AP HuG Unit 7

• Industrialization


  The transformation from an agricultural society to an industrial society as a result of new technologies and facilitated by the availability of natural resources (resulting in factories, mass-produced goods, and assembly lines that replaced handmade goods)
• Industrialization


  The process that occurs when countries evolve from primarily agricultural producing basic, primary goods to one based on mechanized mass manufacturing of goods (craftsmen are replaced by assembly lines)
• Spread of industrialization


  • Caused food supplies to increase and populations to grow
  • Created new industrial jobs in the cities
  • Changed social class structures
  • Caused investors in industry to seek out more raw materials and new markets
  • Contributed to the rise of colonialism and imperialism
• Economic sectors


  • Primary sector (extracting or harvesting raw materials)
  • Secondary sector (processing raw materials and transforming them into finished goods)
  • Tertiary sector (providing services)
  • Quaternary sector (collecting, processing & manipulation of information & capital)
  • Quinary sector (high-level decision making and advancement of human capacities)
• Core


  Countries where economic power (wealth, innovation, technology) is concentrated that control and benefit from the global market on which periphery and semi-periphery countries depend
• Semi-periphery


  Countries that are industrializing that exert more power in the world economy than the periphery, but are dominated to some degree by the core
• Periphery


  Countries with low levels of economic productivity and a disproportionately small share of the world's wealth with weaker state institutions, lower standards of living and are often dependent on the core
• Influences on the location of manufacturing

  • Labor (availability/cost)
  • Land costs (availability/cost)
  • Resources (availability/cost)
  • Markets (facilitate trade)
  • Transportation (proximity to shipping and markets)
  • Shipping container (container with strength suitable to withstand shipment, storage and handling)
  • Intermodal container (large standardized shipping container that can be used across different modes of transportation)
  • Intermodal connections (places where two or more modes of transportation meet)
  • Break of bulk point (the transfer of transported cargo from one kind of carrier to another)
• Least Cost Theory


  Alfred Weber's theory that describes the optimal location of an industry in relation to costs of transport, labor, and relative advantages of agglomeration
• Agglomeration


  The clustering of businesses that can benefit from close proximity because they share skilled-labor
• Footloose industries


  Industries in which the location is not impacted by the cost of transporting either raw materials or finished products
• Levels of development


  • LDC (less developed country)
  • NIC (newly industrialized country)
  • MDC (more developed country)
  • Post-industrial society
• GDP (gross domestic product)


  Measurement of the total value of goods and services produced within the borders of a country during a specific time period, usually one year
• GNP (gross national product)

  Measurement of the total value of goods and services produced within the borders of a country plus the net income from companies that are located outside the country and foreign investments during a specific time period, usually one year
• GNI per capita (gross national income per capita)

  Measurement of the total value of goods and services produced within the borders of a country plus the net income from companies that are located outside the country and foreign investments, but minus dividend payments and indirect business taxes during a specific time period, usually one year, divided by the population
• Economic sectors of the economy


  • Periphery countries tend to have a larger percentage engaged in primary activities
  • Semi-periphery countries are transitioning from primary activities to secondary activities
  • Core countries tend to have a larger percentage engaged in tertiary, quarternary, and/or quinary activities
• Formal and informal economic activity


  The percent of taxed and non-taxed economic activity within a country
• Gini coefficient


  Measurement of income distribution within a population
• Social measures of development


  • Fertility rate
  • Infant mortality rate
  • Access to health care
  • Literacy rate
  • Gender inequality
  • GII (gender inequality index)
• HDI (human development index)


  Measurement used by the United Nations to calculate development in terms of human welfare (using both economic and social indicators)
• Gender parity


  Measurement of the relative access to education of males and females
• Objective of gender equality: a society in which women and men enjoy the same opportunities, rights, and obligations in all spheres of life and is linked to sustainable development
• Rise of women in the workforce

  Although more women are in the workforce, they do not have equity in wages or employment opportunities
• Microloan


  Low interest loans usually for smaller sums of money to provide extremely poor people the opportunity to open a small local business and is often targeted to women in less developed countries to lift them out of poverty and is helping to improve standards of living
• Rostow's Stages of Economic Growth


  Theory that assumes all countries are capable of development along the same trajectory which encompasses five stages of linear development towards self-sustained economic growth and high levels of mass consumption
• Wallerstein's World Systems Theory (Core-Periphery Model)


  Model that describes how economic power is distributed between dominant regions and less powerful regions and proposes that less developed countries are defined by their dependence on a developed core
• Dependency Theory


  Theory that maintains that less developed countries are kept in a position of dependency due to the existing economic and political power structures sustained by more developed countries; the concentration of wealth in more developed countries makes it difficult for less developed countries to compete and improve their situation
• Commodity dependence


  The extent to which a country is dependent on primary commodities for export; dependency on primary commodities can leave a country vulnerable to unpredictable price fluctuations and can significantly reduce national revenue
• Neo-colonialism

  Theory that proposes that countries which may be free from political colonial control, continue to remain economically dependent on their former colonial powers
• Core


  Countries with high levels of economic productivity and a disproportionately large share of the world's wealth with stronger state institutions, higher standards of living and are often not dependent on the periphery
• Commodity dependence


  • Haiti relies on cocoa, mango, coffee, bananas, vetiver oil
• Neo-colonialism


  Theory that proposes that countries which may be free from political colonial control, continue to remain economically dependent on rich, industrialized countries
• Comparative advantage


  Advantages to locations that combine lower operating costs (labor, taxes, relaxation of environmental regulations) resulting in trade/sale opportunities that produce goods/services for a lower price
• Comparative advantage


  • Oil producing nations have a comparative advantage when making products that require oil such as chemicals
• Complementary advantage


  Advantages created when producing goods that are consumed together
• Complementary advantage


  • Cars and gas
  • Printer and ink cartridges
• If the price of one (complementary) good goes up


  The demand for both goods fall
• If the price of one (complementary) good goes down


  People will buy more of it and they will usually buy more of the other also
• Neoliberal policies


  Characterized by free market trade agreements, deregulation of financial markets, individualism, and the shift away from state welfare provision have created new organizations, spatial connections, and trade relationships that foster greater globalization
• Free trade agreements


  Treaty between two or more countries to establish a free trade zone where goods and services can be conducted across common borders, without tariffs but labor or capital may not move freely