Unit 7 HGAP Vocab

Agglomeration

Businesses group together in the same area to share resources like skilled workers, suppliers, and infrastructure. Think Silicon Valley—tech companies benefit by being near each other.

Bulk-gaining industry

Final product is heavier than the raw materials (e.g., soda bottles—you start with syrup, add water and a bottle).

Bulk-reducing industry

Final product is lighter (e.g., copper mining—you remove the heavy rock and end up with purified copper).

Break of Bulk

Place where goods change transportation type—like unloading a ship to a truck.

Just-in-time delivery

Businesses get materials only when they need them, so they don’t need big warehouses (like car manufacturers getting parts the day before assembly).

Labor-intensive industry

Industries that rely more on human workers than machines (e.g., handmade clothing or agriculture in LDCs).

Economies of Scale

Making more of something usually makes each unit cheaper. Think Costco prices vs. a corner store.

Least Cost Theory

Companies choose locations based on minimizing costs for transport and labor.

Post-Fordism

Flexible, modern factories that make specialized products in smaller batches.

Fordism

Old-school mass production (like Henry Ford and the Model T).

Value Added Productivity

How much more valuable a product is after being processed (e.g., turning wheat into bread).

Vertical Integration

When a company controls the entire production line, from raw materials to store shelves (like Apple owning factories and stores).

Comparative Advantage

A country makes what it’s best at, and trades for the rest (e.g., bananas from Ecuador, tech from Japan).

Complementarity

When one country’s exports match what another country imports. They’re trade besties.

Commodity Dependence

When a country relies heavily on just a few raw exports (e.g., oil in Venezuela).

Outsourcing

Hiring another company (often overseas) to do part of the work for you (e.g., customer service in India).

International Division of Labor

Different countries do different parts of the production process—like Nike designing in the US, manufacturing in Vietnam.

Transnational Corporation (TNC)

Huge companies operating in many countries (e.g., McDonald's, Apple).

Foreign Direct Investment (FDI)

When a company in one country invests in another country’s economy.

Free Trade Zone:

No import/export taxes—companies like it because it’s cheaper.

Tariff:

A tax on imported goods.

Trade Embargo

A ban on trading with a specific country (like US sanctions on North Korea).

Trading Blocs

Countries that trade mostly with each other and limit outside trade (e.g., EU, USMCA).

World Trade Organization (WTO):

Helps countries make fair trade deals and solve disputes.

USMCA

Trade agreement between the US, Mexico, and Canada (formerly NAFTA).

Export Processing Zone (EPZ):

Areas in countries where factories can import raw materials, make stuff, and export it with low taxes (common in developing countries).

Special Economic Zone (SEZ)

Areas with different economic rules to attract business and investment.

GDP (Gross Domestic Product)

Total value of everything made in a country in a year.

GNI (Gross National Income)

GDP + money made abroad.

Per capita

Per person. GDP per capita = how rich the average person seems.

PPP (Purchasing Power Parity):

Adjusts money for how much it actually buys in a country (like $10 buys more in India than in the US).

HDI (Human Development Index):

Measures quality of life (life expectancy, education, income

Gender Inequality Index

Measures inequality between men and women (includes health, jobs, leadership).

Gender Empowerment Measure (GEM)

Focuses more on political and economic power for women.

Rostow’s Stages

5-step theory that all countries go through the same stages to become developed.

Dependency Theory

Poor countries are poor because rich ones exploited them during colonialism.

Wallerstein’s Theory

The world is split into core (rich), periphery (poor), and semi-periphery (in-between).

Core

Rich, industrial countries with strong economies.

Periphery

Poor countries focused on agriculture and resource extraction.

Semi-periphery

Countries in transition (e.g., Brazil, India).

Deindustrialization

Factories shut down in rich countries (like in Detroit).

Growth Poles:

Areas meant to attract tech and innovation (like Silicon Valley).

Government Initiatives

Programs or projects to grow the economy.

Primary Sector

Extracts resources from the natural environment (farming, fishing, mining).

Secondary Sector

Makes stuff (factories, manufacturing).

Tertiary Sector

Services (retail, transport, teachers).

Quaternary Sector

Info + knowledge (scientists, tech developers).

Quinary Sector

Top-level decision-makers (CEOs, politicians).

Fixed Costs

Costs that stay the same (e.g., rent).

Financial Market

Where people buy and sell stocks, currencies, etc.

Global Financial Crisis

2008 crash caused by bad loans, leading to a worldwide recession.

Microloans

Tiny loans to help people in poor areas start small businesses.

Renewable Energy

Energy that doesn’t run out (solar, wind).

Fossil Fuels

Energy from ancient organic material (coal, oil).

Ecotourism

Environmentally-friendly travel that supports conservation.

Labor Unions

Workers band together to demand better pay and conditions.

Right-to-Work Laws

You can’t be forced to join a union to get a job.

Maquiladoras

US factories built in Mexico to use cheaper labor.

Informal Economy

Jobs not tracked by the government (street vendors, babysitting).

Formal Economy

Official, tax-paying jobs.