AIM: WHERE IS DO NOW:

INDUSTRY Industry Intro

Questions
DISTRIBUTED?
◻ The hearth of the Industrial Revolution was Great Britain
in the 18th century. As people learned to use water
power and coal energy to manufacture goods, they saw
large increases in agricultural productivity, population,
and wealth. Industrialization has diffused throughout the
world, reshaping all aspects of life.

◻ The diffusion of industrialization generally increased

trade and interdependence, which improved the
standard of living for most people. But as jobs moved
from one place to another place, some people lost their
jobs and an international division of labor emerged. One
cost was to the environment. In response to the
depletion of natural resources, pollution, and the results
of climate change, some people have advocated an
evolved model that stresses sustainable development.
FACTORS THAT LED TO INDUSTRIAL
REVOLUTION

◻ Origin = Great
Britain
◻ Geographic
features:
Rivers, waterways,
natural harbors –
center of trade
Rich in natural
resources 🡪 coal
FACTORS THAT LED TO INDUSTRIAL
REVOLUTION

◻ Agricultural Revolution: New tools,

fertilizers, and harvesting techniques
Increase in population
People move to the cities
FACTORS THAT LED TO INDUSTRIAL
REVOLUTION

◻ New technological
innovation in machinery
meant that factories
could produce more
goods in less time, for
less money. The cheaper
goods were produced,
the more money factory
owners made and the
faster the Industrial
Revolution grew and
spread
 EFFECTS OF THE INDUSTRIAL REVOLUTION

◻ As industrialization
spread it causes food
supplies to increase and
population to grow
◻ Workers seek industrial
jobs – cities grow
◻ Investors sought out
more raw materials and
markets
contributed to colonialism
and imperialism
AIM: WHAT ARE THE
LEVELS OF INDUSTRIAL
AND ECONOMIC
DEVELOPMENT?
DO NOW: Describe the terms
 IMPACT OF INDUSTRY
◻ Objectives:
◻ Describe the difference between preindustrial,
industrial, and postindustrial societies
◻ Understand how technology and diffusion of
industry impacts societal development
PRIMARY SECTOR
◻ Basic economic
activities that include
agriculture, forestry,
fishing, and the
extraction and
harvesting of natural
resources from the
Earth.
 SECONDARY SECTOR
◻ Manufacturing-
based economic
activities that
include the
processing of the
raw materials and
natural resources
obtained through
the primary
sector.
 TERTIARY SECTOR
◻ Service-based economic activities
that include the selling of goods and
services as well as transportation.
 QUATERNARY SECTOR
◻ Economic activities that include
industries concerned with the creation
and distribution of knowledge.
 QUINARY SECTOR
◻ Economic
activities that
involve the
upper-level
management
decisions for
governments,
businesses, and
other
organizations
What does economic sector
tell us about a country?
FRQ
AIM: WHAT INFLUENCES THE
LOCATION OF INDUSTRY?

DO NOW: Answer Questions

 WHY DO INDUSTRIES HAVE
DIFFERENT DISTRIBUTIONS?
◻ Industry seeks to maximize profits by minimizing
production costs. Geographers try to explain why
one location may prove more profitable for a
factory than others. A company ordinarily faces
two geographical costs:
🡪 SITUATION FACTORS: involve transporting
materials to and from a factory. A firm seeks a
location that minimizes the cost of transporting
inputs to the factory and finished goods to the
consumers.
🡪 SITE FACTORS: result from the unique
characteristics of a location. Land, labor, and capital
are the three traditional production factors that may
vary among locations.
Use the reading to fill in the note sheet!
WEBER’S LEAST COST
THEORY
WEBER’S LEAST COST THEORY
◻ A theory that suggests a company building an
industrial plant will take into consideration the
location of both the raw materials and the
market for the product.

◻ The ideal location is based on cost analysis of

transportation, labor and agglomeration factors.
Minimize transportation and labor costs
Agglomeration: economic activity congregating in
or close to a single location, rather than being
spread out uniformly over space. The clustering of
similar or related firms in close proximity to one
another
WEBER’S LEAST COST THEORY
◻ Suggests that a production
point must be located within
a “triangle,” with raw
materials coming from at
least two sources.

