APHUG Units 5 + 7 (collegeboard units)

development

the process of improving material conditions (EX: jobs, income) + quality of life (healthcare, educations)

more developed country (MDC)

a country with:

HIGH industrialization

HIGH standard of living

HIGH average income

less developed country (LDC)

a country with:

LOWER industrialization

LOWER standard of living

LOWER average income

gross domestic product (GDP)

total value of goods+services produced WITHIN a country

gross national income (GNI)

total income earned by the RESIDENTS of a country (includes $$ from aborad)

human development index (HDI)

composite measure based on life expectancy, income, and education

inequality-adjusted HDI (IHDI)

HDI that’s adjusted based on inequality within a country.

purchasing power parity (PPP)

value of money adjusting for the cost of living differences

EX: you can buy a smoothie for $5 in the US, but the same smoothie costs only $2.50 dollars worth of mexican pesos. this is ppp because the peso is worth about ½ of the dollar.

gender inequality index (GII)

measures inequalities in:

1. health

2. empowerment

3. labor participation

female labor force participation rate

% of women working OR seeking work

maternal mortality rate

the amount of women that die during childbirth per 100,000 births

Rostow’s Stages of Development

model showing 5 stages:

1. traditional society

2. preconditions for takeoff

3. takeoff

4. drive to maturity

5. high mass cosumption

world systems theories

core → wealthy, industrialized, higher education is necessary to work

periphery → medium wealth, mostly industrialized, not much education needed to find work

semi-periphery → low wealth, not industrialized, little to no education needed to work

globalization

expansion of economic, political, and cultural connections worldwide.

international monetary fund (IMF)

provides loans to countries that have economic problems

world bank

funds development projects (infrastructure, education, etc.)

world trade organization (WTO)

regulates international trade and reduces trade barriers

foreign direct investment (FDI)

investment made in a country BY another country

microloan (microfinance)

small loans given to people in developing countries to start businesses

structural adjustment program (SAP)

economic policies required by the IMF/World Bank loans (often cuts spending)

austerity strategy

reducing government spending to fix debt

stimulus strategy

increasing gov’t spending to boost economy

sustainable development goals

UN made goals to improve global development and protect the environment

sustainability

meeting current needs WITHOUT harming future generations

fair trade

trade system making sure that both producers get fair $$ + conditions

ecotourism

tourism focused on sustainability + local benefits

agglomeration

clustering of businesses that benefit each other
EX: car services all being together (car wash, oil change, tire change, etc.)

break-of-bulk point

location where goods are transferred between transportation methods

site factors

costs within a factory location (land, labor, capital)

situation factors

location relative to suppliers and markets

weber’s industrial location theory

industries choose locations because of these reasons:

1. transportation costs

2. labor costs

3. agglomeration benefits

labor-intensive industry

requires large amounts of manual labor

captial-intensive industry

requires expensive machinery and technology

bulk-gaining industry

final product weighs MORE than the materials → place near the MARKET

bulk-reducing industry

final product weighs LESS than the materials → place near the RAW MATERIALS

fordist production

mass production of standardized goods using assembly lines

post-fordist production

flexible, customized production using technology
EX: cars today being built - tires from japan, steering wheel for korea, etc.

just-in-time delivery

parts arrive EXACTLY when they need to, so that there is less storage costs for companies.

outsourcing

moving jobs to other countries to lower costs

deindustrialization

loss of industrial activity in a region

newly industrialized country (NIC)

country that’s transitioning from agriculture based to more technology/industry based

fossil fuel

a type of fuel found deep under the earth that is non-renewable (coal + oil)

renewable energy

energy sources that are forever (solar + wind power)

greenhouse effect

warming caused by greenhouse gasses being trapped in the atmosphere

air pollution

harmful substances in the air

ozone

gas in the atmosphere that protects us from UV rays - CAN be depleted

economic sectors

lowest level → primary = raw materials

middle levels →

• secondary level = manufacturing

• tertiary level = services

• quaternary level = information/knowledge

highest level → quinary = high level decision making

productivity

output per worker

literacy rate

% of people who can read + write

pupil/teacher ratio

avg. # of students to teacher

time-space compression

reduction in travel time due to technology

vertical integration

company controls multiple stages of production