Untitled Flashcards Set

Unit 7 quiz 

Measures of Development

  • Economic measures of development:

    • Gross National Product (GNP): The total value of all the goods and services made by a country’s residents and businesses in a specific time period, regardless of the country or location in which they were made

    • Gross National Income (GNI): The total income of a country’s residents and businesses, including investment income, regardless of where it was earned, as well as money received from abroad such as foreign investment and development aid

    • Gross Domestic Product (GDP): The total value of all goods and services produced within a country over a specific period, regardless of the producer’s national origin

    • GDP per capita

      • Countries total GDP/population

  • Social measures of development:

    • Gender Inequality Index (GII): A statistical measure of gender inequality that combines data on reproductive health(MMR(Maternal mortality rate) - the number of mothers who die in childbirth for every thousand births, AFR(Adolescent fertility rate)-number of births per 1000 women ages 15-19), empowerment(Number of women that hold gov. Positions, and number of women who gain higher education), and labor-market participation(womens participation in the workforce).

    • Human Development Index (HDI): A statistical measure of human achievement that combines data on life expectancy at birth, education levels(expected years of schooling), and GNI per capita (PPP) population

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  • Commodity Dependence

    • Occurs when commodities account for more than 60% of the value of a country’s total exports

    • Linked to underdevelopment due to

      1. Unstable commodity prices on the global markets

      2. Commodity prevents other sectors of economy from developing

  • Least Cost theory 

    • If there is a bulk-reducing industry - input (raw materials) heavier than final product, needs to be near the source of the inputs

    • Bulk-gaining industry - final product weighs more than inputs, need to be located near the market

    • Determiner: Transportation Cost

    • Labor costs: Cheaper labor can sometimes offset high transportation costs.

    • Agglomeration: Benefits of industries clustering together to share resources and services.


  • World-Systems Theory

    • Proposed by a guy called Wallerstien

    • Division of the global economy into three sectors:

      1. Core

      2. Periphery

      3. Semi-Periphery

    • Core economies, dominant developed countries controlling global trade, exploit weaker nations for resources. Examples include the US, Germany, and Japan.

    • Periphery economies, less developed with weaker economies, depend on core countries for stability. They export raw materials and rely on agriculture/cheap labor costs. Examples include African, Latin American, and Asian countries.

    • Semiperiphery economies, between core and periphery, have more developed industries but are less dominant. Examples include China, Brazil, and India.

  • Modernization Theory (please someone put something here)

    • Thanks for pointing that out! Let’s go through each stage of Rostow’s Modernization Theory with more complete explanations, examples, and specific characteristics. This should provide a thorough understanding for each stage.

1. Traditional Society

  • - Characteristics:

  •   - The economy is subsistence-based, focused mainly on agriculture and basic tools. Most people work in farming, with few resources invested in other sectors.

  •   - Limited technological advancement and minimal productivity.

  •   - Societal values often prioritize traditions, with little drive or ability to pursue innovation.

  • - Focus: Society focuses on sustaining itself rather than economic growth. Wealth accumulation is low, and most goods produced are consumed by the producers themselves rather than traded.

  • - Example: Early medieval Europe or some remote, rural communities today, where agriculture and low productivity define the economy.

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  •  2. Preconditions for Take-Off

  • - Characteristics:

  •   - Introduction of more productive agriculture, basic infrastructure, and investment in education.

  •   - Increasing influence from outside sources, like trade, exploration, or foreign investments, which spark new ideas and economic opportunities.

  •   - The emergence of a central government and financial institutions that support economic expansion.

  • - Focus: Societies begin building infrastructure (e.g., transportation networks, communications), and a growing portion of the economy shifts toward commercial activities beyond subsistence.

  • - Example: The 18th-century American colonies, which were influenced by European trade and investment, or 19th-century Meiji-era Japan, which adopted Western industrial practices.

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  •  3. Take-Off

  • - Characteristics:

  •   - Rapid economic growth and industrialization as economies invest in new technologies and industries.

  •   - Growth in manufacturing and secondary industries like textiles and metallurgy.

  •   - Urbanization as people move to cities for industrial work, leading to shifts in social structure.

  •   - Political and institutional changes that support economic expansion, such as property laws and incentives for businesses.

  • - Focus: The focus shifts from agriculture to industry. New manufacturing sectors become the backbone of the economy, and businesses reinvest profits into expansion.

  • - Example: Britain during the early Industrial Revolution, or South Korea in the 1960s and 1970s, when it rapidly industrialized and moved away from an agrarian economy.

