7.0 Unit 7 Overview: Industrial and Economic Development Patterns and Processes

7 min read•january 9, 2023

Riya Patel

Harrison Burnside

Riya Patel

Harrison Burnside

AP Human Geography 🚜

320 resources

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The Core Theme in this Unit

Industrialization and Economic Growth will give power to some but will hurt others through the process of Uneven Development.

Industrialization, from ancient history to now, has helped power improvements in standards of living in periphery countries, but it has also contributed to geographically uneven development in semi-periphery countries.

Defining Economy

Investopedia says, “An economy is the large set of interrelated production and consumption activities that aid in determining how scarce resources are allocated. The production and consumption of goods and services are used to fulfill the needs of those living and operating within the economy, which is also referred to as an economic system”.

You could find that on Google or in your textbook, but what does that really mean?

Let’s break down that statement. The first sentence says that an economy has many moving parts that are created and sold to people. It also references that an economy affects the supply and demand for goods and services. The second sentence says that the people that buy these goods, also known as consumers, buy goods/services that they need and want.

There are several types of economies, including:

Traditional economy: A traditional economy is one that is based on customs, traditions, and the way of life that has been followed for generations. It is characterized by a strong reliance on agriculture, trade, and the bartering of goods and services.
Market economy: A market economy is one in which the production and distribution of goods and services are determined by the laws of supply and demand in a free market.
Command economy: A command economy, also known as a planned economy, is one in which the government controls the production and distribution of goods and services.
Mixed economy: A mixed economy is a hybrid system that combines elements of both market and command economies. It is characterized by a mix of private enterprise and government control.

So an economy is basically people that buy things from the people that make things. Does that sound easy enough to understand? That is what this whole unit is about. In this unit, you will examine how supply and demand affect how a country can improve standards of living and how different economic systems can help citizens of a country gain more or less equality.

Major Trends

Industrialization → consumer goods more affordable and available
Railroads increased circulation of goods, people, and ideas
Demand for raw materials increased, new sources acquired by steamship
Women gained economic power with opportunities in factories
Countries develop with more trade and more knowledge of economics
Development should be sustainable to prevent depletion of limited natural resources

