Unit 7 Ap Human

Unit 7 Ap Human

1st world countries(old)

Allied with US and Western Europe

2nd world countries(old)

Allied with communists and USSR

3rd world countries(old)

Allied with neither side; usually the colonized

1st world countries(new)

Highly developed

2nd world countries(new)

Emerging markets, Newly Industrializing countries, middle income countries

3rd world countries(new)

Developing countries that are still quite poor

Brandt Report

A general observation that countries in the north are wealthier than the south...led to the creation of the Brandt Line which is a highly ethnocentric line that separates countries that are European or previously colonized countries from underdeveloped countries such as sub-Saharan Africa.

Environmental Determinism

A doctrine that claims that cultural traits are formed and controlled by environmental conditions.

What causes a country to develop?

1) Market Economy

2)prudent fiscal policies

3)rule of law prohibiting corruption, breach of contract, stealing

4)government protects property rights

5)stable legal system

Millenium Devlopment Goals

1)Eradicate extreme poverty and hunger

2)Achieve universal primary education

3)promote gender equality and empower women

4)reduce child mortality

5)improve maternal health

6)combat HIV/AIDS, malaria and other diseases

7)ensure environmental sustainability

8_Global Partnership for development

Rostows Model

1. traditional society - most people work in agriculture

2. preconditions for takeoff - government invests in infrastructure

3. takeoff - investment and growth

4. drive to maturity - technology used throughout

5. age of mass consumption - Consumers enjoy a wide range of goods

criticisms: outdated, oversimplified, ignored debt repayment, ignores that developed countries exploit developing ones at their expense

Wallerstein's World Systems Theory

Periphery - developing nations, export mostly raw materials of low-value, depend on the core for their market

Core - developed nations, processes raw materials to make, high-value goods

criticisms - emergence of NICs, countries that have once been peripheral or dependent on core have now achieaved economic growth, Development can be achieved while countries are involved in the world system and world market, with the right state awareness and interventions.

Neoliberalism

A strategy for economic development that calls for free markets, balanced budgets, privatization, free trade, and minimal government intervention in the economy.

sustainable development

Long term, damaging the environment is bad for the economy, and industrialism often damages the environment. Therefore, development should be sustainable - it should not rob future generations of resources.

Allowing multinational corporations to exploit workers does not help poor countries develop.

Economic measurements

GNI per capita, technology, energy consumption, workforce composition, nutrition

GDP/GNI

the total amount of everyone's salary, goods and services added together for one country for one year

GDP per capita

takes the entire GDP of a country and divides it by the amount of people so that you can see how much money is on average available to each person

Purchasing Power Parity

adjust nominal GDP into how far a dollar goes in various countries

PQLI

Physical Quality of Life Index

HDI

Human Development Index

HPI

Human Poverty Index

IMR(infant mortality rate)

The number of children out of a 1000 that die each year before the age of 1. does not include miscarriage or abortion

Child Mortality Rate

refers to the probability of a child dying between birth and exactly 5 years of age, expressed per 1,000 live births.

HIE(way to solve poverty)

1)Healthcare

2)Infrastructure

3)Education(especially of women)

Aggregate Measure of Development

1)Workforce Participation

2)Ability to own property

3)Access to contraception/healthcare

4)Participation in government

5)Female Literacy Rate

Microfinance

provision of small loans and other financial services to individuals and small businesses in developing countries

Free Market Capitalism

It allowed individual company owners to have a great deal of control over price, locational considerations, and a day to day operations of business

Authoritarian Capitalism

Features more government involvement in prices, where to put factories, and the day to day operations of business

Cottage industries to factories

Cottage industries were textile industries based in houses and then taken to the market for commercial sale. After industrialization and the invention of factories for the same job, women and children went to work in these factories causing many child labor exploitation problems

Key Inventions

Steam Engine, Steel, Railroads

Weber's least cost theory

1) When the product is bulk reducing, meaning it loses weight, the industry is placed closer to the raw materials. Ex: In the lumber industry, the raw materials are very large and heavy, so it costs more to transport them, but as the raw materials get processed into parts of furniture and other wood products, the product loses weight and is easier to transport, therefore the industry is placed close to the heavy raw materials and away from the market due to the affordability of transportation of the processed products.

