Chapter 10 & 12: Development & Industry Flashcards
Gross national product (GNP)
the total value of the officially recorded goods and services produced by a country’s economy in a given year (by the citizens and corporations of a country, whether or not they are located within the country)
gross domestic product (GDP)
the total value of all goods and services produced within a country during a given year
gross national income
calculates the monetary worth of what is produced within a country plus income received from investments outside the country minus income payments to other countries around the world
-most accurate
per capital GNI
GNI data divided by the population of the country
development implies
progress
core processes
- generates wealth for the people of that place
- high levels of socioeconomic prosperity and influence in global economy
- require higher levels of education, more sophisticated technologies, research and development, and higher wages and benefits (ET ran west)
peripheral processes
- require little education, lower technologies, and lower wages and benefits
- little wealth is generated for the people
semi-peripheral processes
exhibits both core and peripheral processes
-serve as a buffer between the core and periphery in the world economy
eight UN Millennium Development Goals
To eradicate extreme poverty and hunger
To achieve universal primary education
To promote gender equality and empower women
To reduce child mortality
To improve maternal health
To combat HIV/AIDS, malaria, and other diseases
To ensure environmental sustainability
To develop a global partnership for development
dependency ratio
measures the proportion of dependents (people older than 64/younger than 14) relative to every 100 people of working age
neo-colonialism
the continuation of colonial relationships after formal colonialism ends; continuation of economic dependence even after political independence
areas with low human development
South America, Sub-saharan Africa, North Africa/Southwest Asia, South Asia, Southeast Asia
desertification
the degradation of land exacerbated through the overuse of land for livestock grazing or crop production
-greatly affects Africa
barriers to economic development (social)
social conditions: malnutrition, low life expectancies, high IMR & CMR, lack of access to public sewage systems, clean drinking water, health care, and education, human trafficking
barriers to economic development (foreign debt)
structural adjustment loans make peripheral and semiperipheral economies vulnerable to servicing debts (cost of repayments plus interest)
barriers to economic development (political corruption and instability)
quasi democratic and military governments seize power in peripheral and semiperipheral countries
examples of export processing zones
Mexican maquiladoras and Chinese special economic zones
islands of development
a city or region in which economic development is concentrated by a government or corporation to attract foreign investment and which has relatively high concentrations of paying jobs and infrastructure
NGO
non-governmental organization
international organizations that operate outside of the formal political arena but that are nevertheless influential in spearheading international initiatives on social, economic, and environmental issues
what percent of cargo uses shipping containers?
90
what advantages did Britain have in the early development of industry?
technological inventions (spinning jenny, steam engine), iron ore, coalfields, railroads, connectivity to coastal ports, raw materials and foreign markets in colonies
agglomeration
the clustering/concentrating of similar industries
Weber’s least cost theory
the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation (critical determinant), and agglomeration
just-in-time delivery
method of inventory management made possible by efficient transportation and communication systems whereby companies keep what is needed for short-term production and import new parts when needed
advantages of India in economic growth
relatively high levels of college education and vast number of English speakers
- great deal of hydroelectric potential and access to ample coal
- large labor force, growing middle class, optimal location between Europe and the Pacific Rim
Where did manufacturing in North America begin?
New England
break-of-bulk location
a location along a transport route where goods must be transferred from one mode of transport to another
largest producers of furniture in the world
High Point, North Carolina
Fordist production
assembly-line mass production of standardized components for mass consumption
post-Fordist production
set of production processes in which the components of goods are made in different places around the globe and then brought together as needed to assemble the final product in response to customer demand (flexible production)
maquiladoras
Mexican export processing zones with favorable tax, regulatory, and trade arrangements to foreign firms on the US-Mexico border
-low wage workers in primarily foreign-owned factories assemble imported raw materials into goods, and export products to US free of tariffs
Where do most of the goods entering Europe pass through?
Rotterdam, Netherlands
tertiary sector
include a broad range of actions that aid people and businesses, including personal services, entertainment, transportation, and retail
-often referred to as service industries
quaternary sector
the collection, processing, and manipulation of information and capital (finance, administration, insurance, legal services, computer services)
-requires high levels of specialized knowledge/technical skills
quinary sector
activities that facilitate complex decision making and the advancement of human capacities (scientific research, higher education, and high-level management
which economic sector must be located where resources are found?
primary sector
technopole
an area planned for high technology where agglomeration built on a synergy among technological companies occurs
-found in global economic core (not Africa)
High-technology corridors have sprung up in the global economic core. The resulting collection of high-tech industries has been called a technopole with the best known being California’s “Silicon Valley.” A similar concentration has appeared around the city of ______________ in the eastern United States.
Boston
Technopoles tend to locate near
a) raw materials.
b) cheap labor.
c) electricity supplies.
d) centers of research and development (major research universities).
centers of research and development (major research universities)
A large component of survival in countries with low per capita GNP is
informal Economy
Gross national product (GNP) fails to measure
wealth distribution
GNP is standardized by
being calculated on a per capita basis.
The Pine Ridge Indian Reservation in the United States, with 80% unemployment and per capita income around $6,000, illustrates ______________ within a core area country.
peripheral processes
the only country in the western hemisphere with a dependency ratio over 85.
Guatemala
Rostow’s modernization model: stages
traditional, preconditions of takeoff, takeoff, drive to maturity, high mass consumption
(talented penguins train dancing hippos)
Rostow’s model, developed in the early 1960s, was based upon the experience of
western modernization
The principal structuralist alternative to Rostow’s model of economic development
dependency theory
-holds that the political and economic relationships between countries and regions of the world control and limit the economic development possibilities of poorer areas
Wallerstein’s three-tier system divides the world into
the core, periphery, and semiperiphery
Which two countries have low levels of human development according to the Human Development Index
Mali and the DRC
-peripheral countries (Bangladesh, Nepal, Haiti)
Desertification in Africa is a particular problem as ____ of the continent is arid or semiarid.
2/3
Twenty thousand nongovernmental organizations (NGOs) in Bangladesh constitute what can be called
a parallel state
