Chapter 11 · AP Human Geography Crash Course Chapter 11 Industrialization and Economic Development...

AP Human Geography Crash Course

Chapter 11

Industrialization and Economic Development

I. Defining Industrialization

a. Indust rial ization and t he Economy

1. Industrialization is the growth of manufacturing activity in an economy or a re

gion.

2. Usually, industrialization is accompanied by a decrease in t he number of subsis

tence farmers in a country or region as t hey leave the agricultural sector in favor

of manufact uring jobs.

3. The economy is t he syst em of production, consumption, and distribution in a re

gion.

b. Major Economic Classifications

1. The primary sector is the part of the economy in which activities revolve around

getting raw materials from the Earth.

,... Farming, f ishing. and raw mining are examples of primary economic ac

tivities.

J> Industriali zed economies have a small proportion of primary sector em

ployment.

2. Secondary sector economic activities deal with processing these raw materials

{acquired through primary activities) into a finished product of greater value,

such as taking raw corn and processing it into baby food.

J> Factories fall into the secondary economic activity category, as factories

take raw materials and t ransform t hem int o f inished products.

J> Manufacturing is a secondary economic activity.

3. Tertiary sector economic activit ies or services are those that move, sell, and

trade the products made in primary and secondary activities.

J> Tertiary economic activities also involve professional and f inancial ser

vices, including bank tellers, carpet cleaners, and fast-food workers.

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4. Quaternary sector economic activity involves information creation and t ransfer.

,... Quaternary economic activit ies assemble, d istribute, and process infor

mation; they also manage other business operations.

,... University researchers and investment analysts are examples of quater

nary economic activi t ies.

5. Quinary sector economic activit ies exist as a sub-classif ication of quaternary ac

t ivit ies and involve the highest-level of decision making, such as decisions made

by a legislature o r a presidential cabinet.

,... High-level, government-target ed research is also included in t he quinary

sector.

IL The Diffusion of Industrialization

a. The History of the Indust rial Revolution

1. The Industrial Revolution began in England in the 1760s when the industrial ge

ography of Great Britain changed signif icantly and lat er diffused to other parts

of West ern Europe.

2. In t his period of rapid socio-economic change, machines replaced human labor

and new sources of energy were found. Coal became the lead ing energy source,

fueling Great Bri tain's t extile-focused industrial explosion.

3. The beginn ings of assembly-line manufacturing was a defining feat ure of Great

Britain's indust rial revolution, lat er adapted by Henry Ford into what we know

today.

,... Al though assembly lines exist ed f irst on a small scale in people's homes

prior to the "revolution," the 1760s saw the growth of large, mechanized

factories.

4. Because early factories were powered by coal sources, t hey tended to clump

around coal fields.

,... Nort hern-central England 's coalfields led to t he rise of major indust rial

cities such as Manchest er and Liverpool, England. These cit ies grew due

to large rural-urban m igration.

,... The emergence of so many factories led to the development of a clear in

dustrial landscape and working-class housing areas.

5. Along with this industrial growth, England's transportation infrast ructure im

proved to allow for shipping supplies into urban fact ories.

6. Farming also became more mechanized with t he infusion of great er technology

into the agricultural process.

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7. While original factory-like labor was conduct ed in households through cot tage

industries, t he growth of factories f irst occurred around water sources, such as

rivers and lakes.

,.. With t he growth of coal-powered manufacturing, fact ories could move

away from the wat er-sources t hat formerly supplied energy t hrough

steam and water-mill met hods.

8. By t he 1960s, oil became a dominant source of energy in t he world. Al though

the United States, Russia, and Venezuela had been the chief sources of oil, t he

surge in oil demand allowed the Middle East to take over t he market for oil in

the 1960s.

b. Commodification of Labor

1. One resul t of indust riali zation was t he commodification of labor. Factory own

ers began looking at their human labor as commodities (objects for trade) with

price tags per hour, rather than seeing workers as people.

c. The Spread of the Revolution

1. By 1825, t he technology of the industrialization in England had spread to North

America and Western European countr ies such as Belgium, Germany, and

France.

,.. Industriali zation thrived in places with rich coal deposits, li ke Ohio and

Pennsylvania in America, Ukraine in Russia, and t he Ruhr region in Ger

many.

