Economic Sectors and Development Concepts

Primary Sector

Jobs that extract raw materials (e.g., farming, mining, fishing)

Secondary Sector

Jobs that process/manufacture goods (e.g., factory work, construction)

Tertiary Sector

Service-based jobs (e.g., retail, healthcare, education)

Quaternary Sector

Knowledge jobs (e.g., research, tech, data)

Quinary Sector

High-level decision-making jobs (e.g., CEOs, government leaders)

Industrial Revolution

A period of major industrial change starting in 18th-century Britain with new machines and factory systems

Industrialization

The growth of manufacturing using machines and factories

Cottage Industry

Goods made by hand at home before industrialization

Fordism

Mass production using assembly-line techniques and standardization

Post-Fordism

Flexible production with multiple tasks, often spread across countries

Deindustrialization

Decline of manufacturing in a region, often leading to economic restructuring

Footloose Industry

Industries that can locate anywhere, not tied to specific resources (e.g., software)

Technopole

A center of high-tech industries (e.g., Silicon Valley)

Agglomeration

When businesses cluster together to reduce costs

Agglomeration Economies

Economic benefits from businesses locating near each other

More Developed Country (MDC)

A wealthy, industrialized country with high standards of living

Less Developed Country (LDC)

A poorer country with limited industrialization

Newly Industrialized Country (NIC)

A country transitioning from agriculture to industry (e.g., Mexico, China)

Gross Domestic Product (GDP)

Total value of goods/services produced within a country

Gross National Income (GNI)

Total income earned by a country's people and businesses

Human Development Index (HDI)

Measures development using income, education, and life expectancy

Gender Inequality Index (GII)

Measures inequality between men and women in a country

Gini Coefficient

Measures income inequality (0 = equal, 1 = very unequal)

Formal Economy

Jobs that are taxed and regulated

Informal Economy

Jobs not taxed or regulated (e.g., street vendors)

Multiplier Effect

Economic growth that causes more growth (e.g., a factory creates nearby jobs)

Rostow's Stages of Economic Growth

5-stage model showing how countries develop over time

Wallerstein's World Systems Theory

Divides countries into core, semi-periphery, and periphery based on power and economy

Core

Wealthy, industrialized countries with global influence

Semi-Periphery

Countries with characteristics of both core and periphery

Periphery

Poorer countries that provide raw materials to the core

Globalization

Growing interconnectedness through trade, culture, and tech

Comparative Advantage

Ability to produce a good more efficiently than others

Complementarity

When two areas each have something the other needs for trade

Outsourcing

Contracting work to another country or company to reduce costs

Offshoring

Moving company operations to another country for cheaper labor

Free Trade Zones (FTZs)

Areas with fewer trade rules to attract business

Export Processing Zones (EPZs)

Industrial zones in developing countries with special rules for export businesses

Maquiladora

A factory in Mexico near the U.S. border that assembles goods for export

Remittances

Money sent back home by people working abroad

Weber's Least Cost Theory

Industries locate where they can minimize transport, labor, and agglomeration costs

Bulk-Gaining Industry

Final product is heavier than inputs; located near market (e.g., soda)

Bulk-Reducing Industry

Inputs are heavier than product; located near resources (e.g., copper)

Just-in-Time Production

Receiving goods only as needed to reduce inventory/storage costs

Sustainable Development

Growth that meets current needs without harming the future

Microloans

Small loans to help people (especially women) in poor areas start businesses

Ecotourism

Tourism that preserves nature and supports local communities

Structural Adjustment Programs (SAPs)

Economic policies required for loans that often reduce public services

Anthropocene

Proposed era marked by major human impact on Earth's systems