AP HUG Unit 7 Vocab

industrialization

the process by which economic activities on the earth’s surface evolved from producing basic, primary goods to using factories for mass-producing goods for consumption

raw materials

the basic substances needed to manufacture finished goods

primary sector

extracting natural resources from the earth

secondary sector

making products from natural resources

tertiary sector

provide information and services to people

quaternary sector

managing and processing information

quiniary sector

creating information and making high level decisions

break-of-bulk point

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

least cost theory

explains the key decisions made by businesses about where to put factories

GDP

dollar amount of all final goods and services within a country in a year

GNP

dollar amount of all goods and services produced by a country’s citizens within a year

GNI

the total income received by the country from its residents and business regardless of where they are located

sectoral structure

describes the changing balance of output, trade, incomes, and employment drawn from different economic sectors

formal sector

the portion of the economy that is monitored by government so people in it follow regulations and pay taxes

informal sector

portion of the economy not monitored by the government

income distribution

how income is divided among different groups or individuals

fertility rate

the number of children born alive to a woman

literacy rate

the percentage of a country’s people who can read or write

microloans

small loans provided to individuals or small businesses

Rostow’s stages of economic growth

focuses on the shift from traditional to modern forms of society

Wallerstein’s world systems theory

countries don’t exist in isolation but are a part of an intertwined world system in which all countries are dependent on each other

dependency theory

the core countries depend on the periphery for labor and raw materials while the periphery depend on the core for goods

commodity dependence

60% or more of the country’s exports are raw materials

complementarity

the actual or potential relationship between 2 places

comparative advantage

ability to produce a good or services at a lower cost than others

neoliberal

set of reforms that reduced government regulations and taxation

free trade agreements

reduce barriers to trade

EU

a union of some European countries that is based to promote development through economic cooperation

WTO

the international organization that regulates international trade

mercursor

brings about the free movement of goods, capital, services, and people among its member states

OPEC

an intergovernmental organization of 13 oil-producing countries that aims to coordinate and unify petroleum prices of its member states

tariff

a tax that a government charges people on import and export

IMF

aids countries that need financial assistance

outsourcing

contracting work to noncompany employees or other companies

newly industrialized countries

one whose economic development is between developing and highly developed classifications

special economic zones

designated areas within a country that have special economic regulations that are more favorable than the regulations that apply in the rest of the country

free trade zones

where a foreign company can store, warehouse, transfer, or process without additional taxation or duties if goods are exported

export processing zones

special manufacturing zones that offer major tax savings, inexpensive labor, etc

international division of labor

a changed system of employment in various economic sectors throughout the world

post-Fordist

the idea that modern industrial production has moved away from mass production in huge factories towards specialized markets based on small, flexible manufacturing units

multiplier effect

the reduction in the per unit cost of production as the volume of production increases

agglomeration

the process by which a certain region becomes known for producing a certain product

just-in-time delivery

a method of managing inventory that provides products only as they are needed

service sectors

industries concerned with the collection, processing, and manipulation of information and capital

high technology industries

companies that support the growth and development of sophisticated technology

growth poles

the concentration of highly innovative and technically advanced industries that stimulate economic development linked to businesses and industries

ecotourism

traveling to a region by people interested in its distinctive and unusual ecosystem

UN’s sustainable development goals

awareness of environmental challenges and how to overcome them