Unit 7: Industrialization and Economic Development

Quaternary Economic Sector

(information analysis and development) -branch of tertiary that consists of intellectual activities often associated with technological innovation or managing and processing of information. This includes the creating of data, and the processing of data. So IT workers in new technology companies, financial analysis at big stock broking companies, and data science such as statisticians. These are mostly the workers in technology and research. example those working at Google. People doing the highest level of technological development and research are quinary.

Secondary Economic Sector

(manufacturing) Processes, transforms and assembles raw materials into useful products. These wages can vary greatly depending on country, and level of technical skills involved. Grew significantly after the Industrial Revolution. Still some of these jobs in developed countries, but many of these jobs have moved to semi-periphery countries.

Tertiary Economic Sector

(services) Provision of goods and services to people in exchange for payment. These wages can vary wildly depending on the service, from housekeeping and working at stores to taxi drivers, teachers, and lawyers and doctors. This sector is most jobs in developed countries.

transnational corporation (TNC)

(syn multinational corporation) a large business organization operating in at least two separate national economies. Some of these are absolutely massive and have more income than whole countries such as Apple, Nestle, and Starbucks. -In developing countries, these will hire women when other local companies might not.

Growth Poles/Growth Centers

- Economic stimulus associated with technopoles - Concentration of high value economic development attracts even more development - Each time businesses are attracted to growth pole, "magnets" becomes even stronger and attracts even more

Criticisms of Rostow's Model

- based only on patterns of Western Europe and and Anglo-American countries - does not consider issues that might limit a country's ability to develop (eg. post-colonial dependency) -the model suggests that every country wants to have high mass consumerism, but people are become more environmentally conscious -failed to recognize history- most countries that are fully developed did so by exploiting other countries. This practice has mostly ended, and should not be repeated. -the model has a narrow focus as it mostly focused on domestic economies and not interactions between countries. -still used to look at how many countries have changed over time. Some countries have followed this model such as Brazil.- but we have to be careful not to push this model on developing countries.

Criticisms of World Systems Theory

- downplays the role of culture - somewhat outdated because it puts the whole focus on industries, but the tertiary sector is the dominate economic powerhouse for most post-industrial societies - of limited practical use because it labels different countries, but does not provide a path to growth - fails to recognize the role of nongovernmental organizations and focuses too much on governments -environmental issues not taken into account

Employment and Economic Sectors in the United States

-1800s- most in primary sector -Industrialization- growth in secondary sector, with primary decreasing. Tertiary also grew. -today- much less in primary (agro-businesses), still some secondary, but most of the population in is tertiary. While still small as a percentage, the US has more quaternary and quinary jobs than most countries.

energy consumption around the world

-Developed countries use a significant amount more of energy. This is because of many appliances, travelling more, and mass consumerism.

Wallerstein's World Systems Theory

-Developed in response to Rostow's theory in the 1970s. -Dependency model- few countries exist in isolation -tries to explain inequality, so also known as the Core-Periphery model 1. The world economy has one market and a global division of labor. 2. Although the world has multiple states, almost everything takes place within the context of the world economy. 3. The world economy has a three-tier structure. (Peripheral, Semi-peripheral, Core)

Government policies in economics

-Government policies and tax usage greatly impact many factors that influence business decisions. -high or low taxes on companies -tax money used on transportation networks -safe and peaceful with predictable enforcement of laws and regulations. Companies do not like have to pay bribes, or risk riots -tariffs on needed materials -economic zones that reduce costs

How has the Industrial Revolution facilitated the growth and diffusion of industrialization?

-Industrialization began as a result of new technologies and was facilitated by the availability of natural resources? -As industrialization spread it cterm-0aused food supplies to increase and populations to grow it allowed workers to seek new industrial jobs in the cities and changed class structures -Investors in industry sought out more raw materials and new markets, a factor that contributed to the rise of colonialism and imperialism

What are some social and economic measures of development and what are they used for?

-Measures of social and economic development includes GDP; GNP; GNI- all also per capita; sectoral structure of an economy both formal and informal; income distribution, fertility rates, infant mortality rates, access to health care; use of fossil fuels and renewable energy; and literacy rates -measures of gender inequality, such as the Gender Inequality Index (GII), include reproductive health, indices of empowerment, and labor-market participation -the Human Development Index (HDI) in a composite measure used to show spatial variation among states in levels of development

How do sustainability principles relate to and impact industrialization and spatial development?

