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Unit 6: Industrialization and Development
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Industrialization
Key Concepts
Growth and Diffusion of
Industry
The Evolution of Economic Cores and Peripheries
Contemporary Patterns
Global Inequalities
Industrialization and the
Environment
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Part One: Key Concepts
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A) Introduction
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What is economic geography?
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Economic Geography studies the impact of economic
activities on the landscape and investigates reasons behind the locations of
economic activities.
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Economic Geography
Agriculture
Industry
International Trade
Resources
Transport and Communication
Others
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A Day in the Life
What might an average worker be doing on an average day in the Spring of 1553?
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A Day in the Life
What might an average worker be doing on an average day in the Spring of 1893?
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A Day in the Life
What might an average worker be doing on an average day in the Spring of 1973?
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A Day in the Life
What might an average worker be doing on an average day in the Spring of 2012?
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What is industrialization?
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Industrialization is the process by which economic
activities evolved from producing primary goods to factories that mass-produce
goods.
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Primary Economic ActivityVS.
Secondary Economic Activity
Agriculture
Industry
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Primary Sector
Secondary Sector
Tertiary Sector
Quaternary Sector
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•Agriculture•Animals• Fishing• Forestry•10,000 Years
Primary Sector
•Petroleum•Metals•18th Century
Secondary Sector
• Services•Post-Industry• Late 20th
Century
Tertiary Sector
•Research•Administration
Quaternary Sector
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Pre-Industrial Industrial Post
Industrial
Societies
Most Countries Some Countries Few Countries
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What is the difference between an LDC and MDC?
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Less Developed Countries have not developed industry. More Developed Countries
are often post-industrial countries.
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B) Economic Indicators of Development
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What is Gross Domestic Product?
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Gross Domestic Product is the value of the total output
of goods and services produced in a year.
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US GDP: 14,526,550 Million Dollars
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Per Capita GDP
GDP / Total Population
US Per Capita: $48,800
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GDP
• $20,000 in MDC
• $1000 in LDC
Types of Jobs
• MDC – Fewer Primary Sector
• LDC – More Primary Sector
Productivity
• Value Added Per worker is higher in MDCs
Raw Materials
• MDCs have greater access to Raw Materials
Consumer Goods
• MDCs can afford Consumer goods and have more access to them.
How MDCs and LDCs Differ:
Economic development is often accompanied by social development.
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C) Theories of Economic Development
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What is the Modernization Model
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The Modernization Model says that the Industrial Revolution was spurred by a combination
of prosperity, trade connections, inventions, and
natural resources.
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Britain Industrializes
Wealth became a sign
of virtue instead of kinship.
Western European
Nations and the US
followed Britain
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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.
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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.
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Rostow’s Stages of Development
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• Industry expands.• Luxury items become necessities.• High Incomes, a majority of workers involved in the service
sector.
High Mass Consumption
• 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.
Drive to Technological
Maturity
• People begin to experiment with producing goods for trade with others for profit.
• A state industrial revolution takes place.• Urbanization, technology, and production
increases.
Take-Off Stage
• Life is built around families.• Very Limited Wealth.• Subsistence Farmers.
Traditional Stage
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Criticisms
Rich nations often block the path of
poor.
Poorer nations have to
develop from a position of weakness.
Suggesting that poverty is the fault of the
victims is wrong.
A justification for capitalism
to exploit non-capitalism.
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What is Dependency Theory
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Dependency Theory says that the economic development of many countries is blocked by
industrialized nations that exploit them.
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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.
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Wallerstein’s Capitalist World Economy Model
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• 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.
Core Countries
• Low-Income countries brought about through colonialism.• Support rich countries by providing inexpensive labor and a
large market for industrial products.
Periphery Countries
• The rest of the world. • More powerful than periphery, but still dominated in some
way by the core.
Semiperiphery Countries
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Criticisms
Treats wealth as a “0 Sum
Theory”
No country willingly blocks
another from success.
Places blame on countries
that have helped others.
Ignore cultural issues
that affect poverty.
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Part Two: Growth and Diffusion of Industrialization
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A) Before the Industrial Revolution
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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
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What is a cottage industry?
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Cottage Industries are home-based manufacturers where
people manufacture tools and agriculture equipment for their
own communities.
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B) The Start of the Industrial Revolution
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The Early 18th Century
Early factories in Great Britain during the 18th Century were run by water running down slopes.
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The Most Important Invention
In 1769, James Watt built the first efficient steam engine. This was the most important invention to the Industrial Revolution.
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What is the Industrial Revolution?
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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.
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Effects of the
Industrial Revolution
Social Changes
Economic Changes
Political Changes
Population Changes
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Industries affected by the Industrial
Revolution
Iron
Coal
Transportation
Textiles
Chemicals
Food Processing
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C) Diffusion of the Industrial Revolution
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Great Britain
Belgium/France (late 1700s)
The United States (1790s)
Italy, Netherlands, Russia, Sweden (late 1800s)
Asia, Middle East and Africa (Mid 20th Century)
The United States entered the IR later than Belgium and France but expanded more rapidly.