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  •  4. Drive to Maturity

  • - Characteristics:

  •   - Economic diversification: industries expand beyond initial focus areas (such as textiles) into more complex manufacturing (e.g., electronics, automobiles).

  •   - Significant advancements in technology and productivity that raise standards of living.

  •   - Society invests heavily in infrastructure, education, and public welfare, improving healthcare, transportation, and education.

  •   - Growing international trade as countries produce and export a variety of goods.

  • - Focus: Moving toward a mature, diversified economy, where higher-value products and advanced industries flourish. There is a strong emphasis on quality of life improvements.

  • - Example: The U.S. in the late 19th century, when it expanded railroads, established public education, and developed multiple industries, or Japan in the 1980s, diversifying into electronics, automobiles, and high-tech sectors.

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  •  5. Age of High Mass Consumption

  • - Characteristics:

  •   - Shift from industrial manufacturing to services (tertiary sector), with an emphasis on consumer goods like automobiles, electronics, and luxury products.

  •   - A high standard of living with widespread access to education, healthcare, and consumer goods.

  •   - Wealth distribution supports a large middle class, and social welfare programs are common.

  •   - The economy is dominated by the service sector, and society places a high value on consumerism.

  • - Focus: Driven by consumer demand, economies focus on producing a variety of goods and services for domestic and international markets. Social progress and economic well-being are priorities.

  • - Example: The U.S. after World War II, with a shift toward consumer goods and services, or Western Europe in the late 20th century, where high-quality services and a consumer-driven economy became the norm.

  • Criticisms of Rostow’s Theory

  • 1. Linear Progression Assumption: Assumes all countries follow the same path to development, which doesn’t account for cultural, historical, or political differences.

  • 2. Western-Centric Model: Rostow’s theory is based on Western industrialization experiences and may not apply universally, especially to countries with different resources, histories, or geographical challenges.

  • 3. Overlooks External Factors: Ignores the impact of colonialism, international trade disparities, and global economic inequalities that may prevent or delay countries from progressing through the stages.

  • 4. Economic Over-Simplification: Focuses heavily on industrial and economic growth, often overlooking social and environmental impacts of development.

  • Sectors of the economy

    • Primary:

      • Raw materials and physical labor 

      • Mining for coal

      • farming 

      • Human labor

    • Secondary 

      • Manufacturing 

      • Industrial 

    • Tertiary 

      • Services (most of the US economy is serviced based)

      • office work

      • Cashier 

      • Amazon Spotify YouTube etc

      • Banking 

    • Quaternary 

      • knowledge-based activities.

      • information technology, education, research and development, consulting

      • intellectual services and intangible goods

    • Quinary

      • highest levels of decision-making in a society or economy.

      • top executives or officials in government, science, universities, healthcare, non-profit organizations, culture, and the media

  • Women and development

    • Women work more in primary, secondary and tertiary economies and are found less in quaternary and quinary,

70% or more of women are employed in agriculture

  • Lots in africa and pakistan around those areas

Lowest percent of women participate in the labor force in the middle east area

  • No social mobility for them

  • Different culture too

Absolutely, Logan! Let’s break down each of these key terms in the context of AP Human Geography and explore their significance.


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 1. Informal vs. Formal Sectors of the Economy


- Formal Sector:

  - The formal economy includes all economic activities that are officially recognized, regulated by the government, and taxed. Jobs in this sector typically provide benefits and are protected by labor laws.

  - Examples: Corporate jobs, government positions, education, healthcare, etc.

  - Characteristics: Includes stable jobs with regular salaries, social security, and legal protections.

  - Countries: More common in developed countries (MDCs).


- Informal Sector:

  - The informal economy involves economic activities that are not taxed or regulated by the government. These are often small-scale, unregistered, and sometimes temporary jobs.

  - Examples: Street vendors, domestic work, and unregulated small businesses.

  - Characteristics: Typically lacks job security, worker protections, and consistent pay.

  - Countries: More prevalent in developing countries (LDCs) where unemployment is high and workers cannot access formal employment opportunities.


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 2. Break-of-Bulk Point


- A break-of-bulk point is a location where goods are transferred from one mode of transportation to another. This often happens at ports or transportation hubs.

  - Example: A port where goods are unloaded from ships and then transferred to trucks or trains for further distribution inland.

  - Significance: These points are critical for global trade because they facilitate the movement of goods from sea to land, and vice versa. Major examples include Singapore and Rotterdam (in the Netherlands), which are key break-of-bulk points for European trade.


