APHG Unit 7

Primary sector

Extracting natural resources such as farming and mining.

Tertiary sector

Services such as retail and banking.

Quinary sector

High-level decision-making roles like executives and government leaders.

Formal economy

An economy regulated by the government and taxed.

Gross Domestic Product (GDP)

Total value of goods and services produced within a country.

Purchasing Power Parity (PPP)

Adjusts income for cost of living.

Human Development Index (HDI)

Measures overall development using income, education, and life expectancy.

Wallerstein’s World-Systems Theory

Divides countries into core, semi-periphery, and periphery based on wealth and development.

Dependency theory

Periphery countries depend on core countries for development.

Agglomeration

The clustering of businesses for mutual benefits.

Weber’s Least Cost Theory

Industries locate to minimize transportation, labor, and agglomeration costs.

Bulk-reducing industry

Industries that locate near raw materials.

Just-in-time delivery

Minimizes inventory by receiving goods only as needed.

Free trade

No tariffs or restrictions between countries.

Special economic zones (SEZs)

Zones with economic incentives to attract business.

Sustainable development

Development that meets present needs without harming future generations.

Microloans

Small loans to help people in developing areas start businesses.

Fair trade

Ethical treatment of workers and fair prices for producers.