Important Vocab

Vocab Word	Definition
Agglomeration	The spatial grouping of people or activities for mutual benefit. An example of agglomeration is the concentration of industries in a specific area or region. This can occur due to the availability of natural resources, transportation infrastructure, and access to markets. For example, the concentration of automobile manufacturing in Detroit, Michigan was due in part to the availability of iron and coal in the region, as well as the presence of the Great Lakes, which made it easier to transport raw materials and finished products. Similarly, Silicon Valley in California has become a hub for technology companies due to the concentration of skilled workers, research institutions, and venture capital firms in the region.
Growth Pole	A growth pole is a specific area or sector that drives economic development in a region. The idea behind a growth pole is that economic development in one area can have spillover effects that stimulate growth in other areas. One example of a growth pole is the development of a new port or transportation hub, which can create jobs and stimulate economic development in the surrounding region. For example, the construction of the Panama Canal led to the development of a growth pole in Panama City, as the city became a major transportation hub for shipping goods between the Atlantic and Pacific Oceans. The construction of the canal also led to the development of other growth poles in the surrounding region, as new industries, such as tourism and real estate, emerged to serve the needs of the canal.
Just-In-Time Delivery	Just-in-time delivery (JIT) is a supply chain management strategy in which materials and goods are delivered to the production process or to the end customer just in time for them to be used, rather than being delivered in advance or being stockpiled. The goal of JIT is to reduce waste, improve efficiency, and lower costs by reducing the amount of inventory that a company needs to hold. An example of just-in-time delivery is a car manufacturer that receives parts from its suppliers as they are needed on the production line, rather than receiving large batches of parts in advance and storing them in a warehouse. This allows the car manufacturer to reduce the amount of storage space and capital that it needs to hold inventory, and also reduces the risk of parts becoming obsolete or damaged while in storage. By using JIT, the car manufacturer can respond more quickly to changes in demand and adjust its production levels accordingly.
Post-Fordist Production	Post-Fordist production is a term used to describe the shift away from mass production and towards more flexible, customized, and knowledge-intensive forms of production. This shift is characterized by the use of advanced technologies, such as automation, robotics, and artificial intelligence, as well as the increasing importance of knowledge-based activities, such as design, research, and development. One example of post-Fordist production is the use of 3D printing to manufacture customized products on demand. In this model, a customer can design a product using computer-aided design software and then send the design to a 3D printer, which will produce the product on demand. This allows for the production of customized products with short lead times, and reduces the need for large-scale production runs and mass storage of finished goods.
Deindustrialization	Deindustrialization is the process of a region or country losing its industrial base and shifting towards a service-based economy. This can occur due to a variety of factors, including technological change, globalization, and shifts in consumer demand. An example of deindustrialization is the decline of the manufacturing sector in the United States in recent decades. Manufacturing employment in the U.S. has declined from around 25% of the total workforce in the 1950s to around 10% in recent years. This decline has been due in part to the outsourcing of manufacturing to countries with lower labor costs, as well as automation and other technological changes that have reduced the need for labor. As a result, many U.S. cities that were once reliant on manufacturing have experienced economic decline and social disruption.
Transnational Corporations	Transnational corporations (TNCs) are large businesses that operate in multiple countries. They have significant economic power and influence and are often accused of exploiting developing countries and undermining local businesses and cultures. An example of a transnational corporation is the fast food chain McDonald's. McDonald's has restaurants in over 100 countries and generates a significant portion of its revenue from international operations. It has been criticized for its impact on local cultures and economies, as well as for its environmental and labor practices. Other examples of transnational corporations include Coca-Cola, Disney, Nike, and ExxonMobil.
Neocolonialism	Neocolonialism is a term used to describe the continuing economic and political control of a country by a more powerful outside force, even after the formal end of colonialism. This can take the form of economic policies that favor the interests of foreign corporations and governments, or the use of military or diplomatic pressure to influence the domestic policies of a weaker country. An example of neocolonialism is the influence of the United States on the economies and governments of Latin American countries. Many Latin American countries have a history of U.S. intervention and influence, and have implemented economic policies that favor U.S. interests, such as free trade agreements and privatization of state-owned enterprises. As a result, these countries have become heavily dependent on exports to the U.S. and have become vulnerable to fluctuations in the U.S. economy. This dependence has led to criticism that these countries are still being exploited and controlled by outside powers, despite the formal end of colonialism.
Maquiladoras	Maquiladoras are factories located in developing countries that import raw materials and export finished goods. These factories are often owned by transnational corporations and are located in countries with lower labor and production costs. Maquiladoras are a controversial form of economic development, as they can provide jobs and economic growth in the host country, but are also accused of exploiting cheap labor and undermining local businesses. An example of a maquiladora is a factory in Mexico that imports raw materials from the United States, assembles the materials into finished products, and then exports the products back to the United States. These factories are often located in border regions, such as the maquiladoras located in Tijuana and Ciudad Juárez, which are near the border with the United States. The U.S. is the main market for maquiladora exports, although they also export to other countries.
Sun Belt	The Sun Belt is a region of the United States that includes the southeastern and southwestern states and is known for its warm climate and rapid population and economic growth. The Sun Belt has historically been an attractive destination for migrants and retirees, and has also attracted businesses due to its lower labor and land costs. An example of a city in the Sun Belt is Phoenix, Arizona. Phoenix has experienced rapid population growth in recent decades due to its warm climate and affordable housing, and has also attracted businesses due to its low labor and operating costs. The city has a diverse economy, with a mix of manufacturing, service, and technology industries. Other examples of cities in the Sun Belt include Tampa, Florida; Dallas, Texas; and Las Vegas, Nevada.