Theories
Which level of economic activity matches most core countries?
Tertiary
- Service industries
- Bankers, lawyers, doctors, teachers, nurses, sales people
- Focus is the market
What is a maquiladora?
A factory located in Mexico, but owned by a U.S. company.
What is GNP?
Gross National Product
- Total value of goods and services produced by a country in a year
Name one trait of an MDC (more developed country) and an LDC (less developed country).
MDC: High levels of industrialization, urbanization, and economic development. High per capita income, low birth and death rates, low population growth rates, and long life expectancies.
LDC: High poverty rates, limited healthcare and education access, high population growth, higher GII, high infant and maternal mortality rates.
What is agglomeration?
Name and describe one stage in Rostow's Stages of Development.
1. Traditional; Subsistence farming, rigid social structure, slow technology changes
2. Preconditions to take off; new leadership, greater flexibility, openness, diversification
3. Takeoff; industrial revolution, urbanization, technological and mass production breakthroughs
4. Drive to maturity; diffusion of technology, industrial specializations, expanding international trade, population growth slows
5. High mass consumption; high incomes, widespread production of goods and services, many people working in the service sector
Define industrialization.
A period of social/economic change that changes the society from an agricultural society to an industrial society.
Gross National Income
- GDP + Income from foreign investments - foreign debts
What is an effect of ecotourism?
- Promote conservation and environmental awareness
- Can displace local communities
- Can encourage too much tourism
- Stimulates the local economy
What is deglomeration?
The movement of businesses and industries away from urban centers.
Define transportation based on Weber's Least Cost Theory.
1. The movement of goods by means of highway, rail, air, pipeline, or water.
2. The movement of goods.
Define deindustrialization.
- Job losses
- Factory closures
What is GDP?
Gross Domestic Product
Measure of the total market value of all the final goods and services produced and rendered by a specific time period by a country.
Name a few modes of transportation.
- Road/highway/truck
- Rail/train
- Air/plane
- Pipeline
- Water/maritime
Define an export processing zone.
A designated area within a country where businesses import raw materials, process them, and then export the result to the world market.
Define bulk gaining and bulk reducing industries.
Bulk gaining: An industry in which the final product has more space than the raw materials
Bulk reducing: An industry in which the final product has less space than the raw materials
Why do companies prefer outsourcing?
- Cheaper labor costs
- Cheaper production costs
- Improved efficiency
What is GII?
Gender Inequality Index
A measure of gender Inequality in reproductive health, empowerment, and labor market participation.
What is HDI?
A composite measure used to show spatial variation among states in levels of development.
Define a Break of Bulk.
A location along a transport route where goods must be transferred from one mode to another.
Name the 3 tiers of Wallerstein's World Systems Theory, and one trait of each.
1. Core; high education levels, high salaries, more technology, generates more wealth
2. Semi Periphery; processes from both core and periphery occur, exploited by the core, exploits the periphery
3. Periphery; low levels of education, low salaries, less technology, generates less wealth
- Characterized by increased global trade, manufacturing in multiple locations and transference of labor geographically around the world
- Outcome of globalization and pursuit of cheaper labor
- Processes of production aren't confined to national boundaries
What is NAFTA?
North American Free Trade Agreement
- A trade agreement between Canada, Mexico, and the United States that eliminated tariffs on goods traded between the three countries
What is a Special Economic Zone?
A city in Southeast Asia that allows foreign companies to build factories that produce goods for cheap labor.
What are terminal costs?
The costs of loading and unloading what is being shipped.