AP human Geography Unit 6 Key terms

-Capitalism- (Goal is making money)

• An economic system in which the government allows their citizens to control the economy, rather then the government.

- The Nature of Capitalism

•  The primary goal of capitalism is to generate capital (money).

- Business Operations: 

• Businesses aim to maximize profits, often leading to competition and innovation.

 - Historical Regulations:

•  Over time, regulations have been introduced to protect workers and consumers, such as child labor laws and workplace safety standards. 

-Government's Role

•  Minimal Regulation: In a true capitalist system, the government does not impose regulations on businesses

- Supply and Demand

•  The market should self-regulate based on consumer needs and business capabilities.

-Laissez-faire: 

• When the government remains hands off of the economy

-Allows the free market to regulate itself and where it allows business to make the most money

-Winners and Losers in Capitalism - Economic Disparity: Capitalism inherently creates a divide between winners (wealthy individuals or businesses) and losers (those who struggle economically). - Individual Responsibility: Success or failure is largely dependent on individual effort, with no safety net provided by the government. 

-Communism - 

• Definition: Communism aims to create a classless society where resources are shared equally among all individuals.

- Capitalism vs. Communism: 

The lecture contrasts the two systems, highlighting the benefits and drawbacks of each.

- Human Nature: 

• The failure of communism on a large scale is often attributed to human greed and the desire for power

-Labor movement got better when people started unions to get a work free weekend. Strikes and protests. The unions demanded companies to stop hiring kids under 18. A law got passed in 1938 that changed the hours, made child labor illegal and made hourly wage

-Colonialism helped countries develop industry.

-Japan was the first non-western (Not europe or North america) country to industrialize. Happened at the turn of the century but didn't take off till after WW2

-Site factors: Factors related to the cost of a factory’s location

-Situation factors: Location factors related to the transportation of materials

• Both factors are sometimes grouped as Land (Site factors, energy and materials,                                                                                  transportation) Labor (Work, jobs) Capital (Investors, Buyers, Market

To reduce transportation costs, manufacturing companies consider the type of industry they operate in:

Containerization

 Containerization is a cheap and portable way to deploy applications, along with their dependencies and configurations, in a self-contained unit called a container.

• Lightweight: Containers share the same kernel as the host operating system, reducing overhead and improving performance.

• Portable: Containers are platform-agnostic, allowing them to run on any system that supports containerization, without modification.

• Isolated: Containers provide a high level of isolation between applications, ensuring that they don't interfere with each other.

• Self-contained: Containers include everything an application needs to run, such as code, dependencies, and configurations.

• Cheaper: Using containers to transport items because a lot more cost friendly and let more companies use it,

Inputs

• Raw materials (e.g., minerals, materials)

• Energy

• Machinery

Outputs/Products

• Finished goods (e.g., furniture, electrical wiring, automobiles)

• Products sold to distributors or directly to consumers

-Bulk-Reducing Industries (The total sum of all the inputs weigh more than the product)

• Raw materials are heavier/bulkier than finished goods

• Examples: lumber (to furniture/paper), copper (to electrical wiring)

• Locate factory near raw material source

-Bulk-Gaining Industries  (The total sum of all the inputs weigh less than the product)

• Finished goods are heavier/bulkier than raw materials

• Examples: automobile assembly, soda, bread

• Locate factory near markets (considering perishability and single markets)

-Heavier items cost more to transport.

-Agglomeration: the concentration of 

industries or economic activities in a specific

 geographic area, often leading to increased 

efficiency, innovation, and competitiveness.

Mercantilism

• Goal: Export more than import

• Protectionist/isolationist policies to discourage imports

Comparative Advantage

• Country specializes in producing goods it can make efficiently

• Focuses on specific products for international trade

Complementarity

• How well one country's exports match another country's imports

• Countries seek complementary trade relationships to maximize benefits

Domestic Economy

• Less government regulation

• Promoting private business growth

International Trade

• Free trade through:

  • Reducing government-erected barriers

  • Deregulating global financial markets

International Institutions

• International Monetary Fund (IMF)

• World Bank

• World Trade Organization (WTO)

Regional Trade Agreements

• Free-Trade Agreements

  • NAFTA (North American Free Trade Agreement)

  • EU (European Union)

• Customs Unions

  • Mercosur (South American trade bloc)

  • EU Customs Union

• Commodity-Specific Agreements

  • OPEC (Organization of the Petroleum Exporting Countries): regulates oil output and trade among member countries.

