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Primary Sector
Extraction of natural (raw) resources from the earth.
Secondary Sector
Processes and manufactures products using materials from the primary sector.
Tertiary Sector
Provides services to consumers (does not produce goods.)
Quaternary Sector
Knowledge based sector that includes research and development, business consulting, financial services, education and software development. Goal is to improve products, requires a highly educated society.
Quinary Sector
Highest levels of decision making, includes top officials gov and business.
Scarcity
Shortage of goods
Industrial revolution
A series of improvements to industrial technology that drastically changed the process of manufacturing goods
Cottage industry
Items were produced at home or in small shops for sale at the local market or for barter
Industrial revolution hearths
the industrial revolution originated in areas of northern england C. 1750. Factories were clustered near raw materials
Hydropower
Factories often located near rivers. Allowed for shorter distance to transport resources bc its heavy and will be cheaper
Steam power
Factories were often located near rivers (invention → steam engine)
Periphery Economic Sector
Most jobs will be in the primary level
NI semi-periphery
Transition into the secondary industry, some tertiary
Core
Most jobs in tertiary, quaternary, and quinary
Break-of-bulk point
A location where transfer is possible from one mode of transportation to another
Weber's least cost theory
- The location of raw materials
- The location of the market
- Transportation costs
Agglomeration
Similar businesses cluster in the same area (malls, restaurants, shopping centers)
Businesses support each other, reduces costs
Weight gaining industry
when the final product weighs more than the raw material
Weight reducing industry
when the finished product weighs less than the raw material
Two similar businesses cluster to reduce shipping costs and increase shared profits.
Agglomeration
Global North
Wealthier, more developed countries
Global South
Less developed countries
Rowstow's Stages of Economic Growth (Modernization)
A model showing the stages of modernization to track where each country is in the process of modernizing
Stage 1
Agriculture
Stage 2
Infrastructure, specialization
Stage 3
Industrialization, regional growth, political change
Stage 4
Diversification, less imports
Stage 5
High mass consumption, service sector becomes dominant (tertiary sector)
Rowstow Theory Criticism
Too simple, it treats every country like a solo player, ignoring how trade, colonialism, and global power dynamics affect their growth.
Dependency Theory
Peripheral countries stay poor not because of their own choices, but because wealthy countries continue to exploit them for cheap resources and labor. (Neocolonialism)
Wallerstein's World Systems Theory (dependency)
Explains the uneven distribution of development in the world based on core, periphery, and semi-periphery. Core countires are most developed due to early adaptation of industrialization, in contrast to peripheral.
Commodity Dependence Theory
The percentage of a country's economy devoted to commodity export can often predict the level of devleopment in that country.
Commodities
Agricultural products/raw materials bought and sold on the global market
Human development index (HDI)
Factors and demographics that show the well-being of a country OR (quality of life) of a country
GDP
Value of all goods and services by a country's residents and businesses
GNP
measures production inside a country, no matter who makes it
Traditional Society
type of society where behavior is based on long-standing customs, habits, and traditions
High Mass Consumption
economy shifts from heavy industry to consumer goods. Population declines, workforce becomes highly educated, people buy non-essential goods.
Take Off
Full industrialization, advances in technology
Pre-Conditions to Take Off
beginning of industrialization and urbanization
specialization
becoming more efficient in production of a resource
Comparative Advantages
A country has a comparative advantage at producing something IF they can produce it at lower cost than anyone else.
Neoliberalism
a form of liberalism tending to favor free-market capitalism.
Neoliberal policies have led to:
the creation of new organizations (WTO, EU, Mercosur, USMCA, etc.) spatial connections and trade relationships that foster globalization.
Free Trade Zone
An area, often regional, where barriers to trade (tariffs, etc. ) are reduced or eliminated among the participating states.
MAQUILADORAS
American owned factories in Mexico that hire low wage (paid) Mexican workers.
OPEC
eliminates competition and raise prices
Special Economic Zones (SEZ
areas in which business & trade laws are different from other parts of the country. SEZ's gave the poor more freedom to move and sell their products in open markets.
Industrial Revolution
A period of rapid growth in the use of machines in manufacturing and production in the mid-1700s
outsourcing
moving jobs to other countries to save money on labor costs
Gross National Income (GNI) per capita
The value of the output of goods and services produced in a country within a year; including money that leaves and enters the country
Gender Inequality Index (GII)
A measure of the extent of each country's gender inequality
Microlending
Giving small loans to ppl (mostly women) in developing countries who wouldn't qualify for traditional bank loans.
Criticisms of Wallerstein Theory
Provides little explanation as to how a country could rise from peripheral to core.
Criticisms of Rostows Theory
Eurocentric/western (US and Europe) biased; assumes all countries want to and should develop like them, lacks account for interdependence.
Interdependence
A relationship between countries in which they rely on one another for resources, goods, or services