• What is industrialization?
• What are 3 effects of the industrial revolution?
1

2

Economic sector is dividing the country’s population based upon the economic area in which that population is employed.
3

Primary
Sector
• Jobs that revolve around getting raw materials from the Earth.
• Ex.
Secondary
Sector
• Jobs that deal with processing the raw materials into a finished product of greater value.
• Ex.
Tertiary
Sector
• Services that move, sell, or trade the products made in the secondary sector.
• Ex.
Quaternary
Sector
• Jobs that involve information creation and transfer.
• Ex.
Quinary
Sector
• Jobs that require the highest level of decision making.
• Ex.

5

Economic sectors can also be broken down into formal vs informal
Formal Market: Ecuador Informal Market: Ecuador

Not reported to the government, no taxes paid.
Formal Market: Brazil
Informal Market: Brazil

Afghanistan
GDP - composition, by sector of origin: agriculture: 20% industry: 25.6% services: 54.4%
Australia
Labor force - by occupation: agriculture: 3.6% industry: 21.1% services: 75% (2009 est.)
8

Your Resource
What is it used for?
Where is it found?
How is it extracted?
Primary Sector jobs
Specific examples
Secondary Sector jobs
Specific examples
Tertiary Sector jobs
Specific examples
Quaternary
Sector jobs
Specific examples
9

Your
Resource
What is it used for?
Primary
Sector
Secondary
Sector
Tertiary
Sector
Quaternary
Sector
Direct jobs
Specific examples
Direct jobs
Specific examples
Direct jobs
Specific examples
Direct jobs
Specific examples
Related Jobs
(include resource)
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• Dairy
• Corn
• Iron Ore
• Wheat
• Corn
• Petroleum
• Livestock (cattle)
• Softwood
• Coffee
• Salmon
• Sugar cane
11

Industrialization is the process by which economic activities evolved from producing primary goods to factories that mass-produce goods.

Cottage Industries are homebased manufacturers where people manufacture tools and agriculture equipment for their own communities.

The Industrial Revolution was the process of technological change that started in the late
1700s that transformed how goods were produced and obtained by the people.
Began in England:
*machines replaced human labor
*coal was the leading energy source
*improved transportation and infrastructure
Brought on the commodification of labor

Great Britain
The United States (1790s)
The United States entered the IR later than Belgium and France but expanded more rapidly.
Belgium/France (late 1700s)
Most of Europe came late to the party because of revolution and strife (ie. French
Revolution, Napoleonic Wars)
Italy, Netherlands,
Russia, Sweden
(late 1800s)
The Middle East and Africa entered the IR because of WWI and the need for oil.
Asia, Middle East and Africa
(Mid 20 th Century)

Infrastructure includes services that support economic activities. It provides for transportation, communication, education, and other external needs of a company.

Northeastern
US & South
Canada
Western
Russia &
Ukraine
Central &
Western
Europe
East Asia (4
Tigers) &
Japan, China

Deindustrialization : industrial facilities leave an area, taking the economic base with them

New International Division of Labor –
Breaks up the manufacturing process by having various pieces of a product made in various countries and then assembling the pieces in another country
Southeast
Asia
Northern
Africa
Mexico
Brazil

Alfred Weber’s Least Cost
Theory is a theory that explains the location of industries based on where cost are the least.

• UNIFORMITY - An area is completely uniform physically, politically, culturally, & technologically
• ONE PRODUCT/MARKET - Manufacturing involves a single product to be shipped to a single market whose location is known
• RAW MATERIALS FROM MULTIPLE LOCATIONS -
Inputs involve raw materials from more than one known source location .
• INFINITE /IMMOBILE LABOR - Labor is infinitely available but immobile in location
• FIXED TRANSPORTATION ROUTES -
Transportation routes are not fixed but connect origin & destination by the shortest path; and transport costs directly reflect the weight of items shipped & the distance they are moved.

