perishable products companies

Products must be used in a set time frame, to deliver products to consumers as rapidly as possible, perishable product industries must be located near markets. Bakers/milk bottlers for rapid delivery. Processors of preserved foods=locate far away from consumers, no need for closer/less expensive/strategic(cheese production by dairy cows)

just-in time delivery

Proximity to market more important in recent years because of just-in time delivery, which is a shipment of parts and materials to arrive at a factory moments before they are needed. Parts arrive at a factory frequently (daily/hourly). Reduces money a manufacturer must lose in wasteful inventory and save money through reducing size of factory. Space not wasted on piling up a mountain of inventory. Disruptions from reliance on just-in-time delivery: Natural hazards(poor weather=slower transport), Traffic(delays), Labor unrest(Strike at one supplier plant=shut down entire production in a couple days)

3. Takeoff

Rapid growth is generated in a limited # of economic activities, such as textiles/food products. these few takeoff industries achieve technical advances & become productive, whereas other sectors of the economy remain dominated by traditional practices

How have they changed over the past several decades:

Recycling increases in the US from 7% of all solid waste in 1970--> 34% in 2013. 87/254 million tons of Solid Waste in 2013 recycled. Done by curbside programs, drop-off centers, buy-back centers and deposit programs. Sent to a recovery facility to be sorted and prepared as marketable commodities for manufacturing, bought and sold just like any commodity Remanufacturing--> 4 sectors account for more than 1.2, paper mills, steel mills, plastic converters, and iron and steel foundries. Far more popular now than in the past(more expensive to get resources now). Soviet Union diverted tributary rivers(flow into a larger body of water) to irrigate crops, killing the Aral sea between Kazakhstan and Uzbekistan (shrinking it). Wildlife killed and ships lie aground in Salt flats, that blow off and killed cotton fields. Fishing villages gone/abandoned. REQUIRES REMANUFACTURING. Both Recycling and Remanufacturing are ways for industry to create a sustainable production process.

GII factors

Reproductive Health: Maternal Mortality Rae/Adolescent Birth Rate Empowerment: female/male population with at least secondary education/female and male shares of parliamentary seats Labour Market: Female and male labor force participation rates Correlates to female reproductive health index, female empowerment index, female labor market index that all go into Female gender index (compared to empowerment/labour market men's ones) compared to men's

Principal lure affecting manufacturers:

Right-to-work law requires a factory to maintain an "open shop"/prohibits a "closed shop". In a closed shop, a company and union agree that everyone must join the union to work in the factory, in an open shop a union and company may not negotiate a contract that requires workers to join a union as a condition of employment 25 US states have these laws that make it more difficult for unions to organize factory workers, collect dues, and bargain w/ employers from a position of strength. Right-to-work laws send a signal that antiunion attitudes are tolerated or even actively supported. As a result, % of workers in a union are lower in the South than elsewhere in the US> Region attractive for companies working hard to keep out unions altogether.

Self-Sufficiency main points

SS=most of 20th century: main characteristics are to spread investment as equally as possible through all regions of a country and all industries and sectors of the economy. Protect domestic (home) industries through tariffs, import quotas and import licenses Also called: Balanced Growth/Anti-neocolonialism

Petroleum Rich Arabian Peninsula States (evidence of int trade model working)

Saudi Arabia, Kuwait, Bahrain, Oman, UAE. Once were among the world's least developed countries, transformed into some of the wealthiest countries due to escalating petroleum prices beginning in 1970s, used petroleum revenues to finance large-scale projects: housing, highways, hospitals, airports, universities, telecommunications networks. Steel, aluminum, petroleum chemical factories competed on world markets w/ help of government subsidies. Landscape of countries has been further changed by diffusion of consumer goods, such as motor vehicles and electronics. Supermarkets in Arabian Peninsula countries are stocked with food imported from Europe and North America

