Unit 7 - Industrialization & Globalization (All Chapters)

an economic activity that uses machinery on a LARGE SCALE to process raw materials into finished goods

It can also refer to a group of organizations that work with the same materials or produce similar goods.

metals, wood, plant products, animal products, or other substances that are used to make goods intended for sale.

The most used raw material in the world is SAND by volume

the process by which the interaction of social and economic factors leads to the development of industries across a community, region, or country.

began with the Industrial Revolution in Britain in the 18th century and spread to the other countries in Western Europe and North America in the 19th century.

More countries industrialized in the 20th century and are still industrializing today.

the high cost of equipment and the need to maintain machinery which led to the development of the factory system.

through expansion diffusion and relocation diffusion.

Countries and regions with rich coal deposits and waterways for transportation

Industrializing countries built canal systems and extensive rail networks for transportation

There was a rapid increase in rural to urban migration which led to the growth of the middle class and a rise in leisure time for them.

Creation of public education systems in core countries to support literacy needed for jobs.

Increased literacy led to voting rights to all men and, eventually, to women.

rising wages, better health, higher levels of schooling, and more higher standards of living for many

Public water and sewage systems, professional police forces and fire departments, electric lighting

The production of goods took longer, and transportation was slow.

High quality goods were made in isolated, small-scale operations run under the guild system that had existed since the Middle Ages

a trade association made up of the master craftsmen in a given industry

Ex:
hoemakers, leatherworkers, armorers, weavers, and bakers

Goods needed in large quantities, like textiles and shoes, were produced by cottage industries.

In a cottage industry, members of families, spread out through rural areas, worked in their homes to make goods

1. local production done on a small scale
2. relied on handheld tools
3. depended on muscle power

marked the shift from small-scale, hand crafted production to power-driven mass production.

While not all countries have experienced large-scale industrialization, the goods produced by industrial processes are found throughout the world.

technological innovations and inventions

it occurred where it did largely because of the availability of natural resources, specifically coal, iron ore, and water.

-Steam Engine
-The Spinning Jenny used in the creation of clothing
-Water frame used to automate the spinning of yarn

The power loom improved on the spinning jenny and the water frame

allowed for a continuous way of heating IRON furnaces, replacing hand-driven billows and greatly expanding production output

replaced wood as the primary source of energy during this era.

was widely available in England and could be used to efficiently power early engines.

-increased the quantity and variety of goods that could be produced
-expanded the market for these goods through new modes of transportation
-increased the quantities of natural resources needed for production like coal, iron ore, and water

Colonized areas provided sources of raw materials and guaranteed exclusive access to new markets.

Improvements in transportation, specifically steamships and railroads, which opened the colonies' interiors

Harsh conditions prevailed in colonies controlled by Europeans. One of the worst was the Congo in Africa controlled by King Leopold II of Belgium.

Africans were compelled to work on rubber and palm oil plantations or in mines, and any attempts to escape or rebel were met with brutal force.

used them for sources of

-raw materials such as rubber and cotton
-metals like copper and gold
-cash crops like cacao, sugar, and coffee.

-Steam
-Coal
-Waterpower

textile, iron, and coal industries

-Electricity
-Internal combustion engine
-Assembly lines
-Interchangeable parts

steel, automobile, and airplane industries, as well as the chemical industry and consumer appliances

-Reliance on electronics and information technology systems
-Automation of the production process

computer manufacturing, software engineering, and telecommunications

activities involving the extraction of natural resources and obtaining raw materials

Ex:
agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas, such as oil drilling.

the production of goods from the raw materials extracted or harvested in the primary sector

Ex:
Manufacturing, processing, and construction
(Aerospace manufacturing, Automobile production)

provides services rather than finished goods

Ex:
-transportation, storage, marketing, and selling of goods
-banking, finance, insurance, law, health care, hospitality and tourism, entertainment and media, and clerical services

the portion of tertiary sector activities that require workers to process and handle information and environmental technology

requires high levels of education

Ex:
Google, Microsoft, and Apple

found within the quaternary sector, requires highest levels of education

a specialized subcategory of work involving the top leaders in government, science, universities, nonprofit organizations, health care, culture, and media

Ex:
scientists, researchers

primary sector employment is dominant, with the bulk of the labor force working to produce the food they need to survive.

secondary sector and rely heavily on manufacturing with many jobs in the manufacturing, processing, and construction industries.

Core countries tend to have economies with a substantial secondary sector but a dominant tertiary sector.

an economic pattern marked by an

-extremely low primary sector employment
-relatively low secondary sector employment
-predominant tertiary sector employment
-rising share of quaternary and quinary jobs

the production of goods to the production of services

institutions of higher learning as resources in developing and using new technologies

-have access to more jobs and a bigger role in the workforce
-receive more advanced educations

No, industrialization often leads to geographically uneven development.

This leads some semi-periphery and periphery countries to have dual economies.

two distinct divisions of economic activity across the economic sectors

In these countries, much of the population may work in the traditional primary-sector economy while another substantial share of workers participate in secondary sector jobs.

In the 1980s, with help from foreign investors, government officials worked to expand manufacturing in industries like textiles, electronics, and automobiles.

steady economic growth. Primary sector employment has dropped by 20% and secondary employment has risen by 25 percent.

proposed by economist Alfred Weber in 1909 to analyze spatial patterns in the secondary economic sector

proposes that businesses locate their facilities in a particular place because that location minimizes the costs of production

It takes into account the cost of moving raw materials to the manufacturing site and shipping finished products to market

transportation, labor, and degree of agglomeration

Weber considered transportation costs to be the determining factor in where an industry is located.

the location that minimizes total transport costs, both for bringing in raw materials and distributing final products

if labor costs are high in an area, profit margins are reduced.

therefore, manufacturing is located farther away from raw materials and markets as long as cheap labor compensates for the added transportation costs.

