unit 7 vocab Flashcards
Industrial Revolution
A period of rapid development of industry that started in Great Britain in the late 18th and 19th centuries
primary sector
jobs related directly to the extraction of the earths natural resources
secondary sector
jobs in processing or refining of natural resources
tertiary sector
jobs related to the sale or exchange of goods
quaternary sector
the industry based on technology, financial planning, research, and development
quinary sector
jobs in government, public service, healthcare, and education
multiplier effect
describes the expansion of an areas economic base as a result of the basic and non basic industries located there
least cost theory model
a theory made by alfred weber saying that all major corporations make their decisions about where to house their production and manufacturing capabilities based on the least amount of cost to acheive high profit
agglomeration economies
a localized economy in which a large number of companies and industries cluster to benefit from cost reductions and efficiency gains from proximity
cottage industries
an industry where the products are small scale and hand made in homes
GDP
the total value of goods and services produced within the borders of a country during a year.
GNP
the total value of goods and services, even from abroad, produced by a country within a year.
GNI
the total amount of money earned by a nations people and businesses. it includes all things earned even abroad
per capita
the total of the GDP, GNP, or GNI divided by the total population
purchasing power parity (PPP)
amount of money in one country to purchase the same goods and services in another country
Formal Sector
Businesses, enterprises, and other economic activities with government supervision and protection as well as taxation.
Informal sector
workers who are self employed and are not on payrolls, so not with taxes.
Gini Index/Coefficient
A measure of statistical dispersion to represent the income distribution of a nations residents from 0-1, with 0 being most equal
Human Development Index
Measures Life Expectancy, education amount, and per capita income.
Gender Inequality Index
A composite metric of gender inequality from 0-1, with 0 being complete equality, using reproductive health, empowerment, and the labor market.
Dependency Model
Theory that LDCs are highly dependent on foreign factories to provide employment and infrastructure.
Rostow’s Model
A model showing the steps of becoming fully developed, 1) Traditional, 2) Preconditions to Take-Off, 3) Take-Off, 4) Drive to Maturity, and 5) Age of High Mass Consumption
Transnational Corporation
A company that has assets and production in many countries other than its headquarters and shareholders locations.
World Systems theory model
Divides countries into three groups based on power, social standing, and development
Comparative Advantage
The ability of an individual, firm, or country to produce a service at a lower price than others.
Complementarity
If two places both offer the other something it needs or wants
Outsourcing
Process of moving industrial production or service industries out of the country
