AP HG U6

Industrial Revolution

The shift from agrarian to industrial economies beginning in Britain in the late 18th century. Ex: Steam-powered factories in Manchester producing textiles at unprecedented scale

Fordism

Mass production using assembly lines to produce standardized goods cheaply. Ex: Henry Ford's Model T production line in Detroit, 1908

Post-Fordism

Flexible, specialized production replacing mass production; associated with globalization. Ex: Nike designing in the US, manufacturing in Vietnam based on flexible contracts

Deindustrialization

The decline of manufacturing in developed countries as industries move elsewhere. Ex: The Rust Belt (Pittsburgh, Detroit) lost steel and auto jobs to cheaper-labor countries

Rostow's Stages of Economic Growth

A 5-stage model of economic development: traditional society → preconditions for takeoff → takeoff → drive to maturity → age of high mass consumption. Ex: South Korea moved rapidly through these stages in the late 20th century

World Systems Theory (Wallerstein)

The global economy is divided into core, semi-periphery, and periphery nations. Ex: The US is core; Brazil is semi-periphery; Mozambique is periphery

Core Countries

Wealthy, dominant countries in the global economy that control production and capital. Ex: United States, Germany, Japan

Semi-Periphery Countries

Countries in between core and periphery, often industrializing. Ex: China, Brazil, Mexico, India

Periphery Countries

Poor countries that supply raw materials and cheap labor to core countries. Ex: Much of sub-Saharan Africa, Bangladesh

Dependency Theory (Frank)

Developing nations remain poor because core nations exploit them economically. Ex: Latin American nations unable to develop because multinational corporations extract profits back to the US

Gross Domestic Product (GDP)

The total economic output of a country. Ex: The US GDP is the world's largest at over $25 trillion

GDP Per Capita

GDP divided by population, used to compare standards of living. Ex: Luxembourg has one of the highest GDPs per capita in the world

Gross National Income (GNI)

Similar to GDP but includes income earned abroad by a country's citizens. Ex: Ireland's GNI differs significantly from its GDP due to many multinational corporations operating there

Human Development Index (HDI)

A composite measure of development based on life expectancy, education, and income. Ex: Norway consistently ranks #1 on the HDI

Gender Inequality Index (GII)

Measures gender-based disadvantage in health, empowerment, and labor. Ex: Yemen ranks very low on the GII due to severe restrictions on women

Inequality-Adjusted HDI

HDI corrected for inequality within a country. Ex: The US HDI drops significantly when adjusted for its high inequality

Purchasing Power Parity (PPP)

Adjusts income to reflect what money can actually buy in each country. Ex: A salary of $30,000 in India buys far more than in the US

Informal Economy

Economic activity not taxed or monitored by the government. Ex: Street vendors in Lagos, Nigeria; unregistered domestic workers in Brazil

Formal Economy

Regulated, taxed, and monitored economic activity. Ex: Working for a corporation and receiving a W-2 in the US

Multiplier Effect

Economic growth in one sector stimulates growth in others. Ex: A new car factory creates jobs for steel suppliers, restaurants, and schools nearby

Agglomeration

The clustering of businesses in one location to share resources and labor pools. Ex: Silicon Valley's tech companies clustering together to share talent and infrastructure

Special Economic Zone (SEZ)

Areas with relaxed tax and trade regulations to attract foreign investment. Ex: Shenzhen, China was one of the first SEZs and grew from a fishing village to a megacity

Export Processing Zone (EPZ)

Zones where goods are produced for export with minimal tariffs. Ex: Maquiladoras along the US-Mexico border produce goods for US markets

Maquiladora

Foreign-owned factories in Mexico near the US border. Ex: Ford and General Electric operate maquiladoras in Juárez and Tijuana

Outsourcing

Contracting work to external companies, often overseas. Ex: US companies outsourcing customer service to call centers in India and the Philippines

Offshoring

Moving business operations to another country. Ex: Apple manufacturing iPhones in China rather than the US

Foreign Direct Investment (FDI)

Investment by companies in production facilities in another country. Ex: Toyota building factories in the United States

Comparative Advantage

A country should specialize in what it can produce most efficiently. Ex: Colombia specializing in coffee; Saudi Arabia in oil

Neoliberalism

Economic ideology favoring free markets, deregulation, and privatization. Ex: IMF structural adjustment programs requiring developing nations to cut social spending

Structural Adjustment Programs (SAPs)

IMF/World Bank conditions requiring developing nations to adopt free-market reforms in exchange for loans. Ex: Ghana forced to privatize state industries and cut food subsidies in the 1980s

Microfinance

Small loans given to entrepreneurs in developing countries who lack access to traditional banking. Ex: Grameen Bank in Bangladesh providing small loans to rural women to start businesses

Fair Trade

A movement ensuring producers in developing countries receive fair prices. Ex: Fair Trade coffee certifies that Ethiopian farmers receive a guaranteed minimum price

Commodity Dependence

Over-reliance on one or few export commodities, making a country vulnerable to price swings. Ex: Zambia is heavily dependent on copper exports

Energy Resources

Natural resources used to produce power. Ex: Saudi Arabia's oil wealth vs. Iceland's geothermal energy

Renewable Energy

Energy from sources that replenish naturally. Ex: Wind, solar, and hydroelectric power

Nonrenewable Energy

Energy from sources that can run out. Ex: Coal, oil, and natural gas

Sustainable Development Goals (SDGs)

The UN's 17 goals to achieve a better, more sustainable future by 2030. Ex: SDG 1 aims to end poverty; SDG 13 addresses climate action