Unit 7 APHuG Vocab Quiz

Industrial Revolution

A series of improvements in industrial technology that transformed the process of manufacturing goods.

Primary Sector

The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.

Secondary sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

Tertiary sector

The portion of the economy concerned with transportation, communications, utilities, and the provision of all goods and services to people in exchange for payment.

Quaternary sector

Jobs that deal with the handling and processing of knowledge and information.

Service sector industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, administration, insurance, and legal services,

Quinary Sector

Service sector industries that require a high level of specialized knowledge or technical skill. Examples include scientific research and high-level management.

higher level Decision makers

Weber's Least Cost Theory

theory that described the optimal location of a manufacturing firm in relation to the cost of transportation, labor, and advantages through agglomeration

Break-of-bulk point

A location along a transport route where goods must be transferred from one carrier to another. In a port, the cargoes of oceangoing ships are unloaded and put on trains, trucks, or perhaps smaller riverboats for inland distribution.

HOTELLING'S LOCATIONAL INTERDEPENDENCE Theory

Theory that states that competitors will attempt to maximize sales by

constraining each other's sales territories by moving closer to one another

until they are back-to back

Footloose industry

industry in which the cost of transporting both raw materials and finished product is not important for the location of firms

Deindustrialization

process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment....can lead to the creation of brownfields

comparative advantage

the ability to produce a good at a lower opportunity cost than another producer

Outsourcing

A decision by a corporation to turn over much of the responsibility for production to independent suppliers.

Offshoring

Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.

maquiladoras

The term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the primarily foreign-owned factories assemble imported components and/or raw materials and then export finished goods.

special economic zones (SEZ)

specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment

free-trade zones

A region where a group of countries has agreed to reduce or eliminate trade barriers

export processing zones (EPZs)

zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment

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.

The process where the assembling procedures for a product are spread out through different parts of the world

Post-Fordist Production

World economic system characterized by a more flexible set of production practices in which goods are not mass produced; instead, production has been accelerated and dispersed around the globe by multinational companies that shift production, outsourcing it around the world and bringing places closer together in time and space than would have been imaginable at the beginning of the 20th century

multiplier effect

An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. For example, if a corporation builds a factory, it will employ construction workers and their suppliers as well as those who work in the factory

economies of scale

a proportionate saving in costs gained by an increased level of production.

Agglomeration

Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources.

growth poles

economic activities that are deliberately organized around one or more high-growth industries.

technopoles

area planned for high technology where agglomeration built on a synergy among technological companies occurs.

Four Asian Tigers/Dragons

the highly developed economies of South Korea (largest), Taiwan (moving towards high tech), Singapore (Center for information and technology), Hong Kong(Break of Bulk Point): . These regions were the first newly industrialized countries and became booming economies.

Just-in-time delivery

Method of inventory management made possible by efficient transportation and communication systems, whereby companies keep on hand just what they need for near-term production, planning that what they need for longer-term production will arrive when needed. (Shipment of parts and materials to arrive at a factory moments before they are needed)

Brownfields

abandoned polluted industrial sites in central cities, many of which are today being cleaned and redeveloped

Gross Domestic Product (GDP)

the total value of goods and services produced by a country citizens and companies within the country in a year

GNP (Gross National Product)

the total value of goods and services produced by a country's citizens and companies both domestically and internationally in a year

Gross National Income (GNI) per capita

the total value of goods and services produced globally by a country in a year divided by the country's population

formal economy (sector)

businesses, enterprises, and other economic activities that have government supervision, monitoring, and protections, and are also taxed

Informal Economy (sector)

any part of a country's economy that is outside of government monitoring or regulation;

Ex: flea markets, street vendor, cash-based businesses

Fossil Fuels

non-renewable resources - Coal, oil, natural gas, and other fuels that are ancient remains of plants and animals.

Renewable Energy

energy from a source that is not depleted when used, such as wind or solar power.

Gender Inequality

the inequality between men and women in terms of wealth, income, and status

Gender Inequality Index (GII)

measurement that calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation

Human Development Index (HDI)

a measure that determines the overall development of a country by incorporating three key dimensions - life expectancy, access to education, and standard of living (measured by GNI per capita)

Gender Parity

ensuring that males and females have equal opportunities in areas such as education, employment, voting and decision making, and access to health care and other resources

Microloans

a very small short-term loan with low interest intended to help people in need

Rostow's Stages of Economic Development

It holds that modernization occurs Five Stages:

1. Traditional society: pre-industrial economy. Primitive technology and hierarchical social structure with kings and emperors

2. Preconditions for takeoff: Rise in rates of investment, increase in infrastructure, development of a more centralized state that is growth orientated, emergence of social/political elite.

3. Takeoff: growth dominates society. Development of manufacturing sector. Major technological advances. Rate of new investment rises as productivity improves.

4. Drive to maturity: economy has self-sustained growth. New sectors. More products manufactured at home and more consumer goods are made available. Development of wider industrial and consumer base.

5)high mass consumption: economy increases steadily. Economic growth is often lower than during the earlier stages but it initiates from a greater base. Economy relies on middle-class consumption (consumer spending).

Wallerstein's World Systems Theory

1. The world economy has one market and a global division of labor.

2. Although the world has multiple states, almost everything takes place within the context of the world economy.

3. The world economy has a three-tier structure. (Peripheral, Semi-peripheral, Core)

Dependency Theory

a theory that describes the development challenges and limitations face by poorer countries and the political and economic relationships poorer countries have with richer countries

Commodity Dependence

An economy that relies on the export of primary commodities for a large share of its export earnings and hence economic growth

Neoliberal Policies

beliefs that favor free-market capitalism in which trade has no constraints from government

economic policies that are predicated on a minimalist role for the state, assuming the desirability of free markets as the ideal condition not only for economic organization but also for political and social life

World Trade Organization (WTO)

a permanent global institution to promote international trade and to settle international trade disputes

Tariffs

Taxes on imports or exports

Global Financial Crisis

The economic crashes that happened internationally due to the globalization of the world's economy. Problems in some countries (Europe and the United States), caused financial problems in countries that trade with them.

International Monetary Fund (IMF)

an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation

Ecotourism

A form of tourism that supports the conservation and sustainable development of ecologically unique areas

a form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment

UN Sustainable Development Goals (SDGs)

a shared blueprint for peace and prosperity for people and the planet, now and into the future. At its heart are 17 development goals (SDGs), which are an urgent call for action by all countries - developed and developing - in a global partnership

examples: no poverty, zero hunger, good health and well being, quality education

Brandt Line

division of the world between MDCs and LDCs (MDCs in north have relatively high HDIs while southern countries have lower indexes)

Foreign Direct Investment (FDI)

Investment made by a foreign company in the economy of another country.

European Union (EU)

supranational organization - the world's largest common market, composed of 28 European nations....established free trade, open borders, common currency etc

Mercosur (Common Market of the South)

(1991) free trade within, and a common external tariff for, Argentina, Brazil, Paraguay, Uruguay, and Venezuela; accounts for 70 percent of South America's total economy

OPEC (Organization of Petroleum Exporting Countries)

An organization of countries formed in 1961 to agree on a common policy for the production and sale of petroleum.