UNIT 7: STUDY GUIDE

Industrial and Economic Development Patterns and Processes

 Essential Knowledge: Industrialization began as a result of new
TOPIC 1 technologies and was facilitated by the availability of natural resources.



Where did the Industrial Revolution begin?

n EuropeandV
Identify three ways S
in which the Industrial Revolution impacted the world?
ncreasedfoodsupply
Rural to Urbanmigration
Rapid Urbanization
Essential Knowledge: As industrialization spread it caused food supplies to increase and
TOPIC 1 populations to grow; it allowed workers to seek new industrial jobs in the cities and
changed class structures
Explain how the Industrial Revolution impacted food production?

here'sanincreaseinfoodsupplywhichleadstoincrease inlandproductivitywhichcausesagriculturesurplusduetocrop
s
plowconsolidationoffieldsmechanicalreaperseed
bettern and
utrition food which
supply causedlowermortality
rota e
drillstractorschemicalfertilizerthisincreasesefficiencyandproductiontheeffectofthis
ratescausedincreasedpopulationgrowth
How did the Industrial Revolution impact the population distribution of countries?
heworkingclasspeoplehadhardand dangerous livedinpollutedareascouldn'taffordproductstheymadeTheMiddleclasspeople
pannedrapidlyThe urban class
middle hadmore Ffs
c omfortable andh ad income
enough topurchaselowcostmanufacturedgoodsThecapitalistclassbecame
remelywealthythe demandfor w
workers ho r
couldead a ndwrite increasedthem c
iddle lass
expanded rapidlyduetoindustrial
capitalism

Essential Knowledge: Investors in industry sought out more raw materials and new
TOPIC 1 markets, a factor that contributed to the rise of colonialism and imperialism.

Explain why the Industrial Revolution motivated investors and countries to expand into Africa and Asia?

mallcountriesinEuropehavelessnaturalresources intheircountries GreatBritaindoesn'thave

picalclimateforcotton sotheycontrolIndia forcotton ASGreatBritainandFranceindustrialize they
siretocontrol
t rading and
posts f
colonies orresources

Essential Knowledge: The different economic sectors — including primary, secondary,

TOPIC 2 tertiary, quaternary, and quinary — are characterized by distinct development patterns

Primary Secondary Tertiary Quaternary Quinary

processthe raw Provideinformation

natural Intact
1instinesenthg
resources level
servicesinnovationand makinghigh
materialsextracted anservicetobusinesses
by primaryindustries and consumerswide proceduresandgoods
Description
theminto range
transforming
finishedusableforms

Farming mining s int

building lawyers truck
ins sins drivers
Softwaredevelopment Productdevelop
men
Jobs/Activities in extraction Logs 7lumber supermarket biomedicalresearch andresearch
this Sector
keepingmedicine

Explain one change that typically occurs as country develops over time.

countriesbecomewealthierbecause wages inthesecondarysectorarehigher thanthose

n primary sector
 Essential Knowledge: Labor, transportation (including shipping containers), the break-of-bulk
TOPIC 2 point, least cost theory, markets, and resources influence the location of manufacturing such as
•

core, semi-periphery, and periphery locations.




What is a break-of-bulk point?

locationwherecargoistransferredfromonemode oftransportation to
another
Explain how Weber’s Least Cost Theory describes the location of industries and resources.

heleastcosttheoryexplainsthatthelocationofindustries isdeterminedbythreemaincoststransportationlaborandagglomeration
trieswillbelocatedwherethesecosts
us areminimizedraw and
materials markets willbelocatedclosetoindustriestominimizetransportation
s industrieswill
also in
locate w
areas and
affordable
ith l
available abor of
clustering willoccurtotakeadvantageofsharedintrasustructureandresources
industries

Explain the difference between a bulk-gaining product and a bulk-reducing product. Give an example of each and
identify whether they would be located close to the market or close to the raw materials.
Ulk reducingproduct is whensomerawmaterials loseweightand sizeduringprocessing whilebulkgaining
Oductiswhenthefinalsoldproductisheavierthantherawmaterials bulkreducingproductexamplecouldbetreesbecause
A
heyloseweightwhentheyareturnedintopaperSinceitransporting rawmaterialsismoreexpensive production isclosetothetrees
bulkgainingproductexamplecouldbebreadbecausethengredientstomakebread
arelighterthanwhencombinedtomakebreaditselfthebulkgaining
closerto
market

Essential Knowledge: Measures of social and economic development include Gross Domestic Product (GDP); Gross National
TOPIC 3 Product (GNP); and Gross National Income (GNI) per capita; sectoral structure of an economy, both formal and informal; income
distribution; fertility rates; infant mortality rates; access to healthcare; use of fossil fuels and renewable energy; and literacy rates

Abbreviation Description

Gross Domestic Product GDP

Thetotalvalueofgoodsandservicesproducedwithina countrydoesnt
extendbeyonditsboundaries

Thetotalvalueofgoodsand by
servicesmade acountry'sresidentsand
Gross National Product GNP businessesin aspecific
timeperiod
Thetotalincomeof a country's residentsandbusinesses incl
udin
Gross National Income GNI
investmentandforeigninvestment

What index would you use to better understand the standard of living in the country? Explain why.