-Sustainable development polices attempt to remedy problems stemming from natural-resources depletion, mass consumption, the effects of pollution, and the impact of climate change -Ecotourism is tourism based in natural environments- often environments that are threatened by looming industrialization or development- that frequently helps to protect the environment in question while also providing jobs for the local population -The UNs Sustainable Development Goals help measure progress in development, such as small-scale finance and public transportation projects

Gender Inequality Index (GII)

-This is a composite score that includes: -Reproductive health such as maternal mortality rates and adolescent fertility rates -Empowerment such as how many women are in government and what percentage of women are in secondary education -labor market participation such as what percentage of males to females work -scores are between 0 and 1. A score closer to 0 means there is less division between men and women. -Western Europe usually has the countries with the lowest gap including Iceland, Finland, Norway, Sweden, and Ireland. Rwanda with a required half of women in parliament also has a high ranking. Countries with the lowest equality were Yemen, Papua New Guinea, Chad, CAR, Mali, Afghanistan, and a mix of other mostly African and Southwest to South Asian countries.

history of trade barriers

-before many countries had trade barriers to protect growing industries -as these became wealthier, many adopted free trade policies -since WWII, most core countries have promoted freer trade, cornerstone of neoliberal policies -1980s with US president Ronald Reagan and UK PM Margaret Thatcher- led neoliberal policies -as other countries develop- they usually reduce trade restrictions

efforts to control pollution

-companies usually have little incentive to change, because being the first to do could mean going out of business with too many costs -usually governments have to change regulations -In the United States this was the Clean Air Act in 1970 which limited six major types of air pollution. This meant fewer deaths, hospitalizations, and less school missed. This has also made water cleaner in the US.

What are the causes and geographic consequences of recent economic changes such as the -increase in international trade, -deindustrialization, and -growing interdependence in the world economy

-complementarity and comparative advantage establish the basis for trade -Neoliberal policies foster greater globalization free trade agreements, have created new organizations, spatial connections, and trade relationships, such as the EU, World Trade Organization (WTO), Mercosur, and OPEC -Government initiatives at all scales may affect economic development including tariffs -Global financial crises international lending agencies (IMF), and strategies of development (microlending) demonstrate how different economies have become more closely connected, even interdependent -Outsourcing and economic restructuring have led to a decline in jobs in core regions and an increase in jobs in newly industrialized jobs -In countries outside the core, the growth of industry has resulted in the creation of new manufacturing zones, free-trade zones, and export-processing zones- and the emergence of an international division of labor in which developing countries have lower-paying jobs. -The contemporary economic landscape has been transformed by post-Fordist methods of production, multiplier effects, economies of scale, agglomeration, just-in-time delivery, the emergence of service sectors, high technology industries, and growth poles

New international division of labor

-core countries: people design and develop products for the global market. There are many tertiary, quaternary, and quinary jobs -semi-periphery countries: people often manufacture goods that are sold in core countries. Employment has moved some away from primary to secondary -periphery countries: large primary sector and mineral export to semi-periphery countries for processing

Consequence of recent economic changes

-corporations increase profits by moving production to semi-periphery countries -workers in core countries lose their jobs which results in multiplier effect -workers in semi-periphery and periphery countries can suffer from poorly regulated working conditions and weak environmental regulations.

barriers to gender equality

-cultural as some societies are more conservative -lack of educational opportunities which can limit employment -limited access to loan and other resources to start or expand a business

gender gap

-differences in the privileges afforded to males and females in a society -could be in education, employment, wages, voting rights, health care access, political empowerment, property rights, inheritance, and even such simple things as driving a car -the gender gab can be explained with qualitative data, as well as quantitative data such as the GII

energy cost on location of manufacturing

-early industry dependent on location of water power such as rivers -1850s- industry could locate in population centers, but still need access to coal -1900s- electricity made it easier for industry to have a greater variety of locations -some modern industries need vast amounts of power such as aluminum production. Even though these are bulk-reducing industries- they locate close to cheaper alternate energy sources such as hydro, or geothermal to reduce costs.

