Chapter 18 | The Growth and Diffusion of Industrialization

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Industry

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20 Terms

1

Industry

Any economic activity using machinery on a large scale to process raw materials into products

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2

Raw materials

Any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods

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3

Industrialization

The process in which the interaction of social and economic factors causes the development of industries on a wide scale

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4

Industrial Revolution

The radical change in manufacturing methods that began in Great Britain in the mid-18th century and was marked by the shift from small-scale, hand-crafted, muscle-powered production to power-driven mass production

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5

Cottage industries

Preindustrial form of manufacture in which members of families spread out through rural areas worked in their homes to make goods

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6

Economic sectors

Collections of industries engaged in similar economic activities based on the creation of raw materials, the production of goods, the provision of services, or other activities

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7

Primary sector

Economic sector associated with removing or harvesting products from the earth; includes agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas

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8

Secondary sector

Economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction

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9

Tertiary sector

Economic sector that includes a host of activities that involve the transport, storage, marketing, and selling of goods or services; also called the service sector

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10

Quaternary sector

Economic sector that is a subset of tertiary sector activities that require workers to process and handle information and environmental technology

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11

Quinary sector

Economic sector that is a subset of the quaternary sector; involves the top leaders in government, science, universities, nonprofits, health care, culture, and media

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12

Postindustrial economy

An economic pattern marked by predominant tertiary sector employment, with a good share of quaternary and quinary jobs

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13

Gross Domestic Product (GDP)

The total value of all goods and services produced by a country’s economy in a year

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14

Dual economies

Economies with two distinct distributions of economic activity across the economic sectors

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15

Least-cost theory

Industrial location theory proposed by Alfred Weber suggesting that businesses locate their facilities in a particular place because that location minimizes the costs of production

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16

Agglomeration

The tendency of enterprises in the same industry to cluster in the same area in order to take advantage of specialized labor, materials, and services.

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17

Break-of-bulk point

Location where it is more economical to break raw materials into smaller units before shipping them further

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18

Bulk-reducing industry

Industry in which the raw materials cost more to transport than the finished goods

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19

Bulk-gaining industry

Industry in which the finished goods cost more to transport than the raw materials

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20

Industrial park

A collection of manufacturing facilities in a particular area that is typically found in suburbs and is located close to highways to facilitate the movement of raw materials and finished products

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