Name:__________________________________________________ Date: _________________________________

Unit 7: Industrial and Economic Development Patterns and Processes

industrialization (past and Industrial Revolution: the term used for the transformation from an agricultural society to an industrial society as a
present) has improved result of new technologies and facilitated by the availability of natural resources (resulting in factories, mass-produced
standards of living, but goods, and assembly lines that replaced handmade goods)
development is
geographically uneven industrialization: process that occurs when countries evolve from primarily agricultural producing basic, primary
goods to one based on mechanized mass manufacturing of goods (craftsmen are replaced by assembly lines)

spread of industrialization: caused food supplies to increase and populations to grow

economic sectors are primary sector: economic activity that involves extracting (raw materials) or harvesting (food) products
characterized by distinct e.g. gathering industries (renewable resources): agriculture, forestry, hunting and gathering, fishing, grazing
development patterns e.g. extractive industries (nonrenewable resources): mining, quarrying
secondary sector: economic activity that processes raw materials and transforms them into finished goods
e.g. manufacturing industries
tertiary sector: economic activity that provides services
e.g. health, legal, education, restaurants, stores
quaternary sector: economic activity that involves collecting, processing & manipulation of information & capital
e.g. finance, insurance, computer services
quinary sector: economic activity consisting of high-level decision making and advancement of human capacities
e.g. scientific research, higher education, government

spatial patterns of industrial core: countries where economic power (wealth, innovation, technology) is concentrated that control and benefit from
production and development the global market on which periphery and semi-periphery countries depend
e.g. U.S., Western European countries, Canada, Australia, Japan
semi-periphery: countries that are industrializing that exert more power in the world economy than the periphery, but
are dominated to some degree by the core
e.g. newly industrialized countries such as Brazil, Russia, India, China, South Africa, Turkey
periphery: countries with low levels of economic productivity and a disproportionately small share of the world’s
wealth with weaker state institutions, lower standards of living and are often dependent on the core
e.g. Sub-Saharan African countries (except South Africa), parts of South America and Asia
influences on the location of labor: availability/cost
manufacturing
land costs: availability/cost
resources: availability/cost
markets: facilitate trade (the exchange of goods/services)
transportation: proximity to shipping and markets
shipping container: container with strength suitable to withstand shipment, storage and handling
intermodal container: large standardized shipping container that can be used across different modes of
transportation (ship-rail-truck)
intermodal connections: places where two or more modes of transportation meet (air, road, rail, ship)
break of bulk point: the transfer of transported cargo from one kind of carrier to another
e.g. port: from ship to truck
Least Cost Theory: Alfred Weber
 theory that describes the optimal location of an industry in relation to costs of transport, labor, and relative
advantages of agglomeration
 an industry is located where it can minimize its costs, and therefore maximize its profits
agglomeration: the clustering of businesses that can benefit from close proximity because they share skilled-labor
e.g. auto industry in Michigan
technology industry in northern California
insurance industry in Connecticut
footloose industries: industry in which the location is not impacted by the cost of transporting either raw materials or
finished products e.g. software, insurance, semiconductors, computer chips, e-commerce
levels of development development: a change in the economic and social level of a country through industrialization, urbanization, and
standard of living
LDC (less developed country): countries with low levels of industrialization, urbanization and low standards of
living that are mainly focused on primary activities, predominantly agriculture
NIC (newly industrialized country): less developed countries with growing industrial economies and a developing
trade status in the global market place (BRICs: Brazil, Russia, India, China, South Africa)
MDC (more developed country): countries with highly developed economies, high levels of industrialization,
urbanization, advanced technological infrastructure and high standards of living
post-industrial society: a society in which the economy has transitioned from a manufacturing-based economy to a
service-based economy
economic measures of GDP (gross domestic product): measurement of the total value of goods and services produced within the borders of
development a country during a specific time period, usually one year
GNP (gross national product): measurement of the total value of goods and services produced within the borders of
a country plus the net income from companies that are located outside the country and foreign investments during a
specific time period, usually one year
GNI per capita (gross national income per capita): measurement of the total value of goods and services produced
within the borders of a country plus the net income from companies that are located outside the country and foreign
investments, but minus dividend payments and indirect business taxes during a specific time period, usually one year,
divided by the population
economic sectors of the economy: the percent of economic activities that a country relies on
-periphery countries tend to have a larger percentage engaged in primary activities
-semi-periphery countries are transitioning from primary activities to secondary activities
-core countries tend to have a larger percentage engaged in tertiary, quarternary, and/or quinary activities
formal and informal economic activity: the percent of taxed and non-taxed economic activity within a country
e.g. semi-periphery and periphery countries tend to have a larger percentage engaged in the non-taxed economy
Gini coefficient: measurement of income distribution within a population
e.g. percent of income inequality vs income equality
use of fossil fuels and renewable energy: percent from which a country obtains its energy source