2. By t he 1920s, t he production process in t he U.S. automobile factories had bro

ken down into differentiated component s, with d ifferent groups of people per

forming different tasks to complete t he product, a process known as the Ford (or Fordist) production method.

,.. Fordist factories buil t "out" rather than "up," meaning that t hey were

buil t on only one story so that the product could be t ransported through

out the assembly line without problems.

,.. The Fordist production met hod was based on t he division of labor, where

different part s of t he assembly process were divided up among d ifferent

workers and areas of t he factory.

Ill. Explaining and Predicting Where Industries Locate

a. Alfred Weber's Least Cost Theory of Industrial Location

1. Early 2oth-cent ury German economist Alfred Weber set out to predict and ex-

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plain where factories would choose to locate and grow.

2. just as von Thunen studied the locations of agricul t ural activities, Al fred Weber

stud ied the locations of industrial activities by setting up a hypothetical state

with several assumptions.

3. Weber's model was called Least Cost Theory because it predict ed where indus

tries would locat e based on the places t hat would be the lowest cost to them.

4. Indust ries wanting to locate where transport ation costs are minimized must

consider two issues: the d istance of t ransportation to the market and t he

weight of the goods being transported.

'' TestM~ Tip r::::J

On a past AP Human Geography exam, over 1/3 of the test takers did poorly

on an FRQ that asked about Weber's Least Cost Theory. Many students con

fused Weber's theory with von Thiinen 's model of rural/and use. Be sure you

know the names of models well enough so that you don't confuse them on

test day/

b. Assumptions in Weber's Model

1. Transportation cost is determined by the weight of t he goods being shipped and

the d istance they are being shipped.

,.. The heavier the good and/or the farther the distance, the more expensive

it is to ship.

2. Indust ries are competitive and aim to minimize their costs and maxim ize their

profits.

3. Market s are in f ixed locations.

4. Labor exists only in certain places and is not mobile.

s. Like in the von Thunen model, t he physica l geography {land quali ty) and politi

cal-cul tural landscape are assumed to be uniform across the model 's geographic

space.

,.. In other words, Weber's model assumes a uni form landscape w ith equal

transportation paths and rout es t hroughout the space {no mountains,

lakes or rivers would get in t he way).

6. With these assumptions, the location of industry is driven by four factors: t rans

portation, labor, agglomeration, and deglomeration (which we will cover later).

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c. Criticism of Weber's Model

1. Weber's t heory does not identify the fact that market s and labor are often mo

bile and that t he labor force varies in age, skill set s, gender, language, and other

traits.

2. Some t ransportation cost s, unlike in his model, are not d irectly proportional to

distance.

IV. Concepts Related to Weber's Model

a. Weight-Gaining versus Weight-Losing Industries

1. Early factories also had to consider their proximity to t he raw materials t hey

needed.

,... These early factors had spatially-variable costs, costs that changed de

pending on t he factory's location.

,... A factory using heavy or perishable raw mat erials in its production

process might be bu ilt as close as possible to its source of raw materials

to minimize the cost of transporting the materials into the factory.

2. Weight-losing processes are those manufacturing processes t hat take raw mate

rials and convert them into a product t hat is light er than the raw mat erials that

went int o making it.

,... Paper production is an example of a weight-losing production process:

many paper mills are located near forests, the source of t he heavy wood

the factory converts into l ight er paper products to be shipped long dis

tances.

,... When weight-losing industries locat e near the raw resource supply, t hey

are said to have a material-orientation.

3. Weight-gaining processes t ake raw mat erials and create a heavier f inal product .

,... Beverage bottling is a weight-gaining industry.

,... Early factories involved in weight-gaining processes were built near the

marketplace because t he product was heavier t o transport in its final

form.

,... When weight-gaining industries locat e near the place where the heavier

product w ill be sold, that industry is said to have a market-orientation.

b. Footloose Industries

1. Footloose industries are not restricted in where they can locate because of trans

portation costs.

,... Some indust ries maintain the same cost of transportation and produc-

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tion regardless of where they choose to locate.

2. These industries have spatially fixed costs, costs t hat remain the same no matter

where they choose to locate.

3. These industries often produce lightweight products of ext remely high value,

like computer ch ips.

c. Labor Costs and t he Substitution Principle

1. The Weber model assumes t hat the cost of labor is a key fact or influencing

where industries choose t o locat e.

