AP Human Geography Unit 7 lesson 7.1-7.4

Rostow’s level of development

A model of economic development that describes a country’s progression, which occurs in five stages, transforming it from least-developed to most-developed countries.

Industry

The process of using machines and large-scale processes to convert raw materials into manufactured goods has stimulated social, political, demographic, and economic changes in societies at all scales.

Raw materials

The basic substances, such as minerals and crops needed to manufacture finished goods.

Market

A place where products are sold.

Cottage industries

A small home-based business that made goods.

Industrial revolution

Resulted in more complex machinery driven by water or steam power that could make products faster at a low cost than cottage industries.

Local-scale investors are choosing where to build a factory 3 MAIN FACTORS

Energy resources to provide power, such as rivers or coal deposits. Minerals or agricultural products needed for producing goods. Transportation routes, such as roads, rivers, canals, and ports.

Cities growing horizontally

Improvements in intra-urban transportation, such as trains, cars, and trucks, allowed cities to spread out farther from the downtown core.

Cities growing vertically

The development of elevators, stronger and more affordable steel, and techniques to construct stronger foundations combined to allow for people to construct taller buildings.

Imperialism

A policy or practice where a powerful nation extends it power and control over other lands and people.

Industrial Belt

A belt that stretched across the midlatitudes of the Northern Hemisphere.

Deindustrialize

A process of decreasing reliance on manufacturing jobs. As a result of improved technology, companies needed fewer employees to produce the same quantity of goods

Rust belts

Regions that have large numbers of closed factories.

Primary sector

A part of the economy that extracts and harvests natural resources directly from the earth to provide raw materials.

Secondary sector

The part of the economy that transforms raw materials from the primary sector into finished, usable goods or construction products.

Tertiary sector

The part of the economy that provides intangible services rather than making physical goods.

Quaternary sector

The knowledge-based part of the economy that focuses on intellectual activities, information generation, and technological innovation.

Quinary sector

The highest level of the economy that involves top decision- making, elite leadership, specialized policy creation.

Multiplier effect

The potential of a job to produce additional jobs.

Least cost theory

Explains the key decisions made by businesses about where to locate factories. Weber proposed that factory owners would locate their factories where they could minimize their total costs by balancing three factors.

Agglomeration economies

The spatial grouping of several businesses to share costs, such as an access road to a public highway or the development of a workforce with special skills.

Bulk and Industrial locations

Transportation costs were often closely related to the bulk (weight and size) of the objects being transported.

Bulk reducing industry

Weight-losing, raw material-oriented, or raw-material-dependent industry. They shrink products, then ship them at a low cost.

labor-oriented industry or labor-dependent industry

Highly dependent on a workforce and will want to be near a source of those workers.

Break of bulk

The procedure of transferring cargo from one mode of transportation to another.

Intermodal

They can be carried on a truck, train, ship, or plane.

Secondary factors

Used to narrow down the location to a more specific location, such as a particular metropolitan area.

Online Business

The development of high-speed internet service greatly increased online retail selling. Since some businesses don't rely on face-to-face interactions, they can be based anywhere.

Footloose

They can pack up and leave for a new location quickly and easily.

Prestige

To signal its prominence and wealth, a corporation might want to locate its main office for its top executives on the expensive upper floors of a skyscraper in a large city.

GDP Gross Domestic Product

The total monetary value of all final goods and services produced within a country's borders during a specific time period

NIC- Newly Industrialized Country

Representing a nation whose economy has transitioned away from agriculture and raw materials to a factory- and export-based manufacturing model.

GNI- Gross National Income

The total money earned by a country's people and businesses, no matter where in the world that money is made.

GNP- Gross National Products

The total market value of all final goods and services produced by a country's residents and businesses, regardless of their physical location.

Remittance

The profits from a foreign-owned company were leaving the country and going back to the home country.

Per capital

an amount per person

PPP purchasing power parity

A measure of what similar goods cost in different countries. For example, in 2016, the same collection of goods that cost $1,000 in the United States cost $590 in the Czech Republic and $1,620 in Switzerland

Formal sector

The portion of the economy that is monitored by the government, so people in it follow regulations and pay taxes.

Informal sector

The portion of the economy that is not monitored by the government. It includes several types of economic activities: Some activities are done without any pay, such as cleaning your own house or cooking meals for a friend who is sick.

mining), processed these materials into usable goods (manufacturing and

building), or provided services (teaching and medicine). The category of

providing services grew so large that economists divided it further, based on

the type of services provided.

Geographers have focused on why some sectors of work are dominant in

some regions and other sectors dominant in other regions. Why is any economic

activity where it is? As part of this, they use locational analysis to evaluate the

optimal location for a business to build a factory or other place of employment.

For example, at a global scale, they study why most people in Ethiopia work in

the extraction sector while most people in the United States work in the service

sector. At the local scale, they study why one city has more jobs in software

development than another.

Economic Sectors

Today, economists commonly divide a country's workforce into five sectors.

The three main sectors are primary, secondary, and tertiary, with quaternary

and quinary being additional sectors that were once part of the tertiary sector.

TRADITIONAL SECTORS OF THE U.S. ECONOMY

Sector and Focus Examples Economic Characteristics

Primary • Farming • Dominated the economy until the late 1800s

extracting natural • Mining • Includes many high-risk jobs

resources from the • Fishing • A small part of today's economy earth

• Forestry • Few high-paying jobs

• Most jobs require physical skill

Secondary • Manufacturing • Significant growth from the 1840s to the

making products • Building 1960s

from natural • Wages vary greatly

resources

Tertiary • Retail sales • A small part of the economy until the

providing • Medicine mid 1900s

information and • Housekeeping • Most people in the U.S. labor force today

services to people • Wages vary widely

452 HUMAN GEOGRAPHY: AP0 EDITION

ADDITIONAL SECTORS OF THE U.S. ECONOMY

Sector and Focus Examples Economic Characteristics

Quaternary . Financial • Small percentage of employees