AP HUG Unit 6

This set of flashcards covers key concepts related to economic sectors and development indicators from the lecture notes.

Industrial Revolution

A period of sustained economic growth launched by a series of innovations in manufacturing, beginning in Great Britain in the late 1700s and early 1800s.

Primary Sector

The portion of the economy concerned with the direct extraction or harvesting of materials from Earth's surface.

Secondary Sector

The portion of the economy that transforms raw materials into manufactured goods.

Tertiary Sector

The portion of the economy that involves services rather than goods.

Quaternary Sector

The knowledge-based portion of the economy that typically includes services such as research and development, information technology, consulting, design, and financial planning.

Quinary Sector

The most advanced portion of the economy, consisting of high-level decision making for large corporations, governments, and major institutions.

Formal Economy

The legal economy that is taxed and monitored by a government and is included in a country's Gross Domestic Product.

Informal Economy

Economic activity that is neither taxed nor monitored by a government and is not included in that country's Gross Domestic Product.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Rostow's Stages of Economic Growth

A theory assuming that all countries will develop along the same trajectory of development toward wealth and mass consumption.

Wallerstein's World Systems Theory

A theory proposing that economic change in the developing world is linked to and dominated by economic choices and activity in the developed world.

International Division of Labor

The specialization in producing goods for the world market in which different countries and regions play complementary roles in an interdependent global economy.

Core Countries

According to world systems theory, the most advanced industrial countries that make most decisions and profits in the global economy.

Semi-Periphery

According to world systems theory, countries where both core and periphery economic processes take place.

Dependency Theory

The concept that less developed countries remain economically reliant on wealthy countries, which enrich themselves from the natural resources of the developing world.

Periphery

According to world systems theory, countries that export raw materials to core countries to process into manufactured goods.

Commodity Dependence

When a country relies on the export of raw materials for a large share of its export earnings and economic growth.

Gross Domestic Product (GDP)

A measurement of the total goods and services produced within a country.

Gross National Product (GNP)

The total value of goods and services, including income received from abroad, produced by the residents of a country.

Purchasing Power Parity (PPP)

The amount of money needed in one country to purchase the same goods and services in another country.

Human Development Index (HDI)

Indicator of level of development for each country that combines income, literacy, and life expectancy.

Labor-Market Participation

A measure of what percentage of a population is currently working or seeking work.

Income Distribution

How total income is divided among a population, particularly among different groups.

Gender Development Index (GDI)

Indicator that measures gender gaps in human development by examining the difference between men and women in terms of health, literacy, and income.

Gender Inequality Index (GII)

Indicator that measures gender gaps in human development by examining reproductive health, political empowerment, education, and labor market participation.

Empowerment Measures

Tools and criteria used to assess and enhance the participation and decision-making power of individuals and groups, particularly in social, political, and economic contexts, significant in understanding development and gender inequality in human geography

Microlending

A financial practice that provides small loans to individuals, typically in developing countries, to encourage entrepreneurship and self-sufficiency, often aimed at women or marginalized groups to promote economic development and reduce poverty.

Complementarity

A principle in human geography that refers to the relationship between two regions or entities where one complements the other through the provision of goods or services that satisfy the demands of the other, typically reflecting a mutual economic interdependence

Comparative Advantage

The ability of a country, region, or individual to produce a good or service at a lower opportunity cost than others, which serves as the basis for trade and specialization in the global economy.

Economies of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit decreases as scale of production increases, allowing firms to reduce costs and potentially increase market competitiveness.

Agglomeration

The clustering of businesses and industries in a particular area, which can lead to increased efficiency, reduced transportation costs, and enhanced collaboration among firms, often resulting in economic growth and innovation in that region.

Vertical Integration

A strategy where a company expands its operations into different stages of production within the same industry, controlling multiple levels of the supply chain to increase efficiency, reduce costs, and enhance market power.

Free Trade Agreement

A pact between two or more countries to eliminate barriers to trade and facilitate the exchange of goods and services. These agreements typically reduce or eliminate tariffs, import quotas, and other trade restrictions

Customs Union

An agreement between two or more countries to eliminate tariffs and allow free trade among member countries while imposing a common external tariff on non-member countries.

Tariff

A tax imposed by a government on imported goods, used to generate revenue and protect domestic industries by making foreign products more expensive.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects; its goal is to reduce poverty by providing financial and technical assistance

International Monetary Fund (IMF)

An international organization that aims to promote global economic stability and growth by providing financial assistance, policy advice, and technical assistance to member countries facing balance of payments problems.

Foreign Direct Investment (FDI)

A long-term investment by a company or individual in one country in business interests in another country, typically by acquiring assets or establishing business operations.

Financial Market

A place or system that provides buyers and sellers the means to trade stocks, bonds, or commodities

The Organization of the Petroleum Exporting Countries (OPEC)

A group of oil-producing countries that coordinates and unifies petroleum policies among member countries to ensure the stabilization of oil markets and secure a steady supply of oil to consumers.

World Trade Organization (WTO)

An intergovernmental organization that regulates international trade, providing a framework for negotiating trade agreements, resolving trade disputes, and ensuring that trade flows as smoothly, predictably, and freely as possible.

Special Economic Zone (SEZ)

A designated area in a country that is subject to unique economic regulations that differ from other areas in the same nation, typically aimed at attracting foreign investment and promoting economic development through tax incentives and relaxed regulations.

Fordism

A production system characterized by mass production and consumption, developed by Henry Ford, which includes assembly line manufacturing techniques and standardization of products.

Post-Fordism

An economic system characterized by flexible production methods, the customization of products, and the increased role of technology and information in the manufacturing and services sectors, contrasting with the mass production approach of Fordism.

Deindustrialization

The decline of manufacturing activity in a region or economy, leading to a transition towards service-based industries and often accompanied by job losses in traditional manufacturing sectors.

The Rust Belt

A region in the Northeastern and Midwestern United States characterized by a decline in industrial activity, particularly in steel manufacturing and other heavy industries, leading to economic decline and population loss since the mid-20th century.

Labor-Intensive Industry

An industry that requires a high level of labor input relative to capital investment, where the production process relies heavily on human labor rather than automated processes

High-Tech Industry

An industry that involves the use of advanced technology and innovation to develop and produce goods and services, characterized by high research and development costs, rapid technological advancements, and a skilled labor force

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, balancing economic growth, environmental stewardship, and social equity.

Just-In-Time Manufacturing

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs. It involves producing only what is needed, when it is needed, and in the amount needed.

Deindustrialization

The decline of manufacturing activity in a region or economy, leading to a transition towards service-based industries and often accompanied by job losses in traditional manufacturing sectors.

Ecotourism

A type of sustainable travel that focuses on visiting natural areas, aiming to conserve the environment, improve the well-being of local people, and educate tourists about