Unit 7 AP HuG

Cottage Industry

Home-based manufacturing.

Primary Sector

Extracting natural resources from the earth.

Secondary Sector

Processing natural resources.

Tertiary Sector

Providing information and services to people.

Quaternary Sector

The knowledge-based sector, including research and development, business consulting, financial services, education, public administration, and software development.

Quinary Sector

The decision-making sector, including top officials in various levels of government and business.

Multiplier Effect

The potential of a job to produce additional jobs.

Bulk-Reducing Industry

An industry where the final product weighs less than the inputs, located near raw material sources.

Bulk-Gaining Industry

An industry where the final product weighs more than the inputs, located near the market.

Energy Dependent Industry

Industries that require a lot of energy and are located where energy is affordable.

Agglomeration Economies

The spatial grouping of businesses to share costs.

Location Triangle

A model representing market at one location and resources at two locations.

Labor Dependent Industries

Industries that require highly skilled labor often locate near major tech universities.

Locational Interdependence

A factory’s location is determined by the locations of other factories using the same services.

Just-in-Time Delivery

Shipment of parts and materials to arrive just before they are needed.

Front Offices

Very expensive company spaces where executives work; high-profile locations.

Back Offices

Less expensive spaces for company work, maintaining communication and productivity.

Offshoring

Companies placing back offices in other countries.

Outsourcing

Contracting work out to non-company employees or other companies.

Development

Improvement in material conditions through diffusion of knowledge and technology.

Developed Countries

Countries with strong economies and a high quality of life.

Developing Countries

Countries with less productive economies and lower quality of life.

Human Development Index (HDI)

A UN indicator combining income, literacy, education, life expectancy, and standard of living.

Gross National Income (GNI)

Value of goods and services produced in a country, including money entering and leaving the country.

Purchasing Power Parity (PPP)

Adjustment to GNI accounting for cost of goods differences among countries.

Gross Domestic Product (GDP)

Value of all goods and services produced within a country in a single year.

Productivity

Value of a product compared to the labor needed to make it.

Years of Schooling for Today's Adults

Average years of schooling for adults aged 25 or older.

Expected Years of Schooling for Today's Youth

UN forecast for years an average 5-year-old will spend in school.

Pupil-Teacher Ratio

Number of students divided by the number of teachers.

Literacy Rate

Percentage of people who can read and write.

Gender Inequality Index (GII)

UN measure of gender inequality in reproductive health, empowerment, and labor market.

Gender Development Index (GDI)

Measures gender disparity in health, knowledge, and standard of living.

Female Labor Force Participation Rate

Percentage of women holding full-time jobs outside the home.

Adolescent Fertility Rate

Births per 1,000 women ages 15-19.

Maternal Mortality Rate

Women who die giving birth per 100,000 births.

Microfinance

Small loans and financial services to individuals and small businesses in developing countries.

Modernization Model

Economic development model with five stages of growth.

Stages of Economic Growth (Rostow)

Traditional society, preconditions for takeoff, takeoff, drive to maturity, high mass consumption.

World Systems Theory (Wallerstein)

Social change in the developing world linked to developed world economic activities.

Dependency Model

Resources flow from poor 'periphery' states to wealthy 'core' states, enriching the latter.

Core-Periphery Model

Defines underdeveloped countries by their dependence on a developed core region.

Comparative Advantage

Ability to produce goods or services at a lower opportunity cost, enabling trade.

Complementarity

Both parties have goods or services that the other desires.

Trading Blocs

Countries grouping to improve economic interests, often with trade barriers for outsiders.

NICS (Newly Industrialized Countries)

Countries experiencing rapid industrial growth.

Transnational Corporations

Companies operating in multiple countries for research, production, and sales.

New International Division of Labor

Global employment spread across economic sectors.

Neoliberal Policies

Promote free markets and reduced government intervention.

Tariff

Tax on imported goods and services.

International Monetary Fund (IMF)

Promotes economic growth, stability, and poverty reduction.

Export Processing Zones

Special areas where regulations benefit foreign businesses.

Maquiladoras

US factories in Mexico near the border for low-cost labor.

Postindustrial Economy

Economies focusing on services and information processing over manufacturing.

Rust Belt

US region with declining heavy industry.

Technopole

High-tech manufacturing and information-based industry hub.

Growth Poles

Areas of advanced industries stimulating linked businesses.

Spin-Off Benefits

Positive outcomes in addition to the main outcome.

Backwash Effects

Loss of skilled workers to growth poles.

Post-Fordist Methods of Production

Automation and cross-trained workers replace human assembly lines.

Substitution Principle

Businesses maximize profits by substituting production factors.

Ecotourism

Environmentally sustainable tourism focusing on nature and culture.