Unit 6 Lesson 2

1. Unit 6 Lesson 2

2. Learning Objective • Understanding Economic as it applies to the industrial revolution

3. Remember: • Price Equilibrium • Where supply (companies) and demand (consumer) meet

4. Economic Perspective • Many items were outside of consumer price point • Were not willing to pay a high price for cotton • Decreasing the cost of cotton production increased the consumer demand (equilibrium price was met) • Producer wanted to increase output • Still made profit and wanted to maximize profit • Just ONE example of goods and increase in both production & desire

5. Industrialization • Demand furthered industrialization • Developed 1st in England (already discussed) • Continued throughout Europe, Russia, and the U.S. • 1840’s until early 1900’s • Eventually spread to Japan (China has industrialized areas)

7. Resources • Industrialization occurred in areas with RESOURCES • Typically included most or all of the following: • Labor (Humans), coal, iron, and water (power or transportation) • Transportation was/is vital as well • Initially water transport most important • Progressed to railroad transportation • Industrialization did not always occur in a major city • Just somewhere in the country

8. Capital as a resource • Money/Capital is a resource • You need money to build • Europe (especially U.K.) had money from its colonies which helped finance the industrial revolution.

9. Money makes Money • Industrialized countries had money before industrialization • Sold goods to colonies & money came back to them • Money helps to pay for innovation & inventions • During industrialization able to sell MORE goods • Make more money from colonies • Further spurs more innovation & inventions • Exploited countries don’t have money to industrialize

10. Oh No, we need more resources • Jump ahead 50 years…. • Industrialized areas can run out of resources OR realize they need resources they don’t have • Oil • Get it from colonies or territorial possessions • Better transportation is vital to this development • Areas with these resources don’t have the money to develop it themselves

11. Wallenstein's World System Theory

12. World System’s Theory The world economy has one market & a global division of labor Which means the world focuses on capitalism and the goal is achieving profit. Which may means finding the cheapest location for resources or production.

13. World System’s Theory 2) Although the world economy has multiple states, almost everything takes place within the context of the world economy. Which means colonialism set-up a system with the financial feedback loop previous discussed.

14. World System’s Theory 3) The world economy has a three-tier structure Which means that different countries are part of different processes. Core, semi-periphery, or periphery. Core has higher processes that require higher education.

15. Timeline • Colonization 1440’s onward • Industrialization 1840’s onward • Your entire chapter 12 covers historical information on industrializing areas that you’re responsible for that’s not discussed • Transportation increases (trains, ships, cars) • 1880’s onward • Where resources gathered increases