Unit 7 - APHUG Concepts

Industrialization

The process by which economies transform from primarily agrarian societies to ones based on the manufacturing of goods and services.

Primary Sector

Involves the extraction and harvesting of natural resources. This includes activities such as agriculture, mining, forestry, and fishing, which are essential for providing raw materials for other sectors of the economy.

Tertiary Sector

The segment of the economy that provides services rather than goods. This includes a wide range of activities such as retail, healthcare, finance, education, and entertainment.

Quaternary Sector

Involve knowledge-based activities that focus on the management and processing of information, education, research and development, financial services, and consulting. These jobs are crucial in driving innovation and efficiency in an economy, reflecting the increasing importance of intellectual capabilities over physical labor.

Quinary Sector

The segment of the economy that involves high-level decision making and specialized services, typically in areas such as education, healthcare, research, and government. This sector is focused on knowledge-based activities that require advanced skills and expertise, which distinguishes it from primary, secondary, and tertiary sectors.

Break of Bulk Point

A location where goods are transferred from one mode of transportation to another.

Least-Cost Theory

An economic principle that explains the optimal location of manufacturing industries based on minimizing transportation, labor, and agglomeration costs.

Markets

A market is a place or system where buyers and sellers interact to exchange goods and services.

Core

Refers to regions or countries that dominate trade, control the most advanced technologies, and have the highest levels of productivity and wealth.

Periphery

Refers to regions that are often economically and politically disadvantaged compared to more developed areas, known as the core. These areas typically experience lower levels of industrialization, income, and access to resources.

Semi-Periphery

Refers to countries that are not as economically developed as core nations but are more developed than peripheral nations.

Gross Domestic Product

The total monetary value of all goods and services produced within a country's borders in a specific time period, typically measured annually.

Gross National Income

The total income earned by a nation's residents and businesses, including any income earned abroad, over a specific period, usually a year.

Gender Inequality Index

A composite measure that reflects inequalities in gender-based outcomes across three key dimensions: reproductive health, empowerment, and labor market participation.

Human Development Index

A composite statistic used to measure and rank countries based on their levels of human development.

Microloans

Small, short-term loans typically ranging from $100 to $25,000, aimed at entrepreneurs and small business owners, particularly in developing countries. These loans provide financial support to individuals who may not qualify for traditional bank loans due to lack of credit history or collateral.

Just-in-Time Delivery

A supply chain management strategy that aims to reduce inventory costs by receiving goods only as they are needed in the production process.

Ecotourism

A sustainable travel approach that focuses on responsible visits to natural areas, conserving the environment, and improving the well-being of local communities.

UN Sustainable Development Goals

A collection of 17 interconnected goals designed to address global challenges like poverty, inequality, and climate change.

Agglomeration

Refers to the clustering of people, businesses, and activities in a particular area, creating a concentration that often leads to increased efficiency and collaboration.

Multiplier Effects

The phenomenon where an initial change in spending leads to a larger overall increase in economic activity. When government spending or investment increases, it stimulates demand for goods and services, which encourages businesses to produce more and hire additional workers.

Fordist

The system of mass production and consumption that emerged in the early 20th century, characterized by assembly line manufacturing, standardized products, and a focus on high wages for workers.

Post-Fordist

Refers to the economic and production model that emerged after the Fordist model, which emphasized mass production and standardized goods. This new approach is characterized by more flexible production methods, customization of products, and a focus on service-oriented economies, reflecting changes in global economic practices and labor dynamics.

Special Economic Zones

Designated areas within a country that operate under different economic regulations than the rest of the country, aiming to attract foreign investment and stimulate economic growth.

Export Processing Zones

Designated areas within a country that offer favorable conditions for foreign and domestic companies to manufacture and export goods.

Manufacturing Zones

Areas where industrial production is concentrated, often driven by specific factors like access to resources, labor costs, and proximity to markets.

Outsourcing

The practice of delegating specific tasks or services to external companies or individuals, often in different countries, to reduce costs and improve efficiency.

Tariffs

Taxes imposed by a government on imported goods, which raise the price of these goods in order to protect domestic industries and generate revenue.

Free Trade

An economic policy that allows goods and services to be traded across borders with little to no government interference, such as tariffs or quotas.

Commodity Dependence

Occurs when over 60% of a country's exports are commodities. A lack of economic diversity is due to the fact that most tax revenue comes from on the extraction and trade of raw materials.

Dependency Theory

An economic and social theory that suggests that the development of some countries is contingent upon the exploitation and underdevelopment of others, particularly in the context of a global capitalist economy.

Wallerstein's World System Theory

A socio-economic framework that categorizes countries into core, semi-periphery, and periphery based on their economic activities and global power dynamics.

Rostow's Stages of Economic Growth

A model proposed by economist Walt Rostow in the 1960s that outlines five stages through which all countries progress as they develop economically.

Secondary Sector

The part of the economy that transforms raw materials into finished goods through manufacturing and industrial processes. This sector plays a crucial role in economic development by adding value to primary resources and providing employment opportunities, while also influencing trade patterns and global economic interactions.

Gross National Product

A measure of the total economic output of a country, including the value of all goods and services produced by its citizens both within and outside the country's borders. It is a comprehensive metric that captures a nation's economic activity and well-being.