2) When the product is bulk gaining, meaning the product gains weight, the industry is placed closer to the market. Ex: The parts of a car can be easily shipped separately in boxes, but it is assembled at the industry and gains weight so the assembly line is closer to the market since the cost of transportation of the car as a whole is a lot more.

Trade union/labor union

an organization of workers who have come together to achieve many common goals, such as protecting the integrity of their trade, improving safety standards, and attaining better wages, benefits

deindustrialization

process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment

Rust Belt

The manufacturing region in the United States that is currently debilitated because many manufacturing firms have relocated to countries offering cheaper labor and relaxed environmental regulations.

Sun Belt

The southern and southwestern regions of the US where manufacturing are moving from the north

New international division of labor

Transfer of some types of jobs, especially those requiring low-paid less skilled workers, from more developed to less developed countries.

Maquilodora

factories in Mexico that are owned and run by foreign companies that manufacture their products in Mexico and export them around the world. This is due to the lower minimum wages and the lack of regulations in terms of safety and benefits for the laborers in Mexico.

USMCA

United States-Mexico-Canada Agreement; an agreement that intends to regulate labor conditions in all three countries and promote a free trade zone.

Czarism

Central control over industrialization; started later than the rest of Europe

The Five Year Plan

Stalin's plan released in 1928 to attain economic growth.

He wanted to double the production of coal and triple the output of steel to turn the Soviet Union into a modern, industrialized society

EPZ

Export Processing Zone; This is a zone where foreign companies import factory technology and materials to manufacture their products.

Asian Tigers

Collective name for South Korea, Taiwan, Hong Kong, and Singapore-nations that became economic powers in the 1970s and 1980s.

Kaizen

continuous improvement - a japanese business philosophy

Foreign Direct Investment

foreign companies built factories in china

Special Economic Zones(SEZ)

Areas free from tariffs and restrictive laws which acted as incentives for foreign investment in China's factories.

Free Trade Zone(FTZ)

A zone that promotes free trade without regulations and tariffs with foreign countries

Asian Tiger Cubs

Indonesia, Malaysia, the Philippines, and Thailand, the four dominant countries in Southeast Asia. Their growth started c.1980

Container Shipping

Benefits: Highly Efficient because water has little friction

Drawbacks: Requires access to sea port with deep water - good over long distances

Low line cost(cost per mile)

High Terminal cost(for load and unloading)

Rail Roads

Benefits: Also energy efficient

Drawbacks: Dependent on access to Rail road - good over medium distances

Medium line cost(cost per mile)

Medium Terminal cost(for loading and unloading)

Trucks

Benefits: Easy access to everything via roads

Drawback: Energy inefficient - good over short distances

High Line cost(cost per mile)

Low Terminal cost(for loading and unloading)

Material orientation

The tendency of an economic activity to locate near or at its source of raw material; this is experienced when material costs are highly variable spatially and/or represent a significant share of total costs.

Market Orientation

The tendency of an economic activity to locate close to its market; a reflection of large and variable distribution costs.

Ubiquitous industries

Products that are highly perishable that need to be market oriented

Footloose industries

Products that are very lightweight and can be shipped on planes

Agglomeration

Its a group of companies or industries that benefit from cost reductions

Growth Pole

An urban center deliberately placed by a country's government to stimulate economic growth in the hinterland

Technopole

An area planned for high technology

Just in Time production

You have a small inventory that you restock constantly

Fordism

form of mass production in which each worker is assigned one specific task to perform repeatedly.

comparative advantage

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

imposed considerations

Considering local laws and policies when deciding where to place a factory

Hotelling Model(Locational interdependence model)

This is a model which states "go where the competition is". For example, when there are two ice cream shops on a beach and both place their stalls right next to each other in the middle to gain maximum business.

Tertiary jobs

low skill level; ex:hair dresser, retail, market oriented

Quaternary jobs

higher skill managerial handling, processing and gathering information; ex: call center, computer programmer, doctor, investment banking; footloose - call center, computer programmer, market oriented - dr and investment banking