AP hug Unit 7 models

Vocabulary flashcards for reviewing key terms related to economic development.

Agglomeration

The clustering of businesses in a specific geographic area for shared benefits.

Brandt Line

A visual division between a richer 'North' and poorer 'South', highlighting global wealth disparities.

Dependency Theory

The theory that resources flow from poor to wealthy states, enriching the latter at the expense of the former.

Economic Sectors

The division of an economy into categories based on the type of economic activity (Primary, Secondary, Tertiary, Quaternary, Quinary).

Economies of Scale

Cost advantages obtained due to the scale of operation, decreasing cost per unit with increasing scale.

Fair Trade

A trading partnership for equity in international trade, ensuring fair prices and good working conditions.

Gender Inequality Index (GII)

A composite index measuring gender inequalities across reproductive health, empowerment, and economic status.

Human Development Index (HDI)

A statistic of life expectancy, education, and per capita income, ranking countries into tiers of human development.

International Trade Pathway to Development

A strategy emphasizing open markets, exports, and foreign investment for economic growth.

Multiplier Effect

The disproportionate increase in economic activity from an initial injection of spending.

New International Division of Labor

Spatial reorganization where manufacturing moves to developing countries, and developed countries focus on services and high-tech.

Rostow Model

A linear theory of development with five stages: traditional society, preconditions for takeoff, takeoff, drive to maturity, and age of high mass consumption.

Self-Sufficiency Pathway to Development

A strategy prioritizing domestic production and protection of local industries to reduce foreign dependence.

Sustainable Development Goals (SDGs)

17 interlinked global goals to achieve a better and more sustainable future for all, addressing poverty, inequality, and climate change.

Wallerstein’s World Systems Theory

Analyzes the world economy as a capitalist system with core, semi-periphery, and periphery countries and power imbalances.

Weber’s Least Cost Theory

Determines the optimal location for manufacturing by minimizing transportation, labor, and agglomeration costs.