Unit 7 APHUG 2025

Ecotourism

An economic activity in a country located in natural environments—ocotourismften threatened by industrialization or development—that helps to protect the environment in question while also providing jobs for the local population.

Agglomeration

when a substantial number of enterprises cluster in the same area, as in a large industrial city, they can provide assistance to each other through shared talents, services and facilities

Alfred Weber's Least Cost Theory

a theory of industrial location in which an industry is located where it can minimize its costs, and therefore maximize its profits; it takes into account the labor costs, agglomeration, and specially transportation costs. Bulk Gaining and Bulk reducing factor determine location.

Bulk Gaining

makes something that gains volume or weight during production (causes factories to be near the markets (soda fillers or car assembly plants)

Bulk Reducing

makes something that loses volume or weight during production (causes factories to be near the source of the raw materials)

Markets

the purchasers/consumers NOT THE CBD (WHICH IS URBAN)

Just In-Time Delivery

system in which the inputs needed in assembly arrive at the assembly plant very close to when they are needed; companies receive raw materials or goods only as they need them for production

Break-of-Bulk Point

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

Commodity Dependence

a country's exports are 60% commodities (too much dependence on commodities for economic success)

Comparative Advantage

Economic principle that describes how an individual, company, or country can produce a particular good or service at a lower opportunity cost than its competitors. Countries should produce goods they make most efficiently and trade for others, boosting overall economic efficiency and output.

Complimentarity

the relationship where two regions or countries benefit from trade because they have different resources, skills, or capabilities that enhance each other's strengths. This relationship boosts efficiency and productivity

Core Countries

Dominant states with strong economies, advanced infrastructures, and powerful militaries that play a central role in the global economic and political systems, often influencing international policies and trade. Thy have high levels of wealth, education, and technological development. Examples include the United States, Japan, Germany, and the United Kingdom.

They have often undergone deindustrialization.

Microloans

small amounts of money lended to people to aid them in businesses by NGOs (usually to women; refer to microloans to women by NGOs)

Multiplier Effect

jobs create new jobs (factory owners will create more jobs for factory workers); also works in reverse in which factory owners who close down factories will create a loss of jobs; additional economic opportunities that can be generated (e.g. a corporation deciding to establish in a new location created many jobs)

Dependency Theory

the core sells consumer goods and provides money to the periphery and semi-periphery countries, and the periphery sends cheap labor and natural resources to the core and semi-periphery countries

Outsourcing

A company hires external service providers in other countries to handle tasks or functions, such as manufacturing or customer support. For example, Apple contracts Foxconn to assemble iPhones in China. This practice often leads to a decline in jobs in core regions and an increase in jobs in newly industrialized countries.

Offshoring

company relocates certain business processes, functions, or operations to a different country. moving your backoffice; customer call centers (usually in India) sometimes to the south in the US

Substitution Principle

businesses seek to maximize profit by substituting one factor of production for another mainly by mechanization

Periphery Countries

the least developed and least powerful nations; often exploited by the core countries as sources of raw materials, cheap labor, and markets. They often have unstable governments and economies. Many are former colonies and typically export natural resources to core countries. Examples include nations like Somalia, Sudan, and Haiti.

Export Processing Zones

zones typically in LDCs that focus on manufacturing for export; the government offers free trade conditions like tax exemptions and other incentives to encourage the setting up of shops and manufacture goods to export

Special Economic Zones

an area of a country where the business and trade laws are different from other regions of the country; used to attract foreign direct investment from MNCs, countries offer tax incentives for that investment (common in China)

Fordism

the system of mass production that was pioneered in the early 20th century by the Ford Motor company; the typical postwar mode of economic growth and its associated political and social order in advanced capitalism. Using assembly lines.

Post-Fordism

Modern production strategies. This approach often involves automation, skilled labor, and spreading production processes across different locations.Includes multiplier effects, economies of scale, agglomeration of similar businesses, just-in-time delivery, and High tech industries.