2. Included in labor considerations is the ava ilability of industrial capital, which

consists of machinery and t he money to pu rchase the tools and workers the fac

tory needs.

3. The substitution principle applies when an indust ry will move to a place to access

lower labor costs, even t hough transportation costs might increase as a result .

,... In the long run, these companies will save more because of t he cheaper

labor.

d. Agglomeration

1. Agglomeration occurs when indust ries clump toget her in t he same geographic

space.

i. Alfred Marshall first identified the benefits of agglomerat ion in industrial

izing England in t he late nineteenth century.

2. Factories that are in the same area can share costs associated with resources

such as electrical lines, roads, pollution cont rol, etc.

3. Agglomeration economies occur when t he positive effects of agglomeration

{such as lower costs for industries) result in lower prices for consumers.

i. Localization economies are a cat egory of agglomeration economies that

occur when many firms in t he same industry benefit from clustering

close toget her-for example, t hese firms get to share skilled labor talents

living in the same region.

ii. Urbanization economies a re another category of agglomeration

economies that occur when la rge populations in urban areas benefit

from clust ering together because they get to share infrastructural ele

ment s, such as power lines and t ransport syst ems.

e. High-Tech Corridor and Technopoles

1. A high-tech corridor is a place where technology and comput er industries ag

glomerat e.

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,... A not eworthy example of a high-t ech corridor popped up in California's

Silicon Valley, where many t ech-related companies located.

2. A technopole is another name for a region of high-tech agglomeration, formed

by similar high-t ech industries seeking to locate in a shared area so that t hey

can benefit from shared resources-like sharing a highly-t rained workforce, and

util izing similar support businesses {ancillary services), li ke computer repair

shops and electrical wiring services, etc. {localization benefits).

f .. Backwash Effects

1. Backwash effects are negative consequences of agglomeration t hat can occur

when ot her areas suffer out-migration {"brain-drain") of talented people who

are moving to a t echnopole or ot her "hot spot " of industry agglomeration.

g .. Locational lnt erdependence

1. Locational interdependence is t he t heory t hat indust ries choose their locations

based on where their competitors are locat ed.

2. Indust ries want to maximize their dominance of the market, so t hey are influ

enced by their competi t ion. Think of seeing so many gas stations at a highway

exit. The theory of locational interdependence would assert that these gas sta

tions know that one gas st ation cannot serve all of t he cars needing gas, so ag

glomerating around the exit allows them a slice of the market share.

h .. Deglomeration

1. Deglomeration is the "unclumping" of factories because of the negative effect s

and higher costs associated w ith indust rial overcrowd ing.

2. Deglomeration often occurs when an agglomerated region becomes too clus

tered, too crowded, and when such agglomeration negatively affects t he indus

tries, such as t hrough pollution, t raff ic congestion, or st rained resources and la

bor.

V. Development Patterns

a. Development

1. Development is the process of improving the material condition of people

through t he growth and diffusion of t echnology and knowledge. Every place, re

gardless of size, exists at some level of development.

b .. More Developed vs. Less Developed Countries

1. More developed countries {MDCs) are on t he wealthier side of t he development

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spect rum.

2. Less developed countries {LDCs) are those on the economically poorer side of the

spect rum.

3. Bot h groups of countries have related challenges, with MDCs facing issues such

as maintaining economic growth and LDCs trying to improve their economic

condition.

4. A country's development level is based not j ust on how much money i t has, but

also includes factors relat ed to education and health care development.

c. Gross Domestic Product

1. A country's gross domestic product {GOP) is t he value of total output s of goods

and services produced in a count ry, usually over one year.

2. GPO per capita is simply t he GOP divided by t he population.

,... In MDCs, t he GOP per capita is usually gr eat er than $20,000, while in

LDCs it is often less t han $1000.

d. Gross National Product

1. A country's gross national product {GNP) includes all goods and services owned

and produced by a country overseas.

2. GOP and GNP are often cited as poor measures of development levels because

they fail t o provide information on factors such as t he dist ribution of wealt h,

the development of heal th care and education, and the degree of gender equity

in the count ry.

e .. Purchasing Power Parity

1. Purchasing power parity {PPP) is a measurement tool for calculating the ex

change rates required for each currency to buy an equal amount of goods.