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 3. Neoliberalism


- Neoliberalism is an economic philosophy that advocates for free markets, minimal government intervention, and privatization of state-owned enterprises. It promotes deregulation and emphasizes the importance of individual freedoms in economic activities.

  - Key principles:

    - Privatization: Selling off state-owned industries to private companies.

    - Deregulation: Reducing government controls on business practices.

    - Free trade: Opening up markets globally and removing tariffs and trade barriers.

  - Example: The 1980s Reagan administration in the U.S. embraced neoliberal policies by reducing taxes, cutting government programs, and encouraging private enterprise. Another example is China’s market reforms under Deng Xiaoping that led to rapid industrialization.


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 4. Comparative Advantage


- Comparative advantage is an economic principle that explains how countries or regions can gain by specializing in producing goods or services that they can produce most efficiently, and trading for other goods they cannot produce as efficiently.

  - Example: If Brazil can produce coffee more efficiently than it can produce electronics, and Japan can produce electronics more efficiently than coffee, both countries can benefit by trading coffee for electronics. 

  - Significance: This concept helps explain the patterns of international trade and why countries trade goods even if they don’t have an absolute advantage in producing those goods.


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 5. Deindustrialization


- Deindustrialization refers to the process by which industrial activity in a region or country declines, often due to a shift toward service-oriented industries or the relocation of factories to places with lower labor costs.

  - Example: The Rust Belt in the U.S. (e.g., Detroit) experienced deindustrialization as manufacturing jobs moved overseas to countries like China and Mexico. As a result, these areas saw economic decline and urban decay.

  - Significance: Deindustrialization can lead to unemployment, economic restructuring, and social challenges, particularly in cities that relied heavily on manufacturing industries.


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 6. Outsourcing


- Outsourcing is when companies hire external firms or workers (often in other countries) to perform tasks or produce goods that would traditionally be done in-house.

  - Example: Nike outsources the production of shoes to factories in Vietnam and Indonesia, where labor is cheaper.

  - Significance: Outsourcing helps companies reduce costs and increase profits but often results in job losses in the original country and raises concerns about working conditions in outsourced countries.


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 7. Special Economic Zones (SEZs)


- Special Economic Zones (SEZs) are specific areas within a country where business and trade laws are different from the rest of the country, often with the goal of attracting foreign investment and fostering economic growth.

  - Example: Shenzhen, China, is an SEZ that transformed from a small fishing village into a major economic hub because of relaxed tax rates, tariffs, and regulations designed to encourage foreign investment.

  - Significance: SEZs are used by countries to promote industrial growth, attract multinational corporations, and boost exports, often resulting in rapid economic development in these regions.


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 8. Free Trade Zones


- A Free Trade Zone (FTZ) is a designated area where goods can be imported, processed, and exported without being subject to customs duties or tariffs.

  - Example: The Panama Canal Zone is an example of a Free Trade Zone, where goods can be imported and exported without incurring tariffs, facilitating easier and more efficient global trade.

  - Significance: FTZs help to reduce costs for international businesses by allowing them to avoid tariffs and customs regulations, promoting global trade.


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 9. Multiplier Effect


- The multiplier effect refers to the increase in economic activity that results from an initial investment. It occurs because an increase in spending leads to more income, which in turn leads to more spending and further economic growth.

  - Example: If a company builds a new factory in a city, it will directly employ workers, who will spend their earnings locally (on housing, goods, etc.), thus stimulating additional demand for services and creating more jobs.

  - Significance: The multiplier effect shows how an initial economic stimulus can have a larger-than-expected impact on the local economy.


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 10. Agglomeration


- Agglomeration refers to the clustering of similar or related industries or businesses in a specific area. This often happens when industries benefit from being close to one another due to shared resources, infrastructure, or talent.

  - Example: Silicon Valley in California is a prime example of agglomeration, where tech companies cluster together to benefit from shared knowledge, access to skilled labor, and proximity to investors.

  - Significance: Agglomeration can lead to innovation, lower costs, and increased efficiency, but it can also lead to overcrowding and competition for resources.


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 11. Growth Pole


- A growth pole is a region or industry that attracts economic development and generates growth for surrounding areas. It is often a hub of economic activity that stimulates investment and development in nearby regions.

  - Example: Pittsburgh’s steel industry in the 20th century was a growth pole that spurred growth in related sectors like transportation, manufacturing, and retail. More recently, Hollywood in Los Angeles acts as a growth pole for the entertainment industry.

  - Significance: Growth poles help drive regional development by focusing resources on a specific industry or region, and they can create positive economic ripple effects throughout the surrounding areas.


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