Toward Gender Equality

-expansion in employment: TNCs will hire women, the decreasing birth rate means more people are needed and women can support families -NGOs along with other international organizations: these help provide microloans and create grassroot organizations that support women's rights and access to education -United Nations: women are a part of the sustainable development goals and have their own budget within the UN. Much international aid has gone to improving the rights and opportunities for women in developing countries

Modern Industrialized Regions

-huge change in past 50 years. Before-most of the northern hemisphere including the eastern US, Western Europe, parts of Russia, Japan. Today- many factory jobs have moved away from Europe and the United States to semi-periphery countries such as China, India, Mexico, and Brazil.

impact of pollution

-impacts plants, animals, and humans -pollution caused 16% of deaths worldwide in 2015 -most who die are children -increases health care costs -causes people to miss school and work because they are ill or need to take care of someone -worldwide pollutions costs about $4.6 annually or about 6% of global output

Diffusion of the Industrial Revolution

-it started in England with the use of textile machines, but then spread to the Netherlands and other parts of Europe. Once the steam engine in 1850s, all types of tasks could be done by machines away from rivers. Many industrial cities sprang up across the European continent and in the United States. Some parts of Europe such as Russia, had little industrialization; while some other parts of the world industrialized quickly such as in Japan, under the Meiji Restoration (1868).

modern technology impact on trade

-larger and faster ships -containerization -improvements to canals and new port facilities -increases in air cargo -improvements in computer software that makes tracking packages easier -internet has increased efficiency of trade and transportation information systems -online sales increase trade -all have reduced the costs of transportation, increased efficiency, and increased globalization

consequences of interdependency with the example of oil

-oil companies lost revenue with prices decreased in 2014 -oil companies limited production and people lost their jobs. Some 250,000 in core countries -Governments which were commodity dependent on oil, lost significant tax revenue from oil. Venezuela went into economic collapse -investors were affected -coal workers also lost jobs because companies chose to use cheaper oil -companies focusing on alternative energy lost investment as consumers chose to stick with oil cars and energy sources. Some examples include solar power, wind power, electric cars. These are only price competitive when oil prices are high.

flexible location industries

-online businesses: high-speed internet services increase online activity. -some companies have a large quantity of at home workers -some companies still need distribution centers and access to transportation networks -informational services including call centers can locate in more rural areas for cheaper labor as long as they have fast internet- some even locate abroad such as in India or the Philippines -many of these are footloose- they can pick up and leave for a new location quickly and easily -some companies have a prestigious head office (front office) in an expensive main city- but workers are located elsewhere (back office)

working remotely

-possible with tertiary jobs -increased with Covid -could change the built environment

To what extent have changes in economic development contributed to gender parity?

-roles of women change as countries develop economically -Although there are more women in the workforce, they do not have equity in wages or employment opportunities -Microloans have provided opportunities for women to create small local businesses, which have improved standards of living.

urbanization of the industrial revolution

-rural to urban migration -urban areas changed very quickly and most could not keep up with the population -large tenement apartment blocks with no sanitation- entire families of 7 or more lived in small rooms. Cities built up and out- but with little infrastructure -jobs in factories were difficult and dangerous- any people injured were easily replaced in factor and no government support to help families -smoke from coal steam engines created hazardous working conditions and large cities had massive air pollution -small children had to work, some in dangerous mines -some factory and businesses owners because very wealthy -rising middle class of factory managers and office workers- new consumer culture

Government incentives for companies

-tax breaks -loans -direct assistance such as access to land, infrastructure projects, subsidy -changes in regulations, such as weaking unions, or reducing environmental rules -tariffs,

What are the spatial patterns of industrial production and development?

-the different economic sectors- primary, secondary, tertiary, quaternary, and quinary- are characterized by distinct development patterns -Labor, transportation (including shipping containers), the break-of-bulk point, least cost theory, markets, and resources influence the location of manufacturing such as core, semiperiphery, and periphery locations the theories important for this answer would involve Weber's Least Cost Theory

Non-basic economic activities

-these recirculate money within a community, but do not bring in any new money to an area -some examples include many tertiary jobs such as working at a gas station or fast-food restaurant.

