Unit 7: AP HuG Vocabulary

industrialization

the process by which economies transform from primarily agricultural societies to ones based on the manufacturing of goods and services

example of industrialization

the development of the textile industry during the industrial revolution

industrial revolution

a series of technological advances in the 18th century

example of industrial revolution

brought former farmers into the cities to work in factories

primary economic sector

extracting natural resources from the Earth

example of primary economic sector

farming, mining, fishing, forestry

secondary economic sector

making products from natural resources

secondary economic sector

manufacturing and building

tertiary sector

Service sector involves the setting of services and skills as well as goods and products from the primary and secondary sectors

Quaternary sector

providing information services such as IT communications, consulting research and development

example of quaternary sector

programmers, IT specialist, & technology developers

quinary sector

top level decisions include government positions, CEOs, CFOs, commerce, and education

example of quinary sector

Elon musk, owner of amazon, and the president of the US

Break of bulk point

The procedure of transferring cargo from one transportation mode to another

least cost theory

suggests that a production point must

be located within a “triangle,” with raw

materials coming from at least two

sources. Weight-gaining industries must

have their production point closer to

the market.

example of least cost theory

a copper smelting plant locating near its raw copper ore source because copper ore is heavy and loses significant weight during the smelting process, making it more cost-effective to minimize transportation of the bulky raw material; this demonstrates a "weight-losing" industry where the production facility should be situated close to the source of the raw material to minimize transportation costs.

core location

a region in the world that holds significant economic power, characterized by high levels of wealth, innovation, advanced technology, and consumption, essentially acting as the center of global economic activity

example of core location

most of Western Europe and North America

semi-periphery

countries that are not as economically developed as core nations but are more developed than peripheral nations.

example of semi-periphery

mexico, brazil, india, and china

periphery location

a country or region on the outer edges of the global economy, typically characterized by low levels of economic development, reliance on exporting raw materials, and a lower standard of living compared to "core" regions

example of periphery location

countries in sub-Saharan Africa, Bolivia, and regions in Southeast Asia

gross domestic product (GDP)

the dollar amount of all final goods and services produced within a country in one year

example of gross domestic product (GDP)

the total value of all goods and services produced within a country like the United States in a year, including things like cars manufactured in Michigan, haircuts provided in California, and food produced by farmers in Iowa, all contributing to the overall economic output of the nation; essentially, the sum of all economic activity within the country's borders.

gross national product (GNP)

the dollar amount of all goods and services produced by a country's citizens in one year

example of gross national product (GNP)

the income of American citizens working in South Korea and the profits from an American-owned factory in Mexico would both count as part of the United States' —-?

gross national income per capita (GNI)

a measure of a country's income divided by its population, representing the average income earned by each citizen in a specific year.

example of gross national income per capita (GNI)

The —— of Bangladesh in 2021 was $2,457.9 and the GNI per capita of the United States was $70,248.6. There is a big difference because its much larger and has a more developed economy

formal sector

the portion of the economy that is monitored by government, so people in it follow regulations and pay taxes.

example of formal sector

banks, multinational corporations (Apple, Samsung, Toyota), public education, and healthcare

informal sector

the portion of the economy that is not monitored by government.

example of informal sector

cleaning your own house, cooking meals for a friend who is sick, drug dealing, and identity theft

infant mortality rate (IMR)

the number of children who die before their first birthday

example of infant mortality rate (IMR)

in Massachusetts, the ___ per 1000 live births dropped from 130 in 1850, to about 4 today

fossil fuels

are natural resources formed from the decomposed remains of ancient plants and animals

example of fossil fuels

coal, oil (petroleum), and natural gas

renewable energy

energy derived from resources that are naturally replenished on a human timescale

example of renewable energy

sunlight, wind, rain, tides, waves, and geothermal heat.

literacy rate

The percentage of population that can read and write (8th grade level or higher)

Example of literacy rate

A country like Canada has a high __ rate of 99% because they are highly developed and so most everyone there can read and write

gender inequality index (GII)

A composite measure of several factors indicating gender disparity: Reproductive health, empowerment, and labor market participation

example of gender inequality index (GII)

the ___ for Switzerland indicates that the country loss only 2.5% of its potential human development as a result of __ in 2019, while Yemen lost 79.5%

human development index (HDI)

measures the status of life in any given place based off life expectancy, education levels and income per capita

example of human development index (HDI)

The United States ___ was 0.927 in 2022, which is very high because of high life expectancy, quality education, and high income (GNI)

microloans

small unsecured loans made primarily to women to help them undertake an income generating project in a developing country

example of microloan

A small loan to rural woman in Bangladesh to purchase a sewing machine to start a tailoring business at home

bostows stages of economic growth

A model that describes the five stages a country goes through to become fully developed: Traditional society, preconditions for takeoff, takeoff, drive to maturity, and age of mass consumption

example of bostow’s stage of economic growth

South Korea, which transitioned from a largely agricultural "traditional society" to a highly industrialized "age of high mass consumption" by investing heavily in infrastructure and manufacturing, experiencing rapid growth during the "take-off" stage, and then diversifying its economy further in the "drive to maturity" phase

wallerstein’s world system theory

a sociological framework that categorizes countries into "core," "semi-periphery," and "periphery" based on their economic roles within a global system

example of wallerstein’s world system theory

Brazil and Mexico act as semi-peripheral countries due to their intermediate level of economic development, acting as a buffer between the core and periphery.

