APHUG Unit 6-7 KBATs

Development

The process of economic growth, social progress, and improvement in living standards within a country/region.

Developing country

A nation with generally lower human development indicators compared to developed countries.

BRICS (Brazil, Russia, India, China, South Africa)

A group of emerging economies with large populations, rapid industrialization, and growing influence in global trade and politics.

NICs (Newly industrialized countries)

Countries that have moved from being primarily agricultural to having significant industrial and manufacturing sectors.

Human Development Index (HDI)

A composite measure created by the UN; based on 1) Life expectancy 2) Education 3) GNI per capita.

Gross Domestic Product (GDP)

Total monetary value of all goods and services produced within a country’s borders over a specific time period.

Gross National Income (GNI)

The total income earned by a country’s residents and businesses, minus income paid to foreign entities.

Purchasing Power Parity (PPP)

An economic measure that adjusts GDP or GNI to reflect the cost of living and buying power in different countries.

Brandt Line

A theoretical division of the world into the “Global North” and “Global South”, originally preposed in the 1980s.

Primary sector

Extraction of natural resources.

Secondary sector

Manufacturing and industry.

Tertiary sector

Service industry (non-tangible goods).

Quaternary sector

Knowledge based, high-tech services.

Formal economy

Includes jobs and businesses that are officially recognized, taxed, and regulated by the government.

Informal economy

Includes unregulated, untaxed jobs that often lack sob security and benefits.

International division of labor

The global distribution of labor, where different countries specialize in different stages of production based on their economic development and labor costs.

Productivity

The efficiency of production, measured as output per worker or per unit of input.

Gender-related Development Index (GDI)

A measure of human development that adjusts the HDI to account for gender disparities in income, education, and life expectancy.

Gender Inequality Index (GII)

A measure of gender-based inequalities in reproductive health, empowerment, and labor market participation.

Rostow’s Development Model

A 5-stage theory of economic development proposed by Walt Rostow. 1) Traditional society 2) Pre-conditions for takeoff 3) Takeoff 4) Drive to maturity 5) Age of mass consumption.

Wallerstein’s World-System Theory

A theory by Immanuel Wallerstein that divides the world into three economic categories; 1) Core countries 2) Semi-periphery countries 3) Periphery countries.

Core-Periphery Model

Similar to Wallerstein’s, divides into 3.

Dependency Theory

A critique of Rostow’s, arguing that poor countries remain poor because they are dependent on wealthier nations for investment, technology, and trade.

Special Economic Zone (SEZ)

A designated area within a country that has specific economic regulations to attract foreign investment and economic growth.

World Trade Organization (WTO)

Global organization that regulates international trade, resolves disputes, and promotes free trade agreements among member countries.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country into business operations into another country.

Transnational corporation

A company that operates in multiple countries, producing goods and services globally.

World Bank

A global financial institution that provides loans and grants to developing countries to reduce poverty and support infrastructure projects.

OPEC

A group of oil-producing nations that coordinate oil production and pricing policies.

MERCOSUR

A regional trade bloc in South America that promotes free trade and economic cooperation.

EU (European Union)

A political union of European countries that share policies.

International Monetary Fund (IMF)

A global financial institution that provides short term loans to countries facing economic crisis.

Structural Adjustment Program

Economic policies imposed by the IMF and World Bank on developing countries in exchange for financial aid.

Microfinance

Small loans and financial services provided to low-income individuals, especially women, to start businesses and escape poverty.

Fair trade

A movement that promotes ethical production, ensuring farmers and workers in developing countries receive fair wages of working conditions.

Cooperative store

A business owned and operated by a group of people who share profits and decision-making.

UN Sustainable Development Goals

A set of 17 global goals established by the UN to promote peace, prosperity, and environmental sustainability by 2030.

Maquiladora

Factories in Mexico near the US border that import materials duty-free, assemble them, and export finished goods back to the US.

Cottage industry

Small-scale, home-based production of goods before the Industrial Revolution.

Assembly Line

A production method where workers perform specialized tasks in a sequence to increase efficiency.

Situation factors (for industry)

Costs of transporting raw materials (inputs) and finished goods (outputs).

Site factors (for industry)

Involve the unique characteristics of a particular location = land-labor-capital ($).

Break-of-bulk point

A location where goods are transferred between different modes of transportation.

Labor-intensive industry

Industries where labor costs make up a high percentage of total production costs.

Capital

Financial resources used to invest in businesses, factories, or infrastructure.

Right-to-work laws

Laws that prohibit mandatory union membership in workplace.