factors decreasing trade

-trade barriers, these are put on my countries who try to protect local businesses, and can change as governments change -sanctions, countries put economic sanctions on other countries to try and change countries. They are usually imposed when there are civil rights abuses such as on Myanmar and Russia. Can also be political such as sanctions on Iran for trying to build nuclear bombs. -trade wars, countries will disagree over other countries use of trade barriers and will impose trade barriers that only affect one country. For example president Trump and China in 2018. Both countries put tariffs on each other. -health problems, Covid-19 and the efforts to reduce spread have reduced trade. Countries such as China are trying for zero covid which can shut down entire ports. Consumer demand also can decrease. -political situations, sometimes governments do something that that many other countries disagree with and this can affect trade. Russia's invasion of Ukraine has increased fuel and food prices- which can disrupt trade.

development statistics

-used to make comparisons using qualitative data -to make comparisons more useful often numbers are converted or standardized for example: -most money in converted into US dollars to make comparison easier -many statistics are converted to PER CAPITA, as a way of comparing countries with different sized populations. -demographers will use PPP to account for the value of goods and services across countries

economies of scale

-we learned this with the agriculture unit where large farmers can use the same equipment but over larger fields and produce more food and profit -mechanization does this as well with industries; mechanization takes greater startup capital- but can reduce costs over the long term.

scale of analysis in location of factory in the US

-will the company market goods globally, nationally, regionally, or just locally? -many new factories are in the southeastern US because of lower wages, less unions, and tax breaks for companies.

Industrial Revolution

1750s-A series of improvements in industrial technology that transformed the process of manufacturing goods. It started in Great Britain with using water powered technology. In the 1850s, the steam engine made it possible to have power generation everywhere. The Industrial Revolution changed human civilization more than anything before and sense. What followed was mass urbanization, using machines to produce food, and the fast production of war weapons led to Imperialism.

transnational corporation

A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located. -also known as MNCs or multinational corporations

Outsourcing

A decision by a corporation to turn over much of the responsibility for production to independent suppliers. This is usually done because an outside company specializes in certain work and can do it cheaper. One example would be an accounting company to help with taxes, or a transportation company.

subsidy

A government payment that supports a business or market. For example, the United States subsidizes corn farmers. The US spent 116.6 billion to help grow corn. This makes US corn cheaper, which is then used as ethanol in petrol. However, it also makes corn oil used in soft drinks and other products very cheap. Mexico's corn famers have a difficult time competing to sell corn, even in Mexico.

Tariff

A government tax on imports or exports. These protect local producers, but also makes the products more expensive for consumer. For example, China recently put a tariff on US soybeans. This means within China- all US soybeans are more expensive. So Chinese food processing companies try to buy soy beans from Brazil or other countries where they are less expensive. US farmers struggled to sell their soybeans because China is the biggest market for them.

Break-of-bulk point

A location where transfer is possible from one mode of transportation to another. Using special containers has made this much cheaper.

Gross Domestic Product (GDP)

A measurement of the total goods and services produced within a country.

glass ceiling

A metaphor alluding to the invisible barriers that prevent minorities and women from being promoted to top corporate or government positions. This is usually because of cultural attitudes which in developed countries can be subconscious

Rostow's Stages of Development

A model developed in 1960 that tries to describe a country's journey to development. -Step 1: Traditional Society which is mostly made up of the primary sector with limited technology or socioeconomic mobility. No modern country in this stage. -Stage 2: Preconditions for Take off which has more infrastructure, more commercial agriculture including some exports. Some upward socioeconomic mobility. This would be countries such as Nigeria. -Stage 3: Take-Off, where there is more major technological innovations, the primary sector shrinks as percentage of labor force, more entrepreneurial mentality and urbanization. Example countries include Vietnam and India -Stage 4: Drive to Maturity, which creates to industries, sees improvements in energy, transportation, communication,- but the main focus in on creation of new industries, example countries Brazil -Stage 5: High Mass Consumption, this means that people spend much money on nonessential goods. The purchase of high order goods become common, and there is a strong tertiary sector. example countries include the US and Japan

NGOs

A non-governmental, non-profit organization that runs aid programs and lobbies for people's rights around the world.

Gini Coefficient/Index

A number between zero and one that measures the extent of income inequality in an economy, calculated by measuring the degree to which the Lorenz curve deviates from the line of equality. The closer to 1- the more inequality. Globalization has reduced global wealth inequality between countries, but increased inequality within nations. South Africa has the world's highest inequality, while the Faroe Islands has one of the lowest.

