aphg unit six review industrialization and economic development
TRANSCRIPT
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APHG Unit Six Review
Industrialization and Economic Development
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Economic Development
Industrialization: the process evolved from taking basic goods from the earth, and processing them into finished goods Industrial Revolution: began in England in the late 1700s
Economic Development: improving the conditions of people through diffusion of knowledge and technology More Developed Countries (MDCs): Less Developed Countries (LDCs): Newly Industrialized Countries: somewhere in the middle
Compressed modernity: rapid economic and political change that transform a country into a stable nation
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Economic Indicators of Development
Gross Domestic Product per Capita: MDC-Higher Types of Jobs: MDC-Tertiary, LDC-Primary Worker Productivity: MDC-More productive
Value Added: subtracting the costs of raw materials and energy from the gross value of the product
Access to Raw Materials: MDC-More access Availability of Consumer Goods: MDC-More Available Social Development: literacy, formal education, and good health
care
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Theories of Economic Development
Modernization Model: According to Weber, the cultural environment of Western Europe favored change; tradition is greatest barrier to modernization
Dependency Theory: responsibility for poverty on wealthy nations; Wallerstein Core Countries: rich nations that fuel world’s economy Semi-Periphery Countries: exert more power than
peripheral countries, but are dominated by core countries Periphery Countries: low income countries hindered by
colonization
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Rostow’s Model
Economic prosperity is open to all countries• Traditional Stage: build lives around families, communities, and
religion; limited wealth; subsistence farmers• Take-off Stage: countries began experimenting with trade;
industrial revolution; individualism, willingness to take risks, and material goods
• Drive to technological maturity: economic growth is accepted; higher standard of living; economy diversifies; BR declines
• High mass consumption: mass production of goods; luxury goods become necessities; high incomes and more people in tertiary sector
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Industrial Revolution
Began in Britain, spread through Europe and Russia, then to the United States
Early factories in Britain were powered by water running downslope James Watt: inventor of the steam engine; water
can be pumped more efficiently; more flexible use of machines
Break-of-bulk: transfer of cargo from one type of carrier to another
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Location Theory
Why is what produced where? Variable Costs: energy, labor, and transportation
is less expensive in some areas Friction of Distance: cost of transportation
increases with distance Distance Decay: industries are more likely to
serve markets of nearby places than those far away
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Weber’s Least Cost Theory Developed by Weber as an attempt to explain the location of
secondary industries Transportation: site of factory is determined based on
costs of moving raw materials to the factory, and then to the market
Labor: cheap labor may make up for high transportation costs
Agglomeration: if several industries cluster, they can share talents, services, and facilities Deglomeration: occurs when a business moves from a crowded
area
Substitution Principle: business owners can juggle expenses, as long as not all their costs go up at once
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Hotelling’s Model Harold Hotelling (1895-1973) was an
economist who built on Weber’s model He wanted to understand locational
interdependence Asked what two ice cream vendors would do
on a beach Said they would begin at opposite ends, and then
gradually end up back-to-back Once there, they would be unlikely to move
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Hotelling Interdependence Theory
influence of one firm’s locational decisions by locations chosen by its competitor
Variable Revenue Analysis: the firm’s ability to capture a market that will earn it more customers and money than its competitor
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Site
Particular to a geographic location and focus on varying costs of land, labor, and capital
Labor Intensive Industries: an industry heavily dependent on labor like a textile industry
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Situation
• In Industrialization, has mostly to do with transportation costs• Bulk-reducing industry: the raw materials are bulkier
and heavier than the finished products; example: copper industry
• Bulk-gaining industry: raw materials weigh less than the finished products; example: canning industry
• Single-market manufacturing: manufacturing clusters near its market
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Major Industrial Regions
The distribution of industries around the world are very uneven
Primary Industrial Regions: areas of large agglomeration of industry Western and Central Europe: Ruhr River area of Germany
(proximity to markets, raw materials, and transportation) Eastern North America: Manufacturing Belt extends from
Boston and New York to Philadelphia and Baltimore, and borders Great Lakes
Russia and the Ukraine: Ukraine provides coal; Trans-Siberian Railroad; Ural Mountains
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Major Industrial Regions Primary Industrial Regions:
Eastern Asia: Japan: 1st country in East Asia to industrialize; never
colonized Meiji Restoration: campaign for modernization and
colonization Oligarchs: industrial and military leaders; established
colonies Kanto Plain: includes Tokyo and surrounding areas; Tokyo-
forward capital
China: began industrializing under communism Northeast District: industrial heartland in Manchuria; large
deposits of coal and iron
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Major Industrial Regions
Primary Industrial Regions: Four Tigers: (South Korea, Taiwan, Hong Kong, and
Singapore) Export-oriented industrialization: directly integrate their
economies into the global market by concentrating on producing goods for export; example: electronics
Pacific Rim: countries that border the Pacific Ocean on their eastern shores
Special Economic Zones: found in China; foreign investment is allowed and capitalistic ventures encouraged
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Secondary Industrial Regions
• Lie south of the Primary Industrial Regions• Venezuela, Argentina, Brazil, South Africa, Nigeria,
Ganges River area of India, Malaysia, and southern Australia• Maquiladoras: developed in 1960’s in Mexico, just south of
the US border; goods manufactured for export to the US
• NAFTA: agreement between US, Canada, and Mexico• Pros: promote trade between countries• Cons: Mexico’s standard of living and wages
• India:• Natural Resources: hydroelectric power, iron, and coal• Human Resources: HUGE population becoming more
educated and westernized
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Global Inequalities Challenges for MDCs
Trade Blocs: conglomeration of trade among countries within a region North America: NAFTA European Union: European Union East Asia: No formal agreement yet…Four Tigers?
Transnational Corporations: companies that operate in countries other than the ones in which they are headquartered
Conglomerate Corporations: comprised of many small firms that support the overall industry
Deindustrialization: decrease of employment in manufacturing as a share of total employment
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Global Inequalities Challenges for LDCs
Distance from markets: invest in transportation facilities like airports
Inadequate infrastructure: lack transportation, communications, schools, and universities
Competition with existing manufacturing in other countries: transnational competition; low-skilled jobs in LDCs, high-skilled jobs in MDCs New international division of labor: keeps global inequalities in
place; discourages new industries, keeps high-skilled jobs in MDCs, and prevents wealth from flowing to LDCs
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Industrialization and the Environment
Fossil Fuel Reserves: Proven Reserves: oil reserves that have been found, but
not extracted Potential Reserves: unknown number
Consumption of Fossil Fuels: MDCs have about ¼ of the world’s population, but use ¾
of the world’s fossil fuels China uses the most fuel, followed by the United States
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Industrialization and the Environment
Industrial Pollution: increased air, water, and land pollution Global Warming: increase in Earth’s temperature caused
by the burning of fossil fuels Greenhouse Effect: an anticipated warming of the Earth’s
surface that could melt the polar icecaps Acid Rain: forms when sulfur dioxide and nitrogen oxides
are released in the atmosphere by burning fossil fuels Sustainable Development: people living today should not
impair the ability of future generations to meet their needs
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Solutions to Environmental Problems
Prevention: Chinese One-Child Policy; Debt-for-Nature Swap
Technological Change: includes recycling of industrial wastes
Mitigation: damage may be undone or reduced once it has occurred
Compensation: political bodies may negotiate compensation for those negatively impacted by industrial waste; ex: Erin Brokovitch