I&ED Skeleton Notes Industrialization & Economic Development Economic Activities Review Primary Sector __________________________ Secondary Sector Processing & __________________________ Tertiary Sector __________________________, sales & exchanging goods Quaternary Sector Exchange of __________________________ Quinary Sector High level __________________________-making & __________________________ Basic vs. Non-basic Basic industry – an industry critical to the health of an area’s __________________________. Generates revenue from __________________________the local area Nonbasic industry – Industries that sell their products primarily to __________________________in the __________________________. Generates __________________________from within the community Money is circulated __________________________members of the community __________________________stores, __________________________, etc. Multiplier Effect For every worker in a __________________________industry, there are _____workers in nonbasic industries 1:2 or 1:3 Technology & Energy __________________________+ __________________________= factors for industry ________________________ ________________________ Industrial Revolution began in __________________________areas That had access to specific __________________________sources Factories (__________________________-production) were largely ______________________ New __________________________& energy allowed expansion Origins of Industrial Revolution Prior to the Industrial Revolution, we had the __________________________industry Manufacturing based in __________________________rather than in a __________________________, commonly found prior to the Industrial Revolution. Northwest __________________________, mid-late __________________________ __________________________ industry New technology (mechanical __________________________) More __________________________ = new __________________________ New use for old energy __________________________ (factories built in rural areas new rivers & streams) __________________________ (replaced wood as the dominant energy source) __________________________Engine James Watt in 1769 (with help of toymaker & metal worker Matthew Boulton) Impacted many industries, including: __________________________, coal, __________________________, __________________________, etc. Link to __________________________ One of the causes of __________________________shift to stage ________ Contributing factor to __________________________growth New __________________________, more __________________________, improved __________________________yield Diffusion of the Industrial Revolution Industrial Revolution spread to __________________________& North __________________________by the __________ century Moving those countries into stage ______ of the DTM Major Industrial Regions __________________________ (East & West), North __________________________& __________________________Asia Each accounting for __________________________of total industrial output But not every part of the country is as __________________________ Europe Western U.K.: __________________________production Rhine-Ruhr Valley (Germany, Belgium, Netherlands): iron & __________________________production (______ industrial area) Mid-Rhine (Germany, France): Steel, __________________________, chemical production (______ industrial area) Po Basin (Northern Italy): __________________________ NE Spain (Catalonia, esp. __________________________): Textile, automobiles Eastern Moscow: Fabrics, skilled __________________________ St. Petersburg: __________________________ Volga: Petroleum, __________________________gas __________________________: Mining, iron, steel Kuznetsk (Central Russia): __________________________, iron ore, steel Donetsk (E. Ukraine): Iron, steel Silesia (S. __________________________& N. Czech Republic): Steel East Asia Japan: __________________________, ships, cameras, stereos, TVs 1950s & 60s = low __________________________work Currently = very __________________________, high-quality _________________ Two major regions __________________________-Yokohama __________________________-Kobe-__________________________ China: __________________________, steel & many other products Many transnational organizations opened factories looking for __________________________workers Three major regions Guangdong & __________________________ Yangtze River valley (including __________________________) Gulf of Bo Hai (Tianjin to __________________________to Shenyang) North America New England: Cotton textiles (__________ c.) Middle Atlantic: Financial, communication & entertainment industry (#1 largest U.S. __________________________) Mohawk Valley (Hudson River & Erie Canal): __________________________, food processing, aluminum, paper & __________________________ Pittsburgh-Lake Erie: __________________________ (19th c.) Western Great Lakes: Steel (now), __________________________ S. California: Textile, furniture, food processing, __________________________ SE Ontario: Steel, automobile, __________________________, paper, flour, textile & sugar Automobiles Shift away from Michigan, Indiana, Ohio to __________________________Belt “__________________________Belt” More __________________________owned automobile construction plants Change from __________________________ownership dominance Why? Low cost labor in the __________________________ (fewer __________________________); Right to __________________________states Increase in foreign owned plants to be closer to __________________________; avoid __________________________ North: High cost of labor, aging infrastructure, outsourcing = __________________________ South: lower state/local __________________________, cheap land, cheap & abundant energy supplies, cost-efficient __________________________ (highway, rail) Technology ________________________Valley (California) & Research Triangle (North _______________) __________________________capital Investors taking risks to develop new __________________________ (communications, robotics, data storage, programming, software, biotechnology) Labor Skilled __________________________, __________________________ educated Government Federal/state __________________________ for research, government support for __________________________, communication & utility _______________________ Agglomeration a process involving the __________________________or concentrating of people or __________________________. The term often refers to __________________________plants and businesses that benefit from close proximity because they share __________________________-labor pools and __________________________and financial amenities. __________________________cost advantages __________________________effects for business/personal services, labor Energy & Technology Change New __________________________ new sources of __________________________ new __________________________ New sources of energy ___________________ Solar