AP Human Geography Unit 7 Terms

Flashcards for key terms related to AP Human Geography Unit 7 material.

Small Scale Finance

Financial services like small loans (microloans) and savings accounts designed for entrepreneurs and low-income individuals.

Industrialization

The shift from agricultural economies to machine-driven manufacturing and factory systems.

Natural Resources

Materials found in the environment, such as water, soil, and minerals, categorized as renewable or nonrenewable.

Class Structures

The hierarchical organization of society based on wealth, occupation, and social status.

Raw Materials

Unprocessed natural resources such as minerals and wood.

Colonialism

Total political/economic control of a foreign territory by a stronger power.

Economic Sectors

Categorized stages of economic activity: primary, secondary, tertiary, quaternary, and quinary.

Primary Sector

Involves obtaining raw materials directly from the earth.

Tertiary Sector

Provides services to consumers and businesses rather than goods.

Quaternary Sector

Focuses on intellectual activities, information technology, research and development.

Quinary Sector

Represents the highest level of decision-making in the economy.

Break-of-Bulk Point

A location where transferred cargo moves from one mode of transportation to another.

Informal Economy

Economic activities that are not regulated, taxed, or monitored by the government.

Least Cost Theory

Predicts that industries locate to maximize profits by minimizing transportation, labor, and agglomeration costs.

Core

Dominant, highly developed regions with advanced technology and wealth.

Semi-Periphery

Newly industrialized middle-income nations acting as a bridge between core and peripheral nations.

Periphery

Developing nations that occupy an intermediate position in the global economic hierarchy.

GDP

Gross Domestic Product; the total value of goods and services produced within a country in one year.

GNP

Gross National Product; the total value of goods and services produced by a country’s residents in a year.

GNI

Gross National Income; the total domestic and foreign income earned by a country’s residents in a specific period.

Gender Inequality Index

Metric measuring gender disparities across reproductive health, empowerment, and labor market participation.

Formal Economy

Legal, regulated, and taxed portion of a country’s economic activity.

Income Distribution

How a nation's total wealth or GDP is divided among its population.

Indices of Empowerment

Measure a woman’s ability to achieve economic and political power.

Labor-Market Participation

measures the percentage of a country's working-age population that is either employed or actively seeking employment.

HDI

Human Development Index; measures a country's level of development based on life expectancy, education, and living standards.

Microloans

Small, low-interest loans provided to low-income entrepreneurs.

Standard of Living

Level of wealth, goods, and comfort available to people in a specific area.

Rostow’s Stages of Economic Growth

Model defining five stages of economic development from traditional society to high mass consumption.

1. The Traditional Society: Focused on subsistence agriculture, limited technology, and low per capita output.

Examples: Historically, most societies before the 18th century. Today, few, if any, countries remain strictly here.

2. Preconditions for Take-off: Society begins to develop manufacturing, invest in infrastructure, and adopt new technologies.

Examples: Many sub-Saharan African nations.

3. The Take-off: A short period of intensive growth, industrialization increases, and institutions concentrate around new industries.

Examples: Vietnam, Thailand.

4. Drive to Maturity: Growth spreads to all sectors, economic diversification occurs, and technology increases.

Examples: China, Argentina.

5. Age of High Mass Consumption: Shift towards service sectors, consumerism, and high standards of living.

Examples: USA, United Kingdom, Western European nations

Wallerstein’s World Systems Theory

views the global economy as a single, hierarchical system rather than isolated nations, dividing the world into Core, Semi-Periphery, and Periphery regions

Dependency Theory

Economic model arguing that global poverty results from exploitation by rich nations, creating a cycle of dependency that hinders independent economic growth.

Commodity Dependence

Economic state where a country relies heavily on a narrow range of primary products for export revenue. occurs when a country derives over 60% of its merchandise export revenue from raw materials like oil, minerals, or agricultural products

Complementarity/Comparative Advantage

Comparative advantage occurs when an entity produces goods at a lower opportunity cost than others, driving trade specialization. Complementarity exists when nations possess different resources, leading them to exchange goods

Neoliberal Policies

Policies advocating for reduced state intervention and increased market mechanisms.

Free Trade

Economic policy allowing the exchange of goods and services across borders without taxes.

World Trade Organization

Supranational organization that sets trade rules and resolves disputes among member countries.

OPEC

Organization of Petroleum Exporting Countries; coordinates petroleum policies among members.

European Union (EU)

Supranational organization promoting economic integration and political cooperation in Europe.

Mercosur

South American trade bloc promoting regional economic integration and free trade. Not supranational

Tariffs

taxes imposed by a government on imported goods and services, designed to increase their price, protect domestic industries from foreign competition, and boost local production

International Monetary Fund (IMF)

An intergovernmental organization that ensures global economic stability and facilitates trade. that promotes international monetary cooperation, stabilizes exchange rates, and provides short-term loans to countries experiencing balance-of-payments crises

Economies of Scale

Cost advantages gained by companies as production increases, lowering average costs per unit. a decrease in the unit cost of production as production increases

Agglomeration

Spatial clustering of businesses and industries to share resources and lower costs.

Service Sectors

Part of the economy that provides intangible services rather than physical goods. including healthcare, education, finance, hospitality, and transportation

Growth Poles

Centers of economic activity that attract businesses and investment.

Natural Resource Depletion

Consumption of resources faster than they can be replenished, leading to scarcity.

Mass Consumption

A stage where a society shifts focus from heavy industry to consumer goods.

Ecotourism

Tourism directed toward protected natural areas, emphasizing low-impact alternatives.

Multiplier Effects

Cumulative economic growth triggered by an initial investment that creates additional economic activity.

Fordism

20th-century mass production system characterized by assembly-line techniques.

Post-Fordist Methods of Production

Flexible, decentralized production methods that replaced traditional mass production.