AP HUG U7 review

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Cottage industry

Cottage industry

A small scale business usually operated out of a persons home. A modern day example would be etsy stores

Primary sector

Involves extracting natural resources from the Earth (Ex. farming, coal mining, logging)

Secondary sector

Takes raw resources to produce or manufacture products of greater value. (Ex. textile industry)

Tertiary sector

Provides a service for others (Ex. laywers, doctors, etc.)

Quaternary sector

Revolves around acquiring, processing and sharing information (ex. teachers, journalists)

Quinary sector

Revolve around decision making (ex. CEOs of businesses, gov officials)

Break-of-bulk point

A location where goods are transferred from one mode of transportation to another (ex. airports/ports)

Bulk-gaining product

Becomes heavier after they are produced, making them more expensive to transport and locate themselves closer to the market

Bulk-reducing product

Become lighter and easier to transport, allowing industries to locate themselves near heavier raw resources and farther away from the market

GDP

Gross domestic product: the total value of all goods and services produced within a country over a specific period of time

GNP

Gross national product: the total economic output produced by a country’s residents and businesses, regardless of their location

GNI

Gross national income: the total amount of income generated both domestically and abroad

GNI per capita

Gross national income per capita: measures the standard of living of a population by giving an estimate of the average income earned

GII

Gender inequality index: measures health, education and economic participation

Closer to 0 shows less inequalities

HDI

Human development index: measures social and economically, analyzing life expectancy, years of schooling and GNI

Closer to 1 shows a more developed country

Microfinancing

Financial services for people who lack access to traditional banking services

Traditional society (RMD)

Relies on subsistence agriculture, mostly in the primary sector

Preconditions for takeoff (RMD)

Society sees a demand from outside states for raw materials, changing the economic climate. New opportunities and a shift from the primary to secondary sector

Takeoff (RMD)

Urbanization as the secondary sector begins to take off. New technology as well as selling resources to the world market

Drive to maturity (RMD)

More specialization, global trade and a diverse economy. More jobs in the tertiary sector.

Age of mass consumption (RMD)

Beyond serving basic needs. Most jobs are in the tertiary sector and outside states have less influence

Dependency theory

A theory that suggests economically developing countries are dependent on developed countries for their economic growth

Wallerstein’s world systems theory

Core countries purchase consumption goods from the semi/periphery countries. Periphery countries provide cheap labor and raw materials for the core/semi periphery countries

Complementarity index

A measure used to assess the compatibility between the products and services that two countries produce and trade with each other.

A higher number indicates they should trade with each other

Neoliberalism

Emphasizes individual freedom, free markets and free trade over control

Special economic zone

Regions within a country that provide different economic incentives with the objective of attracting foreign investment and economic growth

Free-trade zone

A region within a country where imported goods can be stored and processed without being subject to tariffs/barriers

Export processing zone

Offers special economic regulations/incentives to promote the production of goods/services for export

Multiplier effect

An original investment in something leads to a chain reaction of spending and increased economic activity

Offshoring

Relocating a business process or service to a foreign country

Outsourcing

When a business contracts a service or job to an external provider

Agglomeration

Clustering of different economic activities/industries in an area

Growth poles

Specific regions, cities or economic sectors that are considered centers of economic growth and development

Ecotourism

Tourism focused on responsible travel to natural areas that conserve the environment and improve the well being of the local people

Comparative advantage

the ability of a country to produce a good or service at a lower opportunity cost than others

Entrepot

a port, city or trading post

Gender parity

ensuring that both genders have equal opportunities

Absolute advantage

when a country has absolute advantage over international trade than any others