Fighting economic downturn

Simulus vs Austerity strategies

Progress on HDI

Since the UN began measuring HDI in 1980, both d/ding have made progress in HDI and its various contributors. Progress varies among the 3variable contributing to the HDI. HDI: gap in HDI between d/ding has narrowed since 1980, HDI increased more rapidly in ding than d. HDI increased in all regions. GNI per capita: Since 1980, has increased much more rapidly in d than in ding Education: Since 1980, mean years of education has increased by around the same # in d and ding. Increased by around 3 years in both Life Expectancy: Since 1980, life expectancy has increased by about the same # of years in d and ding Progress has been made in achieving development in most regions, but substantial gaps in performance between d/ding countries persist

The location fo world industry has changed in the past 50 years

Site factors, especially labor costs have stimulated industrial growth in new regions, both internationally and in developed regions also situation factors, especially proximity to growing markets= have played a part in the emergence of new industrial regions In 1970 almost 1/2 of world industry was in Europe/ 1/3 in NA, now the two account for only 1/4 each, Industries share of total economic activity declined in developed countries, increased a lot in developing countries

Situation Factors/Site Factors

Situation Factors: deal with transporting materials to and from a factory Site Factors: derive from distinct features of a place: labor, capital, land

GUIDE TO MAXIMIZING PROFITS

Special Economic Zones: Areas in a country in which the business and trade laws are different from other parts of the country in order to encourage foreign investment from multinational corporations Free Trade Zones: An area where goods can be stored, manufactured, or handled without paying extra fees such as tariffs - reduces productions costs Export Processing Zones: An area that promotes economic growth by offering incentives to roreigh entities - motivate companies to produce goods in an area and export those goods for sale Economies of Scale: When companies increase their production and also lower their costs - when they get larger they can produce more products at a lower individual cost - TV shows like the Avengers - the more movies and/or episodes made - reduce their cost of each individual movie/tv show is film it all at once - reduces the overall budget and makes it more efficient so they make more with less money. Therefore, Disney is an economy of scale. Just-in-time Delivery: Shipments of parts and materials are sent to a factory moments before they are needed for the production of a good or service - reduces inventory cost and maximize production because they don't have to worry about storing products and arrive moments before they are needed for production. Growth poles: similar to agglomeration - areas which concentrate on technically advanced industries that stimulate economic development - The Four Asian Dragons did this...

Catalyst that started the Industrial Revolution

Technology(inventions transform the way goods are manufactured. Most important=steam engine(patented 1769 by James Watt in Scotland) allowed all process steps in a building of manufacturing to be attached to a single power source. It pumps water more efficiently that mills/humans/animals. Steam-->cylinder-->pushes piston--> turns large wheel=drives machinery

To reduce disparities between developed and developing countries:

The 193 members of the UN adopted 17 sustainable development goals in 2015. All UN members agreed to achieve these goals by 2030. The Sustainable Development Goals replaced 8 Millennium Development goals adopted in 2002 w/ goal of achieving them by 2015 Generalize what the sustainable development goals focus on specifically (besides the obvious: sustainability) how does the UN plan to invoke change? Ending poverty, ending hunger/undernourishment and achieve food security and sustainable agriculture. Healthy lives/well being at all ages, equitable/inclusive education for all (goal of all kids in school). End gender equality and empower all women and girls(violence and discrimination). Availability/sustainable management of water/sanitation, access to affordable/reliable/sustainable modern energy for all. Inclusive/sustainable economic growth/full and productive employment. Resilient infrastructure/sustainable industrialization/urbanization. Reduce inequality, make human setttlements and citties safe, resilien, sustainable, inclusive. Sustainable consumption/production(recycling). Combat climate change. Conserve oceans and marine resources for sustainable development(water quality and overfishing). Promote sustainable use of terrestrial ecosystems, promote peaceful and inclusive societies/justice for all. Strengthen and revitalize he global partnership for sustainable development: target more aid from developed to developing(especially the least developed) Addresses HDI 3 factors. Human and environmental needs & correlation of the future.

5. Age of mass consumption

The economy shifts from production of heavy industry such as steel and energy, to consumer goods, such as motor vehicles and refrigerators.

Productivity

The value of a particular product compared to the amount of labor needed to make it. Can be measured by the value added per capita. VALUE ADDED= in manufacturing is the gross value of a product minus the costs of raw materials and energy. Value added per capita is around $67 per hour in the US. $18 in Mexico. Workers in developed countries and more productive than those in developing. Workers in developed produce more w/ less effort b/c they have access to more machines, tools, equipment to perform much of the work. Developing=human/animal power mainly

Which of the following explains a limitation of the three-tiered structure of Wallerstein's world systems theory?