Fertility Rate

the average number of children a woman of childbearing years would have in her lifetime, if she had children at the current rate for her country

Primary Sector

industry focused on obtaining raw resources (mining, forestry, fishing...)

Quaternary Sector

involve the processing of information, education, and finance information (finance, insurance, real-estate); in other words, doing something with the data

Quinary Sector

characterized by decision makers, CEOs, or people in government roles; they use the data from quaternary sectors to make decisions for MNCs

Gender Inequality Index

measures gender inequality, and looks at reproductive health, indices of empowerment, and labor-market participation 0-1

Adolescent Fertility

(part of GII) the number of births per 1000 women aged 10-19 years old

Educational Attainment

do women get education past high school? (part of GII)

Maternal Mortality

the rate of women who die during pregnancy or 1 year after birth per 100,000 births (part of GII)

Gross Domestic Product

total value of goods produced and services provided in a country during one year; remittances sometimes account for 4% country's GDP

Gross National Income

calculates the total income earned by a nation's people and businesses, including investment income, regardless of where it was earned; money received from abroad such as foreign investment and economic development aid

Rostow's Stages of Economic Growth

holds that technological advancements in the economy lead to increased wealth globally, and that low-income nations can follow the developmental paths of wealthier, modernized nations. The theory outlines several stages of development, from traditional societies to advanced economies, emphasizing economic growth in driving progress. More Developed Countries (MDCs) can play a significant role in helping Less Developed Countries (LDCs) progress through the stages of development. AKA Ladder of Development

Criticisms of Rostow's Model

it was based on industrialized, capitalist, democratic countries, which falsely assumes every country values those ideals; scale and uneven development, in which growth is not uniform worldwide

Gross National Income per capita

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

Secondary Sector

industry focused on converting materials to products (factories)

Gross National Product (same as GNI)

calculates the total income earned by a nation's people and businesses, including investment income, regardless of where it was earned; money received from abroad such as foreign investment and economic development aid

Semi-Periphery Countries

"middle-income" countries, share aspects of the core and the periphery, industrializing; countries like Brazil, Russia, India, China, South Africa, Mexico

Neoliberalism

favors free market economies and privatization over governmental control; supports NAFTA. Neoliberal trade policies seek to lower barriers (duties, taxes, tariffs) to make it easier to trade.

Free Trade Agreements

the members of the agreement agree to remove (over time) tariffs on goods moving between them (e.g. NAFTA)

International Trade Path

the Four Dragons or Tigers were the first to adopt the International Trade Path; South Korea, Singapore, Taiwan and Hong Kong had large amounts of land but no natural resources, so the governments promoted development on manufactured goods (electronics and clothing)

Technopole

centers or nodes of high tech research and activity around the high-technology corridor is sometimes established

Growth Poles

concentration of highly innovative and technically advanced industries; other business will develop close by to provide good and services that these advanced industries need

High Technology Industries

companies that support the growth and development of sophisticated technologies

Human Development Index

the composite measure used to show spatial variation among states in levels of development; examines three features of a country's human development: the gni per capita ($ economic) and health care, education (social aspects)

Tertiary Sector

industry focused on providing services (banking, bus-drivers, teachers, lawyers)

Infant Mortality Rate (IMR)

the number of deaths of those under one year old in a given year per 1,000 live births.

Wallerstein's World System Theory (Core-Periphery Model)

Informal economy

neither taxed nor monitored by any form of government (Black Market); makes up a significant portion of the economic in developing countries includes drug deals, cleaning, subsistence farming and housework .

International Division of Labor

an outcome of globalization in which there is a shift of manufacturing industries from developed countries to developing countries since there is lower wages in those countries leading to lower costs for companies

opportunity cost

the value of the next best alternative foregone when a decision is made. In other words, it's the cost of choosing one option over another

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

debt-for-nature swap

Forgiveness of international debt in exchange for nature protection in developing countries

structural adjustment loans

loans granted by international financial institutions such as the World Bank and the International Monetary Fund to countries in the periphery and the semi-periphery in exchange for certain economic and governmental reforms in that country (e.g. privatization of certain government entities and opening the country to foreign trade and investment)

Maquiladoras in Mexico

a manufacturing operation, where factories import certain material and equipment on a duty-free and tariff-free basis for assembly, processing, or manufacturing and then export the assembled, processed and/or manufactured

fossil fuels

coal, oil, and natural gas, which are presently our major sources of energy and account for the major cause of climate change.

hydroelectric power plant

Structure in which the energy of falling or flowing water spins a turbine generator to produce electricity. Usually cleaner energy yet it will alter ecosystems below and above the surface.