◻ Weight-gaining industries
must have their production
point closer to the market.
◻ Weight-reducing industries
must have their production
point closer to the source of
raw materials.
Assumptions:
◻ Isotropic plain assumption: the model is
operative in a single country with a uniform
topography, climate, technology, economic
system.
◻ Only one finished product is considered at a
time, and the product is shipped to a single
market.
◻ Raw materials are fixed at certain locations, and
the market is also a known fixed location.
◻ Labor is fixed geographically but is available in
unlimited quantities at any production site
selected.
◻ Transport costs are a direct function of weight
of the item and the distance shipped.
AIM: WHY ARE LOCATION
FACTORS CHANGING?
DO NOW
LABOR COST PER HOUR, CLOTHING
MANUFACTURING
 WHY ARE LOCATION
FACTORS CHANGING?
◻ Footloose industry: An industry that does not
have a strong locational preference because
the resources, production skills, and
consumers on which it depends can be found
in numerous places.
◻ Examples: Diamonds, computer chips, and
auto manufacturing
WHERE LOCATION MATTERS:
◻ Attraction of New Industrial
Regions
Low-Cost Labor, Outsourcing

◻ Renewed Attraction of
Traditional Industrial Regions
Skilled labor, just-in-time delivery
Proximity to Low Cost Labor

◻ Especially prominent in textile and apparel

industry
◻ In US most moved from Northeast to
Southeast
◻ Wages in LDCs much lower than MDCs
 maquiladoras

◻ Maquiladoras: a
industrial plants
located in Mexico
run by a foreign
company and
exporting its
products to the
country of that
company.
 maquiladoras

◻ usually near the border

◻ products are exported under a special
program that grants them tax breaks
and other benefits.
◻ In 1994, the North American Free Trade
Agreement (NAFTA) sparked the
growth of maquila plants, and within a
few years the numbers more than
doubled.
 maquiladoras

BENEFITS
◻ Duty free

◻ Skilled workforce

◻ Low cost labor

◻ Low shipping costs/quick delivery

◻ Reduced trade risks

 maquiladoras

CHALLENGES
◻ Trade/custom compliance

◻ Retaining skilled workers

◻ Changing political landscape

Proximity to Low Cost
Labor

▪Outsourcing: turning over

much of the responsibility for
production to independent
suppliers (Opposite of
vertical integration, where
company controls all of the
phases of production)
 Proximity to Low Cost
Labor
◻ International division of labor: selective transfer
of some jobs to LDCs (steps that can be performed
by low-skilled, low-paid workers)
◻ “Old" international division of labor: until around
1970, underdeveloped areas were incorporated
into the world economy principally as suppliers of
minerals and agricultural commodities.
 Proximity to Low Cost
Labor
◻ New International Division of Labor: An outcome
of globalization, production is no longer confined to
national economies
◻ As developing economies are merged into the
world economy, more production takes place in
these economies
◻ From 1953 to the late 1990s, the industrialized
economies' share of world manufacturing output
declined from 95% to 77%, and the developing
economies' share more than quadrupled from 5%
to 23%
 Industrial Ideas
◻ FORDISM 🡪 POST-FORDIST
IDEAS
◻ Fordism: mass production,
standardized work routine
(assembly line), unionized
◻ Post-Fordism: the social
organization of production
based on flexibility and
innovation being maximized
to meet market demand
 POST-FORDISM

◻ Workers have more diverse skills, more

autonomy to problem solve
◻ Emphasizes technologies and computers
◻ No unionization
◻ Increased productivity and reduce costs
AN EXAMPLE:
AUTOMOBILES
◻ Industrial location models are used to explain
geographic patterns of economic activity. The
maps above show automobile factories built
before and after 1986 in the United States.
1. Identify one change in the geography of
automobile factory construction shown by the
maps.
2. Identify and explain TWO factors related to
industrial location that may have contributed to
the changes.
1. Identify one change in the geography of
automobile factory construction shown by the
maps.
2. Identify and explain TWO factors related to
industrial location that may have contributed to
the changes.
◻ Lower Labor Costs:

◻ Market:

◻ Deindustrialization:
◻ Availability of infrastructure:

◻ Government policies:

◻ Cheap land/industry :
AIM: WHY DOES DEVELOPMENT
VARY BETWEEN COUNTRIES?

