Human Geography 101: Economic Geography - Globalization and Economic Restructuring Deindustrialization Outsourcing Offshoring JustInTime

What This Is

Globalization and Economic Restructuring refer to the interconnected processes of economic change, technological advancements, and shifting production patterns that have transformed the world economy. This phenomenon is crucial for understanding spatial patterns and human-environment interactions, as it affects the lives of billions of people worldwide. For instance, the rise of globalization led to the decline of manufacturing jobs in the United States, as companies outsourced production to countries with lower labor costs, such as China and Mexico.

Key Models, Theories & Terms

• Global Commodity Chain (GCC): A network of producers, suppliers, and consumers involved in the production and distribution of a commodity (e.g., coffee, electronics). The GCC model helps understand how globalization affects different stages of production and how it shapes the lives of people involved in the commodity chain.
• Just-In-Time (JIT) Production: A manufacturing strategy that aims to produce and deliver goods just in time to meet customer demand, reducing inventory costs and increasing efficiency. JIT production is a key feature of globalization, as it relies on rapid transportation and communication networks to coordinate production across the globe.
• Offshoring: The practice of moving production or services to a foreign country, often to take advantage of lower labor costs or more favorable business environments. Offshoring is a key driver of globalization, as it allows companies to reduce costs and increase competitiveness.
• Outsourcing: The practice of contracting with external companies to perform specific tasks or functions, often to reduce costs or improve efficiency. Outsourcing is a key feature of globalization, as it allows companies to focus on core activities and reduce their reliance on internal resources.
• Deindustrialization: The decline of manufacturing industries in a country or region, often due to globalization, technological change, or shifts in consumer demand. Deindustrialization has had significant impacts on communities and workers, as it leads to job losses and changes in local economies.
• World-Systems Theory: A framework for understanding the global economy as a single, interconnected system, with core countries (e.g., the United States, Germany) dominating the periphery (e.g., many African, Asian countries). World-Systems Theory helps explain the uneven distribution of wealth and power in the global economy.
• Dependency Theory: A framework for understanding how global economic relationships create dependencies between countries, with core countries exploiting periphery countries for resources and labor. Dependency Theory helps explain the persistence of poverty and inequality in many developing countries.
• Global Value Chain (GVC): A network of activities and relationships involved in the production and distribution of a product or service, from raw materials to final consumption. The GVC model helps understand how globalization affects different stages of production and how it shapes the lives of people involved in the value chain.

Step-by-Step Application

1. Identify the dominant economic restructuring pattern in a given region (e.g., deindustrialization, outsourcing, offshoring).
2. Analyze the impact of globalization on local economies and communities (e.g., job losses, changes in consumer demand).
3. Examine the role of Just-In-Time production in a given industry or company.
4. Evaluate the effects of offshoring or outsourcing on workers and communities in the country of origin.
5. Compare and contrast the experiences of different countries or regions in the context of globalization and economic restructuring.

Common Misconceptions

• Misconception: "All migration is permanent."
• Correction: Not all migration is permanent; many people engage in temporary or circular migration, returning to their home countries after a period of time.
• Example: Seasonal migration of workers from Mexico to the United States for agricultural work.
• Misconception: "GDP per capita is the same as standard of living."
• Correction: GDP per capita is an economic indicator, while standard of living refers to the overall well-being of a population, including factors like health, education, and access to services.
• Example: A country with a high GDP per capita may still have a low standard of living due to income inequality or poor distribution of resources.
• Misconception: "Rank-size rule applies to every country."
• Correction: The rank-size rule, which describes the distribution of city sizes in a country, does not apply to all countries; some countries have more complex urban hierarchies.
• Example: The rank-size rule does not hold for countries with a strong central government or a history of colonialism, which can lead to more complex urban systems.

AP Exam / Free-Response Tips

• FRQ Task Verbs: Identify, describe, explain, compare, and analyze are common task verbs on the AP Human Geography exam.
• Integrating Models: Use key models and theories to explain and analyze real-world phenomena, such as the impact of globalization on local economies or the effects of urbanization on the environment.
• Tricky Distinctions: Be careful to distinguish between related but distinct concepts, such as ethnicity vs. nationality or site vs. situation.
• Example: In a FRQ, you might be asked to explain how the Global Commodity Chain model helps understand the impact of globalization on workers in a specific industry.

Quick Practice Scenario

A megacity in a developing country grows rapidly as rural residents move in for factory jobs. Identify the dominant migration pattern and one likely urban model that describes its structure.

Answer: The dominant migration pattern is likely circular migration, as workers return to their home villages during off-seasons. One likely urban model is the Burgess concentric zone model, which describes the growth of cities in a series of concentric rings around a central business district.

Explanation: The Burgess model is a good fit for this scenario, as it describes the growth of cities in response to the needs of a growing population and the availability of land and resources.

Last-Minute Cram Sheet

• Global Commodity Chain (GCC): A network of producers, suppliers, and consumers involved in the production and distribution of a commodity.
• Just-In-Time (JIT) Production: A manufacturing strategy that aims to produce and deliver goods just in time to meet customer demand.
• Offshoring: The practice of moving production or services to a foreign country.
• Outsourcing: The practice of contracting with external companies to perform specific tasks or functions.
• Deindustrialization: The decline of manufacturing industries in a country or region.
• World-Systems Theory: A framework for understanding the global economy as a single, interconnected system.
• Dependency Theory: A framework for understanding how global economic relationships create dependencies between countries.
• Global Value Chain (GVC): A network of activities and relationships involved in the production and distribution of a product or service.
• Rank-Size Rule: A rule that describes the distribution of city sizes in a country.
• Ethnic religion (Judaism, Hinduism) is not the same as universalizing religion (Christianity, Islam, Buddhism) – ethnic religions do not actively seek converts.