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Index measured by 3 statistics - Health (average life expectancy), Wealth (per capital GNI), and Education (average years of schooling).
Human Development Index
Wealthier and more industrialized countries —> “Global North”
More-Developed Countries (MDCs)
Poorer and less industrialized countries —> “Global South”
Less Developed Countries (LDCs)
A 5-stage model of development that encourages: tariff-free trade with other countries, privatization of industries, foreign direct investment, and focuses on comparative advantage.
Rostow’s Model of Development / International Trade / Neoliberalism
Predicts that specific demographic changes will occur as a country industrializes and develops economically.
The Demographic Transition Model
Primary jobs - extraction of raw mineral (agriculture, mining, fishing)
Secondary jobs - manufacturing (clothing factory, textiles)
Tertiary jobs - services (retail, finance, tourism, healthcare, transportation, arts)
Quaternary - “the knowledge economy” (research, IT)
Economic Sectors
A company that does business in many countries.
Transnational Corporation (TNC)
A place built up by a country’s government to attract FDI (foreign direct investment)
Island of development / Maquiladora/ Special economic zone (SEZ) / Export Processing Zone (EPZ)
A way of explaining development by focusing on economic relationships among states.
Wallerstein’s world system theory
The idea that core countries develop at the expense of periphery.
Dependency theory
Economic & political policies that allow countries to continue to dominate their former colonies.
Neocolonialism
Similarity in the appearance of cultural traits.
Placelessness (uniform landscape)
The physical characteristics of a place
Site
For land - it’s cost, for labor, it’s the cost or access to skilled labor, and for capital, it’s access to loans
Site factors
The location of one place rather to other places.
Situation
Proximity to inputs and proximity to markets (cities)
Situation factors
As distance increases, the cost of movement increases. Examples are like distance decay and the Gravity Model.
Friction of Distance
A model that predicts where an industry will be located for minimal cost.
*Variables are cost of transportation, cost of labor, and agglomeration.
Weber’s least-cost theory of industrial location
An industry where the final product weighs less than inputs. Production is usually near inputs.
Bulk-reducing industry
An industry where the final product weighs more than inputs.
Bulk-gaining industry
An industry in which producing goods
Labor intensive industry