AP HUG Unit 7 Vocabulary Flashcards

Primary Sector:

The sector of the economy that involves the extraction and harvesting of natural resources. This includes activities such as agriculture, mining, forestry, and fishing, where raw materials are obtained directly from the Earth.

Secondary Sector

The sector of the economy that involves manufacturing and processing. This sector takes raw materials from the primary sector and transforms them into finished products or goods, such as factories that produce cars, textiles, and food products.

Tertiary Sector:

The sector of the economy that provides services rather than goods. This includes industries such as retail, healthcare, education, tourism, and finance. The tertiary sector plays a crucial role in the economy by supporting both the primary and secondary sectors.

Quaternary Sector:

The sector of the economy that involves knowledge-based activities, including services related to research and development (R&D), information technology, financial services, and education. It focuses on the production and management of information and knowledge.

Commodity chains

The connected network of processes and activities involved in producing, processing, and distributing a commodity. It encompasses all the steps a product goes through from raw material extraction to final consumption, highlighting the economic relationships involved in global trade.

Resource-dependent country

A nation whose economy relies heavily on the export of natural resources, such as oil, minerals, or agricultural products. These countries are often vulnerable to fluctuations in global commodity prices.

Non-Renewable Resources:

Natural resources that cannot be replaced once they are depleted. Examples include fossil fuels (such as coal, oil, and natural gas), minerals, and metals. The extraction and use of non-renewable resources raise environmental sustainability concerns.

Renewable Resources:

Natural resources that can be replenished or regenerated naturally over time. Examples include solar energy, wind energy, biomass, and water. The sustainable management of renewable resources is critical to environmental conservation.

Value-Added Processing:

The process of increasing the worth of a raw material by altering its physical characteristics or through manufacturing. This can include transforming agricultural products into packaged food items, thereby increasing the market value.

De-industrialized:

A term used to describe a region or economy that has undergone a decline in industrial activity, often resulting from the relocation of manufacturing jobs to countries with lower labor costs or shifts towards a service-based economy.

Uneven Development:

The disparity in economic development levels among different regions or countries. This concept reflects how some areas may develop faster or more completely than others due to historical, geographic, political, or economic factors.

Communist:

A political and economic ideology that advocates for a classless society in which all property and means of production are collectively owned or controlled by the state. In theory, communism seeks to eliminate private ownership and promote equality, often associating with historical regimes in the Soviet Union and China.

MDC:

(More Developed Country) A term used to categorize countries that have achieved significant economic progress, characterized by a high standard of living, advanced technological infrastructure, and a well-developed social system. These countries typically have higher gross domestic product (GDP) per capita, better education, and improved health care systems.

LDC:

(Less Developed Country)
A country with a low level of industrialization, low standard of living, and low Human Development Index (HDI). LDCs typically face challenges such as poverty, high unemployment rates, and lack of access to education and healthcare.

Infrastructure:

The fundamental facilities and systems serving a country, city, or area, including the services and facilities necessary for its economy to function. This includes transportation systems, communication networks, sewage, water, and electric systems.

NICs:

(Newly Industrialized Countries) Countries that have recently transitioned from primarily agricultural economies to ones based on industrial manufacturing and services. They often have higher growth rates and income levels than LDCs but may not yet have reached the status of developed countries.

Comparative Advantage:

The ability of a country or individual to produce a good or service at a lower opportunity cost than others. This concept is foundational for international trade, as it encourages countries to specialize in the production of goods where they have a relative efficiency advantage.

Economic Indicators:

Statistics that provide information about the economic performance and health of a country. Common indicators include Gross Domestic Product (GDP), unemployment rates, inflation rates, and trade balances.

Trade Surplus:

A situation where a country's exports exceed its imports, leading to a net positive trade balance. This indicates that a country is selling more goods and services abroad than it is buying from other countries.Trade Deficit:

Trade Deficit:

A situation where a country's imports exceed its exports, leading to a net negative trade balance. This indicates that a country is purchasing more goods and services from other countries than it is selling to them.

HDI:

(Human Development Index) A composite statistic of life expectancy, education level, and per capita income indicators, which are used to rank countries into four tiers of human development. The HDI aims to provide a broader measure of development beyond just economic criteria.

GDI:

(Gender Development Index) An index measuring gender disparities in human development achievements by comparing the HDI for women and men. It highlights inequalities in the way women and men experience development.

Rostow’s Stages of Growth:

A theory of economic development proposing that all countries progress through five stages:

• Stage 1: Traditional Society - A subsistence economy with little to no trade; emphasis on agriculture.

• Stage 2: Pre-Conditions for Take-Off - Initiation of industrialization with infrastructure development and investment in primary industries.

• Stage 3: Take-Off - Rapid industrial growth as the economy diversifies and investments in infrastructure significantly increase production.

• Stage 4: Drive to Maturity - Continued growth, diversification of the economy, expansion of secondary industries, and a shift towards consumer goods.

• Stage 5: Age of High Mass Consumption - Transition to a service-based economy with high levels of consumption and production of consumer goods.

Dependency Theory:

A perspective within development studies that argues that resources flow from periphery (less developed) countries to core (developed) countries, leading to a structured economic inequality. It emphasizes that economic dependency hinders development in LDCs, as they become reliant on wealthier nations.

Ecotourism:

A form of sustainable tourism that focuses on responsible travel to natural areas, conserving the environment, and improving the well-being of local people. It promotes the preservation of ecosystems and minimizes the impact of human activity on the environment.

Maquiladoras:

Factories located in Mexico that import materials and equipment into the country to manufacture products for export, primarily to the United States.

Wallerstein’s World Systems Theory:

A theory that categorizes countries into core, semi-periphery, and periphery nations based on their economic development, capital, and resource consumption.

Bulk-reducing manufacturing:

The process in which the final product weighs less or has a lower volume than the inputs, leading to factories being located closer to raw materials.

Bulk-gaining manufacturing:

The process where the final product weighs more or has a greater volume than the inputs, leading to factories being located closer to the market.

Fordism:

A system of mass production characterized by assembly lines, standardized products, and highly structured work environments, named after automotive pioneer Henry Ford.

Footloose industry:

A type of industry that is not tied to any particular location and can operate in a variety of places, often due to the low cost of shipping and transportation of materials and products.

Right-To-Work states:

U.S. states that have laws designed to make it illegal for union security agreements to require all workers to join a union or pay union dues as a condition of employment.