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Human Geography Unit 7: Industrial and economic development patterns and processes

Economic development varies across the world, and geographers explain it with sector shifts, indicators and development theories.

Covers: The Industrial Revolution, economic sectors, measures of development, gender and development, theories of development, trade and the world economy, changes in industry, sustainable development

Study guide

The Industrial Revolution began in Britain and spread to Europe, North America and later East Asia. Economies are divided into sectors: primary (extracting resources, like farming and mining), secondary (manufacturing), tertiary (services), quaternary (information and knowledge, like research and finance) and quinary (top decision makers). As countries develop, workers shift from the primary sector toward the tertiary and quaternary sectors. Weber's least cost theory explains where factories locate based on transportation, labor and agglomeration costs. Bulk-reducing industries locate near raw materials; bulk-gaining industries locate near markets.

Development is measured by indicators like gross national income (GNI) per capita, the Human Development Index (HDI), the Gender Inequality Index (GII), literacy rates and sectoral structure. The Gini coefficient measures inequality. Women's access to education and jobs strongly affects development, and microloans help many women start businesses. Formal economies are taxed and regulated, while informal economies aren't.

Theories explain uneven development. Rostow's stages of growth describe five stages: traditional society, preconditions for takeoff, takeoff, drive to maturity and high mass consumption. Wallerstein's world system theory divides the world into core, semi-periphery and periphery, with the core exploiting the periphery. Dependency theory argues that colonialism made poorer countries dependent on richer ones. Globalization has created a new international division of labor, outsourcing and offshoring, export processing zones and special economic zones, like maquiladoras in Mexico. Deindustrialization has hit older manufacturing regions, and post-Fordist flexible production uses just-in-time delivery. Sustainable development meets present needs without harming future generations, as in the UN's Sustainable Development Goals, and ecotourism supports conservation.

Commodity dependence means a country relies on exporting one or a few raw materials, such as oil, copper or soybeans, for most of its income. That leaves it vulnerable to price swings and keeps it in a peripheral position in the world economy. A growth pole is a cluster of related, fast-growing firms that stimulates growth in the surrounding region through jobs, suppliers and spending. High-tech growth poles like Silicon Valley and Boston-Cambridge form near research universities, which supply skilled workers, research and startups.

Global trade and investment make economies interdependent: supply chains cross many countries, so a crisis in one place, like the 2008 financial crisis or COVID-19 shutdowns, spreads worldwide. Trade agreements and organizations such as the WTO, EU and USMCA deepen these links. Trade happens when places have complementarity, meaning one has what the other needs, and when each specializes according to comparative advantage. Neoliberal policies that lower tariffs and privatize industry have expanded this trade.

Key ideas

• Development shifts workers from primary to tertiary and quaternary sectors.
• Weber's least cost theory explains where factories locate.
• HDI and GNI per capita measure development.
• Rostow, Wallerstein and dependency theory explain uneven development.
• Globalization created outsourcing and export processing zones.

Formulas and rules

Common mistakes

• Confusing bulk-reducing (near raw materials) with bulk-gaining (near markets) industries.
• Treating Rostow's model as a description of all countries; critics say it ignores colonialism.

Words to know

Primary sector

Extracting natural resources.

Secondary sector

Manufacturing goods.

Tertiary sector

Providing services.

Quaternary sector

Information and knowledge work.

Quinary sector

High-level decision making.

Least cost theory

Weber's theory that industries locate to minimize costs.

Agglomeration

Clustering of businesses to share resources.

Bulk-reducing industry

An industry whose product weighs less than its inputs.

Bulk-gaining industry

An industry whose product weighs more than its inputs.

GNI per capita

Gross national income per person.

Gender Inequality Index

A measure of gender gaps in health, empowerment and labor.

Informal economy

Economic activity that isn't taxed or regulated.

Microloan

A small loan to start a business.

Rostow's stages of growth

Model of five stages of economic development.

World system theory

Wallerstein's division of the world into core, semi-periphery and periphery.

Dependency theory

The idea that poorer countries depend on richer ones because of colonialism.

Maquiladora

A Mexican factory assembling goods for export.

Deindustrialization

Decline of manufacturing in a region.

Sustainable development

Meeting present needs without harming future generations.

Sample practice questions

5 more questions like these, from level 1 to 5, are in the practice set.