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Unit 6: Industrialization and Development
1
Key Concepts
Industrialization
and the
Environment
Growth and
Diffusion of
Industry
Industrialization
The Evolution of
Economic Cores
and Peripheries
Global
Inequalities
Contemporary
Patterns
2
Part One: Key Concepts
3
A) Introduction
4
What is economic geography?
5
Economic Geography studies
the impact of economic
activities on the landscape
and investigates reasons
behind the locations of
economic activities.
6
Agriculture
Others
Industry
Economic
Geography
International
Trade
Transport and
Communication
Resources
7
A Day in the Life
What might an average worker be doing on an
average day in the Spring of 1553?
8
A Day in the Life
What might an average worker be doing on an
average day in the Spring of 1893?
9
A Day in the Life
What might an average worker be doing on an
average day in the Spring of 1973?
10
A Day in the Life
What might an average worker be doing on an
average day in the Spring of 2012?
11
What is industrialization?
12
Industrialization is the
process by which economic
activities evolved from
producing primary goods to
factories that mass-produce
goods.
13
Agriculture
Primary Economic Activity
VS.
Secondary Economic Activity
Industry
14
Primary
Sector
Secondary
Sector
Tertiary
Sector
Quaternary
Sector
15
Primary
Sector
•Agriculture
•Animals
•Fishing
•Forestry
•10,000 Years
Secondary
Sector
•Petroleum
•Metals
•18th Century
Tertiary
Sector
•Services
•Post-Industry
•Late 20th
Century
Quaternary
Sector
•Research
•Administration
16
Societies
PreIndustrial
Most Countries
Industrial
Some Countries
Post
Industrial
Few Countries
17
What is the difference between an LDC and
MDC?
18
Less Developed Countries
have not developed industry.
More Developed Countries
are often post-industrial
countries.
19
20
B) Economic Indicators of Development
21
What is Gross Domestic Product?
22
Gross Domestic Product is
the value of the total output
of goods and services
produced in a year.
23
US GDP: 14,526,550 Million Dollars
24
Per Capita GDP
GDP / Total Population
US Per Capita: $48,800
25
How MDCs and LDCs Differ:
GDP
Types of Jobs
Productivity
Raw Materials
• $20,000 in
MDC
• $1000 in LDC
• MDC – Fewer
Primary
Sector
• LDC – More
Primary
Sector
• Value Added
Per worker is
higher in
MDCs
• MDCs have
greater
access to Raw
Materials
Consumer
Goods
• MDCs can
afford
Consumer
goods and
have more
access to
them.
Economic development is often
accompanied by social development.
26
C) Theories of Economic Development
27
What is the Modernization Model
28
The Modernization Model says
that the Industrial Revolution
was spurred by a combination
of prosperity, trade
connections, inventions, and
natural resources.
29
Western
European
Nations and
the US
followed
Britain
Britain
Industrializes
Wealth
became a sign
of virtue
instead of
kinship.
30
A few key points:
• According to the M.M., any country can reap
the benefits of modernization.
• Tradition is the greatest barrier to economic
development.
31
A few key points:
• Culture can discourage people from adopting
new technologies that would raise standards
of living.
• High-Income countries can help poorer
countries by encouraging them to control
population, increase food production, and
take advantage of industrial technology.
32
Rostow’s Stages of Development
33
High Mass
Consumption
• Industry expands.
• Luxury items become necessities.
• High Incomes, a majority of workers involved in the service
sector.
Drive to
Technological
Maturity
• Economic growth is widely accepted.
• The economy diversifies.
• Poverty is greatly reduced and material goods much
more common.
• Cities grow, and modernization is evident in the core.
• International trade expands.
Take-Off Stage
• People begin to experiment with producing
goods for trade with others for profit.
• A state industrial revolution takes place.
• Urbanization, technology, and production
increases.
Traditional Stage
• Life is built around families.
• Very Limited Wealth.
• Subsistence Farmers.
34
Rich nations
often block
the path of
poor.
A justification
for capitalism
to exploit noncapitalism.
Criticisms
Suggesting
that poverty is
the fault of the
victims is
wrong.
Poorer nations
have to
develop from
a position of
weakness.
