AP HUG: Unit 7 Vocabulary

Primary sector

economic activities involving extraction of natural resources

Secondary sector

economic activities involving manufacturing and processing

Tertiary sector

service based economic activities

Quaternary sector

knowledge based economic activities such as research and information services

Quinary sector

highest level decision making services in government and business

Informal sector

economic activities not regulated or taxed by government

Formal sector

regulated and taxed economic activities

Bulk reducing industry

industry where raw materials lose weight during production

Bulk gaining industry

industry where finished products gain weight during production

Industrialization

process of economic transformation toward manufacturing

Break of bulk point

location where goods are transferred between transportation modes

Least cost theory

model explaining industrial location based on minimizing production costs

Industrial parks

planned areas zoned for manufacturing and industry

Agglomeration

clustering of firms to reduce costs and increase efficiency

Labor market participation

proportion of working age population engaged in the labor force

Dependency theory

theory that development in wealthy countries depends on exploitation of poorer ones

Dual economy

coexistence of modern industrial and traditional subsistence sectors

GDP

total value of goods and services produced within a country

GNI per capita

average income per person in a country

Microloans

small loans provided to support entrepreneurship

Ecotourism

tourism focused on environmental sustainability and conservation

Rostow’s Stages of Economic Growth

model describing development through five stages

Wallerstein’s World Systems Theory

model dividing world into core, semi periphery, and periphery regions

Human Development Index

composite measure of health, education, and income

Gender Development Index

measure comparing gender disparities in development

Gender Inequality Index

measure of gender based disadvantages

Special Economic Zones

designated areas with favorable economic regulations

Export Processing Zones

industrial areas focused on export production

Free Trade Zones

areas where goods are traded with reduced tariffs

International division of labor

global specialization of production tasks

Just in time delivery

inventory system minimizing storage costs by delivering goods as needed

Multiplier effects

economic ripple effects from investment or development

Post Fordism

flexible production system replacing mass production

Offshore outsourcing

relocation of business processes to another country

Comparative advantage

ability to produce goods at lower opportunity cost

Complementarity

mutual economic interdependence between regions

Growth poles

concentrated areas of economic development that stimulate surrounding regions

Neoliberalism

economic policy emphasizing free markets and reduced government intervention

Deindustrialization

decline of industrial activity in a region

Fordism

system of mass production using assembly lines

Outsourcing

contracting work to external firms

Offshoring

relocating production to another country

Infrastructure development

construction of basic systems supporting economic activity

Purchasing power parity

method comparing economic productivity and living standards

Income inequality

uneven distribution of income within a population

Structural adjustment programs

economic reforms required by international lenders

International Monetary Fund

organization providing financial stability and loans

World Bank

organization funding development projects in poorer countries