Ap HG Unit 7

7.1: The Industrial Revolution

Industrialization

Definition - process of economic and social change that transforms a human group from a pre-industrial society into an industrial one.

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Natural Resources

Definition - resources that are drawn from nature and used with few modifications.

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Colonialism

Definition - refers to the policy or practice of a country seeking to extend or maintain its authority over other territories, often by establishing settlements and occupying the land.

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Imperialism

Definition - the policy of extending a country's power and influence through diplomacy or military force. This can involve the acquisition of colonies, the establishment of protectorates, or the use of military bases to project power

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7.2: Economic Sectors and Patterns

Primary

Definition - includes all those activities the end purpose of which consists in exploiting natural resources: agriculture, fishing, forestry, mining, deposits

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Secondary

Definition - sector covers all those activities consisting in varying degrees of processing of raw materials (manufacturing, construction industries).

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Tertiary

Definition - covers a wide range of activities from commerce to administration, transport, financial and real estate activities, business and personal services, education, health and social work

Quaternary

Definition - the industry based on human knowledge which involves technology, information, financial planning, research, and development.

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Quinary

Definition - the highest level of economic activity, which involves the decision-making and policy-making that drives the other sectors of the economy.

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Break-of-Bulk Point

Definition - a location where the transfer of goods from one mode of transportation to another takes place, such as from a ship to a truck or from a train to a warehouse. It is a point in the supply chain where the movement of goods

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Define

Least Cost Theory

Definition - attempts to describe and predict the location of manufacturing industries based on three factors: transportation costs, labor cost, and the benefit of agglomeration

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Core

Definition - The core refers to the highly industrialized, economically advanced countries that dominate the global economy.

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Define

Semi Periphery

Definition - a term used in the field of economic geography to describe a group of countries that are located between the core and the periphery

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Define

Periphery

Definition - refers to the less industrialized, less economically developed countries that are often dependent on the more economically advanced, industrialized countries

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Define

7.3: Measures of Development

Gross Domestic

Product (GDP)

Definition - the monetary value of ALL goods and services produced in a country in one year so it can be used to measure the TOTAL VOLUME of a country’s economy

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Define

Gross National

Product (GNP)

Definition - A measurement of a country’s wealth that includes the total value of all goods and services produced by residents of a country, including domestic and foreign production, in a year. Gross National Product

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Define

Gross National

Income (GNI) per

capita

Definition - The monetary value of GDP as well as the monetary value of EXPORTS minus IMPORTS in that same year which helps to account for the wealth of a nation that is lost through INTERNATIONAL trade.

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Sectoral

Structure of

Economy

Definition - The world economy can be separated into distinct categories. The easiest ways to group THESE are by their stage in the production process or through the types of services or products that they create.

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Income

Distribution

How income is divided among different groups or individuals.

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Fertility Rates

Definition - The number of children that are born to a woman during her lifetime.

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Infant Mortality Rates

The number of deaths of children under the age of one per 1,000 live births.

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Literacy Rates

Percentage of the population that is able to read and write.

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Gender Inequality

Index (GII)

Measures the extent of each country's gender equality

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Define

Human

Development

Index (HDI)

A composite measure of human development that takes into account a range of factors, including life expectancy, education, and income

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7.4: Women and Economic Development

Microloans

Small loans provided to individuals or small businesses can be a useful tool for promoting economic development and improving standards of living, particularly for women.

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Define

7.5: Theories of Development 

Rostowś Stages

of Economic

Growth

A model that analyzes the 5 steps that it takes to move from an agricultural society to a service-based economy. The main assumption in creating the model was that each country had some kind of comparative advantage.

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Wallerstein ́s

World Systems

Theory

A structural theory of economic development that explains how the global economy is divided into a core, a periphery, and a semi-periphery.

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Dependency Theory

Holds that LDCs are highly dependent on foreign factories and technologies from MDCs to provide employment and infrastructure. The LDCs in this theory get stuck in the continuous cycle of dependency on the MDCs which never ends. 

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Commodity Dependency

When peripheral economies rely too heavily on the export of raw materials, which places them on unequal terms of exchange with more-developed countries that export higher-value goods.

Define

International

Monetary Fund

(IMF)

An international organization that provides financial assistance to member countries in order to help them address balance of payment problems and stabilize their economies

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Microlending

Provision of small loans and other financial services to individuals and small businesses in developing countries.

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Define

7.7: Changes as a result of the World Economy

Outsourcing

Sending industrial processes out for external production.  Sending jobs from Core Countries to Periphery Countries.

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Special Economic

Zones

Designated areas within a country that have special economic regulations that are more favorable than the regulations that apply in the rest of the country.

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Free-Trade

Zones

Special zones in which all trade barriers between two countries are eliminated. They usually consist of labor intensive manufacturing plants, such as the maquiladoras.

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Export Processing

Zones

Specifically designed to promote export-oriented manufacturing. These  offer a range of incentives to firms that locate in the zones, including tax breaks, relaxed regulatory requirements, and access to infrastructure

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International

Division of Labor

Transfer of some types of jobs, especially those requiring low-paid, less-skilled workers, from more developed to less developed countries.

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Post-Fordist

Methods of

Production

A shift in the way goods are produced, characterized by a move away from mass production and towards more flexible, customized production methods. It relies on advanced technologies, such as automation and computers.

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Multiplier Effects

An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.

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Agglomeration

The clustering of economic activity in a particular area or region. This can occur for a variety of reasons, such as the availability of skilled labor, access to transportation and other infrastructure.

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Just-in-Time

Delivery

A production and logistics management system that aims to minimize inventory and reduce waste by delivering goods and materials to the production process when it is needed. The goal  is to reduce the amount of inventory

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High Technology

Industries

Companies that support the growth and development of sophisticated technologies. It is a very new industry that has rapidly transformed many cities and countries

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Economies of

Scale

The cost advantages that a firm can achieve by increasing its scale of production. As a firm increases its production, it may be able to reduce its  costs by taking advantage of various  things such as buying in bulk.

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Service Sectors

Industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, administration, insurance, and legal services.

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Growth Poles

The concentration of highly innovative and technically advanced industries that stimulate economic development in linked businesses and industries.

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Define

7.8: Industrial and Economic Development                                           Patterns and Processes

Sustainable

Development

A concept that refers to the use of natural resources in a way that meets the needs of the present without compromising the ability of future generations to meet their own needs

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Natural Resource

Depletion

Occurs when resources are taken from the environment quicker than they are replenished.

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Mass Consumption

A large number of people purchasing large quantities of goods

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Define

Ecotourism

A type of tourism that focuses on experiencing natural areas while minimizing the negative impact on the environment. It is based on the principles of conservation, education, and sustainability

Define

Industrialization

The process by which a greater proportion of a national economy is involved in the manufacturing of goods. This allows more goods to be produced in greater quantities and at a lower price.

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Define

Climate Change

Causing natural resource depletion through increased extreme weather events. These weather events include droughts, floods, and forest fires that deplete natural resources. 

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