Industrial and Economic Development Patterns
Unit 7 Topics-
1. The Industrial Revolution
2. Economic Sectors and Patterns
3. Measures of Development
4. Women and Economic Development
5. Theories of Development
6. Trade and the World Economy
7. Changes as a Result of the World Economy
8. Sustainable Development
1. The Industrial Revolution
2. Economic Sectors and Patterns
3. Measures of Development
4. Women and Economic Development
5. Theories of Development
6. Trade and the World Economy
7. Changes as a Result of the World Economy
8. Sustainable Development
Vocabulary list for Unit 7
Unit 7 Vocabulary- Industrialization- Economics
Industry- any economic activity that uses machinery on a large scale to process raw materials into finished products
Raw materials- can include metals, wood, plant products, animal products, or other substances that are used to make goods intended for sale to customers/consumers
Industrialization- is the process by which the interaction of social and economic factors leads to the development of industries across a community, region or country
Industrial Revolution- Started In Britain in the 18th century and spread to the other countries in Western Europe and North America in the 19th century, and spread to more in the 20th century and is still continuing to spread to countries to this day
Cottage industries- preindustrial form of manufacture in which members of families spread out through rural areas and worked in their homes to make goods.
Economic sectors- collections of industries engaged in similar economic activities based on the creation of raw materials, the production of goods, the provision of services, or other activities
Primary sector- is associated with activities involving the extraction of natural resources from the earth (agriculture, rising, forestry, mining, quarrying, oil, gas). Also includes extraction of materials used in manufacturing and construction- metal ores, clay, sand, gravel etc..
Secondary Sector- is associated with the production of goods, from raw materials extracted or harvested in the primary sector- manufacturing, production and construction.
Tertiary sector- is the service sector- which includes a huge range of activities- transportation, storage, marketing, selling of goods and services for the general public- includes hair care, health, food service, tourism.
Quaternary sector- is the portion of the tertiary sector activities that requires workers to process and handle information and environmental technologies. This sector includes work in information technology, government, libraries, and education, government, scientific research, and cultural activities.
Quinary sector- (within the Quaternary Sector) work involves the top leaders in government, sciences, universities, nonprofit organizations,- workers generally require high levels of education or experience. Examples- think tanks, Research and Development (R &D) - These specialists often produce new knowledge used by the other sectors
Postindustrial sector - This economic pattern is marked by extremely low primary sector employment, low secondary sector employment, with a rising share of quaternary and quinary sector
Gross Domestic Product (GDP)- The total value of all goods and services produced by a country’s citizens and companies with in a year
Gross National Product (GNP)- The total value of the goods and services produced by a country’s citizens and companies both domestically and internationally in a year
Gross National Income (GNI) The total value of goods and services globally produced by a country in a year divided by the country’s population
Dual Economies- economies with two distinct distributions of economic activity across the economic sectors
Least-cost theory- Industrial location theory proposed by Alfred Weber suggesting that businesses locate their facilities in a particular place because that location minimizes the costs of production
Weber’s locational triangle- the three points of the triangle are the market for a good and two resources needed to make the good.
Agglomeration- the tendency of enterprises in the same industry to cluster in the same area (car dealerships)
Break-of-bulk points- location where it is more economical to break raw materials into smaller units before shipping them further
Bulk-reducing industries- Industry in which the raw materials cost more to transport than the finished goods
Bulk-gaining industries- Industry in which the finished goods cost more to transport than the raw materials
Industrial parks- a collection of manufacturing facilities in a particular area that is typically found in the suburbs and is located close to highways to facilitate movement of raw materials and finished products
Formal Sector- Businesses, enterprises and other economic activities that have government supervision, monitoring and protection, and are also taxed
Informal Sector- any part of a country’s economy that is outside of a governments monitoring, or regulation; sometimes called the informal economy (garage sales and other underground markets)
Human Development Index- A measure that determines the overall development of a country by incorporating three key dimensions of human development- life expectancy at birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI per capita
Gender Development Index- A measurement that calculates gender disparity in three basic dimensions of human development- health, knowledge and standard of living (GNI)
Gender Inequality Index- a measurement that calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation
Women’s empowerment- Women’s options and access to participate full in the social and economic spheres of society.
