Industry + Development- AP Human Geography

Secondary Industry

Raw materials may be transported to factories for manufacturing

Distance Decay

As distance decreases, business activity decreases until it becomes impractical to do business

Location Theory

Predicting where business will or should be located

Labor Flexibility

Highly educated workers able to apply themselves to a wide variety of tasks + functions

Weber’s Model

Manufacturing plants will locate where costs are the least

Friction of Distance

Greater weight means greater cost

Gross Domestic Product

Measure of the total value of goods and service in a country

Gross National Income

What is produced inside a country and income received from investments outside the country

Purchasing Parity Power

Measures economic variables in different countries (currency)

Formal Economy

Legal economy that governments tax and monitor

Inequality Human Development Index

Measures the loss of human development because of inequalities

Gender Development Inequality

An indicator constructed by the U.N. to measure the gender gap in the level of achievement in terms of income, education, and life expectancy.

Gender Inequality Index

An indicator constructed by the U.N. to measure the extent of each country’s gender inequality in terms of reproductive health, empowerment, and the labor market.

Primary Industry

Develops around the location of natural resources

Self-sufficiency

Countries encourage domestic goods, discourage foreign ownership of businesses + resources, and protect businesses from international competition

International Trade

Countries open themselves up to foreign investment and international markets

OPEC

Organization of the Petroleum Exporting Countries

Rastow’s Model

Assumes all countries follow a similar path to development or modernization

Traditional Society

Output not traded, barter economy, labor intensive agriculture

Pre conditions

Development of mining, increase in money, necessity of external funding (world bank), some growth in savings and investment

Drive to Maturity

Growth is self-sustaining, wealth enables further investment in industry and development, more diverse, increase in levels of technology

High-mass consumption

High output levels, high income levels, mass consumption of consumer durables, high proportion of employment in service sector

The four Asian Tigers

South Korea, Singapore, Taiwan, Hong Kong

Dollarization

Abandoning the local currency of a country and adopting the dollar as a local currency

Periphery

Poorest of countries who supply cheap natural resources and labor

Core

Wealthiest countries who use periphery and semi-periphery for cheap resources and labor. Supplies high quality manufactured goods.