AP Human Unit 7 Vocab

Industrial Revolution

A series of improvements in industrial technology that transformed the process of manufacturing goods.

Industrialization

The development of industries for the machine production of goods.

Cottage Industry

Manufacturing based in homes rather than in a factory, commonly found before the Industrial Revolution.

Infrastructure

Fundamental facilities and systems serving a country, city, or area, as transportation and communication systems, power plants, and schools

Colonialism

Attempt by one country to establish settlements and to impose its political, economic, and cultural principles in another territory.

Imperialism

A policy of extending a country's power and influence through diplomacy or military force.

Primary Sector

The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.

Secondary Sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

Tertiary Sector

The part of the economy that involves services rather than goods

Quaternary Sector

Service sector industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, administration, insurance, and legal services.

Quinary Sector

Service sector industries that require a high level of specialized knowledge or technical skill. Examples include scientific research and high-level management.

Weber's Least Cost Theory

Theory that described the optimal location of a manufacturing firm in relation to the cost of transportation, labor, and advantages through agglomeration

Bulk-Gaining Industry

An industry in which the final product weighs more or comprises a greater volume than the inputs.

Bulk-Reducing Industry

An industry in which the final product weighs less or comprises a lower volume than the inputs.

Break of Bulk Point

A location where transfer is possible from one mode of transportation to another.

Gross Domestic Product (GDP)

The sum total of the value of all the goods and services produced in a nation.

Gross National Product (GNP)

The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.

Informal Economy

Economic activity that is neither taxed nor monitored by a government; and is not included in that government's Gross National Product

Formal Economy

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

Human Development Index (HDI)

Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy

Gross National Income per capita

The overall income of a country after expenses owing to other countries have been paid, divided by the population of the country.

Gender Inequality Index (GII)

An indicator constructed by the U.N. to measure the extent of each country's gender inequality in terms of reproductive health, empowerment, and the labor market.

Uneven Development

The increasing gap in economic conditions between core and peripheral regions as a result of the globalization of the economy.

Microloans

A very small, often short-term loan made to an impoverished entrepreneur, as in an underdeveloped country

Rostow's Stages of Development

A model of economic development that describes a country's progression which occurs in five stages transforming them from least-developed to most-developed countries.

Waller

1. The world economy has one market and a global division of labor.

2. Although the world has multiple states, almost everything takes place within the context of the world economy.

3. The world economy has a three-tier structure. (Peripheral, Semi-peripheral, Core)

Frank's Dependency Theory

Describes how the core, semi periphery and periphery rely on each other for resources and goods

Commodity Dependence

An economy that relies on the export of primary commodities for a large share of its export earnings and hence economic growth

Deindustrialization

The cumulative and sustained decline in the contribution of manufacturing to a national economy. Goods->Services

Complementarity

when two regions through an exchange of commodities can specifically satisfy each others demands

Comparative Advantage

The ability to produce a good at a lower opportunity cost than another producer

Trade Agreements

Intergovernmental agreements designed to manage and promote trade activities for specific regions.

Tariff

A tax on imported goods

International Monetary Fund (IMF)

An international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation

Foreign Direct Investment

Investment made by a foreign company in the economy of another country.

Global Supply Chain

A worldwide network to maximize profits in production

Organization of Petroleum Exporting Countries (OPEC)

Association of 12 major oil-producing countries. Works to collectively influence the global oil market and maximize profit.

Outsourcing

A decision by a corporation to turn over much of the responsibility for production to independent suppliers. DELEGATES TASKS TO EXTERNAL COMPANIES

Offshoring

Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available. RELOCATE

Special Economic Zones

Specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment

Free Trade Zones

Designated areas where foreign companies can warehouse goods without paying taxes or customs duties until they move the goods into the marketplace

Export Processing Zones

Zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment

Maquiladora

Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico.

International Division of Labor

The process where the assembling procedures for a product are spread out through different parts of the world

Neofordism (post fordism)

The growth of new production methods is defined by flexible production, the individualization of labor relations, and the fragmentation of markets into distinct segments. There is a team that creates a plan, so you might be doing something different every day. Customization.

Silicon Valley

A nickname for the Southern part of San Francisco Bay Area in the northern California, originally referring to the concentration of silicon chip innovators and manufacturers, but eventually referring to the concentration of all types of high-tech businesses

Vertical Integration

Practice where a single entity controls the entire process of a product, from the raw materials to distribution

Fordism

The manufacturing economy and system derived from assembly-line mass production and the mass consumption of standardized goods. Named after Henry Ford.

Footloose Industry

industry in which the cost of transporting both raw materials and finished product is not important for the location of firms

Multiplier Effect

An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.

Ex: New jobs are created, and people who take them have money to spend in the shops, which means that more shop workers are needed.

Just-In-Time Delivery

Shipment of parts and materials to arrive at a factory moments before they are needed or exactly when

Fair Trade

An alternative to international trade that emphasizes small businesses and worker-owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organization, and comply with minimum environmental and safety standards.

Agglomeration

Clumping together of (similar) industries for mutual advantage.

Economies of Scale

Factors that cause a producer's average cost per unit to fall as output rises

Research Triangle

The specific area in the Piedmont in which businesses and universities work together to do research. North Carolina high-tech area located in and around the cities of Durham, Raleigh, and Chapel Hill

Growth Pole

Specific area or sector that drives economic development in a region. The idea behind a growth pole is that economic development in one area can have spillover effects that stimulate growth in other areas.

World Trade Organization

International organization that regulates international trade.

Ecotourism

A form of tourism, based on the enjoyment of scenic areas or natural wonders, that aims to provide an experience of nature or culture in an environmentally sustainable way.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

United Nations Sustainable Development Goals

A set of future targets that work towards the improving of living conditions in the least developed countries. ("very feel good, but very unrealistic" -Mrs. Kelley)