dependency theory

countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other.

example of dependency theory

Africa is still paying its loans to former colonial powers and depicted as a third-world continent while enriching wealthy nations

commodity dependence

When more than 60 percent of a country’s exports are raw materials.

example of commodity dependence

Chile relies on copper exports for economic growth

complementarity

When a country has the income, goods, or services that another country desires

example of complementarity

Canada, with its cold winters and forests of maple trees, is a leading producer of maple syrup but it produces no coffee. Costa Rica, with its tropical climate and rugged terrain, is famous for its coffee, but it produces no maple syrup. Canadian merchants import coffee from Costa Rica while Costa Rican merchants import maple syrup from Canada.

comparative advantage

when parties tend to trade goods or services/the ability to produce a good or service at a lower cost than others

example of comparative advantage

china's workers recieve lower wages than do U.S. workers, so Chinese companies can manufacture goods at a lower cost.

neoliberal policies

a set of reforms that reduced government regulations and taxation.

example of neoliberal policies

eliminating price controls, deregulating capital markets, lowering trade barriers" and reducing, especially through privatization and austerity, state influence in the economy.

free-trade agreements (FTAs)

treaties between two or more countries that aim to reduce or eliminate trade barriers such as tariffs and import quotas

example free-trade agreements (FTAs)

the North American Free Trade Agreement (NAFTA), which allows for free trade between Canada, Mexico, and the United States by eliminating tariffs on most goods traded between these countries.

the European Union (EU)

a political and economic union of 27 European countries that are committed to promoting integration and cooperation among its member states.

World Trade
Organization (WTO)

a global organization that was created in 1995 to monitor the rules of international trade by providing a forum for negotiating trade deals, settling disputes between its members, supporting the needs of developing countries, and helping companies follow similar international trade policies

Mercosur/Southern Common Market

A trade bloc in South America that was established in 1991. The bloc's goal is to create a common market, promote development, and strengthen democracy.

The Organization of the Petroleum Exporting Countries (OPEC)

an intergovernmental organization founded in 1960, consisting of major oil-exporting countries that coordinate and unify petroleum policies among member countries.

tariffs

taxes imposed by a government on imported goods, which raise the price of these goods in order to protect domestic industries and generate revenue

example of tariffs

the United States imposing a tax on imported steel from China, making Chinese steel more expensive to buy in the US, potentially encouraging consumers to purchase domestically produced steel instead

debt crisis

a situation where a country's government accumulates so much debt that it becomes unable to repay its creditors

example of a debt crisis

Greek situation which began in 2009, where the Greek government accumulated significant debt, leading to economic instability and requiring international bailouts; this is often used to illustrate the corruption on a nation's economy and social fabric.

International Monetary Fund (IMF)

created in 1945 to aid countries caught in need of financial assistance.

example of International Monetary Fund (IMF)

the COVID-19 crisis of 2020; much needed emergency funding was provided to 76 countries.

microlending

the process of connecting borrowers with lenders for small loans.

outsourcing

many company workers use contracting work to noncompany employees or other companies to reduce costs

example of outsourcing

a US company hiring a call center in India to handle customer service inquiries

newly industrialized countries (NICs)

a developing country that has moved away from agriculture and raw materials to produce manufacturing goods

example of newly industrialized countries (NICs)

China, a country that has experienced rapid growth and industrialization

special economic zones (SEZ’s)

a designated area within a country where economic regulations differ from those in the rest of the country.

example of special economic zones (SEZ’s)

free-trade zones, export processing zones, industrial parks, and specialized zones.

Export Processing Zones (EPZs)

designated areas within a country that offer favorable conditions for foreign and domestic companies to manufacture and export goods.

example of Export Processing Zones (EPZs)

"maquiladora" zones located along the US-Mexico border; these are manufacturing plants where companies take advantage of lower labor costs in Mexico to produce goods for export to the United States, essentially acting as a dedicated area for export-oriented production. 

Rust Belt

a region in the northeastern and midwestern United States that experienced significant industrial decline, particularly in the manufacturing sector, leading to widespread unemployment and urban decay, primarily due to the closure of old factories that were left to rust

International division of labor

transfer of some types of jobs, especially those requiring low paid, less skilled workers, from more developed to less developed countries

example of international division of labor

when a developed country like the US designs and markets high-tech products, while a developing country like China manufactures the components using cheaper labor

Natural resource depletion

The process of using resources faster than they can be replaced

Example of natural resource depletion

Deforestation, fossil fuels, and overpopulation

Mass consumption

The widespread purchase and use of goods and services by a large population

Example of mass consumption

Large scale shopping events like black Friday and cyber Monday

Ecotourism

A sustainable travel approach that focuses on responsible visits to natural areas, conserving the environment, and improving the well-being of local communities

Example of Ecotourism

wildlife viewing, birdwatching, hiking, and camping

The United Nations Sustainable Development Goals (SDGs)

a set of 17 goals that aim to improve the quality of life for people and the planet by 2030