Questions A. Key Concepts in Industrialization and Development 1. Economy - system of production, consumption, and distribution. The economy can be divided into five (some say three) different parts to understand its whole. a. primary economic activities (aka primary sector) - activities revolve around getting raw materials from the earth. Farming, fishing, and raw mining. b. secondary economic activities - processing raw materials into finished products such as corn and into baby food - factories and manufacturing fall into this c. tertiary economic activities - moving, selling, and trading the products made in primary and secondary activities. Professional and financial services, such as banks, carpet cleaning businesses, and fast-food restaurants. d. quaternary economic activities - information creation and transfer. These assemble, distribute, and process information; they also manage other business operations. For example University research and investment analysis. e. quinary economic activities - involve the highest level of decision making, like that of a legislature or a presidential cabinet 2. some consider quaternary and quinary activities to be subsets of the tertiary B. Industrialization is the growth of manufacturing activity in the economy and usually occurs alongside a decrease in the number of primary economic activities a. before Industrial Revolution, small-scale manufacturing existed, from bread making to clothes making - located near urban cores and close to raw materials b. activities small and localized, like preindustrial communities in LDCs today 1. Industrial Revolution began in England (1760s) when the industrial geography of England changed significantly and later diffused to other parts of western Europe. a. period of rapid socioeconomic change, machines replaced human labor b. first powered by water c. later coal became energy source, helping textile-focused industrial explosion, centered around coal sources – North-central England (Manchester, Liverpool) d. factories could be built outward across space instead of upward (near water) e. rise of assembly-line manufacturing f. led to development of industrial landscape and working-class housing areas g. transportation infrastructure - allowed shipping supplies into urban factories h. farming became more mechanized with the infusion of greater technology i. commodification of labor - factory owners looked at human labor as commodities (objects for trade) with price tags, rather than as people j. by 1960s, oil replaced coal - USA, Russia, and Venezuela were chief sources of oil, but surge in demand allowed for the Middle East to take over oil market 2. Diffusion of Industrialization (North America and western Europe by 1825) a. Early sites of industrialization (thrived in places with rich coal deposits) i. Ohio and Pennsylvania in the United States, ii. Ukraine, Urals, St. Petersburg, Kuznetsk, and Volga in Russia iii. Rhine-Ruhr region in Germany, Belgium, Netherlands, and France iv. East Asia with Japan, South Korea, Taiwan, Singapore, and China b. by 1920s, U.S. automobile factories (based in Michigan) broke down assembly- line into components, with different groups of people performing different tasks to complete product, a process known as the Ford production (or Fordist) c. Fordist factories built out rather than up (one story so that the product could be transported throughout the assembly line)Summary 204
Questions 3. Early 20th Century German economist Alfred Webers Least Cost Theory a. predicted industries will locate based on cost analysis of transportation, labor, and agglomeration factors 4. Hotellings Theory of Locational Interdependence a. an industrys locational choices are heavily influenced by the location of their chief competitors and related industries 5. Deindustrialization (in American Midwest and central Britain) a. industry moved from industrial centers to LDCs where production is cheaper b. multinational/transnational corporations (TNCs) located in wealthy countries c. products still consumed in MDCs d. Flint, Michigan, was a famous example of deindustrialization. i. General Motors shareholders voted to move production to Mexico for cheap labor, flexible environmental regulations, inexpensive land, and tax breaks ii. saw the rise of the Rust Belt, as factories stood still and people left town iii. Flint became an economic backwater e. industry moves within country –US to southern right-to-work (no union) states 6. TNC - conglomerate corporations - one massive corporation owns and operates a collection of smaller companies that provide specific services in production process 7. New International Division of Labor a. Fordist assembly-line concept has been split up not only among many factory workers among many countries under the new international division of labor b. breaks up the manufacturing process by having various pieces of a product made in various countries and then assembling the pieces in another country c. LDCs depend so heavily on MNC investment that these corporations wield a large amount of power over governments (companies are wealthier than LDCs) 8. Rise of service-based industries in MDCs a. industrial jobs moved to LDCs b. MDCs - jobs in retail, research, marketing, sales, tourism, telecommunications c. E-commerce replaced brick-and-mortar businesses 9. Globalization - quickened space-time compression a. its reach has profoundly influenced cultural and political realms b. global diffusion of products and related values has led to phrases such as the "Disneyification," "MTVization," and "McDonaldization" of the world 10. Maquiladoras (special economic zones in Northern Mexico close to US border) a. MNCs can outsource labor to take advantage of labor costs in Mexico b. Mexican government gave tax breaks to U.S. MNCs that located in maquiladora c. products made in maquiladoras could be shipped to U.S. markets tariff free. d. Mexico created these to make jobs for farmers no longer able to make a living e. nearly 500,000 Mexicans work in the maquiladoras, and the areas where the factories are located are besieged by overpopulation and pollution problems f. as part of NAFTA, the maquiladora program is supposed to be phased outSummary Fold the page at the line and glue this part of the page into your notebook.