Industry and Development Study Guide APHG

Flashcards covering key vocabulary and concepts related to industry and economic development.

Site Factors

Physical features that relate to cost of production and transport.

Situation Factors

Features of the surrounding area that are related to cost of production and transport.

Basic Industry

The main focus of a region’s economy, such as cars in Detroit or film in LA.

Non Basic Industry

Businesses that support the work of the basic industry.

Multiplier Effect

How basic and non-basic industries operate to grow the economy.

Fixed Costs

Costs that do not fluctuate, such as rent.

Variable Costs

Costs that fluctuate, such as energy bills.

Agglomeration

Clustering of similar businesses that can provide assistance and efficient labor management.

Deglomeration

Market becomes too saturated with similar businesses.

Weber’s Least Cost Theory

Location of factory depends on raw materials cost, labor cost, and transportation cost.

Weight Gaining Industry

An industry where the finished good weighs more than the raw materials, located closer to the market.

Weight Reducing Industry

An industry where the raw materials weigh more than the finished good, located closer to the materials.

Outsourcing

The practice of having manufacturing jobs move from richer countries to poorer ones.

Footloose Industries

Industries that do not have a strong preference for location.

Gross Domestic Product (GDP)

A measure of a country's economic activity.

Human Development Index (HDI)

A composite statistic of life expectancy, education, and per capita income indicators.

Economic Sectors

Categories of economic activity: Primary, Secondary, Tertiary, Quaternary, Quinary.

Immanuel Wallerstein’s World Systems Theory

A theory that categorizes countries into Core, Semi-Periphery, and Periphery.

Walt Rostow’s Model

A theory proposing that societies progress through five stages of development.

OPEC

Organization of Petroleum Exporting Countries; a cartel aiming to control oil supply and prices.

Globalization

The rapid changes due to technology in the interconnectedness of the global community.

Supranationalism

Political institutes formed from multiple nations working together for common goals.