Geothermal (heat from the __________________________) Biomass (using __________________________matter for fuel) Hydroelectric As countries become more developed, they transition through the __________________________of the economy. Immanuel Wallerstein World __________________________Theory Theory of a global __________________________, __________________________and __________________________ Economic & political Development occurred faster in global __________________________due to exposure to new __________________________ Core Periphery Model maps level of development __________________________countries (periphery) dependent on… __________________________countries (core) Still exists and can be spatially examined Characteristics Core High __________________________per capita __________________________sector or above High __________________________rates Low __________________________ __________________________-migration Gender __________________________ ________________________ ________________________ Periphery Low __________________________per capita __________________________/__________________________sector Low __________________________rates High __________________________ __________________________-migration Gender __________________________ Not democratic __________________________/colonized Examples Core Countries United States __________________________ Belgium __________________________ France __________________________ Regions North __________________________ __________________________Europe Periphery Countries __________________________ Democratic Republic of __________________________ Yemen North __________________________ Afghanistan Regions __________________________ Semiperiphery? __________________________theory called for core, periphery & semiperiphery Over time, the semiperiphery has __________________________, as the periphery has __________________________ Semiperiphery shares characteristics of both __________________________& __________________________ Countries: BRIC __________________________ __________________________ __________________________ __________________________ Others __________________________ South __________________________ __________________________ Exchanges Core From core to periphery Examples __________________________technology __________________________/loans Aid Technology __________________________culture __________________________Corporations Expensive __________________________ Armies Military __________________________/arms Aid (e.g. __________________________supplies) Periphery From periphery to core Examples __________________________ __________________________materials Cheap __________________________ __________________________crops __________________________crops Disease __________________________ Culture (e.g. __________________________) Rostow’s Stages of Development 1960 Attempt to explain the stages that a country goes through as it moves from LDC/__________________________to MDC/__________________________ 5 stages The __________________________society The __________________________for takeoff The __________________________ The drive to __________________________ The age of __________________________consumption Problems with Rostow’s Model Developed in 1960s based on __________________________& __________________________ Not applicable __________________________ Ignores impact of __________________________on development (transportation, __________________________) in LDCs Ignores __________________________differences that may affect development Ignores many outside __________________________to influence development War, __________________________, culture, __________________________organizations __________________________geography & climate, outside influences of __________________________ Automatically connects advanced development with __________________________consumption __________________________, in particular, dispute this More development can lead to more awareness about the dangers of mass consumption Does not account for __________________________ Process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment. Factors of Industrialization Many factors in where industrialization takes place Technology & energy Site Factors __________________________, labor, __________________________ Capital – the monetary __________________that a business possesses. Must have access to __________________________ Must have access to __________________________ Site factors need to minimize __________________________costs Cheap __________________________, cheap __________________________, cheap __________________________ Situation factors Must be close to __________________________ Physical geography Not all business can exist EVERYWHERE (__________________________) Theories of Industrialization __________________________Theory A logical attempt to explain the locational pattern of an __________________________activity and the manner in which its producing areas are __________________________. __________________________ Least-Cost Theory Model developed by Alfred __________________________according to which the location of __________________________establishments is determined by the __________________________of three critical expenses: labor, transportation, and __________________________. Alfred Weber was a German economist, geographer, sociologist and theoretician of culture who invented the __________________________Theory. Varignon frame A system of weights and pulleys used by geographers to help determine optimum location. For example, the weights might represent the relative cost of __________________________particular goods to or from a particular location, to help a firm decide the most cost effective site to locate a prospective __________________________facility. Least Cost Theory Must weigh the cost of transportation, labor & advantages of agglomeration Transportation Must account for transportation of __________________________materials & __________________________product Based on weight Bulk-__________________________industry Finished product __________________________than __________________________parts Locate close to __________________________ __________________________ Bulk-__________________________industry Finished product __________________________than input parts Locate close to __________________________ __________________________ ________________________ Varignon frame Pierre Varignon French mathematician Locational triangle Balance the cost between the _________________& two ________________________ Economic Indicators Gross __________________________Product (GDP) Total value of goods & __________________________within the borders of a __________________________during a specific time period, usually one year Per capita = Latin “__________________________;” average per __________________ U.S GDP = $15.09 trillion; per capita = $__________________________ China GDP= $7.3 trillion; per capita = $__________________________ Gross National