AP VOCAB
Industrialization and Development
I. Models of Development and Measures of Productivity
Primary economic activities
Secondary economic activities
Tertiary economic activities
Quaternary economic activities
Quinary economic activities
Least-developed countries
Neo-colonialism
Foreign direct investment
Core
Semi-periphery
Periphery
Infrastructure
Slow World
Fast World
Technology gap
Quiz Date: ______________
The harvest or extraction of raw materials, including fishing, agriculture, ranching, and
mining
The assembly of raw materials into goods for consumption, including heavy industry,
manufacturing, and textile products
The exchange of goods produced in secondary activities, including retailing,
restaurants, and basic service jobs
Research and development, teaching, tourism, and other endeavors having to do with
exchanging knowledge
Considered a subset of quaternary activities and involve high-level decision making an
scientific research
The countries including countries in Africa, except for South Africa, and parts of
South America and Asia, that usually have low levels of economic productivity, low
per capita incomes, and generally low standards of living
The entrenchment of the colonial order, such as trade and investment, under a new
guise
The investment of capital by a country r corporation in an area away from the home
base of the investor—often in the form of actual factories and infrastructure
National or global regions where economic power, in terms of wealth, innovation, and
advanced technology is concentrated
The newly industrialized countries with median standards of living that offer their
citizens relatively diverse economic opportunities, but have extreme gaps between the
rich and poor
Countries that usually have low levels of economic productivity, low per capita
incomes, and generally low standards of living.
The foundation of a society; urban centers, transport networks, communications,
energy distribution systems, farms, factories, mines and such facilities as schools,
hospitals, postal services , and police and armed forces
The developing world that does not experience the benefits of high-speed
telecommunications and transportation technology
Areas of the world, usually the economic core, that experience greater levels of
connection due to high-speed telecommunications and transportation technology
The widening gap between countries that have access to high speed
telecommunications technology and those that do not
II. Measuring Development
Development
Third World
Gross National Product
(GNP)
Purchasing Power Parity
(PPP)
Gross Domestic Product
(GDP)
Net National Product (NNP)
Human Development Index
(HDI)
Physical Quality of Life
Index
Gender Equity
Agricultural labor force
The process of economic growth, expansion, or realization of regional resource potential
The poorest nations of the world. Most third world nations are in debt to Western banks and
governments or international lending organizations. Many depend on international aid to meet the
basic needs of their population. (See Developing Countries.) This term has fallen into disfavor in
recent years, replaced by terms such as Less-Developed Country (LDC), developing nations, and the
Global South
The total value of all goods and services produced by a country’s economy in a given year. It
includes all goods and services produced by corporations and individuals of a country, whether or
not they are locate within the country
PPPs are the rates of currency conversion that allow for differences in price levels between
countries. Normally they are given in national currency units per US dollar. Take a fixed basket of
goods. Suppose it costs $100 in the US and 1000 rupees in India; this indicates that one dollar
provides exactly the same purchasing power as 10 rupees. The purchasing power parity (PPP)
exchange rate is defined as US$1=10 rupees. For various reasons, the actual exchange rate often
diverges from the PPP rate.
The total value of all goods and services produced within a country during a given year
The measure of all goods and services produced by a country in a year, including production from
its investments abroad minus the loss or degradation of natural resource capital as a result of
productivity.
Measure used by the United Nations that calculates development not in terms of money or
productivity but in terms of human welfare. The HDI evaluates human welfare based on three
parameters: life expectancy, education ,and income
The physical quality-of-life index (PQLI) is an attempt to measure the quality of life or well-being
of a country. The value is a single number derived from basic literacy rate, infant mortality, and life
expectancy at age one, all equally weighted on a 0 to 100 scale.
A measure of the opportunities give to women compared to men within a given country
% of the labor force involved in agriculture – usually the higher the percent the lower the standard
of living.
