AP HUMAN GEO UNIT 6

Primary sector

extracts raw materials such as farming mining fishing

Secondary sector

manufactures raw materials into goods such as factories

Tertiary sector

provides services such as healthcare retail transportation

Quaternary sector

information and knowledge jobs such as research and IT

Quinary sector

high-level decision making such as CEOs and government leaders

Formal economy

legal taxed and regulated jobs

Informal economy

untaxed and unregulated work such as street vendors or cash labor

Bulk-gaining industry

final product gains weight so it locates near the market such as bottling soda

Bulk-reducing industry

raw materials lose weight so it locates near the source such as copper smelting

Break-of-bulk point

location where goods transfer between transportation types such as ports

Agglomeration

clustering of businesses for shared benefits such as Silicon Valley

Maquiladoras

factories in Mexico near the US border using cheap labor for export

EPZ

area with tax breaks and relaxed laws to attract industry such as Shenzhen China

FTZ

zone where goods can be imported processed and re-exported with few restrictions

Outsourcing

hiring an outside company often in another country

Offshoring

moving production to another country

WTO

organization that regulates global trade

NAFTA

free trade agreement between US Canada and Mexico that increased cross-border trade and manufacturing

USMCA

updated version of NAFTA

Comparative advantage

ability to produce a good more efficiently than others such as Vietnam textiles

Economies of scale

lower cost per unit as production increases

Commodity chain

full process from raw material to finished product

Value added

increase in product worth at each stage of production

Rostow Stage 1

subsistence agriculture low technology

Rostow Stage 2

infrastructure and investment begin

Rostow Stage 3

rapid industrial growth such as Vietnam

Rostow Stage 4

diversified and advanced economy

Rostow Stage 5

high mass consumption such as the United States

Core

wealthy highly industrialized countries

Semi-periphery

countries that are industrializing such as Brazil India and Mexico

Periphery

poor countries that export raw materials

Dependency theory

poorer countries depend on richer ones for economic activity

Commodity dependence

reliance on one or a few exports such as oil in Nigeria

Weber’s Least Cost Theory

industries locate where transportation labor and agglomeration costs are lowest

Fordism

mass production using assembly lines such as Henry Ford

Post-Fordism

flexible production with smaller batches and global supply chains

HDI

measure of development using life expectancy education and income

Sustainable development

meeting needs without harming future generations

Deindustrialization

loss of manufacturing jobs such as the Rust Belt

Sun Belt

region of the US gaining industry and population such as Texas and Florida

Rust Belt

region of the US losing industry such as Detroit

New International Division of Labor

pattern where manufacturing moves to developing countries for cheaper labor

Just-in-time delivery

system where parts arrive only when needed to reduce storage costs

Special Economic Zone

area with relaxed economic laws to attract business such as Shenzhen China

Asian Tigers

rapidly industrialized economies such as South Korea Taiwan Singapore and Hong Kong

African Lions

fast-growing African economies

Footloose industry

industry not tied to raw materials and can locate anywhere such as tech

Site factors

internal characteristics like labor land and capital

Situation factors

external characteristics like transportation and markets

Labor-intensive industry

industry requiring many workers such as textile manufacturing

High-value industry

industry producing expensive goods such as electronics

Market-oriented industry

locates near consumers such as bakeries

Resource-oriented industry

locates near raw materials such as lumber mills

Transportation-oriented industry

locates near major shipping routes such as ports

Growth pole

place where development starts and spreads outward

Spread effect

positive effect of growth spreading to nearby areas

Backwash effect

negative effect where growth pulls resources away from other areas

FDI

foreign direct investment where companies invest in other countries

Transnational corporation

company operating in multiple countries such as Nike or Apple

Supply chain

network involved in producing and delivering a product

Infrastructure

systems like roads ports and power needed for development

Sustainable Development Goals

UN goals to improve quality of life while protecting the environment

Import substitution

policy of producing goods domestically instead of importing

Export-led growth

strategy of producing goods for export markets

Silicon Valley example

agglomeration of tech companies sharing labor and ideas

Shenzhen example

Special Economic Zone that grew rapidly due to government policy and globalization

Mexico maquiladora example

factories near the US border grew due to NAFTA and cheap labor

Nigeria oil example

commodity dependence makes economy unstable

Rust Belt example

loss of manufacturing due to outsourcing and automation

Vietnam example

Stage 3 development with export-led industrial growth

China coastal vs inland example

uneven development where coastal regions industrialized faster

Break-of-bulk example

Los Angeles port transfers goods from ships to trucks and trains

Just-in-time example

car factories receiving parts only when needed

Eco-tourism example

Costa Rica protects rainforests while attracting tourists

Comparative advantage example

Vietnam produces goods cheaply due to low labor cost