Outsourcing

Shifting production or services to external companies, often overseas, to reduce costs.

NAFTA (now USMCA)

North American Trade Agreement (1944) replaced by the US-Mexico-Canada Agreement (2020) that removed tariffs between US, Canada, and Mexico to increase trade.

Fordist production

Mass production with specialized repetitive tasks.

Post-Fordist production

Flexible production with automation, teamwork, and outsourcing.

Just-in-time delivery

A supply chain method where materials are delivered only when needed, reducing storage costs.

Consumptive waste usage

Water is used and not immediately returned to the source.

Non-consumptive waste usage

Water is used and returned to the source.

Point-source pollution

Pollution from a single, identifiable source.

Non-point source

Pollution from multiple, diffused sources.

Potential resources

Resources suspected to exist but not yet discovered or extracted.

Proven resources

Resources confirmed and economically feasible to extract.

Vertical integration

When a company controls multiple stages of production and supply chain reducing reliance on external suppliers.

Agglomeration economies

Benefits that firms gain by locating close to each other.

Brown field

Abandoned industrial sites with potential environmental contamination.

Rust belt

US region once known for manufacturing, now facing economic decline.

Bulk-gaining industry

Industry where the final product is heavier/bulkier than inputs/raw material.

Bulk-reducing industry

Industry where the final product is lighter than the raw materials.

Footloose industry

Industries that can locate anywhere because transportation costs are negligible.

Growth pole

Area where economic development starts and spreads outward.

Infrastructure (& industry)

Basic systems and structures that support economic activity.

Weber’s Least-Cost Theory

Model explains industrial location based on minimizing cost of transportation, labor, and agglomeration.

Central Place Theory

Theory that settlements provide services to surrounding areas, forming a hierarchical pattern.

Locational Triangle

Model showing optimal location for an industry between two resources and a market.

Back offices-offshoring-outsourcing

Business practices of relocating support operations, often overseas to cut costs.

Call center

Office where employees handle customer service over the phone or online.

Threshold

Minimum population needed to support a service or business.

Range

Maximum distance people are willing to travel for a good or service.

Consumer services

Services provided to individuals for personal needs and enjoyment.

Business services

Services that support other businesses, including professional, financial, and transportation services.

Public services

Services provided by the government for the well-being and security of citezens.

Clustered rural settlement

A settlement where homes and buildings are close together, surrounded by farmland.

Dispersed rural settlement

A settlement pattern where homes and farms are spread out over a large area.

Economic base

The key industries that drive a region’s economy, categorized into basic and non-basic businesses.

Enclosure movement

Historical process in England where communal lands were consolidated into individual farms.

Urbanization

The process of increasing population concentration in cities.

Market area/Hinterland

The area surrounding a city or service that depends on it for goods and services.

Rank-size-rule

A pattern where a country’s nth largest city is 1/n of the largest.

Primate city (primate-city-rule)

A city more than twice as large as the next-largest city, dominating the country economically and culturally.

Basic business

Businesses that export goods or services outside the community, bringing in revenue.

Non-basic business

Businesses that serve the local community and do not generate external income.

Central Business District (CBD)

The commercial and business core of a city, usually with the highest land values and tallest buildings.

Latin American Sector Model

A city model where wealthier areas extend outward from the CBD along a commercial spine, with poorer areas on the periphery.

Sub-Saharan African Model

A model featuring multiple CBDs (colonial, traditional, and market zones) with informal settlements on the outskirts.

Southeast Asian Model

A model where a port serves as the focal point instead of a traditional CBD, with commercial zones radiating outward.

Galactic/Peripheral Model

A model showing decentralized urban areas with suburban business districts and highways encircling the city.

Concentric Zone Model

A model where a city grows in rings, with the CBD at the center and residential zones expanding outward.

Sector/Hoyt Model

A model where cities develop in wedge-shaped sectors instead of rings, with high-income growing along transportation routes.

Multiple Nuclei Model

A model where cities develop around multiple centers rather than a single CBD.

Census tract

Small demographic areas used by the US Census Bureau to analyze population and demographics.

Edge city

A suburban business hub with office spaces, shopping centers, and entertainment, forming outside traditional downtowns.

Squatter/informal settlements

Poor, often illegal housing areas lacking basic services, found on the outskirts of cities.

Filtering

The process where houses transition from wealthy owners to lower-income renters often leading to decline.

Urban renewal

Government-led redevelopment of deteriorated urban areas.

Public housing

Government-funded housing for low-income residents.