35
What is Dependency Theory
36
Dependency Theory says that
the economic development of
many countries is blocked by
industrialized nations that
exploit them.
37
A Few Key Points.
• Dependency theory blames MCDs that control
or who once controlled LDCs through
colonialism.
• Argues that political liberation from
colonialism has not translated into economic
health.
• Dependency theory is largely an outgrowth of
Marxism.
38
Wallerstein’s Capitalist World Economy
Model
39
Core Countries
• Rich nations that fuel the world’s economy.
• Take raw materials from around the world and channel them
to North America, Europe, Australia, and Japan.
Periphery Countries
• Low-Income countries brought about through colonialism.
• Support rich countries by providing inexpensive labor and a
large market for industrial products.
Semiperiphery Countries
• The rest of the world.
• More powerful than periphery, but still dominated in some
way by the core.
40
41
Treats wealth
as a “0 Sum
Theory”
Ignore
cultural issues
that affect
poverty.
Criticisms
Places blame
on countries
that have
helped
others.
No country
willingly
blocks
another from
success.
42
Part Two: Growth and Diffusion of
Industrialization
43
A) Before the Industrial Revolution
44
Before the Industrial Revolution
There were industrial centers before the late
18th Century but it was isolated. Most industries
were cottage industries.
Examples:
Chinese Silk Factories
Metal Workshops in India
45
What is a cottage industry?
46
Cottage Industries are homebased manufacturers where
people manufacture tools and
agriculture equipment for their
own communities.
47
B) The Start of the Industrial Revolution
48
The Early 18th Century
Early factories in Great
Britain during the 18th
Century were run by
water running down
slopes.
49
The Most Important Invention
In 1769, James Watt built
the first efficient steam
engine. This was the most
important invention to the
Industrial Revolution.
50
What is the Industrial Revolution?
51
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.
52
Social
Changes
Population
Changes
Effects of
the
Industrial
Revolution
Economic
Changes
Political
Changes
53
Iron
Food
Processing
Coal
Industries affected
by the Industrial
Revolution
Transportation
Chemicals
Textiles
54
C) Diffusion of the Industrial Revolution
55
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)
56
Part Three: The Evolution of Economic Cores
and Peripheries
57
A) Introduction
58
Why do you think that some places
were affected by industrialization
while others were not?
59
Location Theory
Locational
Independence
Theory
60
A) Location Theory
61
What is Location Theory?
62
Location Theory explains the
locational pattern of
economic activities by
identifying factors that
influence this pattern.
63
Primary Industry
• Develops around
natural resources.
Secondary
Industry
• Develops as
transportation
improves.
• Less dependent on
location
64
Variable
Costs
Secondary
Industry
Locations
Distance
Decay
Friction
of
Distance
65
Core
• Primary and
Secondary
Industries
Semi-Periphery
• Secondary
Industries
Periphery
• Neither
66
What is the Least Cost Theory?
67
Alfred Weber’s Least Cost
Theory is a theory that
explains the location of
industries based on
transportation, labor, and
agglomeration.
68
Transportation
The site chosen must entail the lowest possible
cost of A) moving raw materials to the factory,
and B) finished products to the market.
69
Weight (Bulk)
Gaining
• Soft Drink
Manufacturing
Weight (Bulk) Losing
• Copper
• Timber
• Most Agriculture
70
71
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
72
73
A) Least Cost Theory Continued
74
I am the CEO of a
rubber company
looking for a
place to locate my
new plant which
will purify
petroleum into
the rubber
products before
sending it on to
Houston, Texas
for further
processing. I
import petroleum
from the Middle
East.
A Case Study
75
What is the Break of Bulk Point?
76
The Break of Bulk Point is
where the transfer of goods
among transportation modes is
possible.
77
Product per Case
Cost/Rail
Cost/Road
Fuzzy Mice
.05
.01
Concrete
1.00
2.00
Oil
.50
.60
Town
10M
11M
5M
6M
Resource 1
3M
Resource 2
78
What is the
Location Interdependence Theory?
79
Location Interdependence
Theory is a theory that
explains the location of
industries based on the
location of their competition.