Transportation: the most important cost - where cost to transport materials and product is lowest
Labor: high labor cost reduce profit – where there is a supply of cheap, non-union labor is best
Agglomeration: advantages & savings made when industries clump together for mutual advantage
Deglomeration: “unclumping” of factories because of negative effects & higher costs associated with industrial overcrowding

Bulk Gaining – add weight or bulk during manufacturing process
Bulk Losing – remove weight or bulk during the production process

Heavier input, shorter distance to plant
Bulk Reducing
(Material Orientation)
• Input Factory Market
Lighter output, longer distance to market,
• Input Factory Market
Lighter input, longer distance to plant.
Bulk Gaining
(Market Orientation)
Heavier output, shorter distance to market

The location triangle is used to determine the best place to locate a manufacturing plant based on Weber’s Model.
Resource 2
Market Resource1
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• Footloose industries
– Not restricted in where they can locate
– Maintain the same cost of transportation and production
• Substitution principle
– Reducing the cost of labor even though an increase in transportation will follow
• Agglomeration
– Industries clumping together in same space to share benefits and costs of region
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• Locational Interdependence – Industries choose their locations based on where their competitors are.
– Ex.
• Deglomeration – the unclumping of factories because of the negative effects and higher costs associated with industrial overcrowding
– Ex.
30

• High-tech corridor and Technopoles – regions where technology and computer industries agglomerate
– Ex.
• Backwash effect – Negative effects that happen when other areas suffer out migration of talented people to Technopoles
– Ex.
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• Development – Process of improving material condition of people through technology & knowledge
• Liberal development theory – Development is a process through which all countries can move
33

Less Developed Countries are those on the economically poorer side of the spectrum. More Developed Countries are on the wealthier side of the development spectrum.

Models of Economic Development
Wallerstein ’ s World System Analysis
1. Core: High Income
High use of technology
High % of tertiary activities
High levels of Education by the majority of the population
OECD countries G8
2. Semi-Periphery: used to be peripheral states
Increased economic development
BRICS
3. Periphery: Low Income
Low use of technology
High % of primary activities
Low levels of education by the majority of the population

GDP
• $20,000 in
MDC
• $1000 in LDC
How MDCs and LDCs Differ:
Types of Jobs
• MDC –
Fewer
Industrial
Jobs
• LDC – More
Industrial
Jobs
Consumer
Goods
• MDCs can afford
Consumer goods and have more access to them.
Economic development is often accompanied by social development.

Development Gap is the widening difference between development levels in MDCs and LDCs.
Dependency Theory argues that
LDCs are locked into a cycle of underdevelopment by the global economic system that supports unequal structure.

Core-periphery model states that the world’s countries are divided into three groups: core, periphery, and semi-periphery.

Looks at the world as a capitalistic system of interlocking states connected through competition.

BRICS : Brazil, Russia, India, China
South Africa added in 2010
G8 : Top State economies
Canada, France, Germany, Italy, U.K., U.S.(Core)
Mexico recently admitted (semi-periphery)

Rowstow’s Stages of
Development seeks to explain and predict countries pattern’s of economic development by explaining five stages which all countries move through as they improve their economic development.

Rostow: International Trade Approach

• Predicts that all countries will eventually reach the highest level of development (Rostow follows developmentalism)
– Criticism: It is not an equal opportunity system, core countries have advantages that peripheral countries do not.

Based on
European model of development.
Does not account for inequities in resources.
Criticisms
Considers each country an independent agent .

• Which model of development do you believe is mor accurate (Wallerstien or Rostow).
Explain your response!
54

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Development

• Geographers break down levels of development into 1 st -5 th world countries

st
• Service-Based Economy
• Free Market
• High Productivity
• High Standard of living
1 st World Countries = Blue

nd
• Hard-Line Communist
Countries
• Centrally planned economies

rd
• Countries with economies based on Primary activities
• Ex. Niger, Haiti

th and 5th
• 4 th World –
Third-world countries who have suffered a financial crisis and no longer have a functioning economy
Afghanistan
• 5 th World-
Third world country which lacks BOTH a functioning government and economy
Somalia

• Women are paid less for equal work in MDCs
and LDCs
• Women work more hours than men in almost all countries

• Gender-Related Development Index (GDI)- Evaluates gender equality by comparing
– Per capita income
– School enrollment
– Literacy
– Life expectancy