DO NOW: Describe life in various countries

oSocially
oEconomically

oDemographically
 Human Development Index

◻ A country’s level of development can be

distinguished according to three factors
– social, economic, and demographic.

◻ The Human Development Index (HDI),

created by the United Nations,
recognizes that a country’s level of
development is a function of all three of
these factors.
 Human Development Index
(HDI)
Four factors are combined to produce country’s HDI

◻ GDP (gross domestic product) per

capita
◻ Literacy rate
◻ Amount of education
◻ Life expectancy
 Can you name the top 3
countries with the highest HDI?
United States: Can you guess...
🡪 Life Expectancy
🡪 Average years of schooling
HDI 2014
 ECONOMIC MEASURE
Gross Domestic Product (GDP): value of the
total output of goods and services produced in
a country, normally during a year

GDP per capita 🡪 Dividing GDP by total

•
population measures contribution made by the
average individual toward generating a
country’s wealth
GDP UNITED STATES
◻ GDP = $12 trillion
◻ Population = 300 million
◻ GDP per capita = $40,000

◻ Measures average (mean) wealth,

not distribution. Cannot perfectly
measure level of development
 SOCIAL INDICATORS
• level of development, the greater are both
the quantity and quality of education
• Quantity: average number of school years
attended
• Quality: student/teacher ratio and literacy rate

• Literacy rate: percentage of a country’s

people who can read and write
 Education MDCs vs. LDCs

◻ Average pupil attends school for

about 10 years in MDCs vs. couple
years in LDCs
◻ Student-teacher ratio is twice as high
in LDCs as in MDCs
 DEMOGRAPHIC INDICATORS
• Life Expectancy: average number of
years a newborn infant can be
expected to live
• LDCs – 60s
• MDCs – 70s
 Other Factors that
Determine Development of
Countries
 ECONOMIC FACTORS
◻ Types of Jobs (primary, secondary,
tertiary)
◻ Productivity (gross value of product
minus cost of raw materials and energy)
◻ Raw Materials
◻ Consumer goods
 SOCIAL FACTORS
◻ Health and Welfare
 DEMOGRAPHIC FACTORS
◻ Infant Mortality Rate
◻ Natural Increase Rate
◻ Crude Birth Rate
Gender-Related Development Index
◻ Compares the level of development
of women with that of both sexes

Gender Empowerment Measure

◻ Compares ability of women and
men to participate in economic and
political decision making
Gender-Related Development Index
(GDI)
◻ Uses the same indicators as HDI
Income
Literacy
Education
Life expectancy

◻ High GDI means both men and women

have achieved a high level of
development
◻ Low GDI means that women have a low
level of development
Gender-Related Development Index
(GDI)
ECONOMIC INDICATOR
◻ Average income for females is lower
than males in every country in the
world
Gender-Related Development Index
(GDI)
SOCIAL INDICATOR
◻ Education & Literacy
Women less likely to attend schools in
LDCs
Gap is especially high in secondary level
Women:Men ratio in schools 🡪 99:100 in
MDCs, 60:100 LDCs
Gender-Related Development Index
(GDI)
SOCIAL INDICATOR
◻ Sub-Saharan Africa & Middle East
fewer than one-third of girls attend
school
◻ In Latin America and Asia, boys and girls
are equally likely but attendance is
much less than in MDCs
Gender-Related Development Index
(GDI)

