unit 7 ap human geography

weber’s least cost theory model

• agglomeration - clustering of different activities in an area to benefit themselves

• minimizing transportation costs

• minimizing labor costs (cost of production)

explains key decisions made by businesses

bulk reducing goods

• good that as production happens, gets lighter and easier to transport

• closer to resources

bulk gaining goods

• as production happens, gets harder to transport because of the increasing weight

• closer to market

core countries

• most advanced economies

• highest standard of living

semi-periphery countries

• emerging economies'

• still industrializing

periphery countries

• rely on exports of raw goods to more economically developed countries

multinational corporation

• exploiting or benefitting from an economic labor force

• business in at least one other country than its home country

• ex. google, apple

formal economy

• recognized by law

• ex. teachers, doctors, police

informal activities

• not regulated or protected by the government

• ex. unregistered small business, street vendors

• squatter settlements have more of this due to less govt support

gross domestic product GDP

• total value of all goods and services produced within a country’s borders

• economy growth inside boundaries

gross national product Gnp

• total economic output produced by a country’s residents and businesses

• includes citizens in a different country

gross national income GNI

• total income generated by a country’s rewidents and businesses

• both domestically and abroad

gender inequality index GII

• measures gender-based inequalities in health, education, and economic participation

• higher values indicate higher inequalities, the lower the less inequality

human development index HDI

• used to measure economic and social development of a country'

• determined using life expectancy, expected years of schooling, and gross national income per capita GNI

• higher value, more developed

• lower value, less developed

more developed countries, use more ____ ____

fossil fuels

microloans

• goes to people who are excluded from economic society, especially in LDCs

• goal is to help them and society financially

gender parity

economic development generally increases the amount of gender equality in a society

traditional society

• early stages of DTM

• primary sector: focused on agriculture, raw resources, extraction

preconditions for takeoff

• more investment in infrastructure and education

• economy shifts since foreign states start to become more interested, influenced by low wage labor

• diffuses tech more widely

• still a lot of primary, but more secondary

take off

• rapid economic growth

• big boost in economy

• jobs move out of agricultural/primary, and transitions to more industrial socities (secondary)

• more job opportunities and urbanization

• initiates self-sustaining growht

drive to maturity

• more specialization

• involvement in global trade

• shifting to tertiary sector

• sees more economic growth than population growth

high mass consumption

• sees more quinary and quaternary

• more tertiary jobs

• manufacturing happens in other states

• high mass consumption, spends money on nonessential goods

rostows stages of economic growth criticisms

• doesnt factor in colonialism

• assumes everybody will reach the highest level

wallerstein’s world system theory

interdependency

• core countries benefit more from global trade by taking advantage of raw materials

• shows impact of colonization

• highlights how infrastructure in colonized states was set up for the core/colonizing states

criticisms:

• doesn’t take in microloans, microfinancing, that helps LDCs grow econimcally

dependency theory

• suggests that semi periphery and periphery are dependent on their economic growth with core countries

• core countries are more economically advanced that reap more benefits off global trade

• still benefit to LDCs, but MDCs get more of the benefit

commodity dependence

over 60% of exports are made off of a certain commodity/good

• big issue for the country, leads to economic struggle

• demonstrates how a diversified portfolio is better

globalization

the process by which countries, economies, cultures, businesses, and people become interconnected and dependent on each other

neo liberal policy

• focus is to try and get freedom from the government, free markets, and free trade

• tries to reduce government regulation and promote free market

• ex. European Union

free trade

• reduces amount of restrictions and barriers

• stimulates economic growth

tariff

• opposite of free trade

• happens because a state is afraid they will lose domestic jobs

• tax or duty imposed by a government on goods and services that come inside a country

trade facilitates _______ _____

economic growth

comparative advantage

an economic concept

• when a country, individual, or organization produces a good or service at a lower cost than another country, individual, or organization

• focuses on specialization, a country will do what they are best at, produce those products, and the ones you aren’t best at, trade with a country that is

economic restructuring

significant shift in production, employment, investment, trade patterns, or underlying ecoomic systems

• primary and secondary jobs are put in the hands of semiperiphery and periphery countries, while core focuses on tertiary

offshoring

• process of relocating a busines, process, or service to a foreign country

outsourcing

• when a business contracts to a service, job, or an external provider

• reduces their costs and increase their efficiency

free trade zone

export processing zone

international divison of labor

• focusing on how countries use comparative advantage to specializw in diff economic activities, resources, and capabilities

multiplier effect

• when an original investment by an individual, business, government, or organization leads to a chain reaction of spending and inceased economic activity

fordism

• a system of production that emphasizes mass production of standard goods

post-fordism

a system of production that emphasizes more flexible production methods where workers are trained in multiple tasks

economies of scale

as a company grows, reduction of the cost to produce a product

just-ion-time delivery

• materials are delivered to the manufacturing plant precisely when they are needed

growth poles

specific regions, cities, or areas that are considered centers of economic growth and devlopment

• a result of agglomeration

deindustrialization

reduction of primary and secondary sector

UN sustainable development goals 2016-2030

• leads to higher standard of living

degradation

decline in quality

ecotourism

focuses on responsible travel to natural areas that conserve the environemtn