social measures of fertility rate: the average number of children a woman will have during her childbearing years (15-49)
development
infant mortality rate: number of deaths under one year of age per 1,000 live births during a given year
access to health care: refers to the ease with which an individual can obtain needed medical services
literacy rate: percent of population who can read and write
gender inequality: acknowledges that gender affects an individual’s lived experiences; gender inequality is
experienced across different cultures; tradition and culture pose obstacles to women’s economic development,
especially in less developed countries
GII (gender inequality index): measurement that evaluates women’s status in a country based on participation in
economic, political, and labor-market participation, as well as reproductive health issues, indices of empowerment,
and labor-market participation

economic and social HDI (human development index): measurement used by the United Nations to calculate development in terms of
measures of development human welfare (using both economic and social indicators)
changes in economic gender parity: measurement of the relative access to education of males and females
development contribute to e.g. ratio of females to males enrolled in a given stage of education (primary, secondary)
change in gender parity
objective of gender equality: a society in which women and men enjoy the same opportunities, rights, and
obligations in all spheres of life and is linked to sustainable development

role of women: changes as countries develop economically

rise of women in the workforce: although more women are in the workforce, they do not have equity in wages or
employment opportunities

microloan: low interest loans usually for smaller sums of money to provide extremely poor people the opportunity to
open a small local business and is often targeted to women in less developed countries to lift them out of poverty and
is helping to improve standards of living
theories of economic and Rostow’s Stages of Economic Growth: theory that assumes all countries are capable of development along the same
social development that help trajectory which encompasses five stages of linear development towards self-sustained economic growth and high
explain spatial variations in levels of mass consumption
development 1. traditional society: stage in which the dominant activity in a society is subsistence farming and the social
structure is rigid and unchanging and resistant to technology
2. transitional stage: pre-conditions for take-off; progressive leadership moves the country toward greater
flexibility, openness and diversification
3. take-off stage: industrialization occurs and sustained growth takes hold, urbanization and technological
breakthroughs occur
4. drive to maturity stage: technologies spread, industrial specialization occurs and international trade expands;
population growth decreases
5. high mass consumption stage: service sector increases; widespread production of goods and services and mass
consumption

Wallerstein’s World Systems Theory (Core-Periphery Model): model that describes how economic power is
distributed between dominant regions and less powerful regions and proposes that less developed countries are
defined by their dependence on a developed core
core: countries where economic power (wealth, innovation, technology) is concentrated that control and benefit
from the global market on which periphery and semi-periphery countries depend

semi-periphery: countries that are industrializing that exert more power in the world economy than the
periphery, but are dominated to some degree by the core
periphery: countries with low levels of economic productivity and a disproportionately small share of the
world’s wealth with weaker state institutions, lower standards of living and are often dependent on the core

Dependency Theory: theory that maintains that less developed countries are kept in a position of dependency due to
the existing economic and political power structures sustained by more developed countries; the concentration of
wealth in more developed countries makes it difficult for less developed countries to compete and improve their
situation

commodity dependence: the extent to which a country is dependent on primary commodities for export; dependency
on primary commodities can leave a country vulnerable to unpredictable price fluctuations and can significantly
reduce national revenue
e.g. Haiti relies on cocoa, mango, coffee, bananas, vetiver oil

neo-colonialism: theory that proposes that countries which may be free from political colonial control, continue to
remain economically dependent on rich, industrialized countries
causes and consequences of comparative advantage: advantages to locations that combine lower operating costs (labor, taxes, relaxation of
the recent economic changes envrionmental regulations) resulting in trade/sale opportunities that produce goods/services for a lower price
such as the increase in e.g. oil producing nations have a comparative advantage when making products that require oil such as chemicals
international trade,
deindustrialization, and complementary advantage: advantages created when producing goods that are consumed together
growing interdependence in e.g. cars and gas
the world economy e.g. printer and ink cartridges
-if the price of one goes up, the demand for both goods fall
-if the price of one goes down, people will buy more of it and they will usually buy more of the other also

neoliberal policies: characterized by free market trade agreements, deregulation of financial markets, individualism,
and the shift away from state welfare provision have created new organizations, spatial connections, and trade
relationships that foster greater globalization

free trade agreements: treaty between two or more countries to establish a free trade zone where goods and
services can be conducted across common borders, without tariffs but labor or capital may not move freely

European Union (EU): originally began as an economic union and has evolved into a political organization
encompassing security, human rights, climate, environment, health and political issues; the EU is based
on the rule of law; founded on treaties, voluntarily and democratically agreed upon

WTO (World Trade Organization): global international organization dealing with the rules of trade between
nations; negotiates the bulk of the world’s trade agreements that are signed and ratified by their legislatures

Mercosur: an economic union creating a common market for the free movement of goods, services, and factors
of production between countries in South America compromising Argentina, Brazil, Paraguay, Uruguay and
Venezuela, with associate countries of Chile, Bolivia, Colombia, Ecuador, Peru, Guyana, and Suriname