The model locks most countries into the development model of core, semiperiphery, and periphery with little opportunity for peripheral economies to advance into the wealthy core. NOT The scale of the model does not pertain to individual countries but rather to regions in the global contexts of core, semiperiphery, and periphery. Because the 1st applies to regions, which is what the question asks

Sanitary Landfill

The most common method of disposal of solid waste, by compacting it and burying it under a shallow layer of soil. Hides it/doesn't disperse it but concentrates solid waste. Can pollute by chemicals released leaking into groundwater

Female labor force participation rate:

The percentage of women holding full-time jobs outside the home. Worldwide= 51%, 77% of men. Women in developed are more likely than women in developing to hold full-time jobs outside the home. SA and SWA & NA have large gaps in labor participation between men and women, but EA and SSA have smaller gaps b/c women hold jobs in agriculture or services in SSA, even when they have the world's highest fertility rates

Proven Reserve

The supply of energy remaining in deposits that have been discovered. Developed countries have historically had a disproportionately high supply of proven fossil fuel reserves Coal: At current demand, proven coal reserves would last 130 years. D and Ding regions each have about 1/2 of the supply of proven reserves, US=1/4, other d=1/4. Most of the ding coal reserves is in Russia/China NG: At current demand, proven reserves would last 56 years, less than 10% IN D, PRIMARILY Russia=25%, Iran/Qatar together 30% of world's proven reserves Petro: At current demand, would last 55 years, Ding=87%(mostly SWA and NA and CA) Venezuela, Saudi, Canada, Iran, Iraq together have nearly 2/3 of proven reserves

Gross National Income (GNI)

The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country Divide GNI by the total population= contribution made by average individual toward generating a country's wealth in a year

Outsourcing

Transnational corporations allocate productions tto lowwage countries through outsourcing, which is turning=turning over much of the respobsibility for production to independent suppliers. Has had a mahor impact on the distribution of manufacturing b/c each step in production process is scrutinized closely to determine the optimal location.

Vertical Integration

Typical of traditional mass production, called vertical integration, in which a company controls all phases of highly complex production process. VI traditionally regarded as a source of strength for manufacturers b/c it gave them the ability to do/control everything, car makers once making all parts, but not most outsourced to places that can make parts for cheaper and that are better.

GII over time

UN founded gender inequality has declined. Since the 1990s in all but 4 of 138 countries for which time-series data are available. Greatest improvement in SWA and NA. Modest improvement in the US< b/c have a higher birth rate among teenage women and higher morality rate in childbirth compared w/ other high HDI countries. Also % of women in the national legislature lower in the US than other high HDI countries

Developing countries account for more energy used than d countries in recent years(since 2006)

US long led, China now the leader, Highest per capita consumption of energy still remains in developed countries. Consumption of fossil fuels has been increasing at a much faster rate in developing, around 3% per year(compared to 1% per year in developed) Gap in demand between developing/developed will widen considerable in the years ahead. Developing countries consumer around 60% of the world's fossil fuels, Highest per capita consumption in North America, lowest in SSA.

OPEC(several developing countries possessing large petro reserves(SWA and NA) created the organization of the petroleum exporting countries (OPEC) in 1960, Originally formed to enable oil-rich countries to gain more control over their resource

US/EURO corps have exploited oil fields by selling the petro at low prices to consumers in developed/keeping most of the profit. Countries with oil nationalized(more tightly controlled the fields) prices set by govs rather than by petro companies.

How has OPEC affected oil prices?

Under OPEC control, world oil prices have increased sharply on several occasions; especially during the 1970s/80s and in the early 2000s(declined a few years after both periods of fuel price increases). Developed countries were optimistic oil prices would remain low for sometime, but in 2008, prices hit a record high in both real terms and accounting for inflation. The 2008 oil shock contributed to the severe global recession that year, Gas prices currently low in the US, but higher in most other developed countries.