• Gender Empowerment Measurement (GEM) evaluated geneder equality by comparing
– Per capita income
– Types of jobs held by women (technical/administrative vs. labor or basic jobs)

• Natural resources have a major impact on the development of a region
Dubai

• Core-countries use natural resources more rapidly that peripheral countries
• Core-countries are often dependent upon peripheral countries for their natural resources
CO2
Emission

• Emphasis on conservation of resources for future generations
• Requires development of renewable energy sources

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• Measurement of Life Enjoyment which considers:
– Basic Needs being met
– Access to Technology
– Education
– Expendable income

• Total number of goods and services produced by a country divided by the total population

• Measures the income disparity between the wealthiest and the poorest in a country (100 is the highest and worst score)

• Developed to gain a predictor of standard of living by evaluating both the productivity of a country and social factors
– Economic Factors: GDP per Capita
– Social Factors: Literacy Rate, Level of Education, Life
Expectancy
– Score of 1 is the Highest and Best Score

• Also developed to be a predictor of standard of living by looking at
– Literacy Rate
– Life Expectancy
– Infant Mortality Rate

• Can you think of any other factors the Physical
Quality of Life Index should consider when ranking standard of living? Do you see any problems with it’s measurement?

• Idea: countries can increase their development by trading with other countries
• Major Organizations: (WTO) World Trade
Organization

• Goals:
– Reduce barriers to international trade by getting rid of trade restrictions such as tariffs
– Allow for easier movement of money between countries
– Enforce trade agreements (countries can file a complaint with the WTO if another country violated a trade agreement

• Idea: Give countries loans, to complete development projects
• Major Organizations: World Bank and (IMF)
International Monetary Fund

• Provides loans to countries to complete specific development projects such as strengthening infrastructure, financial institutions, transportation modes, and service projects
World Bank Development Timeline

• Gives loans to countries who are financially insecure to help stabilize their economy. These loans do not have a specific project specified, the country can choose how to use the loan.

• Aid is not a loan, but a payment of money to help them complete development goals

85

Globalization : The increasing economic, cultural, demographic, political, and environmental interdependence of different places around the world.

International Trade : Pushing for a country to identify its unique set of strengths in the world and to channel investments toward building on those strengths

Comparative Advantage -
When one region is relatively more efficient at producing a particular product compared with other regions.

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Multinational Corporations
(MNC ): Business with headquarters in one country
(MDC) and production facilities in another countries
(LDC)

New International Division of
Labor: Breaks up the manufacturing process by having various pieces of a product made in various countries and then assembling the pieces in another country

Special Economic zones: regions that offer tax breaks, eased environmental restrictions, and other incentives to attract foreign business
Maquiladora zones – Mexico’s special economic zones on northern borders with US to create jobs for farmers our of work

• Foreign-owned assembly companies located in the US – Mexico border region
• Cheaper labor
• Favorable tax breaks
• Lax environmental regulations
• Close to markets at minimal cost

Maquilladoras
Examples of
Maquiladoras in Mexico
BMW
Kodak/Verbatim
Eberhard-Faber
Fisher Price
Ford
JVC
GM
Hasbro
Hewlett Packard
Honda
Honeywell, Inc.
Hyundai Precision
America
IBM
Mercedes Benz
Mitsubishi Electronics
Corp.
Motorola
Nissan
Philips
Samsonite Corporation
Samsung
Sony Electronics
Toshiba
Xerox
Type of employment: Worker from Auto Trim de
Mexico S. A. de C. V
Work Schedule: 40 hours per week
Daily wage: $8.29
Minimum wage (Geographic Area A): $3.44 per day
Wage per hour: $1.04
Weekly salary: $58.09
Discount for union dues (4%): $2.32
Net pay: $55.77
Amount leftover per week for clothes, shoes,
entertainment and medical attention: $2.03

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• Turning over much of the responsibility for production to independent suppliers
• Vertical integration: company owns all phases of production
• What does outsourcing mean for the profit of a company?
• What does it mean about choosing a location?
• http://www.youtube.com/watch?v=i5zg1fG7m88