AP Human Geography Unit 7

Least-cost Theory

Forms locate their production facilities in places that minimize transportation costs, agglomeration costs, and labor costs. Made by Alfred Weber

An example of a product made by a bulk-reducing industry is

Gasoline

Core

Global Economic core- main players in the global economy and exploit periphery to stay on top. Mainly tertiary economy

Maquiladoras

Factories built by U.S. companies in Mexico near the U.S. border to take advantage of much lower labor costs in Mexico in export processing zones

Semi Periphery

Newly-industrialized countries with a large secondary sector but shrinking primary sector

Rostow's Economic Development Model Stage 3

Takeoff, Development of manufacturing, creation of modern institutions, rapid growth in limited sector

Industry

The manufacturing of goods in a factory (secondary sector)

World Trade Organization (WTO)

They reduce barriers to trade by negotiating reduction/elimination of international trade restrictions and they reduce/eliminate restrictions on international movement of $ by banks, corps and individuals. Made in 1195

Free Trade Zone (FTZ)

Type of SEZ, zone of a country where it is duty-free, offering warehousing, storage, and distribution facilities for trade, transshipment, and re-export operations

Gross National Product (GNP)

Value of the output of goods and services produced in a country in a year, including net income from foreign investments

Deglomeration

When firms leave an agglomerated region to start up in a distant, new place

Which question would most likely be studied using the Gini index?

Whether the income distribution influences economic growth

GNI Per capita PPP

dollar value of a country's final income in a year divided by its population, adjusted to US currency, measures average wealth

Natural Increase Rate

percentage by which a population grows in a year. Subtract CBR from CDR after converting the numbers to percentages

Literacy Rate

percentage of country's people who can read and write

Development

process of improving the material conditions of people through diffusion of knowledge and technology. Two groups: More Developed Country (MDC) and Less Developed Country (LDC)

Fair Trade

products are made and traded according to standards that protect workers and small businesses in LDCs

International Monetary Fund

provides loans to countries experiencing balance of payment problems that threaten expansion of international trade

In terms of the GII, most African countries have

rates far below the United States and Western Europe

New international division of labor

selective transfer of some jobs to LDCs, the core-periphery model explains how labor is split up in the world

Industrial Revolution

series of improvements in industrial technology that transformed the process of manufacturing goods very quickly

Quaternary Sector

specialized tertiary activities in the knowledge sector. Anything in business, services, education, government etc. that have to do with generating or exchanging knowledge

Comparative Advantage

the ability of one country to make a certain product more efficiently than another product

Per capita GDP is a poor indicator of which of the following?

the distribution of wealth within a country

Rostow's Economic Development Model

5-stage model of development: 1. Traditional Society 2. Preconditions for Takeoff 3. Takeoff 4. Drive to maturity 5. Age of mass consumption. Optimistic model that assumes all countries are capable of developing and will pass through the 5 stages at some point

Sustainable Development

Attempt to remedy problems stemming from natural- resource depletion, mass consumption, the effects of pollution, and the impact of climate change

Capital

Ability to borrow money

Purchasing Power Parity (PPP)

Adjustment made to GNI that accounts for what money actually buys within different countries

Rostow's Economic Development Model Stage 5

Age of Mass Consumption, Consumer goods (shift from heavy industry), bigger service sector

Silicon Valley in Northern California is famous as the home to many businesses that produce high-tech products or serve high-tech companies. This demonstrates the principle of

Agglomeration economies

Bulk-reducing/Weight-losing industry

An industry in which the inputs weigh more than the final products. To minimize transport costs, a bulk-reducing industry needs to locate near its source of inputs. Ex Copper

Infant Mortality Rate

Annual number of deaths of infants under one year of age, compared with total live births.

Special Economic Zone (SEZ)

Area of a country where business and trade laws are different from the rest of the country. They have goals to get business to invest in that area due to lower taxes, less regulations etc.

Outsourcing

Contracting part of work out to non-company employees or other companies (often in another country)

Rostow's Economic Development Model Stage 4

Drive to Maturity, Development of wider industrial and commercial base, technology spreads

Primary Sector

Economic sector that directly extracts materials from Earth through agriculture- mining, fishing, forestry, agriculture

Tertiary Sector

Economic sector that involves the provision of goods and services to people in exchange for payment

Secondary Sector

Economic sector where manufacturers process, transform, and assemble raw materials into useful products

Cottage Industry

Home-based manufacturing was known as this before the industrial revolution

Technopoles

Hub for information-based industry and high-tech manufacturing Ex. Silicon Valley or MIT/Harvard

Which often happens to an industrial site after the factory on it closes?

