DEVELOPMENT/INDUSTRYCHAP 9/11

Janee ThompsonMaurice TorranceLamyka McGuire

Factors that determine a country’s HDI…

•Literacy•Education•Life Expectancy•Income•Literacy Rates

Economic And Social Indicators of Development…

Economic- Gross Domestic Product Per

Capita- The value of the total output of goods and services produced in a country in a given time period

Types of Jobs1. Primary sector-agriculture,

fishing, mining and forestry2. Secondary sector-process,

transform and assemble raw material

3. Tertiary sector-retailing, banking, law, education and government

Productivity- The value of a particular product compared to the amount of labor needed to make it.

Consumer Goods

Social-Education Literacy Rate-the percentage of a country’s people who can read and writeHealthWelfare

World Regions

MDC’s North America Europe East Asia

LDC’sSouthwest Asia Southeast Asia Central Asia South Asia Sub-Saharan AfricaLatin America

GDI…

GDI...Gender-Related Development: It compares the level of development of women with that of both sexes.

GEM… GEM… Gender

Empowerment Measure: its compares the ability of women and men to participate in economic and political decision making.

NOTE:The value of the gender empowerment measure in the Europe.

Rostow’s Development Vs Self-Sufficiency Model…

Rostow’s Development Vs Self-Sufficiency Model…

Chapter 11 Industry

Origins of Industry Northern English &Southern Scotland 18 centuryTo improve the process of manufacturing good

Industrial Revolution Factors Dispersed across the globe (landscape) New Social, economic & political inventionsImpacted

IronCoalTransportationTextiles

Industrial Regions Located Globally

3 of the 9 world region Europe, North America , East Asia1/4 of the world total industrial output outside of Brazil &

India

Europe North America East Asia

U.K Steel and textiles

New EnglandCotton textiles

JapanManufacturingEx: Automobiles , ships , cam

Rhine-Ruhr ValleyIron , Steel

Middle AtlanticNew York BostonLargest Consumer MarketMegalopolis area

ChinaManufacturing Ex: Textile , Apparel , Steel,& House hold products

Mid-Rhine Iron-Ore

Mohawk ValleySteel, Food Processing

Po Basin ( Italy)Textile

Pittsburgh Lake EricSteel , Coal , Iron Ore

Factors Of Location

Situation Site Factors

Transport materials to and from factory and market

• Chararacteristics of a place•Varies by location

• Land-Father Away Cheaper the land

• Labor- Minimize labor cost

• Capital-Abilty to borrow Money

The cost of these three factors varies from one location to another, both with countries and between regions of the world. The most important site factor at a global scale is labor. Minimizing labor costs is important for some industries, and the variation of labor costs around the world large.

Bulk Gaining vs

Bulk Reducing

Bulk Gaining: - Cost of shipping to market is greater than cost

of bringing in inputs- Placement is based off of population Bulk Reducing:-Cost of bringing in inputs is greater than Cost of

shipping to market - Placement is based on relation to inputs- Weighs less coming out than going in - Ex: Mining, steel concentration , smelting , and

refining before the final product

Types of Industry 3 types

Bulk Gaining Near The Target Consumer Cost Less and gains volume Makes something gain volume or weight during production Ex: Fabricated metals

Steel and other metals- Beverage Production

• Soft Drinks & Beer Single Market

Location Is Determined By the Market Specialized manufactures with only one or two customer Ex: Car Parts

Perishable Location Needs To Be Close To The Market Products Need To Be Consumed RAPIDLY!!!!!!!! Ex: Milk, Bread, Newspaper

Rostow’s Development Model

Outline of the model The traditional society The pre-conditions for takeoff The Takeoff The drive to maturity The age of mass consumption

The Traditional Society

Ancient civilizations Society hasn’t even began to develop Economy is based off of the growing of

agriculture Majority of the society’s income goes

toward the military and towards religious purposes

Pre-Conditions For Takeoff

Within the society, an elite group starts to influence many decisions for the society’s economy

The group makes innovative economic opportunities

Leads to an investment of technology such as water and transportation systems

The Take-off

Consists of rapid growth in a certain industry (or industries) in the economy

These take-off industries achieve technical advancements in their field

However other industries will remain dominated by traditional practices

For example the use of the oil industry in the Middle East

The Drive To Maturity

The society as a whole experiences a rapid growth spurt

Modern technology becomes widespread to other industries

Workers obtain better skills and become specialists in certain areas

The Age of Mass Consumption

Finally the society experiences the age of mass consumption

Economic majority shifts from industries such as steel and power sources to more consumer driven products such as automobiles or cell phones.

Weber’s Least Cost Theory

Main Idea For The Theory Weber’s theory asks the question of what

is the best/most profitable location for an industry

Maintains 3 important factors:-Transportation-Labor -Agglomeration

Transportation

What needs to be considered: Raw materials (inputs) to a factory Finished goods (outputs) to the market Distance and weight

Labor and Agglomeration

The higher the cost of labor is, the less money the industry will make

Industries may locate farther from inputs/market if cheap labor can make up for the additional transportation costs

Agglomeration: Pattern of when similar businesses cluster together in the same area to support each other

New International Division of labor

Corporations are transferring work to LDC’s to pay the workers less

Needs: High Skill Workers Only Available In MDC’s = Selective Transfer

Shifts away from The North East To South And West Encouraging relocation to economic distressed peripheral

areas This is because the right to work laws- Factories have a “open

shop” which prohibits unions and gives more income to the industries

“Close Shop”- Requires the rights of union ship Maqualidoras Plants in Mexico far north to the U.S that imports materials for

assembly to take advantage of lower labor cost Exports the finished product to the U.S

Key Vocabulary To Know

MDC and LDC HDI (Human Development Index) GDP Primary, Secondary, and Tertiary sectors GDI Literacy Rate Infant Mortality Rate (IMR) Crude Birth Rate (CBR) Foreign Direct Investment

Key Vocab Continued..

Transnational Corporation Industrialization Bulk-gaining and bulk-reducing industry Site and Situation factors Labor Intensive Industry Agglomeration Export Processing Zone (EPZ) Footloose Industry