Woulduse GNI because it would showmethecountry's total income

Essential Knowledge: Measures of gender inequality, such as the Gender Inequality

TOPIC 3 Index (GII), include reproductive health, indices of empowerment, and labor-market
participation
Abbreviation Description

Gender Inequality Index GII

ameasure ofreproductivehealth empowerment andlaborman
participation

Essential Knowledge: The Human Development Index (HDI) is a composite

TOPIC 3 measure used to show spatial variation among states in levels of development
Abbreviation Description
Humanachievement ismeasured
Human Development Index HDI
levelsandGNIpercapita
bylifeexpectancy education
Does an HDI score of .98 or .30 reflect more economic and social development? Explain.

nHDIscoreof 98reflectshighereconomicandsocialdevelopmentthanan HDI scoreof 30 becauseHDIranges

m oto1 with1 indicatingthehighestlevelofhumandevelopment ANDIscoreof98iscloserto 1thananHDscoreof 30whichmeans

98score expectancyeducationand
hashigher would incomepercapitathanthe
higher
barriers thatlife
with
country
•

countrywith 30score
What are three prevent a country from developing?

ack ofaccesstoeducation inadequateinfrastructure and political instability

Essential Knowledge: The roles of women change as countries

TOPIC 4
develop economically
Describe the changes in girls’ education rates as an economy develops..

ghrate offemaleeducationbecausepeoplehavemoremoneytosendgirls to school

Explain how higher education rates for girls affects a country’s fertility rate.

playedmarriagecauseslowfertilityratebecausewomenare moeeducated whichcauselesstraditionalmom

hich leadsto more careerdriver
Explain the effects of economic development on women’s mobility.

moreeducated morenormaltobesell inpublicspaces

morepresent in forma sew
How can women’s participation in social and political life be measured?

ender parityand Gender Empowerment Measve

Explain how women’s political participation can lead to further improvements in gender parity.

ghereducationleadstomoreparticipation inciviclife Highereconomicdevelopmentleadstogreater

sayin
blicpolicymattersand
increased future
opportunities forgirlsandwomen

Essential Knowledge: Although there are more women in the workforce,

TOPIC 4 they do not have equity in wages or employment opportunities
Women in developing countries that are just entering the workforce typically do what type of work?

rimary on secondary sectorjobs

Identify two inequalities that women face in the workforce.

come andemployment opportunities

Essential Knowledge: Microloans have provided opportunities for women to

TOPIC 4 create small local businesses, which have improved standards of living
Explain how microloans support women in developing countries.

s a smallloanto helpwomenestablish orexpand a smallbusiness

Which countries in the world traditionally have less gender inequality and which countries have more?
developed countrieshave lessgender inequality
loping countries have moregenderinequality
eve
 Essential Knowledge: Different theories, such as Rostow’s Stages of Economic Growth,
TOPIC 5 Wallerstein’s World System Theory, dependency theory, and commodity dependence, help
•

explain spatial variations in development

•


Rostow’s Model of Development

Stage Description Country Example

Primarysector
Traditional
Society olimitedtechnology No one
alocalregionaltrading
oImprovedinfrastructureand
technology
Preconditions shiftingtowards commercial agriculture
for Takeoff exportingrawmaterialsinternationally
Afghanistan
Mainlyprimaryjobs
Majortechinnovations
Takeoff vindustrialization
urbanization Bangladesh
secondarysector
Improvesenergy transportation communication
Drive to moreeconomicgrowththan
population
Maturity diversified
e conimies
independenteconomically
India
items
Purchaseluxury
Age of Mass supports a strongtertiarysector
Consumption Massproducing consumingitems US
weneedandwart
What similarities are there between Rostow’s stages of economic growth model and

the demographic transition model?

Explain how Wallerstein’s World System Theory Model explains global trade.

Which countries are in the core, semi-periphery, and periphery? Give an example of each.

