AP Human Geography Chapter 9 - Development

regional multiplier

A numerical relationship showing the number of total jobs created for each new basic job in a region

economic indicators

A piece of economic data, usually of macroeconomic scale, that is used by investors to interpret current or future investment possibilities and judge the overall health of an economy -Statistics the provide info about the performance of the economy and its position in the business cycle

World Bank/IMF

A specialized agency of the U.N. that makes loans to countries for economic development, trade promotions, and debt consolidation. Its formal name is the International Bank for Reconstruction and Development; promotes international/global trade; has policies that promote increased participation of borrowers in international trade -IMF=International Monetary Fund

subsistence economy

An economic system of relatively simple technology in which people produce most or all of the goods to satisfy their own and their family's needs; little or no exchange occurs outside of the immediate or extended family

trickle-down effects/ trickle-down economics

An economic theory which states that investing money in companies and giving them tax breaks is the best way to stimulate the economy and that the money will trickle down to the poorer people; sometimes called Reagan Economics

ASEAN

Associations of South East Asian Nations; set up to promote cultural, economic, and political development in the region

BRICS

Brazil, Russia, India, China, South Africa: all rapidly growing economies in the developing world -coined bc of the growing recognition of the significance of the 5 economies in global transactions and global rankings -account for 1/4 of the world'd lands and 2/5 of the world's population; -could never work bc of tensions between India and China(religious, land disputes, India a major U.S. ally), and because Brazil is halfway across the world

Secondary Sector/Economic Activities

Concerned with the processing of raw materials; include manufacturing, construction, and power generation -location of factories becomes more flexible when compared to primary economic activities where the location of activity is limited to where resource exists -Many economic geographers focus on optimal factory location using a variety of principles or models(e.g. Weber's Least-Cost Theory)

World Systems Theory

Developed by Immanuel Wallerstein -Describes the emergence of a core, periphery, and semiperiphery in terms of economic and political connections first established at the beginning of exploration in the late 15th century -Political and economic relations allowed certain regions to develop more rapidly as a result of exposure to technology and innovation -In the present, many of these relationships exist, with certain regions exhibiting greater economic access than others

Dependency Theory

Development philosophy whereby recently independent colonies work to remove themselves from the economically dependent relationship established under colonization -Strategies under this philosophy are protectionist(protect their own economy, decrease their dependence on former colonizers) in nature typically involving import substitution, nationalization of resources and industry, and high tariffs on imports

GDI/GEM

GDI: (Gender-rlated Development Index) A system that compares the level of women's development with that of both sexes. It takes takes into account the same factors used in the HDI and compares them between sexes GEM: (Gender Empowerment Measure) compares the ability of women and men to participate in economic and political decision-making

GDP

Gross domestic product: 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: the total value of goods and services, including income received from abroad, produced by residents of a country within a specific time period, usually one year

Sustainable Development

Idea that people living today should be able to meet their needs without prohibiting ability of future generations to do the same -An attempt to address the issues of social welfare and environmental protection within the context of capitalism and economic growth -Looks to promote the use of renewable natural resources rather than nonrenewable sources and looks to limit harmful environmental effects of industrial and urban concentrations

Least-Developed Countries(LDCs)

Include sub-Saharan Africa, except for South Africa, and parts of South and Southeast Asia and parts of South America -All have low levels of economic productivity, low per capita incomes, and generally low standards of living -Economy tends to focus on primary activities(agriculture) -In the periphery

Primary Economic Activities

Involve direct extraction or harvesting of resources from the land -Include agriculture, forestry, fishing, and mining -Location of primary economic activities generally limited to location of natural resources

Brandt Line

Line drawn approximately along 30 degrees N latitude(and around Australia) that for the most part, separates the Core(MDCs) from the Periphery(LDCs)

MERCOSUR

Mercado Común del Sur: a trading organization between most of South America except for some countries on the east coast, promoting free flow of goods and money

Rostow's Model

Model developed in 1960 that describes a country's development progression as occurring in five stages, transforming it from a least-developed to a most-developed country Stage 1- country is dominated by primary economic activities Stage 2-preconditions for take-off emerge; includes the commercialization of agriculture Stage 3- reign investment pours in, jump-starting as economy prepped for growth Stage 4- a broad manufacturing and commercial base is developed Stage 5- a country is characterized by high mass consumption and high per capita incomes

MDC

Most Developed Country: sovereign state that has a highly developed economy and advanced technological infrastructure relative to other less industrialized nations

NICs

Newly industrialized countries that are experiencing rapid economic expansion and industrialization -in Stage 3 of Demographic Model

OPEC

Organization of Petroleum Exporting Countries w/ purpose to control worldwide prices of gas; started at Baghdad in 1960 -raised gas/oil prices in 1970s bc U.S. supported Iran --> U.S. decreased its reliance on OPEC, U.S. farms, especially small, family-owned ones, were struggling bc of the high prices

