1. 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 ;-)

2. 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

3. 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)

5. 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.

7. 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

9. 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

10. 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

11. 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

13. 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

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

16. 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.

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

18. 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.