OPEC: an economic union of oil producing countries that coordinates and unifies the policies of member
countries to ensure the stabilization of oil markets in order to secure an efficient supply of oil
(Saudi Arabia, U.A.E., Iran, Iraq, Kuwait, Libya, Nigeria, Venezuela, Gabon, Ecuador, Angola, Algeria,
Congo, Equatorial Guinea)

government initiatives at all tariffs: a tax imposed by a government on goods imported from other countries that serves to increase the price and
scales may affect economic make imports less desirable/less competitive compared to domestic goods
development
global financial crisis: period of extreme stress in global financial markets and banking systems (2007-2009) caused
by deregulation in the financial industry that led to the Great Recession

debt crises: situation in which a country is unable to pay back its government debt caused when spending exceeds
revenues for a prolonged period of time
strategies of development international lending agencies: institutions that specialize in providing loans, grants, and financial expertise to less
demonstrate how different developed countries that focuses on poverty reduction, stimulating growth, building infrastructure, encouraging
economies have become foreign investment, and fighting corruption
more closely connected
International Monetary Fund: an organization of 189 countries working to foster global monetary cooperation,
and/or interdependent
secure financial stability, facilitate international trade, promote high employment and sustainable economic
growth, and reduce poverty around the world
microlending: the lending of small amounts of money at low interest to the poor, particularly women, in less
developed countries to encourage development of small businesses with the goal of improved
standards of living
NGOs (nongovernmental organizations): international organizations that are not run by state or local governments
and are influential in international initiatives on economic, social, and environmental issues and usually try to improve
conditions in the most impoverished regions of LDCs (periphery OF the periphery)
e.g. Save the Children, National Council on Aging, IB (International Baccalaureate)
causes and consequences of outsourcing: when a company sends goods/services out for external production, typically where labor is cheaper to
the recent economic changes achieve comparative advantages have led to a decline in jobs in core regions and an increase in jobs in newly
such as the increase in industrialized countries
international trade, e.g. assembly of low skill goods in China , customer service/product support in India
deindustrialization, and
growing interdependence in economic restructuring: the process in which economies in the core move from manufacturing to the service sector
the world economy and as a result of the loss of manufacturing jobs and growth of the service sector, a widening occurs in the social
hierarchy where high income salaried professional jobs expand alongside an increase of low wage/low skill service
jobs and a “missing middle” develops in the wage structure
manufacturing zones: created by the growth of industry in countries outside of the core where governments create
favorable investment and trading conditions to attract export-oriented industries
Special Economic Zones: designated area that has economic laws that are more free-market-oriented than a
country's typical national laws e.g. Shenzhen, China
free trade zone: designated area where goods may be landed, stored, handled, manufactured, reconfigured, and
re-exported under specific customs regulations and generally not subject to customs duty
export processing zone: designated area generally in developing countries by their governments that offer
exemptions from certain taxes and business regulations to promote industrial and commercial exports
international division of labor: refers to the shift in the core to service industries and an associated shift to
manufacturing in the semi-periphery and periphery as companies search for the cheapest locations to take advantage
of low-cost labor to manufacture and assemble components which has been facilitated by improvements in
transportation/communication technology
causes of how the post-Fordist methods of production: flexible production that is no longer centralized in one manufacturing facility
contemporary economic and takes advantage of outsourcing or just-in-time delivery and is reliant on advanced technology
landscape has been
transformed multiplier effect: happens when an increase in spending produces and increase in national income and consumption
is greater than the initial amount spent
e.g. a new factory will increase employment, which will stimulate employment in other businesses
economies of scale: cost advantages gained by an increased level of production
e.g. a large-scale (Walmart, Costco) business can afford to invest in technology that improves stock control, which
increases revenue, that can be used to make further improvements
agglomeration: cost savings that occur when firms are located near other to take advantage of shared labor or
transportation costs resulting in economies of scale
just-in-time delivery: system of production that is centered around using modern transportation to only order parts as
needed and not by keeping large stockpiles in warehouses as in traditional mass production, the goal is to reduce costs
by saving money on overhead inventory
emergence of service sectors: the shift from a manufacturing based economy to a service based economy as a
country develops
high technology industries: an industry (chemicals, aircraft) that uses advanced methods and modern equipment or is
devoted to research, development, and sale of high-technology products (e.g. computers, semiconductors)
high technology corridor: area that is devoted to research, development, and sale of high-technology products
e.g. Silicon Valley in California
growth poles: concentration of highly innovative and technically advanced industries that stimulate economic
development in linked businesses and industries
environmental problems problems stemming from industrialization: natural resource depletion, mass consumption, the effects of pollution,
stemming from and the impact of climate change
industrialization may be
remedied through sustainable development: development that addresses issues of natural resource depletion, mass consumption, costs
sustainability principles and effects of pollution, the impact of climate change, as well as issues of human health, well-being, and social and
economic equity
ecotourism: tourism based in natural environments that are often threatened by looming development and helps to
protect the environment in questions while also providing jobs for the local population
Sustainable Development Goals (Global Goals): a universal call to action by the U.N. to end poverty, protect the
planet, and ensure that all people enjoy peace and prosperity; progress in development is measured through activities
such as microloans (lending to small scale borrowers) and public transportation projects (infrastructure)