Unit 6: Economic Geography

different categories that make up the economy

deal with extraction of natural resources from the earth, agriculture, mining, energy, forestry, and fisheries

processing of raw materials from the primary sector; all forms of manufacturing

services; transportation, wholesaling, and retailing of finished goods to consumers

work that doesn't create a tangible good

business services; includes wholesaling, finance, banking, insurance, real estate, advertising, and marketing

consumer services; retailing, tourism, entertainment, and communications, government, health, education, utilities

something that is bought and sold; a good or product

processing of making products

links between producers and consumers in the production and distribution of a product

process of obtaining coal or other minerals from the earth

extracting resources from the earth; petroleum (oil)

countries that depend on the prices of their resources

part of the ocean where fish and other sea creatures are caught

energy sources which cannot be recreated once expended

energy sources that can be recreated once expended

hydroelectricity, solar, wind, nuclear, tidal, geothermal power

ability to meet humanities current needs without compromising the ability of future generations to meet their needs

population of organisms existing together in a small, relatively homogeneous area (pond, forest, small island) together with the energy, air, water, soil, and chemicals upon which it depends

additional value of a commodity beyond the cost of commodities used to make it from the previous stage of production

goods intended for use of more than a year

goods intended for use of less than a year

sectors where the labor force tends to be hourly employees or receive few if any benefits (paid vacation, health insurance); for example, hotel and food services, retail, customer services, contract agricultural labor, construction

sectors where pay tends to be salaried and includes fringe benefits like health, dental, vision, vacation, sick days, and retirement pay

classified by the type of activity performed as part of a service

shift away from manufacturing as the main source of economic production

number of people who work in agriculture

percentage of daily requirement, can be important index of development

series of links connecting the many places of production and distribution and resulting in a commodity that is then exchanged on the world market

describes patterns of distribution of MDCs (clustered near center) and LDCs (near edges) when earth is viewed from North Pole

change in culture that occurs as diffusion of technology and ideas grows

LDCs tend to have a higher dependency ratio

process of improving material conditions of people by diffusion of knowledge and technology

indicator of development, MDCs tend to use more than LDCs per capita

investment in the economics of LDCs by transnational corporations based in MDCs

social, not biological, differences between men and women

Gross Domestic Product, total value of goods and services produced in a year in a country

Gross National Product, total value of all goods and services produced by a country’s economy in a year

Human Developent Index, aggregate index of development that takes into account economic, social, and demographic factors using GDP, literacy and education, and life expectancy

undeveloped, developing, developed; based on HIE (healthcare, infrastructure, education specifically of women)

used to distinguish LDCs from MDCs, include GDP, literacy rate, life expectancy, caloric intake

economic control that MDCs are sometimes believed to have over LDCs

development index based on literacy rate, infant mortality rate, and life expectancy at age 1

Purchasing Power Parity, monetary measurement of development that takes into account what money buys in different countries

linear theory of development that developed countries go through a common pattern: 1) Traditional Society 2) Transitional Stage 3) Take Off 4) Drive to Maturity 5) High Mass Consumption

difference in technology used and or development in two companies, countries, ethnic group, etc. where one is more advanced than another

process by which existing knowledge, facilities or capabilities developed under federal research and development funding are utilized to fulfill public and private needs

countries in the developing world who are not politically aligned; misused and outdated term used to describe countries in the developing world

theory developed by Immanuel Wallerstein that explains the emergence of a core, periphery, and semi-periphery in terms of economic and political connections first established at the beginning of exploration in the late 15th century and maintained through increased economic access up until the present

rain containing acids that form in the atmosphere when industrial gas emissions (especially sulfur dioxide and nitrogen oxides) combine with water

clustering of productive activities and people for mutual advantage

economies based on the clustering of productive activities and people

the contamination of the atmosphere by the introduction of pollutants from human and natural sources

efficient manufacturing process in which components are added to a product in a sequential manner using optimally planned logistics, resulting in extremely fast production

form of mass production in which each worker is assigned one specific task to perform repeatedly

the price and demand for real estate changes as the distance towards the central business district increases

a location along a transport route where goods must be transferred from one carrier to another

the ratio of output to input for a given carrier

manufacturing based in homes rather than a factory, commonly found before Industrial Revolution

the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers

when two regions specifically satisfy each other's needs through exchange of raw materials and or finished goods

the spiral buildup of advantages that occurs in specific geographic settings as a result of the development of external economies, agglomeration effects, and localization economies

process of industrial deconcentration in response to technological advances and/or increasing costs due to congestion and competition

losing of industrial capability or strength, becoming less industrial

lower production costs because of a larger volume of production

port where goods are imported from other parts of the world, then re-exported for profit to foreign locations

special areas of a country where some normal trade barriers are eliminated and bureaucratic requirements are lowered in hopes of attracting new business and foreign investment

expenses that do not change in proportion to the activity of a business

industry whose location is not strongly influenced by access to materials and/or markets, can operate in a wide range of locations

newly industrialized countries of the late 20th century: Hong Kong, Singapore, South Korea, and Taiwan

industry where the final product weighs more or is higher volume than inputs

industry where the final product weighs less or is lower volume than inputs

growth of the economy is not uniform over the entire region. Important to economist growth theories

Spykman's theory that the domination of the coastal fringes of Eurasia would provide the base for world conquest

business profit is maximized by choosing a manufacturing location where production costs are lowest as well as land is cheapest and the distance from the market is the smallest

usually region with extremely dense industry and heavily urbanized, based on environmental considerations and the cost effectiveness of the location for the industry

specialized tasks working together to produce a single product more efficiently broken down across international boundaries

states that optimum location of a manufacturing firm is explained in terms of cost minimization

factory built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico

effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent

North American Free Trade Agreement (1994), allows open trade with US, Mexico, and Canada

sending parts of a product out for production to another factory for cost savings

method of inventory management made possible by efficient transportation and communication system, whereby companies keep on hand what they need for near term production, planning that what they need for longer term production will arrive when needed

a stage of economic development in which service activities become relatively more important than goods production

location factors related to the cost of factors of production inside the plant (land/labor/capital)

location factors related to the transportation of materials into and from a factory

regions with economic laws more lax than typical economic laws in a country (free trade zones, export processing zones, etc.)

correct location of a production facility is where the net profit is the greatest; explains the tendency to substitute one factor of production (e.g., labor) for another (e.g., capital for automated equipment) in order to achieve optimum plant location

greatly accelerated movement of goods, information, and ideas during the twentieth century, made possible by technological innovations in transportation and communications

company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located

organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management

costs that change directly with the amount of production (energy supply and labor costs)

the global economic system is divided between nations that control wealth and those from which resources are taken. This analysis describes the unequal economic and political relationships in which certain industrialized nations dominate the core of the system

rejects the thought that LDCs are mirror images of what MDCs used to be. Instead of stating that these LDCs can catch up with MDCs, this theory states that they are in another class completely and should stop trying to follow the same path as MDCs followed, and choose a path more suited to their own needs. Also states that MDCs were never in the "primitive" stage that LDCs currently reside in. Wallerstein says that LDCs should reduce their relations to MDCs so that they can fit in better with their classification.

states that more developed countries (with the exception of Australia and New Zealand) are the core, and that LDCs are the periphery. When looking at a polar map, this is shown with a circular view, and when looking at a flat map, this is divided by a north-south line.

cities dominant in the global political economy, not population-based

present or existing everywhere