Unit #3 Flashcards
Facts about the primary industry
- also referred to as “extraction”
- extract or produce raw materials
Examples of jobs in the primary industry:
Farmers, miners, fishermen
Facts about the secondary industry
- manufacturing and processing
- process/manufacture raw materials into usable products
- increases value of products
Examples of jobs in the secondary industry
Clothing shops, food processing factories, engineering
Facts about the tertiary industry
- service industry
- provide service
Examples of jobs in the tertiary industry
Doctors, nurses, delivery drivers, educators/teachers
Facts about the quaternary industry
- creation and transfer or information
- occupations based on knowledge and skills
Examples of jobs in the quaternary industry
- software developers, app creators
Facts about the quinary industry
- Decision makers
- “big bosses”
Examples of jobs in the quinary industry
Bureaucrats, government workers, CEOs of companies
What are basic vs non basic industries
Basic industries: do not introduce new money into the area. Thus, money is recycled within the area
Non-basic industries: introduce money from different places of the world, supporting the local economy
Examples of jobs in the basic industries
Doctors and nurses, school bus drivers, teachers
Examples of jobs in the non-basic industries
Tour buses drivers, grocery stores, clothing stores
How can we measure developed and underdeveloped countries?
- GDP per capita
- Standard of living
- Level of industrialization
- amount of technology
What is the main idea of the dependency theory?
That the wealth of richer countries is at the expense of the poorer countries.
(wealthycountries depend on the poorer countries)
What is the main idea of Rostow’s model of development?
Steps of a country from being underdeveloped to developed:
- Undeveloped country
- Projects are made to increase productivity
- Growth is generated for the economy as there are more economic activities
- Takeoff of technology and workers become more specialized
- Developed country
What is the main idea of the Lewis Structural Change Model
Development=increase in manufacturing and decrease in agriculture
Focused on moving away from the agricultural economy with surplus labor to an advanced industrial economy through shifting the suprlus labour to the modern sector.
Why is specialization important in trade?
Trade between two countries thateach specialize in a certain product allows both countries to enjoy a higher total output and consumption than what would have been possible domestically. The product can also be made better as one country focuses on one product instead of many.
What is comparative advantage?
A country with a comparative advantage is a situation in which a country or business can produce a good at a lower opportunity cost than another producer.
Determine the amount of labour one of the countries puts into creating a certain amount of a product compared to the other country.
What are the terms of trade?
Think: the terms of the trade
The relative price of exports in terms of imports. Ratio of prices of exports to imports.
What is the absolute advantage?
When a producer can provide a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than its competitors.
Negative effects of over-specialization:
- exploitation of workers
By manufacturing with countries with less stringent labour laws, companies can benefit from child labour and coercive employment practices that are not legal in the company’s home countries. - destruction and/or depletion of a country’s resources
Free trade vs fair trade
Free trade entails agreements between countries that allow unrestricted import and export of goods.
Fair trade is a trading paternship whose aim is to seek greater equity in trade through the higher payment to exporters.
What is the staple thesis?
Think: “staples”
A thesis supporting the staples in developing Canada’s economy.
Staples:
-cultivation and exportation of raw materials, which led to toher forms of economic development
