Unit 1.5 Development AP HUG Vocab Test

Industry

the process of using machines and large-scale processes to convert raw materials into manufactured goods

Raw Materials

the basic substances such as minerals and crops needed to manufacture finished goods

Industrial Revolution

a series of technological advances, resulting in more complex machinery that was so large and required so much investment money, or capital, that manufacturing shifted from homes to factories.

Deindustrialization

a process of decreasing reliance on manufacturing jobs. (In places such as China, India, and Mexico, companies could pay workers lower wages and avoid regulations designed to protect workers and the environment.)

Rust Belt

regions that have large numbers of closed factories

Primary Sector

extracting natural resources from the earth (farming, mining, fishing, and forestry)

Secondary Sector

making products from natural resources (manufacturing and building)

Tertiary Sector

providing information and services to people (retail sales, medicine, and housekeeping)

Quaternary Sector

managing and processing information (financial analysis, software development, and data science)

Quinary Sector

creating information and making high-level decisions (research and top managers in corporations or government, CEOs, presidents)

Gross National Product (GNP)

Total value of goods and services by the citizens and corporations of a country

Gross National Income (GNI)

the total amount of income generated by a country’s citizens and businesses both domestically and abroad as well as foreign investments in a given year

Gross Domestic Product(GDP)

amount of all final goods and services produced within a country in one year. GEOGRAPHY BASED; Does not matter who earned it if it's in country= its in the GDP (Example: income earned by Mexican migrant workers, or the profits from a foreign owned factory on U.S. soil would be calculated in GDP)

Remittances

profits from a foreign owned company were leaving the country and going back to the home country (Example: migrant workers sent much of their earnings back to family members in their home countries.

Purchasing Power Parity (PPP)

a measure of what similar goods cost in different countries. (currency strength)

Formal Sector

portion of economy monitored by government and follows regulations and pay taxes (measured by GNP, GDP, and GNI)

Informal Sector

portion of the economy that is not monitored by the government (underground economy, shadow economy, poor people to survive, babysitting, and illegal activities.)

(Want low) Gini Coefficient

distribution of income within a population; range between 0 and 1, the higher the number the higher the degree of income inequality.

(Want High) Life Expectancy

number of years a person is expected to live.

(Want High) Literacy Rate

percentage of population that can read and write

(Want low not really a number)Gender Gap

privileges afforded to men and women in society

(Want low) Gender Inequality Index (GII)

measure of several factors indicating gender disparity; reproductive health, empowerment, and labor market participation

(Want High) Human Development Index (HDI)

combines GNI with three social measures (life expectancy, expected years of schooling, and average years of schooling) higher= higher level of development

Microloans

provide loans often to women to start or expand a business (empower women to find jobs outside home) (ex. Grameen Bank in Bangladesh)

Stages of Economic Growth Model

Rostow

World Systems Theory

Wallerstein

Dependency Model

meaning that countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other.

Commodity Dependence

when more than 60% of its exports are raw materials.