APHG Unit Six Review

1
APHG Unit Six Review

• Industrialization and Economic Development

2
Economic Development

• Industrialization the process evolved from
  taking basic goods from the earth, and processing
  them into finished goods
• Industrial Revolution began in England in the
  late 1700s
• Economic Development improving the conditions of
  people through diffusion of knowledge and
  technology
• More Developed Countries (MDCs)
• Less Developed Countries (LDCs)
• Newly Industrialized Countries somewhere in the
  middle
• Compressed modernity rapid economic and
  political change that transform a country into a
  stable nation

3
Economic Indicators of Development

• Gross Domestic Product per Capita MDC-Higher
• Types of Jobs MDC-Tertiary, LDC-Primary
• Worker Productivity MDC-More productive
• Value Added subtracting the costs of raw
  materials and energy from the gross value of the
  product
• Access to Raw Materials MDC-More access
• Availability of Consumer Goods MDC-More
  Available
• Social Development literacy, formal education,
  and good health care

4
Theories of Economic Development

• Modernization Model According to Weber, the
  cultural environment of Western Europe favored
  change tradition is greatest barrier to
  modernization
• Dependency Theory responsibility for poverty on
  wealthy nations Wallerstein
• Core Countries rich nations that fuel worlds
  economy
• Semi-Periphery Countries exert more power than
  peripheral countries, but are dominated by core
  countries
• Periphery Countries low income countries
  hindered by colonization

5
Rostows Model

• Economic prosperity is open to all countries
• Traditional Stage build lives around families,
  communities, and religion limited wealth
  subsistence farmers
• Take-off Stage countries began experimenting
  with trade industrial revolution individualism,
  willingness to take risks, and material goods
• Drive to technological maturity economic growth
  is accepted higher standard of living economy
  diversifies BR declines
• High mass consumption mass production of goods
  luxury goods become necessities high incomes and
  more people in tertiary sector

6
Industrial Revolution

• Began in Britain, spread through Europe and
  Russia, then to the United States
• Early factories in Britain were powered by water
  running downslope
• James Watt inventor of the steam engine water
  can be pumped more efficiently more flexible use
  of machines
• Break-of-bulk transfer of cargo from one type of
  carrier to another

7
Location Theory

• Why is what produced where?
• Variable Costs energy, labor, and transportation
  is less expensive in some areas
• Friction of Distance cost of transportation
  increases with distance
• Distance Decay industries are more likely to
  serve markets of nearby places than those far
  away

8
Webers Least Cost Theory

• Developed by Weber as an attempt to explain the
  location of secondary industries
• Transportation site of factory is determined
  based on costs of moving raw materials to the
  factory, and then to the market
• Labor cheap labor may make up for high
  transportation costs
• Agglomeration if several industries cluster,
  they can share talents, services, and facilities
• Deglomeration occurs when a business moves from
  a crowded area
• Substitution Principle business owners can
  juggle expenses, as long as not all their costs
  go up at once

9
Hotellings Model

• Harold Hotelling (1895-1973) was an economist who
  built on Webers model
• He wanted to understand locational
  interdependence
• Asked what two ice cream vendors would do on a
  beach
• Said they would begin at opposite ends, and then
  gradually end up back-to-back
• Once there, they would be unlikely to move

10
Hotelling Interdependence Theory

• influence of one firms locational decisions by
  locations chosen by its competitor
• Variable Revenue Analysis the firms ability to
  capture a market that will earn it more customers
  and money than its competitor

11
Site

• Particular to a geographic location and focus on
  varying costs of land, labor, and capital
• Labor Intensive Industries an industry heavily
  dependent on labor like a textile industry

12
Situation

• In Industrialization, has mostly to do with
  transportation costs
• Bulk-reducing industry the raw materials are
  bulkier and heavier than the finished products
  example copper industry
• Bulk-gaining industry raw materials weigh less
  than the finished products example canning
  industry
• Single-market manufacturing manufacturing
  clusters near its market