Labor Market Participation (LMP) a rate that measures an economy’s active labor force, calculated by taking the sum of all employed workers divided by the working age population
Micro-loans- a very small short-term loan with low interest to help people in need
Rostow’s Stages of Economic Development- a model developed by Walt Rostow in the the 1960s that suggests that all countries can be categorized on a spectrum from traditional to modern and that to become modern countries need to pass through distinct stages of economic growth in succession- 1- Traditional Society. 2- Preconditions of take off 3- Take Off 4- Drive to maturity 5- High Mass Consumption
Dependency Theory- a theory that describes the development challenges and limitations faced by poor countries and the political and economic relationship poorer countries have with richer countries
Commodity dependence- an aspect of dependency theory that occurs when more than 60 percent of a country’s exports and economic health are tied to one or two resources.
Comparative advantage- the relative cost advantage a country or an organization has to produce certain goods or services for trade
Complementarity- the mutual trade relationship that exists between two places based on the supply of raw material and the demand for finished products or services
Deindustrialization- the process by which a country or area reduces industrial activity, particularly in heavy industry and manufacturing.
Growth poles- a place of economic activity clustered around one or more high growth industries that stimulate economic gain by capitalizing own some special asset
Just-in-time delivery- a system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production. (The disruption of supply chain during Covid made this a challenge).
Fordism- highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production named after Henry Ford
Post-Fordism- a system focused on small scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market place
Offshore outsourcing - the condition of one or more aspects of production are moved to an organization in another country
International division or labor- a pattern of production and labor in which countries are engaged in distinct aspects of production
Multiplier effects- the economic effect in which a change creates a larger change, such as when a new manufacturing plant grows the economy by giving rise to more related jobs and services
Special Economic Zones (SEZs)- An area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses
Export Processing Zones (EPZs)- An area within a country that is subject to more favorable regulations (usually including elimination of tariffs). To encourage foreign investment and the manufacturing of goods for export
Free Trade Zones (FTZs) - a relatively large geographical area within a country in which businesses pay few or no tariffs on goods to encourage or facilitate its role in international trade
Ecotourism- a form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment
Tariff- a tax or duty to be paid on a particular import or export
Footloose- business that can pack up and leave for a new location quickly and easily. (Call centers, tax return agencies)
Creative Destruction- describes the deliberate dismantling of established processes in order to make way for improved methods of production.
Multiplier Effect- the potential of a job to produce additional jobs
Containerization- the system in which goods are loaded into a standardized shipping unit
Intermodal- standardized containers can be carried on a truck, train, ship or plane.
Glass Ceiling- refers to the fact that top leadership positions are not always available to all the members of a workforce- typically in reference to gender.
WTO- World Trade Organization was created in 1995 to monitor the rules of International trade and to help with negotiating trade deals- as of 2020 164 countries were members.
IMF- International Monetary Fund- created in 1945 to aid countries caught in need of financial assistance- to help create stability for a state
Offshoring- companies will locate services or manufacturing in other countries if the costs of doing business are lower and with the risk of moving some operations overseas.
Technopole- is a hub for information-based industry and high-tech manufacturing. (Silicon Valley)
Ecological footprint- impact of a person or a group on the environment- one measure is how much land is needed to provide one person with resources and to handle the person’s garbage.
UN Sustainable Development Goals (SDGs)- 17 goals that the United Nations has developed to create a more sustainable impact on the environment.
Industry- any economic activity that uses machinery on a large scale to process raw materials into finished products
Raw materials- can include metals, wood, plant products, animal products, or other substances that are used to make goods intended for sale to customers/consumers
Industrialization- is the process by which the interaction of social and economic factors leads to the development of industries across a community, region or country
Industrial Revolution- Started In Britain in the 18th century and spread to the other countries in Western Europe and North America in the 19th century, and spread to more in the 20th century and is still continuing to spread to countries to this day
Cottage industries- preindustrial form of manufacture in which members of families spread out through rural areas and worked in their homes to make goods.
