Unit 7 APHUG- 7.1-7.5

Cottage Industry

a small-scale business in which people produce goods at home. Prior to the Industrial Revolution, most goods were produced in home.

Primary Sector

Jobs and activities that involve extracting natural resources from the earth. ex) farmers, coal miners, lumberjacks

Secondary Sector

Jobs and activities that take raw resources to produce or manufacture products. ex) construction worker

Tertiary Sector

Jobs and activities that provide a service for other individuals. ex) lawyer

Quaternary Sector

Jobs and activities that revolve around aquiring, processing, and sharing information. ex) journalist

Wallerstien's Theory

model that describes how economic power is distributed between dominant regions and less powerful regions and proposes that less developed countries are defined by their dependence on a developed core

Quinary Sector

Jobs and activities that revolve around making decisions. ex) CEO of a company, President

Economic Measures

Earning a return in excess of the cost of capital

Gross Domestic Product (GDP)

Total value goods produced and services provided in a country during one year

Gross National Product (GNP)

the total value of the goods and services produced by a country's citizens and companies both domestically and abroad in a year

Gross National Income per Capita

GNP divided by a country's population so that you have an estimated income per person

Formal and Informal structures of economy

Formal is taxed, and regulated by the government. Formal structures include the 5 Economic Sectors. Informal is neither taxed nor monitored by any form of government... "Black Market" and "under the table" are common terms. The informal sector makes up a significant portion of the economies in developing countries; provides important economic opportunities for the poor.

income distribution

Some seemgly wealthy countries can have uneven income distribution (what percent of a country lives at the poverty rate or below?)

Gender Inequality Index (GII)

measures the gender gap in the level of achievement in three dimensions: reproductive health, empowerment, and the labor market

Human Development Index (HDI)

Examines three features of a country's human development: long and healthy life, knowlege, and standard living

Break-of-bulk point

a location where goods are transferred from one mode of transportation to another ex) ports

Alferd Webber's Theory

Model of industrial location emphasized the owner's desire to minimize transportation and labor costs and maximize agglomeration economies.

Three Factors:

1.The location of raw materials

2.The location of the market

3.Transportation costs

Agglomeration

Clustering of different economic activities and industries in a specific geographic area

bulk-reducing goods

A product that becomes lighter and easier to transport as production occurs.

- Have heavy and bulky raw resources that are used in the production of the good

- The final product is often lighter and more maneuverable

bulk-gaining goods

A product that becomes heavier and more difficult to transport as production occurs

- Often are made up of resources that are actually lighter and more maneuverable compared to the final product.

Microloans

These have provided opportunities for women to create a small local business, which has overall improved their standards of living

Microfinancing

A category of financial services that are for individuals and small businesses who lack access to a traditional banking service

Core Countries

Countries with the most advanced economies and highest standards of living. (control global economy and the type to exploit.)

semi-periphery countries

Countries that have emerging economies that are industrializing

Periphery Countries

Countries that still rely on the exploitation of raw resources to more economically developed countries. (lower standard of living)

Commodity Dependence

Economic dependence on exports of raw materials (more than 60% of GDP)

Dependency Theory

Dependency theory explains how poor countries depend on rich countries

Traditional Society

the first stage of economic development; this stage can last for thousands of years unless there is an impetus for growth in the mercantile and manufacturing areas and a change in the institutions necessary to make the transition to a more modern capitalist society.

Pre-Conditions to Take Off

leaders begin to invest in country. trading is small scale international and is starting to develop. beginning urbanization and labor is now shifting to secondary and beginning of industrialization. transportation systems are developing and mechanized farming. increased investment in business and infrastructures (Nigeria and Afghanistan)

Take Off Rostow

- major tech innovations

- industrialization and smaller primary sector

- entrepreneur mentality

- urbanize and initiate self sustaining growth

ex. Bangladesh

Drive To Maturity

technology diffuses, industrial specialization occurs, international trade expands, population growth declines.

Ex) Brazil, Russie, China

High Mass Consumption

Most MDCs are in this stage; indicated by wealth, service-driven society, Population Growth continues to decline into negative, People spend $$ on non-essential goods

Gender inequality:

acknowledges that gender affects an individual's lived experiences; gender inequality is experienced across different cultures; tradition and culture pose obstacles to women's economic development, especially in less developed countries

footloose industries:

industry in which the location is not impacted by the cost of transporting either raw materials or finished products e.g. software, insurance, semiconductors, computer chips, e-commerce

Least-cost theory

Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.

GNI

The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country