AP HUG Unit 7

Vocabulary flashcards covering key concepts in trade, the world economy, and development.

Complementarity (Trade)

When two regions, through trade, can specifically satisfy each other's demands.

Comparative Advantage

The ability of a company or country to produce a good or service at a lower cost.

Free Trade Agreement

A multinational agreement according to international laws to form a free trade across borders.

International Interdependency

A world economy where many situations are reliant on each other, including global financial crises and international lending agencies.

Least Cost Theory (Weber Triangle)

Industries want to find the sweet spot in location. Minimizing transportation and labor costs.

Agglomeration

Industries locating near other similar industries for mutual benefits.

Bulk, Break of Bulk

Relates to GDP and GNP, influencing locations based on transportation costs and tariffs.

Economy of Scale

A proportionate saving in costs gained by an increased level of production (the more you sell, the cheaper it costs to make).

Special Economic Zone

Places where business and trade laws differ from the rest of the country.

Sustainable Development

Addressing industrialization impacts, pollution costs, human health, and promoting sustainable methods through ecotourism and education.

Wallerstein's World Systems Model

Explains the global economy using three divisions: Core (dominant capitalist countries), Periphery (dependent on the core), and Semi-Periphery (mixture of both).

Gender Inequality Index (GII)

A composite measure reflecting inequalities in achievements between women and men in health, empowerment, and labor market participation.

Gross National Product (GNP)

A measure of a country's total economic output produced by its citizens and businesses.

Human Development Index (HDI)

Statistics used by the United Nations to measure a country's overall achievement in health, education, and income.

Microloans

Small, short-term loans to support small businesses, often targeted towards women in developing countries.

Break of Bulk Point

Location where goods are transferred from one mode of transport to another.

Industrial Revolution

A historical period of rapid industrial development marked by new technologies and mass production.

Gross Domestic Product (GDP)

Total monetary value of all goods and services produced within a country's borders in a specific time period.

Economic Sectors: Primary

Extracting and harvesting natural resources (e.g., farming, forestry).

Economic Sectors: Secondary

Transforming raw materials into finished goods (e.g., manufacturing, factories).

Economic Sectors: Tertiary

Providing services to businesses and consumers (e.g., retail, restaurants).

Economic Sectors: Quaternary

Intellectual pursuits, information technology, knowledge research, decision-making.

Economic Sectors: Quinary

Highest level of decision-making in a society.