Economic sectors- collections of industries engaged in similar economic activities based on the creation of raw materials, the production of goods, the provision of services, or other activities
Primary sector- is associated with activities involving the extraction of natural resources from the earth (agriculture, rising, forestry, mining, quarrying, oil, gas). Also includes extraction of materials used in manufacturing and construction- metal ores, clay, sand, gravel etc..
Secondary Sector- is associated with the production of goods, from raw materials extracted or harvested in the primary sector- manufacturing, production and construction.
Tertiary sector- is the service sector- which includes a huge range of activities- transportation, storage, marketing, selling of goods and services for the general public- includes hair care, health, food service, tourism.
Quaternary sector- is the portion of the tertiary sector activities that requires workers to process and handle information and environmental technologies. This sector includes work in information technology, government, libraries, and education, government, scientific research, and cultural activities.
Quinary sector- (within the Quaternary Sector) work involves the top leaders in government, sciences, universities, nonprofit organizations,- workers generally require high levels of education or experience. Examples- think tanks, Research and Development (R &D) - These specialists often produce new knowledge used by the other sectors
Postindustrial sector - This economic pattern is marked by extremely low primary sector employment, low secondary sector employment, with a rising share of quaternary and quinary sector
Gross Domestic Product (GDP)- The total value of all goods and services produced by a country’s citizens and companies with in a year
Gross National Product (GNP)- The total value of the goods and services produced by a country’s citizens and companies both domestically and internationally in a year
Gross National Income (GNI) The total value of goods and services globally produced by a country in a year divided by the country’s population
Dual Economies- economies with two distinct distributions of economic activity across the economic sectors
Least-cost theory- Industrial location theory proposed by Alfred Weber suggesting that businesses locate their facilities in a particular place because that location minimizes the costs of production
Weber’s locational triangle- the three points of the triangle are the market for a good and two resources needed to make the good.
Agglomeration- the tendency of enterprises in the same industry to cluster in the same area (car dealerships)
Break-of-bulk points- location where it is more economical to break raw materials into smaller units before shipping them further
Bulk-reducing industries- Industry in which the raw materials cost more to transport than the finished goods
Bulk-gaining industries- Industry in which the finished goods cost more to transport than the raw materials
Industrial parks- a collection of manufacturing facilities in a particular area that is typically found in the suburbs and is located close to highways to facilitate movement of raw materials and finished products
Formal Sector- Businesses, enterprises and other economic activities that have government supervision, monitoring and protection, and are also taxed
Informal Sector- any part of a country’s economy that is outside of a governments monitoring, or regulation; sometimes called the informal economy (garage sales and other underground markets)
Human Development Index- A measure that determines the overall development of a country by incorporating three key dimensions of human development- life expectancy at birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI per capita
Gender Development Index- A measurement that calculates gender disparity in three basic dimensions of human development- health, knowledge and standard of living (GNI)
Gender Inequality Index- a measurement that calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation
Women’s empowerment- Women’s options and access to participate full in the social and economic spheres of society.
Labor Market Participation (LMP) a rate that measures an economy’s active labor force, calculated by taking the sum of all employed workers divided by the working age population
Micro-loans- a very small short-term loan with low interest to help people in need
Rostow’s Stages of Economic Development- a model developed by Walt Rostow in the the 1960s that suggests that all countries can be categorized on a spectrum from traditional to modern and that to become modern countries need to pass through distinct stages of economic growth in succession- 1- Traditional Society. 2- Preconditions of take off 3- Take Off 4- Drive to maturity 5- High Mass Consumption
Dependency Theory- a theory that describes the development challenges and limitations faced by poor countries and the political and economic relationship poorer countries have with richer countries
Commodity dependence- an aspect of dependency theory that occurs when more than 60 percent of a country’s exports and economic health are tied to one or two resources.
