ap huge unit 7 - heimler review guide

industrialization

transforming the economy of a nation or region from a focus on agriculture to a reliance on manufacturing

industrial revolution

period of economic transition due to scientific and technological development in the 18th century that transformed largely rural, agrarian societies—especially in Europe and North America—into industrialized, urban societies (agriculture → machine based manufacturing)

wage labor

socioeconomic relationship in which an employer pays money to a worker to complete a task

mass consumption

purchase of large amounts of mass-produced goods or services by large numbers of people

international division of labor

Each country does what it’s best at (each specializes in making a specific good), and then they trade with each other.

economic sectors

part of the economy where people do certain types of work.

primary, secondary, teritary, quarternary, quinary

informal sector

part of any economy that is neither taxed nor monitored by any form of government

jobs and businesses that are not officially registered with the government.

cottage industry

people make goods by hand at home instead of in a big factory. (family buisness)

formal sector

official jobs and businesses that are registered with the government.

quaternary sector

services that require high degree of education and expertise (research, high tech, biomed, stocks)

secondary sector

processing raw materials

primary sector

extract raw materials

quinary sector

most influential → high level decisions (government officials, CEOS)

core country

Highly industrialized, economically advanced countries that control and benefit from the global market and and have high economic power.

periphery

Less industrialized, less economically developed countries characterized by a lack of economic and political power that are often dependent on the more economically advanced, industrialized countries for trade, investment, and other forms of economic support

semi periphery

Countries that may have some industrialization and economic development, but they are not as advanced as the core countries and often have a lower level of global economic influence

commodity chain

step-by-step process of making a product and getting it to the customer.

break of bulk point

place where goods are moved from one type of transportation to another.

containerization

the system of shipping goods in large, standardized metal boxes (containers) → make shipping faster easier and safer

shipping containers

large, strong metal boxes used to store and transport goods.

deindustrialization

when a country or region loses industrial jobs and factories close down. → industries move to other places where its cheaper to produce goods

least cost theory

explains how businesses choose the best location for their factories or operations by considering three main costs:

transportation, labor cost, agglomeration (where it will be most cost efficient)

footloose industry

a type of business that is not tied to any specific location because its production does not rely heavily on resources or transportation costs → can move easily from one place to another to where its most cost effective

development

improving the economic, social, and political conditions of a country or region.

post industrialized society

society in which the economy has transitioned from a manufacturing-based economy to a service-based economy

agglomeration

The clustering of businesses that can benefit from close proximity because they share skilled-labor

neocolonialism

Theory that proposes that countries which may be free from political colonial control, continue to remain economically dependent on rich, industrialized countries

when a powerful country still controls or influences a weaker country even though the weaker country is officially independent.

world system theroy

A three-tier structured theory (core, semi-periphery, periphery) based on political power, social standing, and economic and technological development which proposes that social change in the developing world is linked to the economic activities of the developed world

world is divided into core, semi-periphery, and periphery countries, and these countries are economically linked in a global system.

dependency theory

A theory that claims the periphery is poor because it was economically dependent on the core in a disadvantageous relationship established by colonialism and imperialism

poor countries are dependent on rich countries for resources, technology, and capital. This creates a system where wealthy nations benefit at the expense of poorer ones → rich countries exploit the poor countries keeping them from developing

human development index (hdi)

a measure that combines life expectancy, education level, and income to show how developed a country is.

high = better quality of life

gross domestic product (gdp)

total value of all goods and services produced in a country within a year. (based on geographic area)

gross national product (gnp)

total value of all goods and services produced by the people of a country, both inside and outside the country, in a year. (regardless of where goods/services are produced) → based on countries citizens

per capita

per person (divide by population)

purchasing power parity

a way to compare the relative value of currencies by looking at how much a certain amount of money can buy in different countries. → compare cost of living and economic productivity

gender inequality index (gii)

a measure that looks at how unequal men and women are in a country based on reproductive health, empowerment, and economic activity

income distribution

how income (money earned) is shared among the people in a country or community. → is income spread equally?

trade deficit

a country imports more goods and services than it exports.

gender inequality

unequal treatment or opportunities for individuals based on their gender, including discrimination in education, employment, and access to healthcare, as well as unequal power dynamics within households and communities

e unequal treatment or perceptions of people based on their gender.

commodity dependence

when a country relies heavily on exporting raw materials or natural resources (like oil, minerals, or agricultural products) for its income and economy.

microloan

small loan given to people, especially in developing countries, to help them start or grow a small business.

mercantilism

an economic theory that believes a country’s wealth is measured by how much gold and silver it has.

absolute advantage

when a country or person can produce a good or service more efficiently than others, using fewer resources.

competitive advantage

a company, country, or individual has a unique edge over others in producing or selling goods or services. → offer something others can’t or can do something better faster or cheaper

comparative advantage

a country or person can produce a good or service at a lower opportunity cost than others. → give up less of something to produce a good making it more efficient

complementarity

when two goods or services work well together and are often used together. → demand for one product increases the demand for another

transnational corperation

a large company that operates in multiple countries, often with headquarters in one country and operations (like factories, stores, or offices) in many others.

neoliberalism

an economic and political philosophy that favors free-market capitalism, limited government intervention, and privatization of state-owned industries.