,... PPP allows economists to make "apple to apple" comparisons among

GOP and GNP data.

,... For example, al though the GOP per capita in some sub-Saharan African

countries is less t han $750, an evaluation of PPP for that income level

shows that t he buying power in those countries is closer to $4,000 in the

United States.

f. Informal Sector

1. A country's {or region's) informal sector {or economy) includes all business trans

actions that were not reported to the government.

,... Unregistered street vendors and day laborers are examples of parts of

the informal economy. Other examples of workers performing informal

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sector economic activities include prostitut es and d rug t raffickers.

2. A country's GOP does not include transactions in the informal sector.

3. An informal sector of an economy exists for several reasons, including meeting

a demand that t he formal sector has not ful f illed .

,.. Often, informal sector goods may be so inexpensive {such as street

goods) that vendors cannot make enough profit to buy permanent stores

and t ransit ion into the formal sector.

,.. Also, illegal immigrants risk deportation if they or their employers report

their earnings to the government.

g. UN Human Development Index-An Alternative to GOP to Measuring Development

1. The United Nations Human Development Index {HOI) is a formula used by the UN

to measure a count ry's development level and compare i t to other regions and

countries on the rank-ordered l ist of countries.

2. HOI is based on the ideas that human development is a process of expanding

choice for more people, thus pushing count ries to improve their education, wel

fare, health care, and economic systems to include more educational opportuni

ties for more people.

3. The HOI equation uses gross domestic product, life expectancy, educational lev

el at tained, and literacy rat es to estimate a count ry's development level and

rank it on the list of count ries.

4. The highest score a country can get on the HOI is a 1.000, whereas t he lowest is

0.000.

h. The Development Gap

1. The development gap is t he widening d ifference between development levels in

MDCs and LDCs.

2. MDCs are improving in t heir development levels faster t han are LDCs.

,.. In the last decade, the GOP nearly tripled in MDCs but only doubled in

LDCs.

,.. The rate of population increase fell by nearly 85 percent in MDCs, but by

less t han 5 percent in LDCs.

i. The Nort h-South Gap

1. The north-south gap refers to the pat tern that MDCs are located primarily in the

Nort hern Hemisphere, while LDCs are mainly in the Southern Hemisphere.

VI . Dependency Theory and the Development Gap

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a. Defi ning the Dependency Theory

1. Dependency theory argues that LDCs are locked into a cycle of underdevelop

ment by the global economic system t hat support s an unequal structure.

2. The dependency theory argues that t he political and economic relations among

countries limit the ability of LDCs to modernize and develop because the MDCs

are dependent upon LDCs to remain at the top of the world economy.

,... ln turn, LDCs remain dependent on MDCs for economic and financial sup

port.

,... According to t he dependency theory, many countries are poor today be

cause oftheir colonization by Europeans that ext racted va luable re

sources from colonies but did not develop lasting infrast ructures t hat

would benefit colonized people after the Europeans left.

3. Dependency theory views t he world's countries as existing in a system of inter

locking part s. That is, each country's actions impact other countries.

b. Core-Periphery Model

1. The core-periphery model states that t he world's countries are divided into t hree

groups:

i. The core consists of indust rial ized count ries with the highest per-capita

incomes and standard of living.

,... The United Stat es, Canada, Australia, New Zealand, japan, and

western Europe are considered core count ries.

i i. The semi-periphery consists of count ries that are newly industrialized and

have not yet caught up to core countries in level of development, often

having vast inequali t ies in standards of l iving among their peoples.

,... Countries like Brazil, India, and China exist in the semi-periphery.

i ii. The periphery consists of LDCs with low levels of industrialization, in

frastructure, per capita income, and standards of living.

,... Most African countries {except South Africa), and parts of Asia

and South America are considered in t he periphery.

c. Wallerst ein's World Systems Analysis

1. Immanuel Wallerstein's world systems analysis looks at the world as a capitalistic

system of interlocking states connected through economic and political compe

tition.

2. Wallerst ein's world systems analysis is linked to the core-periphery model be

cause Wallerstein's theory assert s that t he unequal positions of countries grew

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out of early exploration and colonization that began to create a network, or sys

tem, of interrelat ed economies in the world .

