AP Human Geography: Unit 7 Industry and Development Terms

industrial revolution

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

location theory

A logical attempt to explain the locational pattern of an economic activity and the manner in which its producing areas are interrelated.

variable costs

costs that vary with the quantity of output produced

friction of distance

the increase in time and cost that usually comes with increasing distance

least cost theory

Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.

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.

deglomeration

The process of industrial deconcentration in response to technological advances and/or increasing costs due to congestion and competition.

locational interdependence

Theory developed by economist Harold Hotelling that suggests competitors, in trying to maximize sales, will seek to constrain each other's territory as much as possible which will therefore lead them to locate adjacent to one another in the middle of their collective customer base.

multiplier effect

the phenomenon where an initial injection of spending or investment (like a new factory or tourism) leads to a much greater increase in final regional economic growth. Direct jobs create demand for indirect jobs (supporting industries), boosting local income and consumption.

break-of-bulk point

A location where transfer is possible from one mode of transportation to another.

fordist

Form of mass production in which each worker is assigned one specific task to perform repeatedly.

post-fordist

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 twentieth century

just-in-time deliver

Shipment of parts and materials to arrive at a factory moments before they are needed

global division of labor

corporations can draw from labor around the globe for different components of production

intermodal connections

places where two or more modes of transportation meet (including air, road, rail, barge, and ship)

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

outsource

to use outside suppliers and manufacturers to produce goods and services

offshore

with reference to production, to outsource to a third party located outside of the country

technopole

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

primary activity

the part of an economy involved in making natural resources available for use or further processing; includes mining, agriculture, forestry, fishing, hunting, grazing

secondary activty

those parts of the economy involved in the processing of raw materials derived from primary activities and in altering or combining materials to produce commodities of enhanced utility and value; includes manufacturing, construction, and power generation

tertiary activity

those parts of the economy that fufill the exchange function, that provide market availability of commodities, and that bring together consumers and providers of services includes wholesale and retail trade, associated transportational and governmental services, and personal and professional services of all kinds

comparative advantage

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

absolute advantage

the ability to produce a good using fewer inputs than another producer

substitution principle

an industrial locational theory stating that firms will substitute one factor of production (e.g., labor) for another (e.g., automation/capital) to minimize costs and maximize net profit at a specific location. it allows for flexibility in choosing a site, rather than just focusing on transportation costs.

quaternary activity

the part of the economy concerned with research, with the gathering and dissemination of information, and with administration; often considered only as a specialized subdivision of tertiary activities

quinary activity

service sector industries that require a high level of specialized knowledge skill (high-level management)

vertical integration

practice where a single entity controls the entire process of a product, from the raw materials to distribution

synergy

the power that results from the combination of two or more forces

gatekeepers

media executives, news editors, and prominent reports who direct the flow of news

horizontal integration

type of monopoly where a company buys out all its competition. ex. Rockefeller

commodity chain

series of links connecting the many places of production and distribution and resulting in a commodity that is then exchanged on the world market

gender inequality index (GII)

a measure of the extent of each country’s gender inequality

gross national product (GNP)

the sum of all goods and services produced in a nation in a year

gross domestic product (GDP)

the total market value of all final goods and services produced annually in an economy

gross national income

the total value of goods and services produced within a country together with the balance of income and payments from or to other countries.

per capita GNI

the total income earned by a country's residents and businesses (Gross National Income), including income earned abroad, divided by its total population

formal economy

the legal economy that governments tax and monitor

informal economy

transfers of money, goods, or services that are not reported to the government

rostow’s modernization model

a liberal model that postulates that economic modernization occurs in five basic stages: 1. traditional, 2. preconditions for takeoff, 3. takeoff, 4. drive to maturity, 5. age of mass consumption

neocolonialism

also called economic imperialism, this is the domination of newly independent countries by foreign business interests that causes colonial-style economies to continue, which often caused monoculture (a country only producing one main export)

structuralist theory

a general term of a model of economic development that treats economic disparities among countries or regions as the result of historically derived power relations within the global economic systems

dependency theory

a model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones

dollarization

when a poorer country ties the value of its currency to that of a wealthier country, or when it abandons its currency and adopts the wealthier country’s currency as its own

world-systems theory

theory developed by immanuel wallerstein that explains the emergence of a core, periphery, and semi periphery in terms of economic and political connections first established at the beginning of exploration in the late 15th century and maintained through increased economic access up until the present

neoliberal economic policies

characterized by free market trade agreements, deregulation of financial markets, individualism, and the shift away from state welfare provision have created new organizations, spatial connections, and trade relationships that foster greater globalization

structural adjustment loans

loans granted by international financial institutions such as the World Bank and the Internation Monetary Fund to countries in the periphery and semi periphery in exchange for certain economica and governmental reforms in that country

human development index

indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy

export processing zones

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

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

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

NAFTA

North American Free Trade Agreement - allows open trade between the US, Mexico, and Canada

MERCOSUR

pact among Argentina, Brazil, Paraguay, and Uruguay tfo establish a free trade area

nongovernmental organizations (NGOs)

a non-governmental, non-profit organization that runs aid programs and lobbies for people’s rights around the world

microcredit program

program that provides small loans to poor people, especially women, to encourage development of small businesses