III. Industrialization
Industrialization
Specialty goods
Fordism/ Assembly line
production
Service Based Economies
Economic Tiger
(The “Four Tigers”)
Deindustrialization
Postindustrial economy
Backwash effect
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Process of industrial development in which countries evolve economically, from producing basic,
primary goods to using modern factories for mass-producing goods
Goods that are assembled individually or in small quantities, are still produced today, but they are
not as dominant as they were before the Industrial revolution
A highly organized and specialized system for organizing industrial production and labor. Named
after automobile producer Henry Ford, Fordist production features assembly-line production of
standardized components for mass consumption
Economies focused on research and development, marketing, tourism, sales, telecommunications
The four Asian economies that were the first to show rapid economic development after the success
of Japan: Hong Kong, South Korea, Singapore, and Taiwan.
Loss of industrial activity in a region
Emerging economy, in the US and a handful of other technologically advanced countries, as
traditional industry is overshadowed by a higher-technology productive complex dominated by
services and information—related and managerial activities
When one region's economic gain translates into another's economic loss
IV. Location Principles
Spatially fixed costs
Spatially variable costs
Break-of-bulk point
Plant location (supplies,
“just in time” delivery)
Entrepot
Agglomeration
Multiplier effect
Ancillary activities
Economies of scale
Comparative advantage
Footloose firms
Dot-com
Brick-and-mortar business
Transnational corporation
Conglomerate corporations
Export-processing zones
Manufacturing export zones
Special economic zones
(China)
Offshore financial centers
North American Free Trade
Agreement (NAFTA)
Outsourcing
Deglomeration
Regionalization
Economic backwaters
Quiz Date: ______________
A cost of production that does not change based on location
Production costs that change due to the location of production
A location along a transport route where goods must be transferred from one carrier to another. In a
port, the cargoes of ocean going ships are unloaded and put on trains, trucks, or perhaps smaller
riverboats for inland distribution
During the manufacturing processes to save storage fees
A place, usually a port city, where goods are imported, stored, and transshipped; a break of bulk
point
A process involving the clustering or concentration of people or activities. The term often refers to
manufacturing plants and businesses that benefit from close proximity because they share skilledlabor pools and technological and financial amenities
Expansion of economic activity caused by the growth or introduction of another economic activity.
For example, a new basic industry will create jobs, directly or indirectly, in the non basic sector
Activities that surround and support large-scale industries, such as shipping and food service
The savings that accrue from large-scale production whereby the unit cost of manufacturing
decreases as the level of operation enlarges. Supermarkets operate on this principle and are able to
charge lower prices than small grocery stores
The principle that cities or regions tend to produce those items or support those activities for which
they have the greatest advantage over other areas as defined by the factors of production, demand,
supporting industries, and quality of life considerations, as defined in relation to human, financial,
and physical resources, and opportunity costs—costs expressed in terms of opportunities foregone.
Manufacturing activities in which cost of transporting both raw materials and finished product is not
important for determining the location of the firm
Internet based companies
Actual stores where people can shop
A firm that conducts business in at least two different countries; also known as a multinational
corporation
Firms that are comprised of many smaller firms that serve different functions
Areas where governments create favorable investment and trading conditions to attract exportoriented industries
A feature of economic development in peripheral countries whereby the host country establishes
areas with favorable tax, regulatory, and trade arrangements, in order to attract foreign
manufacturing operations. The goods manufactures in these export zones are primarily destined for
the global market
Specific area within a country in which tax incentives and less stringent environmental regulations
are implemented to attract foreign business and investment
Provide a low-profile way for companies and individuals to conduct financial transactions and to
avoid high taxes.
The North America Free Trade Agreement which took effect Jan. 1 1994, creating a free-trade area
between the United States, Canada, and Mexico, provides for the tariff-free movement of goods and
products, financial services, telecommunications, investment, and patent protection within and
between the signatories
The concept of taking internal company functions and paying an outside firm to handle them.
Outsourcing is done to save money, improve quality, or free company resources for other activities.
Outsourcing was first done in the data-processing industry and has spread to areas, including
telemarketing and call centers.
The process of industrial deconcentration in response to technological advances and/or increasing
cost due to congestion and competition
The process by which specific regions acquire characteristics that differentiate them from others
within the same country
Some areas do not benefit from economic growth and sometimes actually recede, these areas are
called