Technology of the Industrial Revolution

The advent of the steam engine, coupled with the construction of steel bridges capable of traversing diverse terrain, fueled a rising need for materials and labor to expand railway infrastructure and manufacture additional trains.

free trade

policy or practice in international economics where governments do not impose tariffs, quotas, or other restrictions on imports and exports of goods and services. Promoting the exchange of goods and services between countries with minimal government intervention or barriers.

Countries use their comparative advantages.

UNSDG

United Nations Sustainable Development Goals s help measure a country's progress in development.

NGOs

A non-governmental, non-profit organization that runs aid programs and lobbies for people's rights around the world.

Mercosur

an organization that promotes trade and economic cooperation among the southern and eastern countries of South America

Global Financial Crises

Debt crisis that show the global economic interdependence. Economic crashes that happened internationally due to the globalization of the world's economy. Problems in some countries (Europe and the United States), caused financial problems in countries that trade with them.

Traditional Society

stage in which the dominant activity in a society is subsistence farming and resistant to technology. Medieval Europe

Preconditions to Take Off

Increase in terms of commercial activities and development of infrastructure. Export activities are also beginning to take place, although much of the products being exported are primary goods. Examples: Nigeria, Afghanistan.

take-off stage of modernization

Major export industries, full industrialization, increased trade.

Examples: India, Vietnam.

Drive to Maturity Stage

A stage in economic development, described by Rostow, as characterized by the technological and entrepreneurial skill to produce anything society chooses to produce. , widespread education, industry specialization. Examples: Brazil, China, South Korea.

High Mass Consumption Stage

Dominance of tertiary sectors, high consumption of nonessential goods.

Examples: Japan, Europe, USA since 1950

raw materials

Unprocessed natural products used in production

Measures of economic development

GDP, GNI, GNP, Dectors, formal and informal sectors and income distribution, use of fossil fuels and energy

Measures of social development

Fertility Rates,Infant Mortality Rate (IMR)

Access to Healthcare, Life Expectancy

Literacy Rates, years of Schooling

measures of gender inequality

reproductive health such as maternal mortality , indices of empowerment, labor-market participation, and the gender inequality index

gender parity

ensuring that males and females have equal opportunities in areas such as education, employment, voting and decision making, and access to health care and other resources.

Theories of Economic and Social Development

Rostow's Stages of Economic Growth, Wallerstein's World System Theory, dependency theory, and commodity dependence,

recent economic changes

The increase in international trade, deindustrialization, and growing interdependence in the world economy.

neoliberal policies

Free trade agreements and organizations that foster greater globalization. EU, Mercosur, OPEC, World Trade Organization

International Monetary Fund (IMF)

An organization that acts as a lender to troubled nations, and also works to promote trade through financial cooperation. It demonstrates how different economies have become more closely connected, even interdependent.

Countries outside of the core

industrial growth has led to the creation of new manufacturing zones, such as:Special Economic Zones (SEZs,)Free-Trade Zones (FTZs),Export Processing Zones (EPZs)

These zones contribute to an international division of labor, where developing countries often have lower-paying jobs in manufacturing and assembly.

Causes for the Increase in Intl. Trade and Deindustrialization

post-Fordist methods of production, multiplier effects, economies of scale, agglomeration, just-in-time delivery, the emergence of service sectors, high technology industries, and growth poles.

sustainable development

An approach to economic growth that balances economic development, environmental protection, and social well-being.It focuses on conservation of natural resources so that the needs of the future are met.

Development Problems

natural resource depletion, mass consumption, pollution, climate change