Interdependence

A relationship between countries in which they rely on one another for resources, goods, or services. If one does well- others do well. It one suffers economic collapse- other countries suffer.

locational triangle

A simple graphic model in Weberian analysis to illustrate the derivation of the least-transport-cost location of an industrial establishment. The location of a factory changes if it is bult gaining or reducing.

trade imbalance

A situation in which a country imports more goods than it exports. This can create political tensions.

World Bank

A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion, and debt consolidation. Its formal name is the International Bank for Reconstruction and Development.

Bulk-reducing industry

An industry in which the final product weighs less or comprises a lower volume than the inputs. This means that transportation of the raw material is more costly than the finished product. These companies are often located near their resources- for example lumber to furniture, beef to meat, mining processing, and other agricultural processing.

labor-oriented industry/ labor-dependent industry

And industry for which labor costs compromise a high percentage of total expenses. A company then has to move closer to their needed work force. For example many medical or technology industries are located near major universities.

Technopole

Centers or nodes of high-technology research and activity around which a high-technology corridor is sometimes established. These are usually located near universities. Some examples include silicon valley, the Research Triangle near three universities in North Carolina, and the Technology Triangle in California.

sustainable development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

What are the different theories of economic and social development?

Different theories help explain spatial variations in development -Rostow's Stages of Economic Growth -Wallerstein's World System Theory dependency theory commodity dependence

United Nations Sustainable Development Goals

Goal 1- end poverty, 2- end hunger, 3- ensure healthy living for all children 4- ensure equal and good education, also am equal opportunity, 5-achieve gender equality, 6-ensure availability of water, 7-ensure access to modern energy 8- promote employee and economic growth 9-build infrastructure 10- reduce inequality 11-17 deal with ensuring clean air and clean oceans and ecosystems -Covid has had a huge impact in achieving these goals

Agglomeration

Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources. -retail stores also agglomerate to draw in more customers. For example in Bangkok, there will often be many car dealerships near each other. But this creates a greater range from which to draw customers as people will travel further for greater variety.

Corporate Parks/Business Parks

Groupings of office buildings - seen more now than industrial parks. -One of the biggest is Samsung headquarters near Seoul where 35,000 people work.

substitution principle

In industry, the tendency to substitute one factor of production for another in order to achieve optimum plant location. This usually revolves around labor. One example is automation.

Human Development Index (HDI)

Indicator of level of development for each country, constructed by United Nations that is both an economic and social indicator. It is a composite indicator that combines the economic GNI with the Social of life expectancy, expected years of schooling, and average years of schooling. -The score ranges between 0 and 1- closer to 1 is better. Countries with higher HDI are usually better at other economic and social indicators- but NOT always. A countries can have a high HDI, but still have low representation of women in Parliament. Or countries can have a high HDI, but still have problems with inequality. Or a high GDP, but have a lower HDI.

bulk-gaining industries

Industries whose products weigh more after assembly than they did previously in their constituent parts. Such industries tend to have production facilities close to their markets. This includes soft drinks, car manufacturing, and other heavy electronics.

Weber's Least Cost Model

Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.

Offshoring

Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available. example-Many software companies will used skilled, but cheaper labor in India.

Mercosur

Pact among Argentina, Brazil, Paraguay, and Uruguay to establish a free trade area.

spin-off benefits

Positive outcomes in addition to the main outcome. Often applied to growth poles where even famers 100 miles away benefit from a tech center having more people. -also called spread effects

assembly line

Production method that breaks down a complex job into a series of smaller tasks. First advanced by Henry Ford to build cars. Many manufacturing plants still use this. -However, in some industries these steps have often been broken down and the steps are shipped around the world to the cheapest production place.

Just-in-time delivery

Shipment of parts and materials to arrive at a factory moments before they are needed. This reduces the need for expensive storage. The ability to accurately predict production needs can be difficult. This philosophy created huge unexpected shortages during Covid as there were supply chain problems and consumer demands changed.

Second Industrial Revolution

Steel, chemicals, electricity. This is the name for the new wave of more heavy industrialization starting around the 1860s, but more widespread by the 1900s. This included steel for large, tall buildings. Chemicals used to create everything from ink, to better fertilizers, to complex manufacturing techniques. Electricity was first used to light streets- then it moved coal burning to one area (outside the city), allowing for easy and safer access to power within cities.