3. Wallerst ein argued that colonization by western European countr ies led to eco

nomic and poli t ical interactions among different regions (or systems) in the

world and the inequalities that r esul ted from domination and exploitation by

core countries of the semi-peripheral and peripheral regions.

4. Wallerst ein theorized that t he global core, semi-periphery, and periphery grew

out of t he competitive interactions among different countries.

VII. Rostow Modernization Model

a. Overview of the Model

1. Walt Rostow set out in the 1950s t o explain and predict countries' pat terns of

economic development.

2. Rostow's model consists of f ive stages through which all countries move as they

improve their economic development.

3. MDCs exist in stages 4 and 5, whereas LDCs are in stages 1 t hrough 3.

4. According t o Rostow, once a count ry starts investing in capital (for example in

building fact ories), it will begin to develop.

b. Walt Rostow's Modernization Model Assumes that all Countries Follow a Similar, Five

Stage Process of Development.

1. Stage One-Traditional Society: Economic activity is mainly subsistence farming

with litt le investment in innovation.

2. Stage Two-Preconditions for Takeoff: As a region begins to develop, a small

group of people initiat es innovative " takeof f" economic activit ies that pave t he

way for economic development.

,... South Korea's development-level improved after its country invested in

the high-tech comput er "takeof f" industry that led t o signif icant eco

nomic improvement.

3. Stage Three- Takeoff: The small number of new industries that begin to emerge

in Stage Two begin to show rapid economic growt h. In this stage, indust riali za

tion increases and subsist ence farming decreases in the regions where t he " take

of f" industries exist.

4. Stage Four-Drive to Maturity: At this stage, more advanced t echnology and de

velopment begins to spread to a w ider region and ot her indust ries (not just the

"takeoff") begin to experience rapid growt h and workers become more skilled

and educated.

5. Stage Five-High Mass Consumption: The economy shifts from t he dominance of

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secondary fact ory jobs t o the dominance of service-oriented jobs that r equire

higher levels of education. In this stage, Rostow predicted that a country experi

encing higher economic development would lead to higher levels of consump

tion.

c. Criticisms of Rostow's Model

1. Some geographers do not t hink the Rostow model can be used to explain and

predict all countries' economic development because Rostow based his projec

tions on t he patt ern of west ern European and Anglo-American count ries.

2. Rostow's model does not consider st ructural issues that might limit a country's

ability to develop, such as post-colonial dependency.

3. Rostow's model also considers each country an independent agent, rather than

one piece of an int erlocking system of countries.

4. Stage five assumes that higher economic productivity leads to high mass con

sumption of goods and services. Some geographers argue t hat a highly produc

tive economy might not lead to such consumption patt erns, as Rostow predicts,

but could lead to higher levels of social welfare activit ies or more sustainable

activities.

VIII . Approaches to Improving Economic Development

a. Self-Sufficiency Approach

1. To reduce the development gap between rich and poor count ries, less developed

countries must build their economies more rapidly.

2. The self-sufficiency approach pushes under-developed countries to provide for

their own people, independent of foreign economies.

3. According t o this approach, a country should spread its investments and devel

opment equally across all sectors of i ts economy and regions.

4. Rural areas must develop along with urban areas, and poverty must be reduced

across the entire country.

5. The self -sufficiency approach favors a closed economic state, in which import s

are limited and heavily taxed so that local businesses can flourish without hav

ing to compete with foreign companies.

6. Critics argue t hat sel f-sufficiency and closed economies stifle competit ion,

which leads to higher ef ficiency and innovation.

b. Int ernational Trade (Export -Oriented) Approach

1. The international trade approach pushes under-developed countr ies to identify

what it can offer the world and then d irect investment towards building on that

industry.

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2. Eventually, a count ry will develop an advantage over the rest of the world in

producing that good or service.

3. A country has a comparative advantage when it is better at producing a particu

lar good or of fering some service t han another country.

,... The place w ith a comparative advantage can fill the market 's need for a

good or service at a lower production cost than other places can.

,... japan invested much money and power in developing a comparative ad

vantage in high-tech products and could produce comput er part s more

efficiently than ot her countries could.

