Download Industrialization and Economic Development

Industrialization and Economic Development
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Industrial development started before the Industrial Revolution
India, China and Japan produced many goods before the Ind Rev
Europe's products lacked quality but were in great quantity
Europe made parts of Southeast Asia into colonies, including India. Now
merchants could import whatever textiles they wanted
In Europe, the Ind Rev allowed markets to keep up with demand.Weaving machines were
now used for textiles and coal replaced charcoal for iron smelting. Transportation
improved with the railroad and steam-powered ships. The Black Country is the industrial
region near the coal fields of England. Iron smelters moved near these coal fields because
they had stopped using charcoal.
Secondary industries are less dependent on resource location because the raw materials
can be transported anywhere as long as there is still a profit.
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Four Primary industrial regions: Western and Central Europe, Eastern North
America, Russia and Ukraine, and Eastern Asia.
England had a comparative advantage to other countries at the beginning of the
industrial revolution.
Britain was the first country to industrialize.
Paris became an industrial center even though it wasn't that close to resources, all
because of good transportation. This happened to London too.
Industrialization eventually crossed the Atlantic after moving south and east from
England.
Major industrial areas in Eastern North America, Bosnywash to Minneapolis, the
American Manufacturing Belt.
Russia has: Moscow area, St. Petersburg, the region along the Volga River, The
Urals, the Kuzbas, Lake Baikal, and the Far East.
Industry moved from Moscow to the Volga river during WWII ahead of the
invading Nazis
The East Asia area is based on China and Japan.
Four Tigers: South Korea, Taiwan, Hong Kong, Singapore.
The maquiladora in Mexico has caused lots of American companies to put up
factories across the border. NAFTA opened up trade in America.
inefficiencies.
Modernization Model: Created by Walt Rostow during the 1960’s, this model says that all
countries follow the five stages of development; traditional, preconditions of takeoff,
takeoff, drive to maturity, and high mass consumption.
Neo-colonialism: Dominance of periphery areas through use of economics rather than
politics.
Structuralist Model: This development model views the global economy as a structure and
poor economic conditions are a result of a structure that cannot be changed easily.
World Systems Theory: Developed by Immanuel Wallerstein, this theory promoted the coreperiphery concept.
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Alternative measures of economic development:
Energy consumption per person: Countries that use this are able to account for a
higher use of electricity
Dependency ratio: measures how many people, of all ages, depend on 100
employed people.
Occupational Structure of the Labor Force: percentage of workers employed in
different sectors. If many people work in the food development there is a low
level of economic development.
Transportation and Communications Facilities per person: measure that reduces
all forms of transportation such as rail, plane, and road, as well as
communications such as telephone, radio, and television.
Consumption of Manufactured Metals: measures development by quantity of iron,
steel, aluminum, copper and other metals used by a population annually.
Productivity per worker: amount of production per year per person.
Social Indicator Rates: Various measures, obviously to indicate a country's economic
social status such as: literacy rates, infant mortality, life expectancy, calorie intake per
person, % of family income spent on food, and savings per capita.
Agglomeration: The grouping of multiple industries for mutual benefit.
Distance Decay: The impact of an industry or idea lessens when further away from the source.
Friction of Distance: Increase of time and cost that results from increased distance of shipping.
Substitution Principal: A situation that can affect the cost factors of industries. Ex: If cost of
transportation goes down, an industry can afford to have more expensive labor, etc.
Variable Cost: Expenses that fluctuates. Ex. Labor, transportation, etc.
Break-of-Bulk: The transfer of goods from one kind of transport to another. Ex. ship to truck,
truck to plane.
Comparative Advantage: A superior situation relative to other regions or industries. Ex. Great
Britain, during the nineteenth century.
Growth Pole: Industries that are designed to grow through development of supporting
industries.
Primary Industrial Region: Sector of direct extraction of raw materials. Ex. Coal mines
Secondary Industrial Region: Sector of manufacturing of finished products from raw materials.
Ex. Thailand, Vietnam, etc.
Special Economic Zone (SEZ): Special zones of Communist China that are open to foreign
business. The rest of the country is closed to the outside world.
Core-Periphery Model: Model that divides the world economy into three sectors: core, semiperiphery, and periphery. Core regions are the most economically prosperous, while periphery
regions are the least developed. The semi-periphery regions are in between.
Dependency Theory: states that the relationships between powerful countries control the
economic development of less powerful areas.
Gross National Product (GNP): The total amount of money produced by all of a country’s goods
and services in one year.
Liberal Model: A development model that assumes that all countries are capable of
development. It also assumes that poor economic conditions are due to short-term