In old industrial areas, it often becomes a brownfield site

The main benefit for countries that host Export Processing Zones is that these zones

Increase opportunities for the citizens to work for American companies and to learn English

Site Factors

Industrial factors involving the unique characteristics of a location- land, labor, and capital

Situation Factors

Industrial factors involving transport of materials to and from factory

Footloose Firms

Industries that have no real inclination to be located close to either raw materials or primary markets, since their products are so lightweight and valuable. Ex. computer chips, diamonds

The purpose of the locational triangle in Weber's model was to show where

Industries would decide to locate a factory

Bulk-gaining/Weight-gaining industry

Industry that makes something that gains volume or weight during production. To minimize transport costs, a bulk-gaining industry need to locate near where the product is sold. ex. beverage production

All are stages of Rostow's Stages of Economic Growth model except

Late expanding

Periphery

Least developed countries that are stuck on the periphery of global economy due to previous and current exploitation

Break-of-bulk point

Location where transfer among transportation modes is possible. Ex. Philly, Baltimore

Which is most responsible for deindustrialization in highly developed countries?

Low wages in developing countries

Based upon Wallerstein's World Systems Theory, which of the following countries best fits the description of a peripheral country?

Mali

Agglomeration

Many companies from the same industry cluster together in a small area to draw from the same set of collective resources

The EPZs found in Mexico are known as

Maquiladoras

The shift of manufacturing within the United States to the South can be explained by all of the following traits of the South EXCEPT

More government regulations

Export-processing zones (EPZ)

Officially designed for manufacturing but it is a zone in a country that has more accessible distribution facilities, lax environmental laws, and attractive tax exemptions in order to attract foreign corporations (usually in developing countries, set up by the govt to promote industry)

OPEC

Originally made to enable oil-rich countries to gain more control over their resource since developed countries were exploiting them. Created in 1960

Rostow's Economic Development Model Stage 2

Preconditions for Takeoff, Commercial exploitation of agriculture and extractive industry, infrastructure building, elite group initiates innovative economic activities

Brownfields

Previously developed land that is not currently in use, land was usually used for industrial or commercial purposes, known or suspected pollution in the area

Fishing, farming and forestry are considered as part of what economic sector?

Primary

Right-to-work laws

Requires a factory to maintain an open-shop, as in employees are not required to join a union

Renewable Resource

Resource that is naturally replenished as quickly as it is being used. Such as solar or wind power

Just-in-time delivery

Shipment of parts and materials arrive at a factory moments before they are needed

Post-Fordist

Skilled workers have a wide variety of assignments and workers work in teams and problem solve

In the core-periphery model of global economic patterns, all of Africa is included in the periphery EXCEPT

South Africa

Which is the least developed region among the following?

Southwest Asia

The gross domestic product per capita is a measure of the total goods and services produced by a country divided by that country's

Total population

Rostow's Economic Development Model Stage 1

Traditional Society, Limited technology, static society, agriculture is high and largest wealth comes from military and religion

Quinary Sector

activities or services that focus on the creation, re-arrangement, and interpretation of new and existing ideas."Gold-collar" professions

Life Expectancy

average number of years a newborn infant can expect to live

The secondary sector of the economy includes which of the following?

construction

Human Development Index

created by UN, recognized that a country's level of development is a function of economic, social, and demographic factors. Includes things like: GDP per capita, Literacy Rate, Amount of Education, Life expectancy

Core-periphery Model/World Systems Theory

division of world's countries into global economic core, semi periphery, and periphery. Core includes MDCs. Semi-periphery would be newly industrialized countries such as Brazil, India, China and periphery would be the LDCs

Structural Adjustment Program

economic policies that create conditions encouraging international trade

Fossil Fuel

energy source formed from the residue of plants and animals buried millions of years ago.Ex. Coal, Natural Gas, Oil

Fordism

factories assign each worker on specific task to perform for mass production

World Bank

helps provide loans to LDCs to help build infrastructure

Foreign Direct Investment (FDI)

investment made by a foreign company in the economy of another country

GINI Coefficient

measure of income inequality within a country

Gender-Inequality Index (GII)

measures a country's loss of achievement due to gender inequality. Uses reproductive health, empowerment, and labor market participation

The large percentage of population involved in agriculture in China indicates that

most people must produce food for their own survival

Multiplier Effects

new injections of money/capital into the economy lead to more spending, which leads to more injection

Labor-intensive industry

one in which wages and other compensation paid to employees constitute a high percentage of expenses ex. Textiles

Dependency Theory

the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states

Ecotourism

tourism based in natural environments—often environments that are threatened by looming industrialization or development—that frequently helps to protect the environment in question while also providing jobs for the local population

Complementarity

two places are said to exhibit a degree of this if each offers something to the other that it needs or wants

Gross Domestic Product (GDP)

value of the total output of goods and services produced country, normally during a year

Commodity Dependence

when commodities are the majority of its exports. The combination of a high concentration of exports and the large share of commodities in those exports is often linked to underdevelopment