File - Mrs. Bordelon\'s Class

May 11, 2018 | Author: Anonymous | Category: History, European History, Europe (1815-1915), Industrial Revolution
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Warm-Up • What is industrialization? • What are 3 effects of the industrial revolution?

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

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Primary Sector

Secondary Sector

Tertiary Sector

Quaternary Sector

Quinary Sector

• Jobs that revolve around getting raw materials from the Earth. • Ex.

• Jobs that deal with processing the raw materials into a finished product of greater value. • Ex.

• Services that move, sell, or trade the products made in the secondary sector. • Ex.

• Jobs that involve information creation and transfer. • Ex.

• Jobs that require the highest level of decision making. • Ex.

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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

Primary Sector jobs Specific examples

Your Resource What is it used for?

Secondary Sector jobs Specific examples

Where is it found?

How is it extracted?

Tertiary Sector jobs

Specific examples

Quaternary Sector jobs

Specific examples 9

Primary Sector

Your Resource

What is it used for?

Secondary Sector

Tertiary Sector

Quaternary Sector

Direct jobs Specific examples Direct jobs Specific examples

Related Jobs (include resource)

Direct jobs

Specific examples Direct jobs Specific examples 10

Resources Available • • • • • • • • • • •

Dairy Corn Iron Ore Wheat Corn Petroleum Livestock (cattle) Softwood Coffee Salmon Sugar cane

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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

Diffusion of the Industrial Revolution Belgium/France (late 1700s)

The United States (1790s)

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 United States entered the IR later than Belgium and France but expanded more rapidly.

The Middle East and Africa entered the IR because of WWI and the need for oil.

Asia, Middle East and Africa (Mid 20th Century)

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

Four Primary Industrial Zones NIC’s – New Industrial Countries Northeastern US & South Canada

Western Russia & Ukraine

Central & Western Europe

East Asia (4 Tigers) & Japan, China

The Rust Belt

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

Secondary Industrial Regions Mexico Brazil

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

Assumptions of his theory • 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 –

Bulk Losing –

add weight or bulk during manufacturing process

remove weight or bulk during the production process

Bulk Reducing

Heavier input, shorter distance to plant

• Input

Factory

(Material Orientation)

Lighter output, longer distance to market,

• Input

Factory

Market

Market

Lighter input, longer distance to plant.

Bulk Gaining (Market Orientation)

Heavier output, shorter distance to market

Location Triangle The location triangle is used to determine the best place to locate a manufacturing plant based on Weber’s Model. Resource 2

Market

Resource1 28

Exceptions to the rule • 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 29

Related concepts • 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

Related concepts • 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. 31

Rowstow’s Stages of Development

Development • Development – Process of improving material condition of people through technology & knowledge • Liberal development theory – Development is a process through which all countries can move

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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

How MDCs and LDCs Differ:

GDP

Types of Jobs

• $20,000 in MDC • $1000 in LDC

• 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)

BRICS: Semi-Peripheral States

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.

Models of Development Rostow: International Trade Approach

International Trade Approach

Developmentalism • 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.

Criticisms Does not account for inequities in resources.

Considers each country an independent agent .

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

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How is Development Measured?

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Categorizing Development Development

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

1st World Countries • • • •

Service-Based Economy Free Market High Productivity High Standard of living

1st World Countries = Blue

2nd World Countries • Hard-Line Communist Countries • Centrally planned economies

3rd World Countries • Countries with economies based on Primary activities • Ex. Niger, Haiti

4th and 5th World Countries • 4th World – Third-world countries who have suffered a financial crisis and no longer have a functioning economy Afghanistan

• 5th WorldThird world country which lacks BOTH a functioning government and economy Somalia

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

Women and Development • Gender-Related Development Index (GDI)- Evaluates gender equality by comparing – – – –

Per capita income School enrollment Literacy Life expectancy

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

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

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

How to Measure Development

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Standard of Living • Measurement of Life Enjoyment which considers: – – – –

Basic Needs being met Access to Technology Education Expendable income

GDP per Capita (per head) • Total number of goods and services produced by a country divided by the total population

GDP Per Capita? • What is the problem with using the GDP per capita for predicting standard of living within a country?

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

Human Development Index • 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

Human Development Index

Human Development Index • Can you think of any other factors the Human Development Index should consider when ranking standard of living?

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

Physical Quality of Life Index • 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?

HOW TO INCREASE DEVELOPMENT

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

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

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

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

World Bank Development Timeline

International Monetary Fund • 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.

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

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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

Maquiladoras • 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 Mercedes Benz

BMW Kodak/Verbatim Eberhard-Faber Fisher Price Ford JVC GM Hasbro Hewlett Packard Honda Honeywell, Inc. Hyundai Precision America IBM

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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outsourcing • 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

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