APHG Unit 7 Vocabulary 1.0

Primary

(Primary Economic Activities)

Activities that EXTRACT raw materials from the Earth.

What are examples of Primary Economic Activities?

Mining, fishing, agriculture, and forestry.

Secondary

(Secondary Economic Activities)

Activities that PROCESS raw material (Manufacturing & Industry).

What are some examples of Secondary Economic Activities?

Factories and Manufacturing

Tertiary

(Tertiary Economic Activities)

Service sector that focuses on moving, selling, and trading products in primary and secondary sectors.

What are some examples of Tertiary Economic Activities?

Retail, marketing, design, restaurants, shipping and services.

Quaternary

(Quaternary Economic Activities)

Activities that involve processing INFORMATION.

What are some examples of Quaternary Economic Activities?

Investment banking, real estate, college professors, education, and software developers.

Quinary

(Quinary Economic Activities)

Highest levels of decision making, includes top officials in government and business.

What are some examples of Quinary Economic Activities?

Congress, CEOs, decisions that impact millions.

Who came up with the idea of Least Cost Theory?

Alfred Weber

Least Cost Theory

Predicts where owners would locate manufacturing industries based on three factors: Transport cost. Labor cost, and Agglomeration.

Why does Least Cost Theory depend on Transport cost, Labor cost, and Agglomeration?

Transport cost and labor cost must be low (to save profit). Agglomeration is the clustering of different economic activities and industries in a specific geographical area.

Core

Countries that have the most advanced economies and traditionally have a high standard of living. Have more jobs in the Tertiary, Quinary, and Quaternary sectors.

What are some examples of Core Countires?

USA, Canada, and any European countries.

Semi-periphery

Counties that are seeing their standards of living increase. Most jobs are in the secondary sector and a few in the tertiary.

What are some examples of Semi-periphery continues.

Mexico, Brazil, China, and India.

Periphery

Countries that have a low standard of living. Most of the products being produced are exported to more developed countries. Majority of the jobs are in the primary sector, a few in the secondary sector.

What are some examples of Periphery Countries?

Africa and Asia

Gross Domestic Product (GDP)

Total value of officially recorded goods and services by the citizens and corporations within a country's borders in a given year. (goods + services = GDP)

Gross National Product (GNP)

Production

Total value of goods and services by the citizens and corporations of a country as well as foreign investment in a given year. (Domestic + international goods + services = GNP)

Gross national income per capital (GNI)

Most accurate measure of wealth, because it accounts for the impacts of trade. GDP + (exports-imports) = GNI

Formal economy

Regulated and/or taxed by the government. Included in GDP & GNI. Typical professions.

Informal economy

Mostly illegal products that are sold and/or NOT regulated by the government. Drugs, black market goods, babysitting, "under the table" work like landscaping or house cleaning.

Which type of economy is more common in a developed country?

A country with a larger formal economy is one that is generally MORE developed.

Income distribution

Gini Coefficient: Measures the distribution of income within a population. Values between 0-1; The higher the #, the higher the income inequality.

Generally, MDC have LOWER Ginis and LDCs have HIGHER Ginis.

Gender inequality

Disparities in rights resources and opportunities between men and women.

Gender Inequality Index (GII)

This index covers three dimensions: reproductive health empowerment, and economic status. Scours are between 0-1 and the high the value the higher the inequality.

Empowerment measures

Education attainment (secondary level and above) and Parliamentary representation.

Labor-market participation

The proportion of the population with an area either employed or seeking it.

Human development Index (HDI)

The Human Development Index (HDI) is a summary measure of three dimensions of human development: a long healthy life, a good education, and having a decent standard of living.

Microlending

The practice of providing small loans and other financial services to individuals and small businesses in developing countries who are excluded from traditional banking systems. Focuses on empowering women.

Rostow's Stages of Economic Growth

Development follows 5 stages, from traditional society to mass consumption. All countries can progress with investment and industrialization.

What is the order of Rostow's Stages of Economic Growth?

Traditional Society, Preconditions for Take-off, Take-off, Drive to Maturity, and High mass consumption.

Wallerstein's World Systems Theory (aka Core-Periphery Model)

Global inequality explained through a three-tier system.

What are the three components in Wallerstein's World Systems Theory (from greatest to least)?

Core, Semi-Periphery, and Periphery

What do core countries do to Periphery countries?

They exploit them for resources and labor, it is cheaper in periphery countries most of the time.

Dependency Theory

Many developing countries remain poor because colonial trade patterns lock them into exporting raw materials and importing finished goods.

Commodity dependence

Countries reliant on one or a few commodities face instability when prices raise and fall. Reliance limits diversification and long term growth.

Sustainable development

The practice of using natural resources in a way that meets present needs without compromising the ability of future generations to meet their own

Mass consumption

The widespread purchasing and consumption of a large volume of goods and services by the general population.

Climate Change

Long-term alteration of temperature and weather patterns.

Ecotourism

A form of responsible travel to natural areas that conserves the environment and improves the well-being of local people, while promoting environmental education and cultural understanding.

Sustainable Development Goals

A set of 17 interconnected global goals adopted by the United Nations in 2015 to achieve a more sustainable future by 2030, encompassing environmental, social, and economic dimensions.