AP HUG Unit 7 Test Review

Single Market

Free movement of goods, services, capital, and people enhances trade and economic growth.

Common Currency (Euro)

Reduces transaction costs and stabilizes the economy for member countries using it.

Investment Opportunities

Attracts foreign investment due to a larger market and stability.

Cohesion Funds

Financial support for less economically developed regions.

Economic Stability

Collective policies promote stability among member states.

Influence

Greater voice in international affairs and increased bargaining power.

Political Stability

Promotes democratic governance through adherence to EU standards.

Security Collaboration

Enhanced cooperation on security and foreign policy issues.

Policy Coordination

More effective governance on cross-border issues.

Freedom of Movement

Right to live, work, and study in any EU country.

Cultural Exchange

Encourages a shared European identity and understanding.

Access to Education

Opportunities like the Erasmus program for studying abroad.

Consumer Protection

Enforces regulations for health and safety standards.

Environmental Protection

Supports sustainability initiatives and climate change mitigation.

Human Rights Standards

Commitment to uphold and promote human rights among member states.

Bulk Point

Locations where goods are transferred between different transportation modes (e.g., from ship to truck).

Efficiency

Facilitates effective movement of goods.

Economic Activity

Stimulates local economies and attracts logistics businesses.

Accessibility

Strategically located to optimize trade routes.

World Systems Theory

A theory by Immanuel Wallerstein that categorizes countries into three groups based on their economic and political relationships.

Core Countries

Highly developed, economically stable (e.g., USA, Germany); benefit most from global trade.

Semi-Periphery Countries

Middle-ground countries (e.g., Brazil, India) that exhibit traits of both core and peripheral nations.

Periphery Countries

Less developed, economically exploited (e.g., many Sub-Saharan African nations); provide raw materials and low-cost labor.

GDP Per Capita

Economic measure of output per person; calculated by dividing GDP by population.

HDI - Human Development Index

A composite index measuring social and economic development.

Life Expectancy

Indicator of health and longevity.

Education Index

Mean years of schooling and expected years of schooling.

GNI per Capita

Adjusted for purchasing power parity (PPP); measures economic income.

Purpose of HDI

To assess quality of life and development beyond just income.

High HDI

Well-developed (e.g., Norway, Switzerland)

Medium HDI

Developing (e.g., Brazil, China)

Low HDI

Least developed (e.g., Niger, Chad)

Importance of HDI

Identifies areas for improvement in development and tracks progress over time.

Limitations of HDI

Does not consider inequality or environmental factors and may overlook qualitative aspects of well-being.

Gross National Income (GNI)

Total income earned by a nation's residents and businesses, including income from abroad.

Gross Domestic Product (GDP)

Total value of goods and services produced within the country.

Net Income from Abroad

Income from foreign investments minus payments to foreign investors.

GNI per Capita

GNI divided by the population.

GNI PPP

Adjusted for cost of living differences.

Purpose of GNI

Measures economic performance and well-being of residents.

Importance of GNI

Analyzes economic growth and compares living standards between countries.

Limitations of GNI

Does not indicate income inequality and may not reflect social well-being.

Obstacles to Sustainable Development

Factors that hinder sustainable practices across economic, political, social, technological, environmental, and institutional dimensions.

Economic Factors in Sustainable Development

Poverty limits access to sustainable practices and inequality hinders opportunities for marginalized groups.

Political Factors in Sustainable Development

Weak governance due to corruption and lack of political will, and policy inconsistency disrupts long-term sustainability efforts.

Social Factors in Sustainable Development

Lack of awareness limits public knowledge on sustainability and cultural resistance may conflict with sustainable practices.

Technological Factors in Sustainable Development

Inadequate technology limits access to sustainable technologies and R&D limitations indicate insufficient investment in innovation.

Environmental Factors in Sustainable Development

Resource depletion from overexploitation of natural resources and climate change creates challenges for sustainability goals.

Institutional Challenges in Sustainable Development

Fragmented institutions lead to inefficiencies due to disconnected agencies and lack of collaboration results in insufficient cooperation among stakeholders.

Wallerstein's World Systems Theory

A socio-economic theory developed by Immanuel Wallerstein that categorizes countries into core, semi-periphery, and periphery based on their economic and political relationships.

Core Countries

Economically advanced, technologically sophisticated, and politically powerful (e.g., USA, Germany) that exploit resources and labor from peripheral countries.

Semi-Periphery Countries

Intermediate countries (e.g., Brazil, India) that exhibit traits of both core and peripheral nations; often in a transition phase.

Periphery Countries

Less developed, economically dependent on core countries (e.g., many African nations) that provide raw materials and cheap labor but receive limited investment.

Limitations of World Systems Theory

Oversimplification, historical determinism, neglect of internal factors, lack of attention to ecology, and limited policy implications.

Primary Sector

Involves the extraction and harvesting of natural resources, including activities such as agriculture, mining, fishing, and forestry.

Primary Sector

Involves activities such as agriculture, mining, fishing, and forestry.

Primary Sector Characteristics

Often labor-intensive and dependent on natural conditions.

Secondary Sector

Involves manufacturing and processing of raw materials into finished goods.

Secondary Sector Activities

Includes construction, manufacturing (textiles, automobiles, electronics).

Secondary Sector Characteristics

More industrialized; can contribute significantly to economic growth.

Tertiary Sector

Involves the provision of services rather than goods.

Tertiary Sector Activities

Includes retail, healthcare, education, finance, hospitality.

Tertiary Sector Characteristics

Focuses on intangible products and often employs more people.

Quaternary Sector

Involves knowledge-based activities and services.

Quaternary Sector Activities

Includes research and development, information technology, consultancy, education.

Quaternary Sector Characteristics

Highly specialized and tech-driven; emphasizes innovation and knowledge.

Quinary Sector

Involves high-level decision-making and services that require advanced skills and knowledge.

Quinary Sector Activities

Includes non-profit organizations, healthcare, education administration, executive management.

Quinary Sector Characteristics

Focus on furthering the welfare of society and making strategic decisions.

Old Asian Tigers

A group of East Asian countries known for rapid economic growth and industrialization from the 1960s to the 1990s.

Countries Included in Old Asian Tigers

South Korea, Taiwan, Hong Kong, Singapore.

Key Characteristics of Old Asian Tigers

Export-Led Growth, Active Government Policies, High Investment in Human Capital, Strategic Location.

GDP (Gross Domestic Product)

Total value of all goods and services produced within a country's borders.

GNI (Gross National Income)

Total income earned by a country's residents and businesses, regardless of where the income is generated.

Focus of GDP

Measures economic activity within a country.

Focus of GNI

Measures income of residents and businesses, including income earned abroad.

Includes in GDP

Only domestic production values.

Includes in GNI

Domestic production plus net income from abroad.

Excludes in GDP

Income earned by residents from overseas investments.

Excludes in GNI

Income generated within the country by foreign entities.

Usage of GDP

Used to assess economic performance and growth of a country.

Usage of GNI

Used to evaluate the overall income and economic well-being of residents.

Spatial Patterns of Economic Development

Diverse economic development influenced by geography, resource distribution, and history.