Industry and Development Study Guide APHG

These flashcards cover key vocabulary related to industry and development for the AP Human Geography exam.

What are site factors in production?

Site factors are physical features that relate to the cost of production and transportation. Examples are land, labor, and capital considerations that affect location decisions.

Situation Factors

Features of the surrounding area that are related to cost of production and transport. Examples are proximity to markets, transportation networks, and raw materials.

Basic Industry

The main focus of a region’s economy, such as cars in Detroit or government in Washington, D.C.

Non Basic Industry

Businesses that support the work of the basic industry. Examples are retail, services, and local restaurants that serve the population.

Multiplier Effect

The economic growth that results from the interaction of basic and non-basic industries.It occurs when money spent in a community circulates, generating additional economic activity and job creation.

Fixed Costs

Costs that do not fluctuate, such as rent.

Variable Costs

Costs that fluctuate, such as energy bills.

Agglomeration

Clustering of similar businesses that provide assistance and efficient labor.

Deglomeration

Market becomes too saturated with similar businesses.

Weber’s Least Cost Theory

The location of a factory is dependent on raw materials cost, labor cost, and transportation cost.

Weight Gaining Industry

An industry where the finished good weighs more than the raw materials, necessitating proximity to market.

Weight Reducing Industry

An industry where the raw materials weigh more than the finished good, necessitating proximity to materials.

Outsourcing

The transfer of manufacturing jobs from richer countries to poorer ones.

Maquiladoras

Factories located just inside Mexico making goods for US and Canadian markets.

Footloose Industries

Industries that do not have a strong preference for being in a certain location.

Global Industrial Zone

Regions known for high concentrations of industry.

Gross Domestic Product (GDP)

A measure of the economic performance of a country.

Human Development Index (HDI)

A composite statistic of life expectancy, education, and per capita income indicators.

Primary Economic Sector

The sector involving extraction and harvesting of natural resources.

Secondary Economic Sector

The sector involving the processing of raw materials into goods.

Tertiary Economic Sector

The sector providing service-based economic activity.

Quaternary Economic Sector

The sector focusing on creation and distribution of knowledge.

Quinary Economic Sector

The sector involved in the management of other sectors.

Core-Periphery Model

A model that describes the economic differences between core regions and peripheral regions.

Immanuel Wallerstein's World Systems Theory

A theory that describes the economic divisions of countries into core, semi-periphery, and periphery.

Walt Rostow's Model of Development

A model proposing that societies progress through five stages of economic development.

OPEC

Organization of Petroleum Exporting Countries, a cartel formed to manage the supply and price of oil.

Pollution

The presence of substances in the environment that are harmful or poisonous.

Globalization

Rapid changes due to technology that increase the interconnectedness of global communities.

McDonaldization

The process by which the principles of the fast-food restaurant are coming to dominate more sectors of society.