(a lot of manufacturing is done in semi-peripheral and peripheral countries due to cheap labor - made in china!!!)

the advantage for companies in the same or similar industries in locating near each other in order to take advantage of specialized labor, materials, and services.

(if u remember the multiple-nuclei model, this is the 2nd factor that influences the growth of nodes)

-Shared talents, services, and facilities allow enterprises to control costs
-Proximity to the same pool of workers and access to natural resources/transportation networks.
-Supporting industries are drawn to the agglomerated area, further reducing costs.

it means competitors often locate near one another.

however, the cost advantages of agglomeration can sometimes outweigh the basic spatial patterns set by transportation and labor costs (as well as the competition).

Ford and Oldsmobile, two major car companies, were located in Detroit, which attracted skilled labor and parts suppliers to the city.

This made it economically advantageous for other car companies to also establish operations in Detroit.

drew in related industries like tire and parts producers, further reinforcing the agglomeration

as automobile manufacturing expanded to other parts of the US and other countries that offered cheaper labor, its population declined.

(this would be like the labor part of the least-cost theory)

at break-of-bulk points

locations where it is more economical to break raw materials into smaller units before shipping them farther

often located at places where the mode of transportation changes

raw materials cost less to transport than finished goods

(cs like they GAIN BULK (weight) when they become finish goods.. hahah...)

If the finished products are...

-more perishable than inputs
-heavier than inputs
-harder to ship than inputs.

Ex:
-Bread is more perishable than wheat
-Cars are heavier than the components that make it up
-Potato chips are more fragile than potatoes

near the market

raw materials cost more to transport than finished goods

(cs like they REDUCE BULK (weight) when they become finish goods.. hahah...)

finished products are lighter/have less volume than inputs.
(raw materials are heavier than finished products)

Ex:
iron ore, coal, and limestone are all needed to produce steel. (but steel is obviously way lighter than like all 3 of those minerals)

near the source of the raw materials

-there are fixed sources of raw materials
-workers who make up a labor force will not move
-there is a uniform cost of transportation from any one point to any other

-ignores the influence of economic or political systems
-markets are usually not located at a single point

-airplanes, ships, and supertankers have greatly reduced transportation costs
-goods being produced weigh less

Trucks are most often used for short-distance delivery, where their fast loading/unloading can be taken advantage of.

Most economical for deliveries within the same day.

Trains are most often used for multi-day shipping across wide expanses, like from the East to West coast.

Though expensive to load and unload, they do not need to stop during their journey, and run very efficiently.

Ships are used to transport materials long distances if they are not time-sensitive, as it takes much longer than land transport.

They can cross the oceans and carry vast amounts of goods in a single load.

Air is the most expensive form of transport by far, so it is used for high-value, low-bulk, time-sensitive goods.

in Industrial parks—collections of manufacturing facilities.

in suburbs and close to highways to facilitate movement of raw materials and finished products.

the process involved in the improvement of people's freedoms, rights, capabilities, choices, and material conditions

the total value of the goods and services produced by a country's citizens and companies GLOBALLY in a year

any foreign production would not count into the GNP

Ex:
A Toyota company in the US would count into Japan's GNP, not the US, since it's owned by Japan, even though it's located inside of the US's borders.

the same as GNP but it focuses on income and includes in/outflow of money
(taxes, subsidies, imports, exports, etc.)

basically like the updated version of GNP

the total value of the goods and services produced by a country's citizens and companies WITHIN the country in a year but doesn't include money flows

foreign production inside the country would count, but international production wouldn't

Ex:
A Toyota company owned by Japan in the US would count into the US's GDP, not Japan's, since it's located in the US, even though Toyota isn't an American company.

businesses are expanding, jobs are being created, and the economy is growing

businesses are struggling, jobs are being lost, and consumers are spending less money

the GDP / GNI divided by the country's population

Adjusts GNI/GDP to a per person basis

the amount of money needed in one country to purchase the same goods and services in another country

adjusts GNI/GDP to reflect buying power

businesses, enterprises, and other economic activities that have government supervision, monitoring, regulation, and protection and are taxed

Ex:
Doctors, servers, teachers

the opposite of the formal economy

businesses, enterprises, and other economic activities that are outside of government supervision, monitoring, regulation, and protection and are not taxed

Ex:
babysitting, gardening, or house cleaning

-not included in the GDP or GNI of a country
-loss of tax revenue which pay for infrastructure and various social services

countries with less economic development (semi-peripheral and peripheral countries)

the process of improving the material conditions of people through diffusion of knowledge and technology.

It is a continuum (never-ending), and for the most part it is linear.

Most countries start at a similarly undeveloped point (low income, low life expectancy), and move along the "process" toward higher development.

Energy

development is largely dependent on the availability of low-cost sources of energy.

the amount of something available for use/sale.

the amount of something that consumers are willing/able to purchase

-Coal (27.9%)
-Petroleum (33.2%)
-Natural Gas (22.1%)

nearly half of all energy, even though they make up a small share of the world's population

On average, energy use per capita is THREE TIMES HIGHER in the developed world than in the developing world

Energy use is increasing 3% per year in developing countries (1% in developed countries)

Today, CHINA is the world's #1 energy consumer (23.81%), followed by the US (16.8%).