AP HUG Unit 7

Industrialization causes

Natural resources

New technologies

Industrialization effects

Increased food supplies

Growth in populations

Change in class structures

New jobs

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.

Dependency theory

a model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones

Less developed country (LDC)

A country that is at a relatively early stage in the process of economic development

More developed country (MDC)

A country that has progressed relatively far along a continuum of development.

Rostow's stages of economic growth

5 steps that it takes to move from an agricultural society to a service-based economy:

Traditonal Society

Traditional Society(take off)

Take off

Drive to Maturity

High Mass Consumption

Wallerstein's World Systems Theory

The global economy is divided into a core, a periphery, and a semi-periphery

Commodity dependence

If your economy is dependent on one export, if that export has supply change delays/a bad growing season/infection or disease/etc., your economy collapses

Non-commodity dependent countries

first world countries

Energy commodity-dependent countries: second world countries

Agricultural/mineral commodity-dependent countries:

third world countries

Economic sectors

Primary

Secondary

Tertiary

Quaternary

Quinary

Least cost theory

Industries are located where the transportation costs of raw materials to the factory and the cost of the finished product to the market are at a minimum

If raw materials are heavier than the finished product, the factory would be located closer to the location of the materials. If the finished product is more costly to transport than the materials, the industry would be located closer to the market

Cargill

international trading company/middleman

Break-of-bulk point

An economic center, like a dockyard, where a manufactured product is assembled and then separated into various shipments ready to be transported to a wide range of markets

Gross domestic product (GDP)

total value of goods and services produced within the borders of a country during a specific time period, usually one year

Gross national product

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

Gross national income

the total value of goods and services, including the monetary value of exports minus imports in the same year, revealing wealth lost through international trade

Human Development Index (HDI)

measures the status of life in any given place based off of life expectancy, education levels, standard of living, literacy, and income per capita

Microloan

Loan for aspiring business owners (who are oftentimes female), low-income, minority, or veteran to help them get on their feet financially (and be successful once they're off)

Comparative advantage

the ability of a country, firm, or individual to produce a good or service at a lower opportunity cost than other producers, which explains why countries specialize in the production of certain goods and services and trade with other countries to obtain the goods and services that they cannot produce as efficiently

Complementary advantage

the ability of two countries to complement each other's production through trade. This occurs when each country has a comparative advantage in producing different goods or services, and they can both benefit from specializing in their respective areas of comparative advantage and trading with each other.

Liberalization

opening up markets to foreign competition by reducing tariffs, quotas, and other trade barriers

Free market economy

an economic system in which decisions on the three key economic questions are based on voluntary exchange in markets

Neoliberalism

A strategy for economic development that calls for free markets, balanced budgets, privatization, free trade, and minimal government intervention in the economy.

Trade organizations

European Union (EU)

Mercosur

OPEC

World Trade Organization (WTO)

Monetary policy

using tools such as interest rates to control inflation and stimulate economic growth

Tariffs

Taxes on imported goods

WTO

international organization that promotes free trade and the liberalization of international trade. It sets rules and standards for international trade, and its member states agree to abide by these rules as part of their membership

Mercosur

regional trade bloc in South America that promotes economic integration among its member states, which include Argentina, Brazil, Paraguay, and Uruguay. It aims to create a common market among its member states and to encourage trade with other countries

OPEC

intergovernmental organization of 13 oil-producing countries that aims to coordinate and unify the petroleum policies of its member states.———-has the ability to influence global oil prices through its control of a significant portion of the world's oil reserves and its ability to regulate oil production

Deregulation

removing or reducing regulations on business, such as laws and regulations that control prices, protect consumers, or protect the environment

Austerity

reducing government spending, often in an effort to reduce budget deficits or debt

Free trade

promoting international trade by reducing tariffs, quotas, and other trade barriers

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

Microlending

The practice of loaning small amounts of money to help people in less developed countries start small businesses.

Outsourcing

obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source.

Agglomeration

Clumping together of industries for mutual advantage.

Free trade zones

allow for goods from foreign countries to be imported without a tariff

Export processing zones

established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract business and investment (labor is cheaper and environmental restrictions are relatively weak)

Special Economic Zones (SEZ)

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

Multiplier effect

The direct, indirect, and induced consequences of change in any setting (e.g. new plant opens, sets into motion industrial employment, and infrastructural growth)

Just-in-Time Delivery

Method of inventory management made possible by efficient transportation and communication systems

Companies keep on hand just what they need for near-term production, planning that what they need for longer-term production will arrive when needed

Post-Fordist Methods of Production

More flexible set of production practices in which goods are made in different places around the globe and then brought together as needed to meet market demand

High technology industries

companies that support the growth and development of sophisticated technologies (e.g. scientists, engineers, coders)

Growth poles

concentration of highly innovative and technically advanced industries that stimulate economic development in linked businesses and industries (e.g. Silicon Valley in the 1990s with the advent of phones, computers, etc.)

Sustainable development policies causes

Mass consumption

Natural resource depletion

Pollution

Climate change

Ecotourism

Immerses travelers in natural areas with the goal of educating and imparting environmental awareness

Ecotourism effects

Protects environment

Provides jobs for locals

UN Sustainable Development Goals

Goals set by the UN in 2015 to be achieved by 2030 that aim at promoting development, reducing poverty and protecting the planet.

No poverty

Zero hunger

Good health and well - being

Quality education

Gender Equality

Clean water and sanitation

Affordable and clean energy

Decent work and economic growth.

Industry, innovation, and infrastructure

Sustainable cities and communities

Reduced inequality

Responsible consumption and production

Climate action

life below the river

Life on land

Peace, justice, and strong institution

Partnership for the goals.