Break-of-bulk points

When using multiple transport modes, many companies locate at a break of bulk point, A location where transfer among transportation modes is possible. Seaports/airports are important ones. Ex. Steel mill in Gary Indiana receives iron ore by ship via Lake Michigan, coal by train from Appalachia. Regardless of transportation mode, cost rises each time inputs or products are transferred from one mode to another. Containerization has helped make transfer of packages between modes easier - containers can be packed into a rail car and transferred quickly to a container shop to cross the ocean and then be loaded onto truck on the other end - large rectangular boxes that are uniform

Economics/free trade questions

Which of the following has fostered the most significant economic growth by eliminating import tariffs between member states? European Union (EU) Free-trade zones such as the countries of the North American Free Trade Agreement (NAFTA) are established to increase the ease and volume of international trade by... eliminating tariffs on goods that cross borders between member states

Loans: 2 major lenders to developing countries are the World Bank and International Monetary Fund Loans: this method is when money is given to developing countries with the intention of paying it back. Two major sources of loans come from the World Bank or International Monetary Fund (IMF) both associated with the UN to help stabilize countries. Unfortunately, some countries have not been able to repay loans and development or construction on a project comes to a halt.

World Bank: Includes int. Bank for reconstruction and development (IBRD) and the int. development association (IDA). IBRD provides loans to countries to reform public administration and legal institutions, develop and strengthen financial institutions and implement transportation and social service projects. IDA provides support to poor countries considered too risky to qualify for IBRD loans, IBRD lends money raised from sales of bonds to private investors; IDA lends $ from government contributions International Monetary Fund (IMF): provides loans to countries experiencing balance of payments problems that threaten expansion of international trade. IMF assistance is designed to help a country develop its economy without imposition of harsh trade restrictions/capital controls that could slow the growth of world trade. Does not lend for specific projects, funding of IMF based on each member country's relative size in the world economy WB/IMF conceived at a 1944 UN monetary and Financial Conference to promote economic development and stability after WWII/and to avoid repetition of policies that contributed to Great Depression of 1930s. IMF/World Bank became specialized agencies of UN when it was established in 1945

UN combines 2 measures of schooling for the HDI:

Years of school for today's adults: measures the # of years the average person aged 25 of older in a country has spent in school. Expected years of schooling for today's youth: measures the # of years the UN forecasts an average 5-year-old will spend in school Pupil/teacher ratio: the # of enrolled students divided by the # of teachers. Fewer pupils a teacher has, more likely that each student will receive effective instruction Literacy Rate: the % of a country's people who can read and write

nonrenewable resource

a natural resource that is not replaced as it is used in time

Global north/global south Brandt Line (north-south split) a line (approx. 30⁰N) that represents the divide between more developed regions (North) and less developed regions (South)

a way of representing relationships of inequality in wealth and power on a global scale (in this case by referring to the geographical locations of wealthier[north] and poorer[south] nations) Relationship between d/ding is often described as a north/south split. Most Developed north of equator, most developing south.

Purchasing Power Parity (PPP)

an adjustment made to the GNI to account for differences among countries in the cost of goods. For example, if a resident of country A has the same income as a resident of B but must pay more for a Starbucks latte, resident of B is better off. Deals with changes between currencies(strength of US dollar out of the US)

Austerity Strategy

argues that govt should sharply reduce taxes so that people and businesses can revive the economy by spending their tax savings, while cutting spending on govt programs in order to keep debt from swelling/hampering. the economy in the future. Int. Lending agencies frequently require countries to choose austerity (so less debt, more able to pay back loans)

Companies that Outsource:

especially important in the electronics industry. Largest electronics contractor is Foxconn, supplies chips/components for Apple/Intel. Employs around 1 million in China, working conditions scrutinized for a large % of employees living in dormitories near the factories, and they work long hours for low wages and low benefits. Intern program in summer employing young ppl/critics charge company is getting free child labor

NAFTA negative environmental impacts:

fears that it encourages firms to move production to Mexico b/c laws there governing air/water quality standards are less stringent than in the US and Canada

Ecotourism

form of tourism that supports the local environment and people by allowing the local population to control the tourism and utilizes sustainable practices to protect the local environment - instead of Hilton coming in and building giant resorts, the tourism industry is controlled by the local community which benefits the people, leads to local development, and protects the natural resources.