Fordism

System of standardized mass production attributed to Henry Ford.

informal sector of the economy

That portion of the economy largely outside government control in which employees work without contracts or benefits. Examples include casual employees in restaurants and hotels, street vendors, and day laborers in construction or agriculture. Some of these are always illegal such as the drug trade, gang activity, identify theft, black market in organs and weapons. -In developing countries there is usually a larger informal economy as many jobs such as food stalls, house cleaners, and illegal migrants do not pay taxes.

Purchasing Power Parity (PPP)

The amount of money needed in one country to purchase the same goods and services in another country. For example, buying a whole chicken costs more in some countries than in others- so just because the income may be higher does not mean that those workers can afford more goods. And this is true in reverse- sometimes workers make less GDP per person- but goods cost less so their standard of living is higher than expected. This is where PPP tries to compare differences.

Formal sector of the economy

The legal economy that is taxed and monitored by a government and is included in a government's Gross National Product

Literacy Rate

The percentage of a country's people who can read and write.

Microlending

The practice of loaning small amounts of money to help people in less developed countries start small businesses. These can be more general, or more focused. Some will give to women in developing countries to increase development and social status. Others might focus on increasing access to education, or building a well.

agglomeration economies

The savings to an individual enterprise derived from locational association with a cluster of other similar economic activities, such as other factories or retail stores. This means companies can share transportation and service costs. For example, some factories require special repair technicians. These technicians can own their own company, but be hired by all of the different companies in an area when they need the specialized repairs. Often agglomerations will occur near needed workforce or needed raw materials. One example of an agglomeration is silicon valley in California.

maquiladoras

The term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the primarily foreign-owned factories assemble imported components and/or raw materials and then export finished goods. Many were created under NAFTA but they continue under USMCA. There are less today, though, because of competition for cheap labor in other countries.

Gross National Product (GNP)

The total value of goods and services, including income received from abroad, produced by the RESIDENTS or CITIZENS of a country within a specific time period, usually one year.

Containerization

The transporting of goods in standard-sized shipping containers. These are intermodal and can be carried by train, truck, ship, or plane. This greatly reduces the cost and time at break of bulk points, and other transportation hubs.

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. This is different from GNP, because it focuses on the income as well as products. So GNI is slowly replacing GNP as a more common measure of development.

World Systems Theory

Theory originated by Immanuel Wallerstein and illuminated by his three-tier structure, proposing that social change in the developing world is inextricably linked to the economic activities of the developed world. Groups countries into core, semi-periphery, and periphery.

locational interdependence

Theory that industries choose locations based on where their competitors are located. Businesses can share outsourced labor, and allows for observation of competition and the ability to poach workers.

USMCA (United States-Mexico-Canada Agreement)

This is a regional trade agreement between the United States, Canada, and Mexico that is designed to replace NAFTA. Many companies move production to Mexico. USMCA is putting more protection for Mexico's workers in place, as well as keeping some manufacturing in the US and Canada.

international financial institutions

This term generally refers to the International Bank for Reconstruction and Development (the World Bank) and the International Monetary Fund (IMF), but can also include other international lending institutions. The assistance can be large such as for infrastructure projects, or small such as microloans.

climate change

a change in global or regional climate patterns, in particular a change apparent from the mid to late 20th century onwards and attributed largely to the increased levels of atmospheric carbon dioxide produced by the use of fossil fuels. -This could increase the spread of tropical diseases -sea levels rise which could threaten the homes and safety of 40% of the world's population -extreme wealth increases such as flooding, droughts, and wild fires -more refugees Core countries have reduced carbon emissions more than others- but they have the money to pay for new technology

Imperialism

a policy of extending a country's political and economic power. Industrialization increased Imperialism because: -need for raw materials such as sugar, cotton, food, lumber, palm oil, coal, rubber -labor to extract raw materials -markets to buy newly created manufactured goods -ports for trading ships -competition driven by nationalism -new weapons that can be made quickly by machines such as guns and steamboats created imbalance in power

per capita

a statistic is then divided by the population. This makes comparisons easier between large and small populations

barter system

a system of exchange in which goods or services are traded directly for other goods or services without the use of money.

