Untitled Flashcards Set

• Tertiary sector – The part of the economy that provides services rather than goods (e.g., retail, transportation, entertainment).

• Quaternary sector – Industries focused on information processing, finance, administration, insurance, and legal services.

• Quinary sector – High-level decision-making and knowledge-based activities, such as scientific research and corporate executives.

• Service economy – An economy focused more on providing services (education, healthcare, finance) rather than manufacturing goods.

Economic Shifts & Deindustrialization

• Deindustrialization – The decline of manufacturing industries in a region, often due to outsourcing or automation.

• Rust Belt – A region in the northeastern and midwestern United States that suffered economic decline due to factory closures.

• Sun Belt – A region in the southern United States (e.g., Texas, Florida, Arizona) that has experienced economic growth in service industries.

• Multinational corporations (MNCs) – Large companies that operate in multiple countries (e.g., Walmart, Apple, McDonald's).

• Outsourcing – The practice of moving jobs to other countries where labor is cheaper.

• Postindustrial economy – An economy that has moved beyond industrial manufacturing and focuses on services and technology.

Geography of Economic Activity

• Agglomeration – When businesses in the same industry cluster together for mutual benefit (e.g., Silicon Valley for tech companies).

• High-technology corridor – A region designated for technology-based businesses, often with government incentives (e.g., Silicon Valley).

• Technopole – A hub of high-tech businesses and research institutions, such as the Route 128 Corridor near Boston.

• Back-office functions – Business operations like customer service and data processing that do not require a physical presence in major cities and are often outsourced.

• Infrastructure – The basic physical systems of a country, including transportation, telecommunications, and utilities.

Tourism & Globalization

• Tourism industry – The business sector focused on travel, accommodations, and entertainment for visitors.

• Economic spillover – When economic activity in one sector or area benefits others (e.g., tourists boosting local restaurants and hotels).

• Vulnerability in a service economy – The risk that service jobs can disappear due to automation, outsourcing, or economic downturns.

Economic Development Models

• Rostow’s Modernization Model – A five-stage model that suggests all countries move through the same path of development from agriculture to industrialization to a service economy.

• Wallerstein’s World-Systems Theory – A theory that divides the world into core, semi-periphery, and periphery countries based on economic power and dependency.

• Core countries – Wealthy nations with strong economies and advanced technology (e.g., U.S., Germany, Japan).

• Periphery countries – Less-developed nations that provide raw materials and labor to core countries (e.g., Chad, Bangladesh).

• Semi-periphery countries – Nations that have both industrial power and economic dependence (e.g., China, Brazil, Mexico).

• Dependency Theory – The idea that poorer countries remain underdeveloped because they are economically controlled by wealthier countries.

Economic Indicators & Measurement

• Gross National Income (GNI) – The total value of goods and services produced by a country's residents, including income from foreign investments.

• Gross Domestic Product (GDP) – The total value of goods and services produced within a country’s borders in a given year.

• Per capita GNI – A country’s GNI divided by its population, used to compare economic well-being across nations.

• Human Development Index (HDI) – A measure of a country's development based on education, life expectancy, and income.

• Informal economy – Economic activities that are not regulated by the government, such as street vending or unregistered labor.

• Dollarization – When a country adopts the U.S. dollar as its official currency instead of having its own national currency.

Barriers to Economic Growth

• Foreign debt crisis – When a country borrows more money than it can repay, leading to economic instability.

• Political instability – Government corruption, war, or weak leadership that slows economic development.

• Brain drain – The migration of highly educated or skilled workers from poorer countries to wealthier ones.

• Infrastructure gap – A lack of essential physical structures (roads, electricity, internet) needed for economic growth.

• Digital divide – The gap between regions with access to modern technology and those without.