Industrialization Study Guide
Name_________________________
1. What are the 3 major types of economic sectors? Primary (agriculture, fishing, mining, timber),
Secondary (manufacturing, industry), Tertiary (quinary, quatrinary)
2. What are the major factors that companies have to consider with locating their industry? You need to
know Weber’s Least Cost Theory
Other considerations are labor and governmental regulations
3. How do companies use the concept of break of bulk points to reduce costs? In an attempt to get their
products to market as cheap as possible, companies will use a combination of transportation options
(train, plane, truck, ship)
4. What are footloose industries? Industries where the raw materials and the final products are close
enough in weight/volume that the factory can be located anywhere (i.e. computer chips, diamonds)
5. What are ubiquitous industries? A product is available to consumers at any time and at any location
around the world (i.e. McDonald’s)
6. What is meant by the backwash effect? The negative impact to the peripheral region sometimes caused
by increased flows of labor and capital into a nearby high-growth region (i.e. factory workers in Detroit
moving to Cleveland for industrial work)
7. Agglomeration Vs. Deglomeration: Agglomeration is the centralization of parts of an industry for the
mutual benefit of the industry as a whole where Deglomeration occurs when the market becomes
saturated with a particular industry, creating too much competition and forcing some businesses to shut
down.
8. What is meant by transnational companies? How do they operate? Global corporations that have
facilities and process spread among several companies in a global assemble line (i.e. Nike)
9. Know Rostows Model of Development
10. What is meant by brain drain? the emigration of highly trained or intelligent people from a particular
country.
11. What is meant by neocolonialism? the practice of using capitalism, business globalization, and cultural
imperialism to influence a country, in lieu of either direct military control (imperialism) or indirect
political control.
12. What are maquiladoras? How are they related to NAFTA and outsourcing? Maquiladoras are factory
complexes located primarily on the US/Mexican border, on the Mexican side. They supply cheap labor
for manufacturing, while using NAFTA to bring the manufactured items back into the United States
without having to pay tariffs.
13. What does the Gender Development Index measure? What are some world-wide tendencies with it?
Compares the level of development of women with that of both sexes.
14. What does the Human Development Index measure? What are some world-wide tendencies with it?
Indicator of level of development for each country, constructed by the United Nations, combining
income, literacy, education, and life expectancy.
15. Who are the four Asian Tigers? How did they become the Asian Tigers? The Four Asian Tigers or Asian
Dragons are the highly developed economies of Hong Kong, Singapore, South Korea and Taiwan. These
regions were the first newly industrialized countries.
16. What are special economic zones? Why do countries create them? Areas designated specifically for
foreign companies to locate their headquarters in hopes of building the economic strength of the
country.
17. What are Export Processing Zones? Why do countries create them? Small areas of a country with
exceptional investment and trading conditions that are created by its government to stimulate and
attract foreign investors and business.
18. Know Wallerstein’s world model system and how it relates to industrialization.
19. What is Fordism? How does this help factories? How does this hurt factories?
It is the bringing of assembly line procedures to factories. It enables factories to produce more products for
a cheaper per product cost. The big risk of Fordism is that it can lead to over production of products.
20. What is meant by a trading bloc? How do they function? A trading bloc is a group of countries that
work with each other on trading agreements (i.e. NAFTA, EU) They don’t compete with each other, but
they do compete with other blocs
******Make sure to review the vocabulary and the PowerPoints from this unit