Unit 7: Industrial and Economic Development Patterns and Processes

AP Human Geography (TERMS ONLY)

Austerity

Government policy of cutting spending and raising taxes to reduce debt

Core-Periphery Concept

The idea that developed countries (core) dominate and benefit from less developed countries (periphery)

Dependency Theory

The idea that poor countries stay poor because they depend on wealthy countries

Developed Country

A country with high income, strong economy, high education, and high quality of life

Developing Country

A country with lower income, weaker industry, and lower quality of life

Development

Improvement in economic, political, and social conditions

Economic Development

Growth in a country’s wealth and standard of living

Fair Trade

A system that ensures producers in poor countries receive fair wages and safe working conditions

Foreign Direct Investment (FDI)

When a company invests money into businesses in another country

Gender Development Index (GDI)

A measure comparing development levels between men and women

Gender Inequality Index (GII)

A measure of gender inequality in health, empowerment, and workforce participation

Gross Domestic Product (GDP)

The total value of goods and services produced within a country

Gross National Income (GNI)

The total income earned by a country’s people and businesses

Human Development Index (HDI)

A measure of development based on income, education, and life expectancy

Literacy Rate

The percentage of people who can read and write

Microfinance

Small loans given to people in poor areas to start businesses

Millennium Development Goals

Eight global goals created by the United Nations in 2000 to reduce poverty and improve living conditions

Periphery

Poor countries that provide raw materials and labor to core countries

Primary Sector

Economic activities that extract natural resources (farming, mining, fishing)

Productivity

The amount of goods or services produced per worker

Rostow’s Model of Development

A five-stage model explaining how countries develop economically over time

Secondary Sector

Economic activities that manufacture goods from raw materials

Self-Sufficiency

When a country produces what it needs without relying on other countries

Sustainable Development Goals

17 global goals created by the United Nations in 2015 to improve life while protecting the environment

Semi-Periphery

Countries that are between core and periphery in development

Stimulus

Government spending or tax cuts used to boost the economy during a downturn

Subsistence Economy

An economy where people produce only enough to survive

Sustainable Development

Development that meets today’s needs without harming future generations

Tertiary Sector

Economic activities that provide services (banking, healthcare, education)

Uneven Development

When some regions are more developed than others

Value Added

The increase in value of a product as it moves through production stages

World Bank

An international organization that provides loans to developing countries

World Systems Theory (Wallerstein)

A theory that divides the world into core, semi-periphery, and periphery countries

Agglomeration

The clustering of businesses in one area to share services and resources

Assembly Line

A production method where each worker performs one task repeatedly to speed up manufacturing

Biomass Fuel

Energy made from organic materials like wood, crops, or waste

Break-of-Bulk Point

A location where goods are transferred from one mode of transport to another

Bulk-Gaining Industry

Industry where the product gains volume or weight during production

Bulk-Reducing Industry

Industry where the product loses volume or weight during production

Capital

Money or resources used to invest in business or production

Complementarity

When one region produces something another region needs, creating trade

Cottage Industry

Small-scale, home-based manufacturing

Deindustrialization

Decline of manufacturing in a region or country

Export Processing Zone

Special area where goods can be imported, manufactured, and exported without normal trade restrictions

Fordist vs. Post-Fordist

Fordist = mass production; Post-Fordist = flexible, specialized production

Fossil Fuel

Energy source formed from ancient plants and animals (coal, oil, gas)

Geothermal Energy

Energy from heat within the Earth

Industrial Revolution

Period of major industrialization that began in the 18th century

Industry

The production of goods in factories

Infrastructure

Basic physical systems of a country (roads, power, water, communication)

Inputs

Resources used in production (labor, materials, capital)

Just-in-Time Delivery

Manufacturing strategy that minimizes inventory by receiving goods only when needed

Labor-Intensive

Industries that require a large amount of human labor

Least-Cost Theory (Weber)

Model predicting factory location based on minimizing transport, labor, and agglomeration costs

Location Theory

Analysis of geographic location choices for industries

Manufacturing Region

Area with a high concentration of factories and industrial activity

Maquiladora

Factory in Mexico that imports materials duty-free, assembles them, and exports them

NAFTA

North American Free Trade Agreement between the US, Canada, and Mexico

Nuclear Energy

Energy produced from nuclear reactions

Outsourcing

Contracting work to external companies or countries

Perishable-Product Company

Company that must locate close to market because products spoil quickly

Potential Reserve

Estimate of resources that may be extracted in the future

Proven Reserve

Known quantity of a resource that can be economically extracted

Renewable Energy

Energy from sources that are naturally replenished (solar, wind, hydro)

Single-Market Manufacturer

Company that produces goods for one specific market

Site Characteristics

Physical attributes of a location (land, labor, capital)

Situation Characteristics

Location factors related to access to other places or markets

Special Economic Zone

Area with economic laws that differ from the rest of the country to encourage investment

Vertical Integration

When a company owns multiple stages of production for one product