80
Variable Revenue Analysis
The ability of a firm to capture a market that will
earn it more money and customers than the
competition.
81
The Beach
How would Locational Inderdependence Theory play a part in where A and C
would choose to locate?
82
Situation Factors
•Transportation Issues
•Bulk-Gaining, Bulk Losing
Site Factors
•The cost of Land, Labor, and Capital
•Climate
•Access to Amenities
83
Part Four: Contemporary Patterns in
Industrialization
84
A) Globalization and Infrastructure
85
How Does Globalization Affect
Industrialization?
• Every country’s development is dependent on
the rest of the world.
– With the increase of Space-Time Compression, it
is possible to locate businesses in places not
before considered.
– The Internet has made it possible for markets to
exist where they have not before.
– In order to accommodate global industrialization a
country must develop infrastructure.
86
What is infrastructure?
87
Infrastructure includes services
that support economic
activities. It provides for
transportation,
communication, education,
and other external needs of a
company.
88
B) Primary Industrial Regions
89
Western
and
Central
Europe
Eastern
Asia
Primary
Regions
Eastern
North
America
Russia and
the
Ukraine
90
Western and Eastern Europe
• Expanded greatly after WWI.
• Was largest in Germany until WWII.
• Rebuilt with the help of America after WWII.
North America
• The North American Manufacturing Belt extends from
Boston and New York through Philadelphia and Baltimore.
• The Southeastern District: Birmingham, Alabama to
Richmond, Va.
• Another: Oklahoma to Dallas, Houston, and New Orleans.
• Northern California: San-Fransisco
• Southern California: Los Angeles to San-Diego
• Pacific Northwest: Portland, Oregon through Seattle,
Washington and Vancouver in Canada.
91
92
Russia and the Other Soviet Republics
• Much manufacturing up through the 1930s
followed the Volga River.
• Other regions followed the Trans-Siberian
Railroad.
93
94
Asia
The Four Tigers
(Export Oriented
Industrialization)
Japan
• The Kanto Plain
• Tokyo
•
•
•
•
South Korea
Taiwan
Hong Kong
Singapore
China
• Northeast District
in Manchuria
• Beijing, Shanghai,
Hong Kong
• The Pacific Rim
95
C) Secondary Industrial Regions
96
Southeast
Asia
Northern
Africa
Secondary
Industrial
Regions
Mexico
Brazil
97
What is the maquiladora?
98
The Maquiladora is a
manufacturing zone created
in the 1960s in Mexico that
mostly produces American
products.
99
What is the NAFTA?
100
NAFTA is the North American
Free Trade Agreement which
eliminated barriers to free
trade in North America.
101
Part Five: Global Inequalities
102
A) Challenges for More Developed Countries
103
Protection of Markets
MDCs are having to work to protect their
markets from newly developing countries. They
often do this by establishing Trading Blocs.
104
What is a trading bloc?
105
A Trading Bloc is a
conglomeration of trade
between regions.
106
Little to
No
Taxes
Benefits
of Trading
Blocs
Cooperation
Encouraged
Ease in
crossing
borders
107
NAFTA
3
Important
Blocs
East Asia
European
Union
108
Most cooperation and competition between
trading blocs take place between transnational
corporations which are also conglomerate
corporations
109
Deindustrialization
In many MDC economies, tertiary development
is replacing secondary development.
Growth of LDC
industry is taking
jobs away from
MDCs.
This is a natural progress
of society. Service jobs is
the mark of a developed
society.
110
B) Challenges for Less Developed Countries
111
Distance from
Market
Challenges
of LDCs
Competition
with Existing
Manufacturers
Inadequate
Infrastructure
112
The New International Division of
Labor
The selective transfer of some jobs to
LDCs.
113
Part Five: Globalization and the Environment
114
Industrialization and Fossil Fuels
As more and more countries become
revolutionized, the need for fossil fuels grows
exponentially.
While we know how many proven reserves we
have, we do not know how many potential reserves
we have.
¼ of the world’s population consumes ¾ of the
world’s fossil fuels.
115
Environmental Impact Concerns
Global
Warming
Acid Rain
116
Prevention
Compensation
Solutions
Technological
Change
Mitigation
117
The End.
118