What's going on Mr. Lee here and this is the first part of the industry unit and we'll be going over the origins of the industrial revolution, models that pertain to the unit, and the measurements of development. In Case you’re wondering why Forrest is running in the background it is because we will utilize the movie Forrest Gump in order to demonstrate the various sectors of industry. Lets kick it off with the industrial revolution in the 1700s which began in England with the availability of resources like coal and iron and also began as a result of new technology like the bessemer process which expedited steel smelting, the steam engine, which allowed for quicker transportation, and the spinning jenny, which led to increased textile output in factories. These technological advancements and the industrial revolution went together like peas and carrots The industrial revolution then diffused to mainland europe and made its way east through rivers and eventually made its way to Japan and the United States. In the US, the industrialization began with the New England area and this region eventually would become deindustrialized and is now known as the rust belt and two other regions you want to note are the sunbelt, which is a region that saw technological development and a population boom in the 1960s and the corn belt, which is also a significant agricultural region. The advancement of technology, availability of resources and efficient farming tools led to an agricultural surplus. With the increased availability of food, people were able to consume larger amounts and this led to a population boom, and since farmers were more productive and there weren’t as many farmers needed, people moved into the city to work in factories and this would lead to the restructuring of classes. The preindustrial classes had the nobility up top, the clergy in the middle and the farmers and the merchants as the lower class. After the industrial revolution, you had the nobility and the wealthy owners up top, an increased middle class as education and opportunity allowed for people to move up in the social hierarchy, and lastly you had the working class, also known as the proletariat and they worked for extremely low wages. The industrial revolution also led to European countries thirsting for more raw resources, and they would quench their thirst by means of colonialism. One of the best examples of this is the race for Africa, as European countries carved out the continent in order to extract as many natural resources as possible, such as coal, gold, oil, and diamonds and this would lead to internal struggle in Africa that affects the continent to this day. Then lets move into the various economic sectors, starting with the primary, secondary, and tertiary sectors of the economy. First we have the primary sector, which includes any job that involves extracting natural resources and that could include farming and fishing, and you don’t need to be fishing in the bayou like forrest in order to be considered primary, other examples involve lumberjacks and miners. The secondary economic sector includes the processing of a good, so this would be the manufacturing process, which can include woodwork and any work that includes a factory. Anytime you take raw material and make into something else, this would be secondary. Then we have the tertiary sector, AKA the service sector. Some examples include baristas, retail, servers, maids and gardeners who cut grass. Also, within the last decade we have seen a rise in the gig economy and they provide services such as transportation, food delivery, and grocery shopping. These companies include postmates, doordash, lyft, instacart, and uber. Shout out to my third period for showing me that one. The quaternary sector includes any job that deals with information or research. This can include professors or teachers, as they pass down information, research and development, or tech companies such as Apple. Not only would this fruit company be quaternary, but computer scientists for Google would also count as a good example as well. Lastly for the economic sectors we got the quinary sector and this would involve the decision makers of the economy and politics, so CEOs like Elon and presidents. And it's not only presidents like JFK who would be part of the quinary sector, congress and governors would work as well. It is crucial that we understand how these sectors play out in the process of development and in order to understand this concept we will use the US as an example, starting with the 1700s. In the beginning stages of development, a country will have high quantities of primary activities ,such as farming, as people will all work to feed themselves and their families. As soon as the country starts developing a little bit, you’ll see your factories and corporations establish control of the economic sector, however, there will come a time when the country will experience deindustrialization, and thus the factories will disappear and the service sector will dominate. This happened in the US during the 1900s, as factories were outsourced and now because of that we have the rust belt, as the factories are not being utilized anymore and are rusting. Last but not least, the technology of the country will improve, which will lead to higher numbers of quaternary and quinary activities. We have our first of many models, which is Rostow’s model of development and he theorized that countries went through stages of development starting with the traditional society. This society would consist of subsistence agriculture and barter trading, so the beginning stages of any country. As a country experiences development, they then move onto the precondition for take-off, and here we would see specialization in the job market, which equates to more efficient systems, and there would also be a surplus of agriculture with development in infrastructure. The country would then take-off and at this point you would see an influx of secondary jobs and manufacturing and people will start moving into the cities. Then the country goes to the drive to maturity phase, in which they would start diversifying away from the factories and there would be higher utilization of technology. Lastly, the country goes into the high mass consumption stage, where the service sector would be at its peak and you would see higher levels of GDP per capita. There are criticisms about Rostows model as it doesnt account for colonialism and the limitations that it might have on a country and also it doesn’t take into consideration the carrying capacity which could possibly limit a country’s growth as they wouldn’t have enough resources to expand and develop. Lastly, the dependency theory, which we will go over, also counteracts the model as the dependency theory states