ORE UnitedStates PERIPHERY Afghanistan

MI PERIPHERY China
Why does dependency theory believe there is an imbalance of wealth between the different countries?

Explain what commodity dependence is. Give an example a country that commodity dependence.

Describe what could happen if a country becomes dependent one one or two commodities.

When comparing Wallerstein’s world system theory with commodity dependence what can you notice?
 Essential Knowledge: Complementarity and comparative advantage
TOPIC 6
•

establish the basis for trade

•


What is the difference between complementarity and comparative advantage?

mplementarity is a measure of howwellonecountry'sexportprofilematchesanothercountry'simport

rotile whilecomparativeadvantageis a country's abilityto
produce product one moreefficientlythanit canproduceother
o economic
ducts
What withinits
economy
reason would cause countries to trade?
themtospecialize inproducinggoodsandservicestheyaremostefficient leading increasedproductivityandeconomic
allows at to growth

Essential Knowledge: Neoliberal policies, including free trade agreements, have created new
TOPIC 6 organizations, spatial connections, and trade relationships, such as the EU, World Trade
Organization (WTO), Mercosur, and OPEC, that foster greater globalization
What is interdependence?

twoormorecountriesindustries
mutualreliancebetween
orindividualsoneachotherforgoodsservicesandresources

Compare neoliberal policies and protectionism in international trade.

eoliberalpoliciesadvocateforfree
tradeandminimalgovernmentinterventionintheeconomywhileprotectionismseekstorestrictimportsandpromotedomestic
us trade
triesthrough andefficiencies
barriers

Organization Description

apoliticalandeconomicunionof 27memberstateslocatedinEurope
European Union (EU)

World Trade an internationalorganizationthatregulatestradeamong184memberStates providing a frame

Organization (WTO) workfornegotiatingtradeagreementsandresolvingtradedisputes

SouthernCommonMarket a SouthAmericancustomsunionthatincludes Argentina BrazilParaguay

Mercosur
andUruguayasitsfullmembers

OPEC on international trade agreementdesigned to regulate theoutputofoil

tradeagreementaimedateliminatingbarrierstotradeandinvestmentbetweenUS Mexico andCA

NAFTA/USMCA

Essential Knowledge: Government initiatives at all scales may affect

TOPIC 6
economic development, including tariffs
Explain how tariffs impact international trade.

ariffsraisesthe priceoftheimportedgoodsandservices which is a barrierto international

rade

Explain the effects of trade embargo on economic growth.

adeembargocan lead toreduced international trade and lowereconomic

growth
beto reducedaccess to foreignmarketsandforeigninvestment
 Essential Knowledge: Global financial crises (e.g. debt crises), International lending agencies (e.g. the
TOPIC 6 International Monetary Fund), and strategies of development (e.g. microlending) demonstrate how
•

different economies have become more closely connected, even interdependent

•


Describe the role of the World Bank.

rorides fundingandexpertisetopromote sustainable economic growth in developing countries

Describe the role of the World Trade Organization.

egulatestradeamong184memberStates
Describe the role of the International Monetary Fund.

sterglobalmonetarycooperation achievefinancialstability facilitateinternational tradeandpromote sustainable

onomicgrowth
Define a customs union and provide an example.

tons Union is afreetrade agreement amongtwoormoremembercountries

us combinedwith
single commonexternaltradepolicyfornonmembers

Essential Knowledge: Outsourcing and economic restructuring have led to a decline in

TOPIC 7 jobs in core regions and an increase in jobs in newly industrialized countries

Define offshoring and give an example.

location of manufacturing andsupportingservices

fromonecountrytoanother
x theBoeing787Dreamlinerairplanewasdesigned inSeattle
CanadaandfinalassemblywasdoneoutsideofSeattle
Define outsourcing and provide an example.

thenosewereoutsourced to Kansas wingsassembled

of a firm'sinternaloperations
reducecosts companiestransferpart
to a thirdpartylcompany
x Companiesoutsource manufacturingwork to another company
What are two advantages and two disadvantages for outsourcing.

andproduction PROS
Increaseefficiencyintime lessdomesticjobsbecauselosesecondaryjobs CONS
costsaretolesslaborYug
lowerwageslabor higherunemployment
Define and explain how economic restructuring occurs.
onomicrestructuringiswhenemploymentsectorsshiftingwithin a country Thiscaninvolveshiftsinindustrieschargesin
auctionmethodsand
to
modifications governmentpolicies
Itoftenoccursinresponsetochangesintechnologyglobalization oreconomic
ocksandisaimedatimprovingefficiencyandcompetitiveness
Essential Knowledge: In countries outside the core, the growth of industry has resulted in the creation of new
TOPIC 7 manufacturing zones — including special economic zones, free-trade zones, and export-processing zones —
and the emergence of an international division of labor in which developing countries have lower-paying jobs

