Industrialization & Development Origin of industry Originated in northern England & southern Scotland in 2nd half 18th century Cottage Industry: manufacturing based in homes rather than factories Industrial Revolution: Steam Engine: developed by James Watt in 1769; it greatly supplied more efficient power than watermills=hydroelectric ;-)

Industrialization & Development Industrial regions Europe Emerged in late nineteenth (iron, coal, trains, textiles, chemicals, and food processing)and early twentieth centuries (steal, cars, sky scrappers, petroleum) Ex: England, Western Europe, & Russia North America Industry arrived later but spread faster than in Europe East Asia Ex: Japan, China

Industrialization & Development Where is industry located? Depends on the what is being manufactured. (WEBER’S Model) Bulk- Reducing will be near the raw material (iron, water, copper, etc Bulk- Gaining will be closer to consumer (water products, large assembled products, perishable items, etc.) Also must consider labor, land, energy, dependency & Govt. policy How are items transporter also depends on the product. Options are: Truck: best for short & flexible delivery Rail: best for close bulky items Ship: Best long distance & most economical Air: best for express delivery (most expensive)

Industrialization & Development Industrialization leads to development of a State. Development: is the process of improving the material conditions of people through the diffusion of knowledge and technology Economic indicators of development The Human Development Index (HDI): used by the UN to determine the level of development Three factors used to assess a country’s level of development: Economic = gross domestic product (GDP) per capita Social = education & health, etc. Demographic = life expectancy, NIR, etc.

Industrialization & Development Gross Domestic Product (GDP): value of total output of goods & services produced in a country Also used to determine economic indicators: Types of jobs Primary- raw material Secondary- manufacturing Tertiary- providing a service (quaternary & quintary) Productivity- value of a product compared to amount of labor needed to produce it Value added: gross value of product minus the costs of raw materials & energy Available consumer goods

Industrialization & Development More developed regions North America (0.95 HDI) and Europe (0.93 HDI) Other MDCs with high HDI = Russia (0.73 HDI), Japan (0.96 HDI), Australia, and New Zealand Less developed regions Latin America (0.82 HDI)= highest HDI among LDCs Southwest Asia (0.74 HDI), Southeast Asia (0.73 HDI), Central Asia (0.70 HDI) South Asia (0.61 HDI) and sub-Saharan Africa (0.51 HDI)= low levels of development

Industrialization & Development Gender Empowerment Measure (GEM) Compares the decision-making capabilities of men and women in politics and economics Uses economic and political indicators: Per capita female incomes as a % of male per capita incomes % of technical and professional jobs held by women % of administrative jobs held by women % of women holding national office

Industrialization & Development 2 Options to Development Self-Sufficiency modest development, even distribution, Barriers are established (tariffs, quotas, restrict importers) 2 major problems with this approach: Inefficient businesses are protected A large bureaucracy is developed International Trade: problem (Uneven resource distribution, Increased dependence on MDCs, Market decline) Rostow’s Model of development

Industrialization & Development Best model for faster development is the international approach. Difficulty for LDCs is initial cost. LDCs tend to get loans from MDCs (IMF & World Bank) & LDCs pledge their natural resources as collateral In international trade approach another difficulty is the “exploitation” of workers & environment. Countries tend to trade with those closest to them. USA #1 trade partner is Canada. 4 Tigers

  Which of the following occupations is the best example of a secondary economic activity? Strawberry picker Software developer Dog walker Ketchup producer Coal miner

  Which of the following occupations is the best example of a secondary economic activity? Strawberry picker Software developer Dog walker Ketchup producer Coal miner Answer D: Secondary economic activities involve transforming materials harvested from the primary activities, such as tomatoes into ketchup and other goods through manufacturing.

In Alfred Weber’s industrial location model, which cost has the greatest effect on a factory’s location? Transportation Labor Materials Production Taxes

In Alfred Weber’s industrial location model, which cost has the greatest effect on a factory’s location? Transportation Labor Materials Production Taxes Answer: A Transportation costs, according to Weber’s model, are determined by the weight of the product being transported. If the raw materials are heavier than the finished product, industry will locate near resources to minimize transportation costs. Or, if the finished product weighs more than raw materials used to assemble it, the factory will locate near its market to minimize transportation costs.