Pro-market position on the economy derived from the idea that government intervention into markets is inefficient and undesirable, and should be resisted wherever possible

international monetary fund

international organization that helps countries stabilize their economies by providing loans and offering financial advice.

world bank

an international organization that provides financial and technical assistance to developing countries to help reduce poverty and promote economic development.

world trade organization

an international organization that helps facilitate global trade by setting rules for trade between countries.

free trade agreement

a pact between two or more countries to reduce or eliminate barriers to trade, such as tariffs (taxes on imports) and quotas (limits on the amount of goods that can be imported).

organization of petroleum exporting countries (OPEC)

a group of oil-producing countries that work together to manage and regulate the production and pricing of oil on the global market.

mercosur (southern common market)

a regional trade bloc in South America that aims to promote economic integration and free trade among its member countries.

tariff

tax imposed by a government on goods imported from other countries that serves to increase the price and make imports less desirable/less competitive compared to domestic goods

embargo

official ban on trade with a specific country or on a specific good

divestment

removing or selling off subsidiary business interests, equipment, or investments

selling off or getting rid of investments in a particular asset, company, or industry.

global financial crisis

a major worldwide economic downturn that affects financial markets, businesses, and governments across the globe.

debt crisis

a country or organization cannot repay its debts or is at risk of defaulting on loans. → country borrows more money than it can afford to repay

financial market

A marketplace where financial goods are traded, for example, stock markets

international lending agency

an organization that lends money to countries or businesses, often to help them finance development projects or overcome financial difficulties. → lower interest rates and longer repayment period

nongovernmental organization

a non-profit group that operates independently of any government. → address social environment or humanitarian issues

outsourcing

hiring another company or individuals (often in another country) to handle specific tasks or services that were previously done in-house.

offshoring

relocating business operations or services to another country, usually to reduce costs like labor or production expenses.

special economic zone (sez)

a designated area within a country where businesses can operate with fewer regulations, tax incentives, and other benefits to encourage investment and economic growth. → create to attract foreing buisness and boost local economy

export processing zone (epz)

a special area in a country where businesses can set up operations to produce goods for export.

free trade zone (ftz)

a designated area within a country where goods can be imported, stored, and exported without being subject to the usual customs duties or tariffs.

post fordism

economic and industrial system that emerged after Fordism, characterized by flexible production, customized goods, and globalized supply chains.

shift from centralized manufacturing centers to spatially dispersed production sites with flexible production, from standardized mass production to specialized batch production, and from permanent workforce to temporary and contract workers

just in time manufacturing

a production strategy where companies produce goods only when they are needed and in the exact quantities required, minimizing inventory and reducing waste.

high tech industry

industries that focus on the development and production of advanced technology, such as electronics, computers, biotechnology, and aerospace. → cutting edge tech, innovation

multiplier effect

increase in economic activity that results from an initial investment or spending. → one action creates a chain reaction of economic benefits

creation of one job leads to creation of several other jobs

economy of scale

saving in costs gained by an increased level of production

growth poles

specific areas or regions within a country where economic development is concentrated and tends to spread out to surrounding areas, stimulating growth in those regions as well.

sustainable development

process of meeting present needs without compromising the ability of future generations to meet their own needs.

sustainable development goals

a set of 17 global objectives established by the United Nations in 2015 to address the most important challenges facing the world, including poverty, inequality, climate change, and environmental degradation and resolve them by 2030

ecotourism

sustainable travel that focuses on visiting natural areas in a way that preserves the environment, supports local communities, and educates travelers about conservation.

resource depletion

reduction or exhaustion of natural resources due to overuse or excessive extraction.

climate change

long-term shift in global or regional climate patterns

carbon neutrality

effort to achieve a net-zero CO2 release through a combination of emissions reduction and carbon removal

balancing the amount of carbon dioxide (CO2) emitted into the atmosphere with an equivalent amount of CO2 removed or offset, so that the net carbon emissions are zero.