HGAP Unit 7 Flashcards
The Enclosure Acts
1600-1800, allowed the privatization of land then bought, kicking the poor into cities for work creating industrialization.
The primary sector
The part of the economy that suplies raw unrefined materials, includes El Salvador, Honduras, Haidie, chad, and more
The secondary sector
The part of the economy that refines raw materials into products, includes all countries
The tertiary sector
The part of the economy that provides basic services, includes all countries
The quaternary sector
The part of the economy that provides services requiring advanced education (degrees), includes all countries
The quinary sector
The part of the economy that institutes major scientific research, includes U.S., Europe, Japan, China, Germany
Weber’s least cost theory
(1906) The prediction of where a manufacturing industry will place a building based on transport cost, labor cost, and agglomeration
Weber’s assumptions
- Uniform area/physical environment
- Sufficient labor for production
- Resource needs are met
- One service producer
- Costs are directly liked with transport
Location triangle
A visualization of where a factory should be based on market place, and location of all raw resources
Theories of development
- Rostow’s stages of economic growth
- Wallsteins world system theory
Rostow’s stages of economic growth
Stage one - traditional societies
Stage two - pre-takeoff
Stage three - takeoff
Stage four - drive to maturity
Stage five - high consumption in mass
Stage one
Traditional societies will modernize with stages over time, but as traditional societies, they will have local trade, local power, rural land, family-based culture, and little science/technological development
Stage two
The preconditions of take-off will see new government invests in the country, small international trade, some urbanization, shifting into secondary sectors, and increased science/technological development seeing increased transportation
Stage three
A country in stage three is in the middle of “take off”, and will see becoming a major exporter, rapid urban development, increased company investment, advanced scientific/technological development, increased standard of living with power consumption, production, and transportation
EX: India, Phillipienes, Vietnam, all NIC
Stage four
The drive to maturity will change a country to slowing CBR, specialized education, incredible advancements in power consumption and transportation
EX: Russia, China, Brazil
Stage five
High consumption in mass, the CBD becomes closer to a 1:1 ratio even sometimes decreasing into the negatives, the population is highly skilled and educated, transportation/communication/power consumption are all heavily advanced, and the main populace enjoy infrastructure allowing the mass purchase of nonessential goods.
EX: Japan, U.S, Europe, Canada, Sweden, Germany
Problems with Rostow’s assumptions
- Falsely assumes all countries value industrial, capitalist, and democratic ideologies.
- Assumes all countries develop in a uniform effect over the entire country
- Assumes all countries will follow the same stages of development in the same order
- Assumes the country develops alone, without interference from other countries
- Assumes every country has the same environment
- Assumes the highest level of development will consume in mass while not seeing competition or environmental issues
- Assumes no effect of colonialism
Wallerstienins world system theory
A theory postulating that the world is one interconnected collection of nations and states that, due to the initial wave of european colonialism in the late fifteenth and sixteenth centuries, is dominated by economic centers in europe and north america
Aspects of Wallerstein’s world system theory
- Colonialism equates to core country advantages
- Competition between core countries
- Strong military strength
Changes of the global economy
- Outsourcing
- Offshoring
- Reshoring
Outsourcing
Taking functions, giving them to another person (usually in a periphery/semi-periphery country), and paying them a lower price.
Offshoring
Moving elements of companies operations overseas while keeping them inside the company
Reshoring
Moving elements of companies operating from overseas back into the country of origin
Economic restructuring
The evolution of economic development from one to another