Income (GNI) Total value of __________plus net receipts of primary income from __________________________ (calculated in much the same way as Gross __________________________Product [GNP]) The __________________________now uses GNI rather than GNP Net National Product Measure of all goods & services produced by a country during a specific time period, usually one year, including production from its __________________________abroad, minus loss of __________________________ (or degradation of natural __________________________) as a result of __________________________ __________________________Power Parity (PPP) Monetary measurement of development that takes into account what money buys in __________________________countries Can be __________________________ (e.g. ox cart) U.S. GDP (PPP) = $__________________________trillion China GDP (PPP) = $__________________________trillion Gini Coefficient A measure of income __________________________that varies from 0 to 1 (lower = greater __________________________) “__________________________income” can be misleading if incomes are highly __________________________ __________________________– the entrenchment of the colonial order, such as __________________________and __________________________, under a new guise. Human Development Index (HDI) Measure of __________________________conducted by the UN in 1990 Measures development in terms of __________________________ rather than money 3 dimensions (four indicators) Health Life __________________________at birth Education (__________________________of two indices) __________________________years of schooling (at 25) __________________________years of schooling (at start of schooling) Living Standards __________________________ (NOT GDP) HDI by Region MDCs __________________________: 0.96 __________________________: 0.95 __________________________: 0.93 __________________________: 0.90 __________________________: 0.73 LDCs __________________________: 0.82 __________________________Asia: 0.77 __________________________Asia & __________________________: 0.74 __________________________Asia: 0.73 __________________________Asia: 0.70 __________________________Asia: 0.61 __________________________African: 0.51 Worldwide HDI Trends, 1970-2010 The fastest progress has been in __________________________Asia and the Pacific, followed by South Asia, then the Arab States. All but 3 of the 135 countries have a higher level of human development today than in 1970— the exceptions are __________________________ __________________________ __________________________ Millennium Development Goals (MDGs) Established in 2000, deadline by __________________________ _______ Goals (_______ targets & _________ indicators) Eradicate Extreme __________________________& __________________________ Achieve Universal __________________________Education Promote ______________________Equality and Empower _______________________ Reduce Child __________________________ Improve __________________________Health Combat ________________________, _______________________, and other diseases Ensure __________________________Sustainability Develop a Global Partnership for __________________________ Other Development Indicators: __________________________-__________________________Ratios __________________________Rates __________________________per 10,000 __________________________Beds per 10,000 Percent __________________________ Life __________________________ __________________________Mortality __________________________Increase __________________________Rate Brandt Line Also known as the __________________________divide Divides the more developed North (“_______________________,” “______________________,” “____________________Countries,” “____________________Developed Countries”) with the less developed South (“____________________,” “____________________,” “_____________________Countries”) Major notes of division: Separates U.S. & __________________________ All __________________________former Soviet republics are south of the Brandt line, while __________________________and __________________________European former republics are north __________________________& __________________________are “north” of the Brandt line, though geographically that isn’t the case Some maps include South Korea as “__________________________” of the Brandt line, while North Korea is “__________________________” Not always the case. In other cases the entire Korean peninsula is __________________________of the Brandt line Variations in Levels of Development Within a region Korean Peninsula: _______________________vs. __________________________Korea Europe: __________________________vs. __________________________ Africa: Extreme __________________________& __________________________vs. __________________________ (Sub-Saharan) Within a country Brazil __________________________, __________________________areas more developed than interior Mexico __________________________areas more developed then southern China __________________________, __________________________areas more developed than interior Deindustrialization Deindustrialization – process by which companies move __________________________jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a __________________________economy and to work through a period of high __________________________. Examples: __________________________Belt Effects: Shift to __________________________sector Improved __________________________ High __________________________ (temporarily) Part A. A. Identify two reasons why businesses would choose to locate their call centers in small southern towns. Low __________________________ Low tax structures, tax __________________________ Low land costs (__________________________factor) Low __________________________costs Large __________________________pool “Right to __________________________” Part B. B. Discuss three disadvantages in the use of call centers as a local economic developmental strategy Low wages Adds little to local _______________________(little _____________________income) Footloose Industry A general term for an industry that can be placed and located at __________________________location without effect from facts such as __________________________or __________________________. Not a __________________________contributor to local development Low __________________________effect Doesn’t provide goods, therefore little/no need for related ____________, supplies, etc. Limited labor required Highly __________________________, few jobs actually added Low skill level/part-time employment Basic in-house __________________________, limited upward __________________________, limited __________________________ Maquiladoras Maquiladoras Factories built by U.S. companies in __________________________ Close to the __________________________ (near major __________________________/points of entry, ease/cost of __________________________) Originally required to be within _______________miles of US/Mexico border Low-__________________________workers __________________________-owned factories Import __________________________/components (do not use __________________________resources, beyond __________________________) Export __________________________goods Mutually beneficial Workers earn higher __________________________than they otherwise would Factories pay __________________________wages than they otherwise would Issue: outsourcing A decision by a corporation to turn over much of the responsibility for production to a __________________________. U.S. workers lose __________________________jobs with U.S. companies decide to move factories to Mexico for __________________________labor Newly Industrialized Country: Mexico Inexpensive labor (__________________________Division of __________________________) __________________________ Weak environmental __________________________ Tax incentives/No __________________________on imported goods Proximity to U.S. __________________________ Expanding Mexican __________________________class U.S. shift to __________________________sector __________________________ __________________________connections between U.S. & Mexico U.S. transportation networks Other NICs: __________________________ International Division of Labor International Division of Labor (a.k.a. __________________________division of labor): the reorganization/relocation of economic activities from a __________________________to a __________________________scale Features MDCs dependent on __________________________goods from LDCs Space-time __________________________leads to separation of __________________________& __________________________ Areas get competitive advantage by providing lower __________________________costs (taxes, ____________________, regulations, etc.) __________________________of jobs __________________________/multinational corporations push to reduce costs to increase __________________________ Trade agreements (__________________________) __________________________teams coming from MDCs rather than local Effect of IDoL U.S. __________________________ __________________________ Increase in __________________________retail positions (due to increasing demand of __________________________products) __________________________migration (Rust Belt to Sun Belt) Decline in influence of __________________________ Developing Countries More __________________________opportunities Improved __________________________equality as more women enter labor force Demand leads to __________________________labor (job opportunities discourage further __________________________) Increase in “__________________________gap” Migration to __________________________areas __________________________/health problems Regional development (increased reg__________________________onal inequality) EPZs __________________________leads to culture change __________________________processing zones (EPZs) – zones established by many countries in the __________________________and semi-periphery where they offer favorable _______, regulatory, and trade arrangements to attract ______________________trade and investment. Attempt to attract foreign business with favorable business climates __________________________are EPZs in Mexico Situated at/near the border Free of import __________________________ Special Economic Zones are EPZs in __________________________ Situated near major __________________________cities National Development Strategies Self-__________________________ __________________________Trade Approach Self-Sufficiency Facts/Positives/Examples Spread __________________________across as many _________________as possible __________________________but fair Development more __________________________distributed Limits imports (limits __________________________) High __________________________ __________________________on imports Example: __________________________& __________________________ Most countries __________________________use self-sufficiency any more Problems 1. Protection of __________________________businesses 2. Need for large __________________________ International Trade Approach Facts/Positives/Examples Must identify __________________________economic assets Must produce better __________________________at lower __________________________than other countries Examples Four Asian __________________________ __________________________Peninsula countries Problems 1. Uneven __________________________distribution 2. Increased dependence on __________________________ 3. Market __________________________ Four Asian Tigers 1. __________________________ 2. __________________________ 3. South __________________________ 4. __________________________ A.k.a. The Four Asian __________________________, The Four Little __________________________, The __________________________of Four Pursued __________________________driven economic development in the __________________________, which leveled off in the __________________________ International Trade Approach Emerging Tigers? __________________________ __________________________ Increasing __________________________& export levels are leading to rapid economic development Sustainable Development Development providing for the needs of the __________________________generation without __________________________the options of future generations. Also the name given to the emerging school of through in the 1990s. Main Ideas: Global __________________________change Environmental economics __________________________and development __________________________and development Real-world strategies Partnership with __________________________countries Environmental regulations __________________________conservation __________________________resources Loans to women & poor __________________________& children’s rights Appropriate __________________________ Gender & Development Gender __________________________Index (GDI) Gender __________________________Index Gender __________________________Measure (GEM) Gender Development Index (GDI) Use the same indicators as the __________________________ Compare the differences between __________________________and __________________________ Penalizes countries that have a large __________________________between the welfare of men and women Gender Inequality Index (GII) Health __________________________Mortality ratio Adolescent __________________________rate Empowerment Female & male population with at least __________________________education Female & male share of __________________________seats Labor Market Female & male __________________________force participation rate Gender Empowerment Measure (GEM) Measure to gauge how __________________________women are in improving their status Economic power Female __________________________as % of male income % of ______________________& _______________________jobs held by women Political power % of __________________________jobs held by women % of national __________________________that are women