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The Human Development Index (HDI) is based on indicators of

standard of living, education, and health.

Gross domestic product (GDP) is the total value of

outputs of goods and services produced in a country during a year.

An example of a primary sector activity is

Mining

Which is a secondary sector economic activity?

Manufacturing

Per capita GNI is a good indicator of which of the following?

A measurement of mean income

The productivity of workers is higher in more developed countries because they

have access to more technology

Which one of the following statements is incorrect?

The higher the GNI of a country, the more equal its income distribution.

Compared to less developed countries, more developed countries have higher rates of

literacy

Differences in life expectancy between developed and developing countries is due to all of the following EXCEPT

better welfare services for the poor or disabled in developing countries.

Michael earns $15/hour in a country where a Big Mac costs $5.  Anneke earns $25/hour in a country where a Big Mac costs $17.50.  Which statement is correct concerning Michael and Anneke?

Anneke earns more than Michael, but Michael has greater purchasing power.

HDI

Human development index

Primary sector

extractive industries (agriculture and mining)

Raising cows, milking cows

Secondary sector

manufacturing

Milk processing/ pasteurization/ making cheese

tertiary sector

services to businesses and consumers

Distribution

Quaternary sector

Intellectual and informational services (knowledge industry)

people designing special software

quinary sector

highest level management (gold collar jobs)

The people in charge

sector most developed countries

tertiary- quinary

developing sectors

primary and secondary

base industry

and industry of disproportionate economic importance and on whose existence other industries and on employment sectors depend

Core and Periphery model

How core locations do higher economic sector work, and how locations on the periphery do a lot of the low-paying labor producing raw materials

(Weber’s) Least cost theory

manufacturers are going to locate somewhere with minimal costs, so they can make more profit!

break of bulk point

bulk- things are being shipped loose

Break of bulk point- where cargo is transferred from one form of transportation to another

break bulk cargo

cargo that’s a weird shape

Rostow’s stages of economic growth

all countries will inevitably progress through the same development stages

wallerstein’s world systems theory

colonialism created independence but unequal relationshios among re

basen on dependency theory

dependency theory

poverty is because core regions exploit peripheral colonialism and imperialism and continues with neocolonialism

possibly caused by foreign aid… maybe?

commodity dependence

when a commodity accounts for more than 60% of a country’s total exports

GDP

Total money in stuff

GDP per capita

GDP/ population

Money per person

Purchasing power parity

Adjusting for differences in prices

Calculated by multiplying GDP by a ratio of a “market basket” of goods and services

Gini index

income inequality, higher number = worse

Labor productivity

output per worker for some unit of time

amount of goods or services produced by the average worker in a period of time

Economies of scale

you can produce things cheaper in bulk

Import substitution

Replaces foreign imports with domestic production to foster local industrial growth and reduce dependency on developed nations

Cottage industry

Before industrial revolution, people making things at home by hand

Industrial revolution

mass production

assembly line

the car moves down the line and each worker is focused on one individual step

post fordist methods

just-intime (JIT) manufacturing

Outsourcing

Offshoring

just-intime (JIT) manufacturing

Raw materials and other inputs are not stored ahead of time in warehouses, but arrive “just in time” for production

Outsourcing

subcontract parts of production to external suppliers

Offshoring

moving production to low-cost labor markers (China, Vietnam, Mexico)

Mercantilism

Historical theory where each country strives to export more than it imports in order to accumulate wealth

Protectionism

Trade rules that restrict imports in order to protect domestic industries

Autarky

a place that’s economically closed off- north korea

Absolute Advantage

The ability of a party to produce a good or service more efficiently than its competitors

Comparative Advantage

the ability of a party to produce a good service at a lower relative opportunity cost

Complimentarity

a measure of how well one country’s export profile matches another country’s import profile

Deindustrialization

1. Economic restructuring

2. Technological advancement

3. Globalization

the process by which industrial activity in a region or country declines

often results in job loss

Neoliberalism

advocates for reducing government ownership, trade, Barriers, and regulation by promoting by promoting privatization and market-based solutions

economic freedom

International monetary fund

neoliberal

Fosters global monetary cooperation, achieve financial stability, facilitate international trade, and promote sustainable economic growth

world bank

international financial institution that provides funding and expertise to promote sustainable economic growth in developing countries.

Debt crisis

when a government’s debts exceed its tax revenue to the point that it cannot meet its loan payments

world trade organization

supranational organization

regulates trade between countries, reduce barriers to trade, and resolve trade disputes

Fordism

economic and social arrangement

export processing zone

type of special economic zone

industrial zones with special incentives to attract foreign investment to places where imported material undergo processing or assembly before being re-exported

agglomeration economies

when businesses of the same time locate near eachother

ex: Silicon Valley

growth pole

geographic pinpointed centers of economic activity