Human Geo Unit 2 Study Guide

Economic Development

Improvements in a country's economy and people's quality of life.

Economic Sectors

Categories of economic activities: Primary, Secondary, Tertiary.

Primary Sector

Activities that collect raw materials from nature, such as farming, fishing, and mining.

Secondary Sector

Activities that manufacture goods from raw materials, such as making cars or clothing.

Tertiary Sector

Activities that provide services, such as teaching, banking, and healthcare.

Race to the Bottom

When countries or companies lower wages, taxes, or regulations to attract businesses and reduce production costs.

GDP (Gross Domestic Product)

The total value of final goods and services produced within a country during a specific period.

Dependency Theory

The idea that poorer countries remain underdeveloped because they depend on wealthier countries through unequal economic relationships.

World Trade Organization (WTO)

An international organization that establishes trade rules and helps countries resolve trade disputes.

Deindustrialization

The decline of manufacturing industries and industrial jobs in a country or region.

China's Belt and Road Initiative

China's global infrastructure and investment program designed to connect countries through transportation, trade, and economic projects.

Wallerstein's World Systems Theory

A theory that divides the world economy into core, semi-periphery, and periphery countries.

Core Countries

Wealthy, powerful countries with advanced industries and strong influence over the global economy.

Semi-Periphery Countries

Countries with developing industries and moderate economic power that share characteristics of both core and periphery countries.

Periphery Countries

Less economically powerful countries that often depend on exporting raw materials and providing low-cost labor.

Self-Sufficiency (Endogenous Growth)

A development strategy that focuses on building a country's own industries, resources, and economy rather than relying heavily on international trade.

International Trade (Catch-Up Growth)

A development strategy that uses international trade, investment, and exports to help a country grow economically.

Subsidies

Government financial assistance given to businesses or industries to lower costs or encourage production.

Tariffs

Taxes placed on imported goods to make foreign products more expensive.

Comparative Advantage

The ability of a country or producer to make a good at a lower opportunity cost than another producer.

Infrastructure

Basic systems needed for a society and economy to function, including roads, bridges, electricity, water systems, and internet.

Human Development Index (HDI)

A measure of development based on life expectancy, education, and income per person.

International Division of Labor

The process in which different countries specialize in different stages or types of production.

Global North

Generally wealthier, more industrialized countries with higher average incomes and greater economic power.

Global South

Generally less wealthy or developing countries that often face greater economic challenges and inequalities.

Protectionism

Government policies that protect domestic industries from foreign competition through tariffs, quotas, or other restrictions.

Foreign Direct Investment (FDI)

Investment by a person or company from one country in businesses or productive assets in another country.

Free Trade

International trade with few or no government restrictions, such as tariffs or quotas.

Trading Blocs

Groups of countries that cooperate to reduce trade barriers and increase trade among members.

NAFTA (North American Free Trade Agreement)

A trade agreement between the United States, Canada, and Mexico that was replaced by USMCA in 2020.

USMCA (United States-Mexico-Canada Agreement)

The trade agreement that replaced NAFTA and governs trade among the United States, Mexico, and Canada.

Containerization

Transporting goods in standardized containers that can easily move between ships, trains, and trucks, making global trade faster and cheaper.

Microfinance (Microlending)

Providing small loans and other financial services to people who have limited access to traditional banks.

Outsourcing

Hiring another company to perform work or services instead of doing them internally.

Neoliberal Economic Policies

Policies that emphasize free markets, privatization, deregulation, and reduced government involvement in the economy.

Economic Sanctions

Economic restrictions imposed on a country or group to pressure it to change its behavior or policies.

2008 Economic Recession

A major global economic crisis triggered by a financial and housing market collapse that caused business failures, unemployment, and reduced economic activity.

Fair Trade

A system that promotes fair prices, better working conditions, and improved economic opportunities for producers, especially in developing countries.

Resource Curse

The idea that countries rich in natural resources may experience corruption, inequality, conflict, or slower economic development despite their resource wealth.

Four Asian Tigers

Hong Kong, Singapore, South Korea, and Taiwan, which experienced rapid economic growth through industrialization, exports, and investment.