Most of Europe came late to the party because of revolution and strife (ie. French Revolution, Napoleonic Wars)
Diffusion of the Industrial Revolution
The Middle East and Africa entered the IR because of WWI and the need for oil.
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Part Three: The Evolution of Economic Cores and Peripheries
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A) Introduction
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Why do you think that some places were affected by industrialization while others were not?
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Location Theory Locational Independence
Theory
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A) Location Theory
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What is Location Theory?
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Location Theory explains the locational pattern of
economic activities by identifying factors that influence this pattern.
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• Develops as transportation improves.
• Less dependent on location
Secondary Industry
• Develops around natural resources.
Primary Industry
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Secondary Industry Locations
Variable Costs
Friction of
Distance
Distance Decay
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Core• Primary and
Secondary Industries
Semi-Periphery• Secondary
Industries
Periphery• Neither
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What is the Least Cost Theory?
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Alfred Weber’s Least Cost Theory is a theory that explains the location of
industries based on transportation, labor, and
agglomeration.
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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.
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Weight (Bulk) Gaining• Soft Drink
Manufacturing
Weight (Bulk) Losing• Copper• Timber• Most
Agriculture
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Location Triangle
The location triangle is used to determine the best place to locate a manufacturing plant based
on Weber’s Model.
Market Resource1
Resource 2
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A) Least Cost Theory Continued
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A Case StudyI 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.
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What is the Break of Bulk Point?
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The Break of Bulk Point is where the transfer of goods
among transportation modes is possible.
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Product per Case Cost/Rail Cost/Road
Fuzzy Mice .05 .01
Concrete 1.00 2.00
Oil .50 .60
Town
Resource 1 Resource 2
5M
6M3M
10M 11M
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What is the Location Interdependence Theory?
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Location Interdependence Theory is a theory that explains the location of industries based on the
location of their competition.
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Variable Revenue Analysis
The ability of a firm to capture a market that will earn it more money and customers than the
competition.
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The Beach
How would Locational Inderdependence Theory play a part in where A and C would choose to locate?
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Situation Factors• Transportation Issues• Bulk-Gaining, Bulk Losing
Site Factors• The cost of Land, Labor, and Capital• Climate• Access to Amenities
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Part Four: Contemporary Patterns in Industrialization
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A) Globalization and Infrastructure
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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.
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What is infrastructure?
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Infrastructure includes services that support economic
activities. It provides for transportation,
communication, education, and other external needs of a
company.
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B) Primary Industrial Regions
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Primary Regions
Western and
Central Europe
Eastern North
America
Russia and the
Ukraine
Eastern Asia
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• Expanded greatly after WWI.• Was largest in Germany until WWII.• Rebuilt with the help of America after WWII.
Western and Eastern Europe
• 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.
North America
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Russia and the Other Soviet Republics
• Much manufacturing up through the 1930s followed the Volga River.
• Other regions followed the Trans-Siberian Railroad.
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Asia
Japan
• The Kanto Plain• Tokyo
The Four Tigers (Export Oriented Industrialization)
• South Korea• Taiwan• Hong Kong• Singapore
China
• Northeast District in Manchuria
• Beijing, Shanghai, Hong Kong
• The Pacific Rim
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C) Secondary Industrial Regions
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Secondary Industrial Regions
Southeast Asia
Northern Africa
Mexico
Brazil
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What is the maquiladora?
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The Maquiladora is a manufacturing zone created in the 1960s in Mexico that mostly produces American
products.
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What is the NAFTA?
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NAFTA is the North American Free Trade Agreement which
eliminated barriers to free trade in North America.
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Part Five: Global Inequalities
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A) Challenges for More Developed Countries
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Protection of Markets
MDCs are having to work to protect their markets from newly developing countries. They
often do this by establishing Trading Blocs.
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What is a trading bloc?
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A Trading Bloc is a conglomeration of trade
between regions.
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Benefits of Trading
Blocs
Little to No
Taxes
Ease in crossing borders
Cooperation Encouraged
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3 Important
Blocs
NAFTA
European UnionEast Asia
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Most cooperation and competition between trading blocs take place between transnational
corporations which are also conglomerate corporations
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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.
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B) Challenges for Less Developed Countries
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Challenges of LDCs
Distance from Market
Inadequate Infrastructure
Competition with Existing
Manufacturers
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The New International Division of Labor
The selective transfer of some jobs to LDCs.
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Part Five: Globalization and the Environment
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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.
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Environmental Impact Concerns
Global Warming Acid Rain
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Solutions
Prevention
Technological Change
Mitigation
Compensation
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The End.
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