DEMOGRAPHIC INDICATOR
◻ Life expectancy
Gender gap greater in MDCs than LDCs
Women expected to live longer in MDCs
 Gender Empowerment
◻ GEM measures the ability of women to
participate in the process of achieving those
improvements

◻ two indicators of economic power

income
professional jobs
◻ two indicators of political power
managerial jobs
elected jobs
 Gender Empowerment
◻ Countries with the highest GEMS are MDCs,
especially in North America, Northern
Europe and South Pacific
A. Identify the trend:

B. Identify effect on population growth Explain:

C. Identify effect on economic Explain:

development

D. Identify effect of gender roles Explain:

AIM: WHERE ARE MORE AND
LESS DEVELOPED
COUNTRIES?
DO NOW: Vocabulary
◻ _________________________ In the 1990s dismantled the economic structure inherited from the
Communists. Countries along the border with Western Europe – Czech Republic, Hungary, Poland, Slovakia,
and Slovenia – have converted more rapidly and successfully to market economies.

◻ _________________________The region has the world’s second largest population and second lowest per
capita income. This region’s largest country, is the world’s leading producer or jute (used to make burlap and
twine), peanuts, sugarcane and tea. Agricultural productivity depends on the climate.

◻ _________________________Has a relatively high HDI but is much less central to the global economy because
of its small number of inhabitants and peripheral location.

◻ _________________________Third major center of development. Development is especially remarkable

because it has an extremely unfavorable ratio of population to resources (highest physiological densities and
lacks many key raw materials for basic industry). Took advantage of its population, manufacturing and selling
many low-cost products to get a hold in the global economy.

◻ _________________________Population density is low and the region has a major source of minerals and
resources important for development. Despite these assets, this region has the least favorable prospect for
development. It has the highest percentage of people living in poverty and suffering from poor health and
low education levels. Some of the region’s economic problems are a legacy of the colonial era.

◻ _________________________are more likely to live in urban areas than people in other developing regions.
The region’s population is highly concentrated along the Atlantic Coast. Large areas of interior rain forest are
being destroyed to sell the timber or to clear the land for settled agriculture. Overall, development is
hindered by inequitable income distribution.

◻ _________________________The economy is being driven in the 21st century primarily by China. Rapid
development is straining resources. China is also responsible for an increasing share of the world’s pollution.
 REGIONS OF THE
WORLD
MORE LESS
DEVELOPED DEVELOPED
1. Anglo America 1. Latin America
2. Western Europe 2. East Asia
3. Eastern Europe 3. Middle East
4. Japan 4. Southeast Asia
5. South Pacific 5. South Asia
6. Sub-Saharan
Africa
 THE DISTRIBUTION OF
DEVELOPMENT
◻ "World-systems” theory divides the
world into core
countries, semi-periphery countries, and
the periphery countries.
 Core Countries
◻ Areas where more developed
countries are located
◻ North America, Europe, Japan,
Australia, New Zealand
◻ Focus on higher skill, capital-intensive
production
 Semi-Periphery
Countries
◻ industrializing, mostly capitalist countries which are
positioned between the periphery and core countries.
◻ Argentina, China, India, Brazil, Mexico, Indonesia, and Iran
◻ Have organizational characteristics of both core countries
and periphery countries and are often geographically located
between core and peripheral regions as well as between two
or more competing core regions
◻ contribute to the manufacturing and exportation of a variety
of goods
◻ remain dependent, and to some extent underdeveloped,
despite having achieved significant levels of industrialization
 Periphery Countries
◻ Less developed countries
◻ outer edges of global trade
◻ usually exploited for cheap labor and natural
resources
◻ reasons such as wars, non-central location,
insufficient infrastructure (rail lines, roads
and communications), lack of technology,
unstable government, poor education and
health systems will keep a country in the
periphery of global trade
 THEORIES OF
DEVELOPMENT
Wallerstein’s Theory
◻ Sociologist
Immanuel
Wallerstein suggests
there is a world
economic system in
which some
countries benefit
while others are
exploited.
 Wallerstein’s Theory
◻ The world systems theory is established on a
three-level hierarchy consisting of core,
periphery, and semi-periphery areas.
◻ The core countries dominate and exploit the
peripheral countries for labor and raw materials.
◻ The peripheral countries are dependent on core
countries for capital.
◻ The semi-peripheral countries share
characteristics of both core and peripheral
countries.
◻ This theory emphasizes the social structure of
global inequality
 Dependency Theory
◻ Argues that LDCs are locked into a cycle of
underdevelopment by the global economic
system that supports an unequal structure

