1. Pre-industrialization
Workshop and Guild System
Products made by hand
Low Productivity
Varied Quality
Guild system created monopoly
Set standards for quality and price
Established training for new members
Cottage Industry
Goods made at home
Sold locally
Workers paid by the piece
Responsible for production, marketing, and sale of products
Dispersed industry
Varied availability of goods

2. Resources needed for industrialization
Semi-Reliable Market
Effective Central Bank
Easy sources of Transportation
Rivers
Roads
Development of Railroads
Cheap Labor
Natural Resources
Coking Coal
Iron Ore
Means of Shipping products to foreign Markets
Interlinked Rail Systems
Merchant Marine

3. Origins of industrialism: Britain
Capitalist System
Entrepreneurship
Heritage of people taking risks for economic gain
Middle-Class
Growing through guilds and trading systems
Patent System
Projection for ideas
Labor
Jethro Tull’s seed drill and enclosure movement forced people to cities to look for jobs

4. Origins of industrialism: Britain
Easy access to resources
Iron and Coal
Transportation infrastructure
Ports, Roads, Canals
Location of resources
Close to rivers
Mature banking system
Stable political system
Colonies
Sources of raw materials

5. Effects of industrialization
Economic: Supply and Demand
More goods available at cheaper price
Social: Urbanization
Labor clustering in cities
Political: Ideology
Socialism/Communism
Capitalism
Liberalism

6. Effects of industrialization
Environment: Industrial Waste
Increased pollution
Technological: Mechanization
Transportation
Manufacturing
Economic: Agricultural
Second Agricultural Revolution
Mechanization of Agriculture
Social: Demographics
Transition to second level of Demographic Transition Model

7. Bulk-reducing industry
An industry in which the final product weighs less or comprises a lower volume than the inputs.
Ex. Iron-Ore
Processing plants located close to mining centers

8. Bulk-gaining industry
An industry in which the final product weighs more or comprises a greater volume than the inputs.
Ex. Car Industry
Manufacturing plants located close to market

9. Specialized industries
Single-Market Manufacturers
Specializers with only 1-2 customers
Located as close to customer as possible
Ex. Motor vehicle parts
“Perishable” Product Manufacturers
Located close to market to maximize product time on sale
Ex. Milk, newspapers

10. Geography of transportation
Truck – short-distance, best for one-day delivery
Train – Longer distance, no need for stops, better for large objects
Ship – Low cost, cross- continental
Air – High cost, for small, high-value packages
Pipeline – Only used for liquids and gasses

11. Break of bulk point Break-of-Bulk Point
Points where portions of cargo are unloaded and redistributed for redirection
Often to other modes of transportation

12. The factors of production
Three traditional Factors:
Land
Labor
Capital
The Fourth Factor:
Entrepreneurship

13. labor Workers Labor-intensive industry
Normally largest input in production
Locate where most workers available at lowest cost possible to maximize profits
Labor-intensive industry
Industry where paying workers is high percentage of total costs

14. land Factory Location Natural Resources
Large footprint so they locate outside cities where land costs are lower
Proximity to transportation routes
Natural Resources
Used in production of product
Secondary Industries locate close to natural resources used

15. Capital Borrowed Money Tools of the craft
Proximity to banking institutions
Not as big a factor due to internet banking
Tools of the craft
Machines or tools used for doing the job
Ex. Tractor for farmer, Stethoscope for doctor

16. entrepreneurship The Ideas
The person or people who are able to combine all three factors of production and make a profit
Need access to resources and economic freedom to try new ideas