AP HG Vocab U7

Gross National Product (GNP)

the total value of all goods and services produced by a country

Gross Domestic Product (GDP)

measurement of the total goods and services produced within a country.

Gross National Income (GNI)

the amount of money earned by everyone in a country.

Human Development Index (HDI)

combines data on life expectancy, literacy, educational attainment, gender equity, and income

Gender Inequality Index (GII)

indicator used to measure the extent of each country's gender inequality in terms of reproductive health, empowerment, and the labor market.

Microloans

very small loans, often provided to entrepreneurs in developing countries

Periphery

less developed countries that are dependent upon, and often exploited by, developed countries

Semi-periphery

countries that are geographically and economically located between core and periphery countries

Core

developed, industrial countries that control and benefit from the global market

Wallerstein's World Systems Theory

suggests there is a world economic system in which some countries benefit while others are exploited

Rostow's Stages of Economic Growth

generalized pattern of modern economic growth as being in five stages

Dependency theory

model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones

Primary sector

the part of the economy that draws raw materials from the natural environment

Secondary sector

the part of the economy that transforms raw materials into manufactured goods

Tertiary sector

the portion of the economy concerned with transportation, communications, and utilities

Quaternary sector

jobs that deal with the handling and processing of knowledge and information.

Quinary sector

service sector industries that require a high level of specialized knowledge or technical skill. Examples include scientific research and high-level management.

Complementary advantage

when both parties have goods or services that the other party desires

Comparative advantage

the ability to produce a good at a lower opportunity cost than another producer

Trading blocs

groups of countries with formalized systems of trading agreements

Fair trade

trade model that emphasizes small businesses, worker rights, and environmental and safety standards

Free trade zones

areas of a country where trade restrictions do not apply

Weber's Least Cost Theory

the theory that argues firms seek a site of minimum transport and labor cost

Bulk-gaining industry

an industry in which the final product weighs more or comprises a greater volume than the inputs

Bulk-reducing industry

an industry in which the final product weighs less or comprises a lower volume than the inputs

Footloose industry

an industry that can be located anywhere without affect from factors such as resources or transport

Cottage industry

industry in which the production of goods and services is based in homes, as opposed to factories

Break-of-bulk

location along a transport route where goods must be transferred from one carrier to another.

Just-in-time production

the production of precisely the necessary units in the necessary quantities at the necessary time

Outsourcing

hiring outside firms to perform non-core operations to lower operating costs

New international division of labor

transfer of low-skilled jobs to less developed countries while more skilled jobs stay in MDCs

Special economic zones

areas of a country with different economic regulations designed to attract direct foreign investment

Agglomeration

clumping together of industries for mutual advantage.

Sustainable development

conducting business in a way that protects the natural environment while making economic progress

Ecotourism

tourism that encourages environmental awareness and has little effect on the ecosystem

Renewable resource

natural resource that can be replaced