13
Major Industrial Regions

• The distribution of industries around the world
  are very uneven
• Primary Industrial Regions areas of large
  agglomeration of industry
• Western and Central Europe Ruhr River area of
  Germany (proximity to markets, raw materials, and
  transportation)
• Eastern North America Manufacturing Belt extends
  from Boston and New York to Philadelphia and
  Baltimore, and borders Great Lakes
• Russia and the Ukraine Ukraine provides coal
  Trans-Siberian Railroad Ural Mountains

14
Major Industrial Regions

• Primary Industrial Regions
• Eastern Asia
• Japan 1st country in East Asia to industrialize
  never colonized
• Meiji Restoration campaign for modernization and
  colonization
• Oligarchs industrial and military leaders
  established colonies
• Kanto Plain includes Tokyo and surrounding
  areas Tokyo-forward capital
• China began industrializing under communism
• Northeast District industrial heartland in
  Manchuria large deposits of coal and iron

15
Major Industrial Regions

• Primary Industrial Regions
• Four Tigers (South Korea, Taiwan, Hong Kong, and
  Singapore)
• Export-oriented industrialization directly
  integrate their economies into the global market
  by concentrating on producing goods for export
  example electronics
• Pacific Rim countries that border the Pacific
  Ocean on their eastern shores
• Special Economic Zones found in China foreign
  investment is allowed and capitalistic ventures
  encouraged

16
Secondary Industrial Regions

• Lie south of the Primary Industrial Regions
• Venezuela, Argentina, Brazil, South Africa,
  Nigeria, Ganges River area of India, Malaysia,
  and southern Australia
• Maquiladoras developed in 1960s in Mexico, just
  south of the US border goods manufactured for
  export to the US
• NAFTA agreement between US, Canada, and Mexico
• Pros promote trade between countries
• Cons Mexicos standard of living and wages
• India
• Natural Resources hydroelectric power, iron, and
  coal
• Human Resources HUGE population becoming more
  educated and westernized

17
Global Inequalities

• Challenges for MDCs
• Trade Blocs conglomeration of trade among
  countries within a region
• North America NAFTA
• European Union European Union
• East Asia No formal agreement yetFour Tigers?
• Transnational Corporations companies that
  operate in countries other than the ones in which
  they are headquartered
• Conglomerate Corporations comprised of many
  small firms that support the overall industry
• Deindustrialization decrease of employment in
  manufacturing as a share of total employment

18
Global Inequalities

• Challenges for LDCs
• Distance from markets invest in transportation
  facilities like airports
• Inadequate infrastructure lack transportation,
  communications, schools, and universities
• Competition with existing manufacturing in other
  countries transnational competition low-skilled
  jobs in LDCs, high-skilled jobs in MDCs
• New international division of labor keeps global
  inequalities in place discourages new
  industries, keeps high-skilled jobs in MDCs, and
  prevents wealth from flowing to LDCs

19
Industrialization and the Environment

• Fossil Fuel Reserves
• Proven Reserves oil reserves that have been
  found, but not extracted
• Potential Reserves unknown number
• Consumption of Fossil Fuels
• MDCs have about ¼ of the worlds population, but
  use ¾ of the worlds fossil fuels
• China uses the most fuel, followed by the United
  States

20
Industrialization and the Environment

• Industrial Pollution increased air, water, and
  land pollution
• Global Warming increase in Earths temperature
  caused by the burning of fossil fuels
• Greenhouse Effect an anticipated warming of the
  Earths surface that could melt the polar icecaps
• Acid Rain forms when sulfur dioxide and nitrogen
  oxides are released in the atmosphere by burning
  fossil fuels
• Sustainable Development people living today
  should not impair the ability of future
  generations to meet their needs

21
Solutions to Environmental Problems

• Prevention Chinese One-Child Policy
  Debt-for-Nature Swap
• Technological Change includes recycling of
  industrial wastes
• Mitigation damage may be undone or reduced once
  it has occurred
• Compensation political bodies may negotiate
  compensation for those negatively impacted by
  industrial waste ex Erin Brokovitch