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ECONOMIC SECTORS

P R I M A R Y

• Where people collect or harvest natural resources. Logging, fishing, hunting, and farming are all examples of primary industries.

S E C O N D A R Y

• Process the raw materials collected by primary industries, turning those materials into consumable products. Weaving is a secondary industry because it transforms cotton or wool fibers into textiles, which people can use.

ECONOMIC SECTORS

T E R T I A R Y

• These are the service industries, like restaurants and retail.

• This can get confusing if one person raises sheep, weaves their wool into sweaters, and then sells those sweaters from a small store in town; not only is that person involved in primary, secondary, and tertiary industries, she's also probably exhausted from all of that hard work.

Q U A T E R N A R Y

• Involve executive decision-making jobs, higher education, and research.

• Anyone who wears a suit or a lab coat to work is probably in a quaternary or quinary industry.

SPECIALIZATION OF A PLACE

Competitive Edge: Enjoyed by one place over another. Lower production cost Cheap land Cheap labor Cheaper raw material Market to finished product

COMPARATIVE ADVANTAGE

Maquiladoras: Mexican factories on the US-Mexico Boarder

Advantage: Mexico is eager to attract foreign capital and create jobs at home Mexico has made investment in having companies come to Mexico

with Tax benefit and lax employment safety Tariffs are low in Mexico Workers are paid less and work more hours in Mexico

APPAREL PRODUCTION AND JOBS IN THE UNITED STATES

TRANSPORT AND COMMUNICATION

Without the ability to move goods economic development cannot occur.

Transportation and communication systems are specially designed

Railroads Roads Airports TV stations Telephone lines Internet

INDUSTRIAL LOCATION

Location principles are all based around one key goal: minimize the price of production.

Least Cost Theory: businesses try to maximize profit by minimizing production costs. Finding a way to minimize these production costs depends heavily on where a particular facility is located.

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INDUSTRIAL REVOLUTION

Started in 1800’s

Technology changed from Cottage Industries to high tech Machinery

Britain is the first place to Industrialize

DIFFUSION OF THE INDUSTRIAL REVOLUTION

INDUSTRIAL REGIONS

INDUSTRIAL AREAS IN EUROPE

INDUSTRIAL AREAS IN NORTH AMERICA

ENERGY AND TECHNOLOGY

Britain, provided the perfect conditions—climate, resources, demand, and so forth—to foster innovation. (Coal, Waterways)

New Technology: Spinning Jenny, Steam Engine

Machines were cheaper and more durable, skilled labors were not needed

DIFFUSION OF ECONOMIC CORES AND PERIPHERIES

Cores: center of economic activity

Peripheries: area on the boundary of the core

Core Periphery Model: one way to express the economic and developmental inequalities among the world's countries.

Diffusion of industrialization: France, Germany, parts of Eastern Europe, Russia, the United States

Colonies were not industrializing so that there was a demand for the industrial products

CORE AND PERIPHERY MODEL

Proximity to inputs

Bulk-reducing industries

Examples: Copper Steel

SITUATION FACTORS

Proximity to markets

Bulk-gaining industries

Examples: Fabricated metals Beverage production

Single-market manufacturers

Perishable products

SITUATION FACTORS

COTTON YARN PRODUCTION

PRODUCTION OF WOMEN’S BLOUSES

ROSTER’S STAGES OF ECONOMIC DEVELOPMENT

Traditional Society: subsistent, agricultural based economy, with intensive labor and low levels of trading,

and a population that does not have a scientific perspective on the world and technology.

Preconditions in Take-off: society begins to develop manufacturing, and a more national/international, as

opposed to regional, outlook.

Take-off: short period of intensive growth, in which industrialization begins to occur, and workers

and institutions become concentrated around a new industry.

Drive to Maturity: This stage takes place over a long period of time, as standards of living rise, use of

technology increases, and the national economy grows and diversifies.

Age of high mass consumption: a country's economy flourishes in a capitalist system, characterized by mass

production and consumerism.

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SPATIAL ORGANIZATION OF THE WORLD ECONOMY

Time-Space Compression: set of processes that cause the relative distances between places (i.e., as measured in terms of travel time or cost) to contract, effectively making such places grow “closer.”

World Trade Organization: only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.

World Bank: is a United Nations international financial institution that provides loans to developing countries for capital programs. The World Bank is a component of the World Bank Group, and a member of the United Nations Development Group

GLOBAL PRODUCTION

LEVELS OF DEVELOPMENT

Human Development Index: Indicator of level of development for each country, constructed by the UN, combing income, literacy, education, and life expectancy.

Gross Domestic Product: is the value of the total output of goods and services produced IN a country during a year.

Literacy Rate: The percentage of a country’s people who can read and write

HUMAN DEVELOPMENT INDEX

LEVELS OF DEVELOPMENT

Gender-Related Development Index: compares level of development of women with that of both sexes.

Gender Empowerment Measure: Compares that ability of women and men to participate in economic and political decision making.

Less Developed Country: A country that is at a relatively early stag in the process of economic development.

More Developed Country: A country that has progressed relatively far along a continuum of development.

MORE AND LESS DEVELOPED REGIONS

GENDER-RELATED DEVELOPMENT INDEX

DEMOGRAPHIC INDICATOR OF GENDER DIFFERENCE: LIFE EXPECTANCY

GENDER EMPOWERMENT MEASURE (GEM)

ECONOMIC INDICATOR OF EMPOWERMENT: PROFESSIONALS

DEINDUSTRIALIZATION

When a former booming area ceases to become an industrial sector.

All this happened at a time when the nation as a whole was becoming wealthier and more developed.

Note that regional trends often seem contradictory in the face of the bigger picture. Because different regions specialize in different industries, however, it makes sense that changes hit some communities harder than others.

ENVIRONMENTAL EFFECT

The air and water pollution that first began with the Industrial Revolution continues today, and it affects the health and livelihoods of billions of people.

Environmental degradation associated with industrialization includes greenhouse gas emissions, increased amounts of garbage, and toxic waste dumping

Negatively affect quality of life by polluting water supplies and making air smoggy.

Climate change also reduces agricultural yield in certain areas and creates new patterns of floods and droughts

Both industrialized and industrializing countries grapple with the issue of alleviating the effects of environmental degradation without crippling human activities

INDUSTRIALIZATION AND SUSTAINABILITY

Sustainability isn't only about minimizing damage to the environment. It's about developing conscientiously without depleting natural resources and degrading the biosphere.

Cap-and-trade programs would punish countries that emit more greenhouse gases than they are allowed

Renewable resources like wind and water energy, which require prohibitively expensive investments

PROGRESS TOWARD DEVELOPMENT

TRIUMPH OF INTERNATIONAL TRADE APPROACH

FOREIGN DIRECT INVESTMENT

GOVERNMENT POLICIES

Examples of government or state actions designed to create a productive environment for economic accumulation, also called regulation, are common.

General Agreement on Trade and Tariffs (GATT) help define global trade regulations

Governments provide development assistance bilaterally or through international agencies like the International Monetary Fund (IMF) and the World Bank, and regional agencies like the Asian Development Bank and the Inter American Development Bank.

Strategies to attract and maintain investments include the reduction of trade tariffs to promote the free movement of goods, capital, and in some cases labor across national borders