◻ Political and economic relations among

countries limit the ability of LDCs to
modernize and develop because the MDCs
are dependent upon LDCs to remain at the
top of the world economy
 Dependency Theory
◻ In turn, LDCs remain dependent on MDCs for
economic and financial support
◻ Many countries are poor today because of their
colonization by Europeans that extracted valuable
resources from colonies but did not develop
lasting infrastructures that would benefit
colonized people after the Europeans left
How does a country develop?
◻ STAGE 1 Traditional society. This is an
agricultural economy of mainly
subsistence farming, little of which is
traded. The size of the capital stock is
limited and of low quality resulting in
very low labor productivity and little
surplus output left to sell in domestic
and overseas markets
◻ STAGE 2 Pre-conditions for take-off.
Agriculture becomes more mechanized
and more output is traded. Savings and
investment grow although they are still a
small percentage of national income (GDP).
Some external funding is required - for
example in the form of overseas aid or
perhaps remittance incomes from migrant
workers living overseas
◻ STAGE 3 Take-off. Manufacturing industry
assumes greater importance, although the
number of industries remains small. Political
and social institutions start to develop -
external finance may still be required. Savings
and investment grow, perhaps to 15% of GDP.
Agriculture assumes lesser importance in
relative terms although the majority of people
may remain employed in the farming sector.
There is often a dual economy apparent with
rising productivity and wealth in
manufacturing and other industries
contrasted with stubbornly low productivity
and real incomes in rural agriculture.
◻ STAGE 4 Drive to maturity. Industry
becomes more diverse. Growth should
spread to different parts of the country as
the state of technology improves - the
economy moves from being dependent on
factor inputs for growth towards making
better use of innovation to bring about
increases in real per capita incomes
◻ STAGE 5 Age of mass consumption. Output
levels grow, enabling increased consumer
expenditure. There is a shift towards tertiary
sector activity and the growth is sustained
by the expansion of a middle class of
consumers.
 AIM: WHY DO LESS DEVELOPED
COUNTRIES FACE OBSTACLES TO
DEVELOPMENT?
 SUSTAINABLE
DEVELOPMENT
◻ Development that
meets the needs of the
present without
compromising the
ability of future
generations to meet
their own
needs. Sustainable
development had to
recognize the
importance of economic
growth while conserving
natural resources.
Sustainable Development
◻ https://www.youtube.com/watch?v=3WODX
8fyRHA&feature=emb_title
Sustainable Development
◻ https://www.youtube.com/channel/UCn-2Vq
_5GdUr1ZVnCKg7xjQ

◻ 1 min video covering each of the sustainable

development goals
◻ Ecotourism typically involves travel to
destinations where flora, fauna, and cultural
heritage are the primary
attractions. Ecotourism is intended to offer
tourists an insight into the impact
of human beings on the environment and to
foster a greater appreciation of our natural
habitats.
◻ tourism directed toward exotic, often
threatened, natural environments,
intended to support conservation efforts
and observe wildlife
Obstacles to Development
To reduce disparities between rich
and poor countries, LDCs must
develop more rapidly.
•Increasing per capita GDP more
rapidly
•Using additional funds to make more
rapid improvements in people’s social
and economic conditions
 Two Obstacles
◻ Adopting policies that successfully
promote development

◻ Finding funds to pay for

development
Promote Development
One of two ways to promote
development

◻ Self-Sufficiency

◻ International Trade
 Finding Funds
One of two ways to find funds

◻ Loans from banks and international

organizations

◻ Direct investment by transnational

corporations