AP Human Geo Unit 6 Terms

Primary sector

Industries that extract natural resources

Secondary sector

Industries that process raw materials into usable things

Tertiary sector

Provides services to business and consumers

Quaternary

Intellectual and information services

Quinary

Highest-level business, government, education, science management

Rostow’s Theory of Economic Development

That every country will eventually mature with wealth and mass consumption

Wallerstein's World Systems Theory

A theory proposing that the world is divided into core, semi-periphery, and periphery countries, which interact with each other in a global capitalist system. Core nations are the most economically developed, while periphery nations are often exploited for their resources.

International division of labor

Different countries and world regions play complementary roles in an interdependent global economy.

Dependency Theory

Core countries put peripheral countries in a dependent relationship, during imperialism and have kept them there after imperialism

Gross domestic product (GDP)

The total value of goods produced and services provided in a country during one year

Gross national income (GNI)

Measures the total value added by a country’s residents, both domestically and internationally, encompassing income earned from both domestic and foreign sources

GDP per capita

A measure of a country’s economic output per person, calculated by dividing the total GDP by the total population

Purchasing power parity (PPP)

An economic theory that states in the long run, exchange rates should adjust so that identical goods have the same price in different countries when expressed in different currencies.

Gini coefficient (and income distribution)

A statistical measure used to represent income inequality within a population, raying from 0 to 10 (0 is preferred equality and 1 is opposite)

Human development index

Measures the status of life in any given place based off life expectancy, education levels, and income per capita

Labor market participation

Indicates the portion of the population either employed or actively seeking work

Gender development index (GDI)

Compares men and women with education, life expectancy, and income per capita

Gender inequality index (GII)

Maternal mortality rate, adolescent fertility rate, percentage of parliamentary seals held by women, percentage of women with secondary education

Adolescent fertility rate

The number of births per 1,000 women aged 15-19 in a given year

Maternal mortality rate

A measure of the number of women who die from complications related to pregnancy/childbirths per 100,000 live births

Gender wage disparity (wage gap)

The difference in earnings between men and women, where women =m on average, are paid less than men

Globalization

The process by which business or other organizations begin operating on a global scale and develop global influence

Comparative advantage

A country’s ability to produce one product more efficiently than it can produce other products

Complementarity advantage

When two countries have a need for each other’s products

Economy of scale

Increased efficiency and cost savings that occur when the volume of production is increased

Agglomeration

Business or industries that cluster together in order to take advantage of geographic concentrations of resources, infrastructure, or skilled labor

Vertical integration

The combination in one company of two or more stages of production (like primary and secondary sectors)

Tariff

Tax on imported goods

Customs union

A free trade zone with an external tariff

World trade organization

Intergovernmental organization of 166 countries that creates and enforces rules for global trade (to keep it flowing smoothly and freely)

Foreign district investment

A purchase of stock in a company by an investor from outside the country’s borders

Fordism

Economic and social arrangement based on mass production of standardized goods with stable employment and high factory wages (supported by labor union membership)

Post-fordism

Shift to a more flexible type of manufacturing with dispersed productions sites, temporary and contract workers, and low union membership

Outsourcing (sometimes called offshoring)

When a business transfers part of its operations to another country

Special economic zones (SEZ’S)

Specific area within a country’s borders where business and trade laws are different from the rest of the country

(New) International division of labor

Shift of manufacturing from the core countries to the developing countries

Deindustrialization

The decline of the manufacturing (secondary) sector in the industrial centers of core countries

The American Rust Belt

The loss/aging of the whole area (manufacturing jobs)

Sustainable development

Development that meets current consumption needs without compromising the ability of future generations to eat their consumption needs

Ecotourism

Travel to natural areas of ecological value in support of conservation and economic development

Financial markets

Any place or system that provides buyers and sellers the means to trade financial instruments, including bonds, equities, the various international currencies, and derivatives.

Formal economy

All economic activities operations within the official legal framework that are paying taxes on all generated incomes

Labor-intensive industry

An industry for which labor costs comprise a high percentage of total expenses

Informal Economy

Economic activities that occur outside the formal legal framework, not monitored or regulated by the government, often including low-wage, unstable jobs without benefits

High-Tech Industry

Industries that involve advanced technology and innovation, focusing on research and development of electronics, biotechnology, aerospace, and other cutting-edge technologies