causes of pollution

air pollution -volcanic eruptions -dust storms, but made worse by overgrazing and deforestation -burning of wood, coal, or oil water pollution -dumping of waste from industries -farm chemicals flow into rivers or lakes

postindustrial economy

an economic phase in which manufacturing no longer plays a dominant role

Quinary Economic Sector

branch of tertiary that require an even higher level of specialized knowledge or technical skill such as those doing very difficult medical research or top managers in corporations and government. This includes vaccine manufactures, medicine and chemical researchers, presidents, prime ministers, etc

Brownfields

contaminated industrial or commercial sites that may require environmental cleanup before they can be redeveloped or expanded

core country

countries that dominate trade, control the most advanced technologies, and have high levels of productivity within diversified economies. This term is used by Wallerstein in the World System's Theory.

Core country

countries that dominate trade, control the most advanced technologies, and have high levels of productivity within diversified economies. examples include United States, UK, Japan, Australia, Germany

commodity dependence

economic dependence on exports of raw materials. This is a label given to counties when at least 60% of exports are raw materials. Because the value of goods increases throughout production, raw materials receive low returns. These countries are highly venerable to market fluctuations. This includes oil-rich countries. Many are focusing on diversifying their economies.

Neoliberal Policy

economic policies that are predicated on a minimalist role for the state, assuming the desirability of free markets as the ideal condition not only for economic organization but also for political and social life. FREE TRADE -has been the major policy of most core countries since the 1980s

Post-Fordist methods of production

flexible production that is no longer centralized in one manufacturing facility and takes advantage of outsourcing or just-in-time delivery and is reliant on advanced technology

rust belt transitions

governments try to replace lost manufacturing jobs with quaternary or quinary type businesses. These can also have a multiplier effect. However, usually the former factory workers do not have the skills to work in the other higher skilled jobs. So the semi-well paid factory workers, then go into low paid service sector jobs.

social measures of development

health care, education, general determinants like security, freedom, and opportunities- some statistics include total fertility rate, infant mortality rate, life expectancy, literacy rate,

Semi-Periphery Country

industrializing, mostly capitalist countries which are positioned between the periphery and core countries according to United Nations data. Not all are democratic though such as China. Other examples of these countries include India, Brazil, Thailand, Mexico. A these countries develop- skills and wages increase. They add more tertiary jobs- but they can then also start to lose secondary jobs to lower-wage countries.

semi-periphery country

industrializing, mostly capitalist countries which are positioned between the periphery and core countries according to United Nations data. Sometimes called emerging economies that usually provide manufactured goods. Has characteristics of both core and periphery countries. examples include China, Mexico, Brazil, South Africa, India, Thailand, Vietnam

free trade

international trade left to its natural course without tariffs, quotas, or other restrictions.

basic economic activity

main industry in an area; services develop as a result of it. Most manufactured goods and commercial farm products are examples of basic activities. These are usually sold away from main area, and that outside money brings in this new money to an area to improve it. Basic activities are also called city-forming activities. -quintenary or quinary can also be basic jobs such as software developer or research scientist. These can bring in new money- but usually at a smaller scale with fewer employees.

supranational trading blocs

many countries have created trading organizations that create a common set of trade rules. These encourage trade and cooperation between member states. -NAFTA which is now USMCA -OPEC -Mercosur -EU -WTO -ASEAN

reshoring

moves jobs back from foreign to domestic locations. This is usually done with government incentives or regulations.

WTO (World Trade Organization)

organization through which member nations negotiate trading agreements and resolve disputes about trade policies and practices. This is a very powerful organization that includes 164 countries and accounts for 98% of global trade.

IMF (International Monetary Fund)

organization which gives loans to poor countries. It was created in 1945 and focuses on creating economic, social, and political stability. The IMF also offers economic advice and cooperation. It will offer countries massive loans to stabilize a crisis.

Level of industrialization

preindustrial, industrial, newly industrial, and postindustrial- This can be used to describe the stages of economic growth- as well as the stability of an economy. The NICs are usually seen as emerging markets and semi-periphery countries.

economic sectors

primary (taking raw materials from earth - agriculture, mining), secondary (manufacturing - textile or auto industries), tertiary (providing goods or services)

Deindustrialization

process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment. This happened to areas in the UK, and places in the US such as Detroit, Michigan and parts of Pennsylvania. The US calls these areas the Rust Belt.