Comparative advantage- the relative cost advantage a country or an organization has to produce certain goods or services for trade
Complementarity- the mutual trade relationship that exists between two places based on the supply of raw material and the demand for finished products or services
Deindustrialization- the process by which a country or area reduces industrial activity, particularly in heavy industry and manufacturing.
Growth poles- a place of economic activity clustered around one or more high growth industries that stimulate economic gain by capitalizing own some special asset
Just-in-time delivery- a system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production. (The disruption of supply chain during Covid made this a challenge).
Fordism- highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production named after Henry Ford
Post-Fordism- a system focused on small scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market place
Offshore outsourcing - the condition of one or more aspects of production are moved to an organization in another country
International division or labor- a pattern of production and labor in which countries are engaged in distinct aspects of production
Multiplier effects- the economic effect in which a change creates a larger change, such as when a new manufacturing plant grows the economy by giving rise to more related jobs and services
Special Economic Zones (SEZs)- An area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses
Export Processing Zones (EPZs)- An area within a country that is subject to more favorable regulations (usually including elimination of tariffs). To encourage foreign investment and the manufacturing of goods for export
Free Trade Zones (FTZs) - a relatively large geographical area within a country in which businesses pay few or no tariffs on goods to encourage or facilitate its role in international trade
Ecotourism- a form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment
Tariff- a tax or duty to be paid on a particular import or export
Footloose- business that can pack up and leave for a new location quickly and easily. (Call centers, tax return agencies)
Creative Destruction- describes the deliberate dismantling of established processes in order to make way for improved methods of production.
Multiplier Effect- the potential of a job to produce additional jobs
Containerization- the system in which goods are loaded into a standardized shipping unit
Intermodal- standardized containers can be carried on a truck, train, ship or plane.
Glass Ceiling- refers to the fact that top leadership positions are not always available to all the members of a workforce- typically in reference to gender.
WTO- World Trade Organization was created in 1995 to monitor the rules of International trade and to help with negotiating trade deals- as of 2020 164 countries were members.
IMF- International Monetary Fund- created in 1945 to aid countries caught in need of financial assistance- to help create stability for a state
Offshoring- companies will locate services or manufacturing in other countries if the costs of doing business are lower and with the risk of moving some operations overseas.
Technopole- is a hub for information-based industry and high-tech manufacturing. (Silicon Valley)
Ecological footprint- impact of a person or a group on the environment- one measure is how much land is needed to provide one person with resources and to handle the person’s garbage.
UN Sustainable Development Goals (SDGs)- 17 goals that the United Nations has developed to create a more sustainable impact on the environment.
Questions to Ponder-
Industrial Revolution
- industrialization
- colonialism
- imperialism
- primary
- secondary
- tertiary
- quaternary
- quinary
- break-of-bulk point
- least cost theory
- core
- semi-periphery
- periphery
- gross domestic product
- gross national product
- gross national income per capita
- economic sectoral structure
- formal economy
- informal economy
- income distribution
- fertility rate
- infant mortality rate
- access to health care
- fossil fuels
- renewable energy
- literacy rate
- gender inequality
- Gender Inequality Index
- reproductive health
- empowerment measures
- labor-market participation
- Human Development Index
- microloan
- Rostow’s Stages of Economic Growth
- Wallerstein’s World System Theory
- dependency theory
- commodity dependence
- complementarity
- comparative advantage
- neoliberal economic policies
- free trade agreements
- European Union
- World Trade Organization
- Mercosur
- Organization of Petroleum Exporting Countries
- globalization
- government initiative
- tariff
- global financial crises
- international lending agencies
- microlending
- outsourcing
- economic restructuring
- newly industrialized countries
- special economic zones
- free trade zones
- export processing zones
- international division of labor
- post-Fordism
- multiplier effect
- economies of scale
- agglomeration
- just-in-time delivery
- service sector
- high-technology industry
- growth pole
- sustainable development
- mass consumption
- climate change
- ecotourism
- Sustainable Development Goals