AP Human Geography Industrialization PT 2

17 June 2024
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Deindustrialization
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Loss of industrial activity in one region, usually because of relocation to developing countries with cheaper labor and low economic standards. Example: Rust Belt of US is debilitated due to deindustrialization.
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Maquiladoras
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The term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the primarily foreign-owned factories assemble imported components and/or raw materials and then export finished goods.
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Agglomeration Diseconomies
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Negative economic and social effects stemming from concentration of industry in a particular area. Inculding high traffic, pollution, cost of living.
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Deglomeration
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Dispersal of an industry that formerly existed in an established agglomeration. Example: dot-com bust in late 20th century, during which many high-tect industries agglomerated in San Francisco Bay relocated to cheaper places.
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Backwash Effect
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Negative effects on one region that result from economic growth within another region. Example: the deindustrialization in American Midwest caused many in Great Lakes region to move, debilitating the economy.
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Economic Backwaters.
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Regions experiencing the negative effect in Backwash Effect.
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Transnational Corporations (TNCs)
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Takes advantage of geographic differences in wages, labor laws, slack environmental laws etc by location various aspects of production in different countries. Many TNCs are conglomerate corporations.
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Conglomerate Corporations
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Meaning firms comprised of many smaller firms that serve different functions
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Export Processing Zone (EPZs)
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Areas where governments create favorable investment and trading conditions to attract export-oriented activities. Mexico's Maquiladoras are EPZs. They provide jobs for locals, however, the income generated goes to large TNCs rather than the local economy.
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Base Ratio
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Ratio of basic to nonbasic employees in a local, typically urban area. Increase in basic almost always leads to new jobs in nonbasic.
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Agglomeration
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Grouping together of many similar firms in a single area for collective or cooperative use of infrastructure and sharing of labor resources. Leads to the multiplier effect or cumulative causation, meaning more firms locate to the same place providing jobs and can improve the local tax base.
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Localization economies
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Type of Agglomeration economy in which similar industries concentrate together in one area or region. Benefits are concentration of an appropriate labor poor, sharing an infrastructure, and knowledge pillovers.
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US Agglomerations
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Examples of Localization Economies: Agglomeration of entertainment industry found in L.A/Hollywood, California. Silicon Valley of northern California--computer and software Hartford, Connecticut --insurance-related industries. New York--Finance Houston, TX--energy-related.
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Urbanization Economy
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Type of agglomeration economy describing clustering of industrial activity of any type in urban areas.
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Ancillary Activities
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Economic activities that support large-scale industries, such as food , accounting, medical. Synonymous to nonbasic industry.
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Cumulative Causation
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The multiplier effect, an economic term used to describe the positive effect of agglomeration. With increased concentration of industrial activity comes increased need of ancillary services , which leads to population growth (supply labor force), leading to more money for the local tax base, leading to better infrastructure and public services, encouraging more industrial concentration in that area, causing the cycle to continue.
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Basic VS nonbasic
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Basic sector of a local economy includes any industry that brings in money from outside area. Nonbasic sector support the local economy--money is circulated around in the local community members.
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Formal VS Informal Economic Activities
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Formal economic activies are legally registered and taxed, profit is included in a country's GDP. Informal activities are not legally registered, they include street vendors and the black market.
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Specialty Goods
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Goods that are not mass-produced but rather assembled individually or in small quantities ("cottage produced")
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Brick-And-Mortar Business VS E-commerce
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B-A-M (hehe) refers to traditional businesses with actual stores in which trade occurs. E-commerce is web-based. During the 1990s, thousands of dot-com companies began selling goods online and many thought e-commerce would replace BAM. However, many functions are more appropriate for BAM (eg groceries) and it is now certain that BAM will never be replaced.
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Footloose Industry
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Manufacturing or other industry in which cost of transporting both raw materials and finished product is not important for determining the location of firm. Common footloose industries include catalog companies, which can locate anywhere as Shipping in US depends on weight not distance.
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Manufacturing Region
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Region in which manufacturing activities have clustered together. US--Great lake states, Illinois, Indiana, Michigan, New York, Ohio, and Pennsylvania.
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Comparative Advantage and Regionalization
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Regionalization describes process by which specific regions develop economic activities that differentiate them from others within the same country. Comparative Advantage states that areas or regions should produce goods for which they have the greatest relative advantage over other areas. CA for 2ndary EA--certain industries locate near necessary raw materials. CA for tertiary EA--Locate industries where labor is cheapest