Tertiary Economic Activities/Sector

Provide the market for exchange of goods by bringing together consumers and providers of services such as retail, transportation, government, and personal and professional services -Countries' economies in the highly developed world have shifted to dominance in the tertiary and quarternary sector of the economy -The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people, in exchange for payment

PPP

Purchasing power parity: a monetary measurement of development that takes into account what money buys in different countries

Import Substitution

Strategy where domestic producers substitute manufactured imports with goods produced locally -A common strategy used by developing countries to get out of problematic economic dependency, typically with former colonizers

Transnational Corporations(TNCs)

TNCs take advantage of geographic differences in wages, labor laws, environmental regulations, taxes, and distribution of natural resources by locating various aspects of production in different countries -Many TNCs are conglomerate corporations, meaning firms comprised of many smaller firms that serve several different functions

Gini Coefficient

a measure of statistical dispersion intended to represent the income distribution of a nation's residents, and is the most commonly used measure of inequality

Regionalization

describes the process by which specific regions develop economic activities that differentiate them from others within the same country

Periphery

includes countries with low levels of economic productivity, low per capita incomes, and generally low standards of loving; includes sub-Saharan Africa(except South Africa), parts of Asia, and parts of South America

Core

includes national or global regions where economic power in terms of wealth, innovation, and technology is concentrated

Semiperiphery

includes newly industrialized countries with median standards of living such as Brazil, Chile, China, India, and Indonesia;BRICS could be argued as semi bc they aren't as rich as the other MDCs in the core

Developing Country

less developed country; a country that is at a relatively early stage in the process of economic development

Gender Equity

measure of opportunities given to women compared to men within a given country -Not necessarily correlated with GNP; some places, such as Italy, Japan, Kuwait, have high GNP, but lower gender equity, usually because of cultural traditions that discourage women's achievement in education, government, and business -U.N. developed the GEM that evaluates the women's status in a country based on participation in national economic, political, and professional affairs -GEM criticized for being Western-centric and not considering standards and values accepted in other cultures

Human Development Index(HDI)

measure used but he U.N. that calculates development in terms of human welfare rather than money or productivity -Evaluates human welfare based on life expectancy, education, and income -On a global scale, HDI is the pattern of human development that closely matches the pattern of GNP, but with some discrepancies Ex. of a discrepancy: southern European countries(Greece, Portugal, and Spain) fare better on social welfare than GNP

Core-Periphery Model

models the spatial structure of development in which underdeveloped countries are defined by their dependence on a developed core

Quinary Sector/Economic Activities

most advanced form of quarternary activities consisting of high-level decision-making for large corporations or high-level scientific research

Informal Sector

network of business transactions that are not reported, regulate, and taxed; and therefore not included in the country's GDP and official economic projection Ex. swap meet, garage sales, elite vendors Ex. in Lagos, Nigeria, gov't marketed water bags, which is part of the informal sector, bc they didn't have a municipal water system

Economic Development

process of economic growth, expansion, or realization of regional resource potential -measured in a variety of ways and described in a variety of models -common measures include economic ones, like GDP or GNP, and noneconomic ones, which generally measure social welfare and include things related to education levels, health care, public services, and technology

microloans

provision of small loans and other financial services to individuals and small businesses in developing countries. The extension of very small loans to impoverished borrowers who typically lack collateral, steady employment, and a verifiable credit history; designed to support entrepreneurship, alleviate poverty, empower women, and uplift entire communities by extension

NAFTA(North American Free Trade Agreement)

refers to the International treaty made in 1994 between Canada, the U.S., and Mexico that lessens trade restrictions between the 3 member countries to increase business in the global marketplace -led to an increase in the # of maquiladoras in Mexico bc of the elimination of import taxes and cheaper labor

Neocolonialism

refers to the economic, political, or military dependencies that exist between developed and developing countries even after most countries under colonial rule(and in the developing world) achieved independence -today, it's mostly economic control over other countries

Quarternary Sector/Economic Activities

service-based activities concerned with research, information gathering, and administration -service-sector industries concerned with the collection, processing, and manipulation of info. and capital

Comparative Advantage

states that areas or regions should produce goods for which they have the greatest relative advantage over other areas Ex. With secondary economic activities, comparative advantage dictates that certain industries locate near necessary raw materials -With tertiary activities, comparative advantage typically means locating industry where labor is cheapest

value added

the gross value of the product minus the costs of raw materials and energy

Uneven Development

the increasing gap in economic conditions between core and peripheral regions as a result of the globalization of the economy

Literacy Rate

the percentage of a country's people who can read and write

Primary Sector

the portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture

International Division of Labor

the process where the assembling procedures for a product are spread out through different parts of the world; changes when companies outsource

productivity

the value of a particular product compared to the amount of labor needed to make it