Define

specificareawithin a country's borderswherebusinessand lawsaredifferentfromthoseintherest

trade
Special Economic Zone (SEZ)
ofthecountry
Free-Trade Zone (FTZ)
freeareathatprovideswarehousing storageanddistribution facilitiesforgoods
speciallydesignatedduty
intendedfortradeorreexport

industrialzonewith investmenttoplaceswhereimportedmaterials
specialincentives toattractforeign
Export-Processing Zone (EPZ)
undergoprocessing or assemblybeforebeingreexported

Why has the creation of special economic zones, free-trade zones, and export processing zones attracted foreign
investment from core countries?

SEZoffertaxincentivesandreducedregulations
estors Ftzprovideaccessto international markets
makingthemattractivetoforeign
withoutimportlexport restrictions EP2afterstreamlinedprocesses for
inggoodsandoftenhaveaccesstotransportation infrastructure
ort
 Essential Knowledge: The contemporary economic landscape has been transformed by post-
TOPIC 7 Fordist methods of production, multiplier effects, economies of scale, agglomeration, just-in-
•

time delivery, the emergence of service sectors, high technology industries and growth poles
•


Define

Just-in-Time Delivery
theproductionofsmallbatchesofgoodsasneeded

occurwherefirmsclusterspatiallyinorder totakeadvantage ofgeographic concentrations ofskilledlaborandindustry

Agglomeration suppliersspecializedinfrastructure
maeaseoffacetofacecontactwithindustryparticipants

Growth Poles
geographically pinpointed center ofeconomicactivityorganizedaround a designatedindustry
common isinthehightechsector
How has the modern economy been impacted by post-Fordist methods of production?

hasledto moreflexibleproductionprocesses increaseduseoftech and a shifttowardsservicebased

onomiesThishasresulted innewbusinessmodels higherproductivity andgreaterglobaleconomicintegration
How has outsourcing led to the rise of just-in-time delivery and the emergence of the service sector?

utsourcing hasenabledcompaniestoreducecostsandincreaseefficiency leadingtotheadoptionofjustintimedelivery

ystemsThishasledtoemergenceofservicesectorwhichprovideslogisticsandsupportforthesesystems
Explain wha the multiplier effect is and how it impacts the economy.

hemultipliereffect is thepotential of a job to produceotherjobs Countriesbecomewealthierbecause wages in

econdarysectorarehigherthan thoseintheprimarysectororeven the
Define economies of scale.

hecostadvantages thatarisefromincreasedproductionand efficiency

Explain why agglomeration happens.

causebusinessesclustertogethertoshareresourcesaccesslargermarkets benefitfrom skilledworkforceleading

and a togreaterproductivityandcompetit
Give an example of where high technology industries are located.

Silicon Valley CA USA

Essential Knowledge: Sustainable development policies attempt to remedy problems
TOPIC 8 stemming from natural-resource depletion, mass consumption, the effects of pollution,
and the impact of climate change
What is sustainable development?

evelopment thatmeets presentconsumptionneedswithout compromising theability of future generations to meet

eirconsumptionneeds
Essential Knowledge: Ecotourism is tourism based in natural environments — often
TOPIC 8 environments that are threatened by looming industrialization or development — that frequently
helps to protect the environment in question while also providing jobs for the local population
Describe ecotourism.

avertonaturalareasofecological value insupportof conservation efforts

conomic development and sociallyjust

How does ecotourism impact a society?

cotourism canbringeconomicbenefits tolocalcommunities and raise awarenessabout

Avior
mental conservation
 Essential Knowledge: The UN’s Sustainable Development Goals help measure progress
TOPIC 8 in development, such as small-scale finance and public transportation projects
•

What are the UN’s Sustainable Development Goals?

mateaction forthegoals
partnerships
NoPoverty GenderEquality Decentwork reducedinequalities lifebelowwater
andand
eroHunger cleanwater cities
economic sustainable
growth andcommunities lifeonland
dhealth sanitation
affordableand Industry responsible
consumption peacejustice
dwellbeing
in my g andstronginstitutions
clean
valityEducation e nergy infrastructure
Explain what would happen to the standard of living in a country if they strived to achieve the UN’s Sustainable
Development Goals.

canleadto animprovement in thestandardoflivingin a countrythroughbetteraccessto education healthcare

andbasic necessities as well as moresustainableeconomies

Questions I Still Have: