Geography of Economies : Chapter 9 Flashcards
Gross Domestic Product (GDP)
goods and services added up
often divided by population
Gross National Product (GNP)
goods and services based on ownership and not location
W. W. Rostow
developed model of progressive stages of economic growth which requires substantial investment in capital
- traditional society
- transitional stage
- take off
- drive to maturity
- high mass consumption
Primary Industry
industry engaged in the extraction of natural resources, such as agriculture, lumbering, and mining
Secondary Industry
industry engaged in processing raw materials into finished products, manufacturing
Services
the range of economic activities that provide services to industry
Human Development Index
composite statistic of life expectancy, education, and income per capita
Cottage Industry
traditional type of manufacturing in the preindustrial revolution era, practiced on a small scale in individual rural households as a part time occupation and designed to produce handmade goods for local consumption
Uneven Development
tendency for industry to develop in a core-periphery pattern, enriching the industrialized countries of the core and impoverishing the less industrialized periphery
Deindustrialization
the decline of primary and secondary industry, accompanied by a rise in the service sectors of the industrial economy
Newly Industrialized Countries (NICs)
development stage in between LDC and MDC
characterized by secondary and tertiary industries growing larger than primary industriesgoodes
Transnational Corporations
companies that have international production, marketing, and management facilities
Post Industrial Phase
stage of development in which the service sector generates more wealth than manufacturing sector
Factory Location Factors
raw materials location
labor (either cheap or highly skilled)
transportation
infrastructure
Footloose Industry
general term for industry that can be placed anywhere regardless of factors such as resources or transportation
International Division of Labor
separation of tasks among countries
Weight-gaining Product
product in which the final product weighs more than the raw materials
tends to be produced closer to where it is consumed
Weight-losing Product
product in which the final product weighs less than raw materials
can be produced and transported
Specialized Economic Zones (China)
designated areas of countries where governments create conditions conducive to export-oriented production; general term is export processing zone
Maquiladoras
factory in Mexico owned by a foreign company and develops products for import back into the country
Ozone Depletion
depletion of upper-atmosphere ozone layer due to the use of several chemicals including Freon; Montreal Protocol in 1989 aimed to reduce the emission of ozone-depleting chemicals
Ecotourism
responsible travel that does not harm ecosystems or the well-being of local people
Core-periphery Model
concept based on the tendency of both formal and functional culture regions to consist of a
core or node, in which defining traits are purest or functions are headquarted,
and a periphery that is tributary and displays fewere of the defining traits
Agglomeration
snowballing geographical process by which a secondary and service industrial activities become clustered in cities and compact industrial regions in order to share infrastructure and markets
guild industry
traditional type of manufacturing in the pre-industrial revolution era involving handmade goods of high quality manufactured by highly skilled artisans who resided in towns and cities
postindustrial phase
phase of society characterized by the dominance of the service sector of economic activity
high-tech corridor
an area along a limited-access highway that houses offices and other services associated with high-tech industries
outsource
physical separation of some economic activities from main production facility, usually for the purpose of employing cheaper labor
geography of supply
costs of doing business vary from place to place based on: availability of financing natural resources labor (particular skills) transporting goods
tertiary sector
activity that links primary and secondary sectors to consumers and other businesses by selling goods or performing services
example: doctor, teacher, waitress
Ullman’s Principles of Economic Geography
complementarity: one area has a surplus of a commodity needed by another area
transferability: ease with which commodity can be moved from producer to consumer
intervening opportunity: potential trade between two partners develops only in absence of closer, intervening source of supply
comparative advantage: areas tend to specialize in products for which they have greatest relative advantage
GINI coefficient
index that measures the degree of income inequality in a country
0 is perfect equality; 100 is perfect inequality
worst is Lesotho with 63.2 and best is Slovenia with 23.7
Wallerstein’s Dependency Theory
explains low development levels as a result of LDC continuing economic dependency on MDCs (neo-colonialism)
strategy for LDCs is small-scale and rural enterprises, import substitution, nationalization of industry
Changing Role of Energy
industrial revolution used water
steam
US primarily uses coals
sustainable energy includes solar, wind, geo-thermal, hydro