Some companies may choose to stay in a traditional industrial regions b/c

have skilled labour and rapid delivery to markets

Bulk-reducing industry

industry in which the inputs weigh more than the final products. To minimize transport costs, a bulk-reducing industry locates near its sources of inputs (copper production is an example) Concentration and smelting (The extraction of metal from its ore by a process involving heating and melting.) are located near mines because they reduce bulk and increase value per weight. Manufacturing in foundries (factory for casting metal) is not bulk reducing.

Skilled labor

labor that requires specialized skills and training

Motor Vehicle industries

likely to be built near market, bulk-gaining in fabricated metal market. Most vehicles produced near where they are sold, but nationality of the manufacturer is less likely to be local. Car makers operate assembly plants in all 3 major industrial regions.

Bulk-gaining industry

makes something that gains volume or weight during production. To minimize transport costs: need to locate near where the product is sold. Ex. beverage bottling. Product gains weight. Water is principal ingredient. So a filled container is heavier than empty/more expensive to ship. Bottlers locate near customers rather than manufacturers of products. Fabrication of parts/machinery from steel/other metals.

Gender-related Development Index (GDI)

measures the gender gap in the level of achievement for the 3 dimensions of the HDI (income, education, life-expectancy). If males/females have same HDI scores, GDI would be 1.0 Overall for the world is .920. Closer in developed, lowest in south asia, SSA, SWA and NA

Gender Inequality Index (GII)

measures the gender gap in the level of achievement in 3 dimensions: reproductive health, empowerment, and the labor market. Higher=greater inequality. 0=equal, 1= women fare as poorly as possible. Higher in developing: SSA, SA, CA, SWA and NA= reproductive health is the greatest factor/also poor empowerment

Benefits/Trends to the int. trade path:

most countries embrace this path. Long time self-sufficiency followers converted o int. trade path especially during 1990s. Trade increased more rapidly than wealth (GDP) during late 20th/early 21st. Three observations on benefits of int trade method: -developed countries in euro/NA joined by others in south/east euro and japan during 2nd half of 20th. They became more developed following int. trade model -Developing have abundant supplies of many raw materials sought by manufacturers/producers in developed countries. Sale of raw materials=generate funds for ding that with which they could promote development -country that concentrates on int. trade benefits from exposure to the demands, needs, preferences of consumers un other countries. To remain competitive, they need to evaluate chanbes constantly in int. consumer preferences, marketing strategies, producttion engineering and design echnologies

Recent Petroleum challenges

most of the world's petroleum is produced in Southwest Asia and North Africa and Central Asia(2 regions at the center of religious, ethnic, political conflicts) other developed countries have always depended on foreign petro b/c of limited domestic supplies. (US produced more than consumed in 1st half of 20th, but determined that importing from Southwest and central Asia less expensive by transnational corps in control of international petroleum distribution) Now imports more than produces to meet demand)

Potential Reserve

the supply in deposits that are undiscovered but thought to exist. (can be converted to proven in 2 ways) -Fields yet to be developed: when first exploited, very easy to extract w/ the abundance, extraction more difficult to get last bits out of a reserve: more time, expense, in petro, special tech ease) -Fields yet to be discovered: Largest, most accessible deposits of ffs already exploited, newly discovered reserves generally small/more remote (such as beneath seafloor) and extraction is costly. Exploration costs have risen b/c methods are more elaborate/probability of finding new reserves lower, so energy prices climb, in future exploration costs may be justified

Gross Domestic Product (GDP)

the value of the output of goods and services produced in a country in a year, but does not account for money that leaves or enters the country

Economic Restructuring

urban areas shifting from a manufacturing(industry and factories) to a service sector economic base Leads to a decline in jobs in core regions and an increase in jobs in newly industrial regions

The Industrial Revolution

was a series of improvements in industrial technology that transformed the process of manufacturing goods, development process that began in the UK in the late 1700s. Prior to this, industry was in the cottage industry system: home based manufacturing, geographically dispersed. An industry where ppl make household tools/agricultural equipment in homes or buy at a local village

Alternative energy sources

wind, solar, waves, biomass, geothermal, nuclear