Neoliberalism

• Free-market principles

• Capitalism and free trade solves the worlds problems

• Deregulation of industries

• Privatization of public goods and services

• Reduction of government intervention in the economy

• Increased global trade and investment

• Free-Market Advocacy: Emphasizes the need for less government intervention in the economy.

Key Features of NAFTA:

• Tariff Elimination: NAFTA gradually removed most tariffs on goods traded between the three countries, making it easier and cheaper to export and import products.

• Market Access: It opened up markets for services, investments, and government procurement across North America.

• Intellectual Property Protection: The agreement included provisions to protect intellectual property rights.

• Dispute Resolution: NAFTA established mechanisms for resolving trade disputes between member countries.

Financial Markets

• Global Presence: Financial markets are a worldwide phenomenon, with significant operations in Asia, Europe, and North America.

•  24/7 Trading: Stocks are traded continuously, enabling a dynamic and fast-paced financial environment.

•  Interdependence: The world’s economies are increasingly interlinked, highlighting the importance of global financial markets.

•  Vulnerability: The interconnectedness of markets makes economies more susceptible to financial crises.

•  Diversity of Products: Financial markets encompass a wide range of products including stocks, bonds, and currencies, catering to various investment strategies.

•  Market Dynamics: The constant trading activity reflects the fluid nature of financial markets and their capacity to respond to real-time information.

•  Investment Opportunities: The global nature of these markets offers diverse opportunities for investors, but also requires awareness of associated risks.

Continuous Trading Dynamics: 

The 24-hour trading of stocks allows for an unprecedented level of accessibility and responsiveness in the financial markets. This continuous operation means that investors can react to news and events as they happen, which can lead to rapid changes in stock prices. However, it also creates a more volatile environment where prices can

Deindustrialization in the core

Fordism (1920s-1970s) was characterized by mass production, high wages, and manufacturing dominance. However, rising wages, aging infrastructure, and global transportation advancements led to a crisis.

In response, companies adopted post-Fordist strategies (late 20th century onwards), including:

• Corporate disinvestment (offshoring, outsourcing)

• Global supply chains

• Rise of the service sector (70% of economy)

• Shift to lower-paying tertiary sector jobs

This transformation has impacted employment, income inequality, and economic growth.

Corporate Disinvestment

The process of companies reducing or withdrawing their investments, operations, and resources from a particular region, industry, or business activity. This can involve strategies such as offshoring, outsourcing, downsizing, and divestment. The big companies are not investing in the MDC’s anymore. Offshoring, moving a factory from a MDC to another country.

Sectors of labor

• Primary Sector: Extraction and production of raw materials

  • Agriculture (farming, forestry, fishing)

  • Mining (coal, iron, gold, etc.)

  • Forestry

• Secondary Sector: Transformation of raw materials into manufactured goods

  • Manufacturing (textiles, steel, electronics, etc.)

  • Construction

  • Energy production

• Tertiary Sector: Provision of services

  • Retail and wholesale trade

  • Transportation and logistics

  • Hospitality and tourism

  • Finance and banking

  • Healthcare and education

  • Government services

• Quaternary Sector: intellectual services

• Research and development

• Consulting and advisory services

• Information technology and software development

5 stages of development (Rostow's stages of economic development theory)

• Traditional Society

  • Characterized by subsistence agriculture or hunting and gathering.

  • Limited technology and low productivity.

  • Social structure is hierarchical, with a focus on family and kinship ties.

  • Economic activity is primarily focused on basic needs.

• Preconditions for Take-off

  • Begins with the introduction of modern ideas, education, and technology.

  • Development of infrastructure (e.g., transport, communication).

  • Emergence of a more diversified economy, including mining and manufacturing.

  • Social and political changes pave the way for economic growth.

  • Specialization in one or two ways of making money (oil, manufacturing etc.)

• Take-off

  • Rapid industrialization and economic growth occur.

  • Key sectors (e.g., manufacturing) expand and drive development.

  • Investment increases, and technological advancements accelerate.

  • Society shifts from agrarian to industrial.

• Drive to Maturity

  • Economy diversifies further, with growth spreading to various sectors.

  • Technological innovation becomes widespread.

  • Urbanization increases, and living standards improve.

  • The economy becomes more integrated into the global market.

• Age of High Mass Consumption

  • Focus shifts to consumer goods and services.

  • High standards of living and widespread prosperity.

  • Emphasis on welfare, leisure, and quality of life.

  • The economy is dominated by the service sector.