Microloans/microfinance

provision of small loans and other financial services to individuals and small businesses in developing countries. These are small but powerful ways of increasing development and equality within societies. For women, these often allow women more voice within decision making in communities as well as at home.

Criticisms of Weber's Model

resources are not evenly distributed, labor doesn't move to the industry and industry needs to move labor, industry is only producing one product and selling to one market, transport cost from industry to market is fixed, there is perfect competition and no government interference. Many economists say that the key to manufacturing locations is what will maximize profits, less than what will bring down costs.

industrial belt

small scale: an area with lots of industrial companies, around the edge of a city. global scale: The world has a belt through the US, Europe, across Asia to China.

Free-Trade Zones (FTZs)

tax-free area where goods can be landed and 'value added', through handling and manufacturing, and re-exported without the intervention of customs. -some criticisms include that corporations are making a profit, but not contributing to taxes or improvements in countries, workers can be exploited, -advantages of FTZs is that they often hire women which can help improve their independence and status in society, and while wages are low- still higher than what they might otherwise have received. The items sold are cheaper, which helps consumers

ASEAN

the Association of Southeast Asian Nations, an alliance that promotes economic growth and peace in the region. There is an increase in trade within this area. ASEAN is also trying to politically be a force to buffer China's expansion policies.

comparative advantage

the ability to produce a good at a lower opportunity cost than another producer. Countries and companies use their comparative advantage to try and specialize in particular goods or services. For example, China has good infrastructure and lower wages. They specialize in manufacturing. The US has oil, but it also has a well educated population and good infrastructure. So the US specializes not just in oil, but also processing that oil.

resource depletion

the act of using resources faster than they can be restored or replaced

ecological footprint

the impact of a person or community on the environment, expressed as the amount of land required to sustain their use of natural resources.

Periphery countries

the least developed and least powerful nations; often exploited by the core countries as sources of raw materials, cheap labor, and markets. Some examples include Bangladesh, Bolivia, Cambodia, and most of Africa.

multiplier effect in economic geography

the potential of a job to produce additional jobs. The secondary sector usually has the largest influence on other jobs. For example, when a large manufacturing factory comes to town- all of those employees with their higher than primary sector wages- can then buy more in the community. So tertiary jobs increase as more stores and businesses start or expand. The secondary on average brings in $1.92 of demand for other services, compared to only .54 for retail business. -This works in reverse as well. As manufacturing jobs leave areas, the loss of employees and wages then causes loss to other businesses. This is massive in rust belts.

Ecotourism

the practice and business of recreational travel based on concern for the environment. This often includes adventures that do not harm animals but raise awareness of their problems. Usually the hotels or resorts run on renewable energy sources and have sustainable practices.

automation

the use of largely automatic equipment in a system of manufacturing or other production process. This reduces labor costs, and can improve quality and safety. However, the type of labor need changes. The labor need changes to a high-skilled, high-tech worker. But there are fewer workers.

Primary Economic Sector

those concerned directly with natural resources of any kind. Ex. agriculture, mining, fishing, forestry. Dominated the world economy until the late 1800s. Most jobs require high amounts of physical labor but pays very little. In developed countries there are less jobs in this sector than their use to be.

goals of sustainable development

to address: -depletion of natural resources -mass consumption of goods -pollution of air and water -impact of climate change These can be applied at any scale

remittance

transfer of money by workers to people in the country from which they emigrated. For example Mexican workers in the US, sending money home. That earned about is counted in the US's GDP, but in Mexico's GNI.

complementarity trade

two regions (through an exchange of raw materials and/or finished products) can satisfy each other's needs (U.S. and Canada). These goods or services are of equal value- so the trade is balanced.

Measures of development

used to distinguish LDCs or developing countries from MDCs or developed countries. They include GDP, literacy rate, life expectancy, caloric intake, etc.

trade

when a person or party desires a good or service that it does not have or cannot produce and another party has the desired good or service. They agree to a trade.

export processing zones (EPZs)

zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment. There can also be benefits of agglomeration. -many first appeared in the 1960s, and originally were mostly manufacturing goods. However, now some EPZs are also transshipment points, to change or transfer shipping containers. -most are located near major transportation networks, especially ports Some names of these EPZs include -special economic zones in China -maquiladoras in Mexico -free-trade zones (FTZs) in Singapore