Unit 7-1: Industry and Economic Development - AP Outline

Break-Of-Bulk Point

- Location where cargo is transferred from one mode of transportation to another

Commodity Dependence

- Country’s economy is based primarily on the production and export of a commodity (more often not diversified)

- Commodities account for more than 60% value of a country’s total exports

Dependency Theory

- Periphery is poor because it was economically dependent on the core in a disadvantageous relationship originally established under colonialism and imperialism

- Core countries (MDCs) exploited the periphery countries (LDCs)

Ecotourism

- Tourism based in natural environments—often environments that are threatened by looming industrialization or development—that frequently helps to protect the environment in question while also providing jobs for the local population

- Form of tourism involving visiting fragile, pristine, and relatively undisturbed natural areas, intended as a low-impact and often small scale alternative to standard commercial mass tourism

- Travel to natural areas of ecological value in support of conservation efforts and socially just economic development

Fertility Rate

- Measure of the average number of children a woman gives birth to during her reproductive years (15-49)

- MDCs have lower; LDCs have higher

Formal Sector of the Economy

- Part of the economy that is officially recorded with the government

- Businesses, enterprises, and other economic activities that have government supervision, monitoring, and protection, and are also taxed

Gender Inequality Index (GII)

- Statistical measure of gender inequality that combines data on reproductive health, empowerment and labor-market participation

Gross Domestic Product (GDP) Per Capita

- Total value of the output of goods and services produced in a country over a specific time period, regardless of the producer’s national origin

- Divide GDP by total population to get per capita

Gross National Income (GNI) Per Capita

- Total income of a country’s residents and businesses, including investment income, regardless of where it was earned, as well as money received from abroad such as foreign investment and development aid

- Per capita GNI measures average wealth NOT distribution (rich v. poor)

Gross National Product (GNP) Per Capita

- Total value of goods produced and services made by a country’s residents and businesses in a specific period of time, regardless of the country or location in which they were made

Human Development Index (HDI)

- Statistical measure of human achievement that combines data on life expectancy at birth, education levels, and GNI per capita (PPP) population

- Indicator of level of development for each country combining three factors (economic, social, and demographic)

Income Distribution

- How a country’s total GDP is distributed among the individuals in its population

- Used to assess economic inequality within countries

Infant Mortality Rate

- Number of infant deaths per 1,000 live births

- Key demographic indicator used to assess social, economic, and other conditions

Informal Sector of the Economy

- Part of any economy that is not officially recorded, monitored, or taxed by the government

- Any part of a country's economy that is outside of government monitoring or regulation

Least Cost Theory

- Theory developed to try to describe the industrial location of certain industries in terms of minimization of three basic expenses:  relative transportation costs, labor costs, and agglomeration costs

Literacy Rate

- Percentage of adults in a given country or region who can read and write

Microloans

- Very small loan to people with little income or collateral intended to help them establish or expand a small business

- Women in developing countries are the “poorest of the poor” and policies needed to break the bonds of poverty

Primary Economic Sector

- Those that harvest or extract from the earth

- Hunting and gathering, grazing, agriculture, fishing, forestry, and mining and quarrying are examples

- Largest in periphery (low-income) pre-industrial nations

Quaternary Economic Sector

- Services rendered by “white collar” professionals working in education, government, management, information processing, and research

- College degree typical

- Largest in core countries (post-industrial)

Quinary Economic Sector

- Services in high-level decision making roles; management decisions

- CEO/CFO, owners, high government officials

- Largest in core countries (post-industrial)

Renewable Energy

- Energy derived from natural sources that are constantly replenished at a rate faster than they are consumed

- Sunlight, wind, water, geothermal, and biomass

Secondary Economic Sector

- Manufacturing/processing/refining of primary products into new products

- Largest in semi-periphery (industrializing) countries

Sectoral Structure of an Economy

- Economic sectors are part of the global economy where different types of work are undertaken

- Primary, secondary, tertiary, quaternary, quinary

Shipping Container

- Standardized, stackable, intermodal boxes used to transport goods by ship, railroad, or truck

- Loading/unloading done more efficiently 

- Dramatically lowered the cost of global shipping

Sustainable Development

- Development that meets present consumption needs without compromising the ability of future generations to meet their consumption needs

Tertiary Economic Sector

- Service industry – provides services (support) to the primary and secondary sectors

- Include financial, business, professional, clerical, personal services, wholesale and retail trade activities

- Largest in core countries (post-industrial)