that certain countries are limited in their growth as they are dependent on other countries. Then there’s the World Systems theory which said that there are three stages of development with the core where you will see high consumption and purchases and higher levels of education. Then on the other side of the spectrum, you have the periphery where the focus will mostly be on the extraction of raw materials, low skilled labor, and the focus here will be primary and secondary sectors then in the middle you have your semi-periphery, where you’ll have both production and consumption, however they will be mostly industrial in nature. A really good example of a semi-periphery country would be China with their dominating industrial job sector accompanied by their consumption based society. The world systems theory implements the ideas of the dependency theory, as it states that resources flow from the peripheries to the core, thus limiting the growth of peripheries. Think of how neocolonialism limits the growth of countries as they extract resources from the countries that they dominate, however, despite all that, you do see the BRICS emerging out of this system more and more as they start start transition away from the industrial jobs into the tertiary and quaternary. There are criticisms about Wallerstein’s model, as it doesn’t account for the effect of NGO’s also known as Nongovernmental Organizations and these focus on assisting the development process, thus counteracting the fact that countries might be limited in their growth. We finally have Weber’s Least Cost Model which theorized the location of industrial and manufacturing plants. The first part of this model is labor, as the model states that factories will be placed in regions where labor is available and cheap, and this idea can be seen in China, where cheap labor is in abundance due to their large population and it is exactly why a city like Shenzhen produces a whopping 90% of the world’s technology, it is because these tech companies take advantage of the cheap labor. Then there’s the idea of agglomeration, which is the idea that similar companies will establish their manufacturing zones near each other. This is to take advantage of the site and situation and these areas, including the infrastructure. For example take a look at this port, shipping companies will establish themselves here to take advantage of the infrastructure such as the roads or the train tracks and this wouldn’t cost them any additional money. They can also take advantage of the trained workers who are experts in this field already, thus it would make sense for a shipping company to join others in establishing their business here. The third part of the model is the cost of transportation and it all depends whether the item is bulk-gaining or bulk-reducing. Let’s take a bulk-gaining industry like a car, which begins with steel and obviously other resources as well. This model is all about where you want to establish your factory, and for a car, because the volume and size of the item increases after you process it, you want the factory to be the closest to the consumer so that the truck doesn’t have to travel very far. Think about how difficult it is to haul those trucks from the factory to the consumer since it is a bulk-gaining industry. On the other hand, there are bulk-reducing industries, such as paper, which begins with a tree. The paper gets cut down and processed into sheets of paper and put into boxes, thus the volume and size of the item decreased after being processed. In this case, you want the factory to be as close as possible to the raw material, because you want to process it as soon as possible so that the cost of transportation of the paper is cheaper. You can either transport large trees or processed boxes of paper, and the answer should be obvious in the perspective of a business owner. Let’s finish with some measurements of development starting with GDP, gross domestic product which is the total value of all goods and services produced within the country. Think about fast-food restaurants, such as Jollibee, a Philipino fried chicken company, Yoshinoya, a Japanese rice bowl company, and Mickey Ds, good old fashioned American food. Even though some of these companies are owned by other countries, whatever profits they produce within the borders of the US counts as the GDP. Then there's Gross national product, and this only takes into account the value of goods and services of a nationality or country. So for example, all of the Big Macs around the world would only count as a part of the US’s GNP, as it is an American company with profits being sent back to the US. There’s also Gross national income, and this gets a bit tricky as it takes into consideration the value of GDP and the total value of exports and imports. So in this case, you would take all of the GDP of the United States, which includes all the Mickey D sales in the US, then take the value of all the imports of the Mickey Ds, then subtract the amount of money that international companies send back to their motherland take to get the value. Essentially this measurement takes into consideration what gets made in the country and what is being sent back and forth internationally. There are other measurements of development and those include fertility. more developed countries like Australia, will have lower levels of fertility and less developed countries like Nigeria will have higher levels. Higher fertility rates are due to traditional gender roles and lower levels of education for the female population. We will also see lower levels of Infant mortality rates in developed countries and higher levels in less developed countries as these rates will be contingent on their access to healthcare. If your country doesn’t have good hospitals, then we will have higher levels of miscarriages and children dying. Your development can also be measured by the amount of fossil fuel your country utilizes and how they utilize renewable energy. Developed countries will be more dependent on fossil fuels because of their dependency on cars, thus we will see higher levels of fossil fuel use and because of their technological advancement, you will also see higher levels of renewable energy use, and it will be the other way around in LDCs Lastly, a country’s development can also be measured by literacy rates. If a country has higher literacy rates, then one can assume that the country has the ability to educate their population, and so more people will be attending college, thus there will be greater numbers of quaternary and quinary jobs, and these would contribute to a higher overall GDP. Alright that about does it for part 1 of the industry unit, don’t forget to go to the description down below in order to access the quizlet vocabulary terms.