,... Once japan developed a comparative advantage in high-t ech product s, i t

could export t hese products to other countr ies in exchange for goods

that japan needed to su rvive and thrive.

c. Struct ural Adjustments

1. The movement to improve socioeconomic development in LDCs involves supra

national organizations like the World Bank and t he International Monetary

Fund (IMF) that regulate int ernational t rade and supply money to developing

regions in the form of loans.

2. Structural adjustments are requ irements at tached to a loan from a lending

agency l ike the IMF that force the count ry receiving t he loan to make economic

changes in order to use the loan.

3. Often struct ural adjustments force loan-receiving count ries to increase privati

zation, t he selling of publicly-operat ed indust ries to market-driven corpora

tions.

,... Privatization can cause hardships for many families that once depended

on government owned or operat ed resources being sold of f t o profit-dri

ven corporations.

,... Many African countries underwent structural adjust ment s requiring

them to sell off water systems to private companies t hat began charging

people for the wat er that was once f ree when operated by the govern

ment .

,... Advocates of structural adjustment programs argue that long-t erm eco

nomic benefits will outweigh t he short-term side effects of d ifficul t eco

nomic adjust ment s.

d. Non-Governmental Organizations

1. Non-governmental organizations (NGOs) are organizations run by charities and

privat e organizations, rather than a government agency, that provide supplies,

resources, and money t o local businesses and causes t hat advance economic

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and human development.

,... Doctors Without Borders and Save t he Children are examples of NGOs.

IX. Globalization

a. Defi ning Globali zation

1. Globalization is the term used to describe t he increasing sense of interconnect

edness and spatial interaction among governments, cul tures, and economies.

2. Originally, globali zation was used in reference t o the spread of economic activi

ties from a home country to ot her parts of the world, but its reach has pro

foundly influenced cul t ural and political realms, t oo.

,... The globalization of a fast-food chain restaurant is essentially the spread

of an economic activity but it also carries w ith i t aspects of cul t ure.

b. Multinational Corporations

1. Multinational corporations (MNCs) are businesses with headquarters in one

country and production facilities in one or more other count ries.

,... MNCs are sometimes referred to as transnational corporations (TNCs).

2. MNCs are primary agent s of globalization.

3. MNCs are often conglomerate corporations, meaning t hat one massive corpora

tion owns and operat es a collection of smaller companies that provide it with

specific services in its production process.

,... A conglomerat e corporation might own a bottling company and a food

coloring company.

c. Outsourcing

1. Outsourcing is the practice of an MNC to relocat e a piece (or all) of its manufac

turing operations t o factories in other countr ies.

,... A company headquart ered in the United States out sources it shoe pro

duction process to workers in Malaysia and other less-developed coun

tries.

2. MNCs often outsource to take advantage of lower labor costs, lower t ax rates,

and cheaper land prices in countries outside of the United Stat es or t heir home

countries.

3. Remember the substitution principle: companies might choose to t ake on higher

transportation costs of moving t heir industrial location farther from t heir mar

ket because they will end up saving money in the long run by hiring less expen

sive labor.

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d. New Industrial Countries

1. New industrial countries {NICs) are countries t hat have recently established an

industrialized economy based on manufact uring and globa l t rade.

e. Asian Tigers

1. Whereas MNC headquarters t end to exist in t he United Stat es, Canada, Ger

many, the United Kingdom, France, and Japan, several NICs like Taiwan, South

Korea, Hong Kong, and Singapore experienced rapid economic growth in t he

late 2oth century.

2. The Asian Tigers ofTa iwan, South Korea, Hong Kong, and Singapore followed

the growt h patterns of post -World War II Japan by developing a comparative

advantage for high-tech products.

3. Together with China and Japan, t he four Asian Tigers make up the core of the

Pacific Rim economic region.

f. Foreign Direct Investment and Special Economic Zones

1. Foreign direct investment is investment by a MNC in a foreign country's econo

my.

2. Often, countries wanting to att ract foreign direct investment by MNCs estab

lish special economic zones {SEZs). which are regions t hat offer special tax

breaks, eased environmental rest rictions, and other incentives to attract foreign

business and invest ment.

,... China's Communist government has designated SEZs within its t erritory

to allow foreign companies to have free-trade rights and to outsource.

3. Export processing zones are regions that offer tax breaks and loosened labor re

strictions in LDCs to attract export -driven production processes, such as facto

ries producing goods for foreign markets.

,... Often, export processing zones are referred to as free-trade zones be

cause duties and t ariffs are waived by governments wanting to encour

age MNCs to invest in their countries.

g. Maquiladoras

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UNJTED STATES

....... .....

MEXICO

cf -

---

M aquiladora Zones on the Mexico-U.S. Border

" •

1. Mexico established maquiladora zones, special economic zones on its nort hern

border with the United States.

2. MNCs can out source labor to t hese maquiladoras, taking advantage of labor

costs in Mexico that are lower t han t hose required for U.S. workers to manufac

ture the same product s.

3. Addit ionally, the Mexican government gave t ax breaks to U.S. MNCs that locat

ed in maquiladora zones, and the product s manufact ured in maquiladoras could

be shipped to U.S. market s tariff free.

4. As part ofthe North American Free Trade Agreement {NAFTA), the maquiladora

program is supposed to be phased out.

X. The New International Division of Labor

a. Defining the New Int ernational Division of Labor

1. The new international division of labor breaks up the manufact uring process by

having various pieces of a product made in various count ries and then assem

bling the pieces in another country.

2. With the rise of globalization, the original Fordist assembly-line concept devel

oped during the Industrial Revolution has been split up not only among many

factory workers under one factory roof, but also among many countries in

volved in the production process.

3. Oft en, many LDCs depend so heavily on investment by MNCs that t hese foreign

corporations hold a large amount of power over government al decisions.

b. Free Trade versus Fair Trade

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1. Free trade is the concept of allowing MNCs to outsource without any regulation

except for t he basic forces of market capitalism.

,... Critics of free trade argue t hat free trade only prot ects t he int erest s of

MNCs and does nothing to safeguard workers' rights.

2. Fair trade involves oversight of foreign direct investment and outsourcing to en

sure that workers throughout the world are guaranteed a living wage for their

work.

3. The effects of globalization on the peripheral countries are hotly debated.

,... While some geographers and economists argue that foreign direct invest

ment is helping t o generate increased economic development in LDCs,

ot hers contend that workers {part icularly women) in those countries are

being exploited by profit-driven MNCs.

XI . Globalization and the Environment

a. Sustainable Development

1. With the d iffusion of industrialization and increased economic interaction, geo

graphers wonder if the increased rat e of production and development can be

maintained while natural resources are being rapidly depleted.

2. Sustainable development is a rate of growt h and resource-consumption that can

be maintained from one generation to another.

,... The UN Commission on Sustainable Development calls for conservation

and careful use of resources, focusing on caring for the soil, avoiding

overfishing the oceans and rivers, preserving t he forest s, protecting

species from extinction, and reducing air pollution.

b. Ecotourism

1. Because transportation t echnology has improved so much, humans can t ravel

to places once considered t oo distant.

2. Many exotic landscapes and "vacationable"' areas are being transformed to

meet tourists' desires, often at the expense and destruction of local communi

ties and environment s.

3. Ecotourism comprises tourist operations t hat aim to do as little harm t o the en

vironment as possible.

,... Instead of t earing down a forest to build a t heme park, an ecotourist

business m ight build a tourist attraction around hiking t hrough the for

est and celebrating i ts ecological diversity.

c. Greenhouse Effect and Global Warming

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1. Geographers are also concerned w ith t he rising average global t emperature,

caused in part by t he spread of industrialization and the related increase in con

sumption and pollution.

2. The greenhouse effect is caused by indust rial out puts such as carbon dioxide and

methane in the atmosphere that cr eat e a vapor t hat transforms radiation into

heat, leading the Eart h's temperat ure to r ise.

3. Global warming theory argues that the Earth's r ise in temperat ure is causing

negative consequences, such as premat ure melting of t he polar ice caps, which

could cause a rise in sea levels and an int erruption of oceanic pat terns.

' ' Test~~ Tlp \9

When taking the AP Human Geography exam, be sure to focus your

mind on your own work. Do not pay attention to the other test takers

in the room. Many students feel intimidated when people around

them seem as if they are finished or working at a different pace. Re

member that test booklets often have different orders of questions

and students work in different ways. Focus on your own pace and your

own work- don 't let others throw off your concentration/

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Chapter 11 · AP Human Geography Crash Course Chapter 11 Industrialization and Economic Development...

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