APHG Review Unit 6: Economic Geography

Key Terms

Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources. Agglomeration

Economic activities that surround and support large-scale industries such as shipping and food service. Ancillary Activities

Human-centered; in sustainable development, this refers to ideas that focus solely on the needs of people without considering the creatures with whom we share the planet or the ecosystems upon which we depend. Anthropocentric

The negative effects on one region that result from economic growth within another region. Backwash Effect

A location where large shipments of goods are broken up into smaller containers for delivery to local markets. Break-bulk Point

Brick-and-mortar Business Traditional businesses with actual stores in which trade or retail occurs; it does not exist solely on the Internet. Brick-and-mortar Business

Bulk-gaining Industries Industries whose products weigh more after assembly than they did previously in their constituent parts. Such industries tend to have production facilities close to their markets. Bulk-gaining Industries

Bulk-reducing Industries Industries whose final products weigh less than their constituent parts, and whose processing facilities tend to be located close to sources of raw materials. Bulk-reducing Industries

Conglomerate Corporation A firm that is comprised of many smaller firms that serve several different functions. Conglomerate Corporation

National or global regions where economic power, in terms of wealth, innovation, and advanced technology, is concentrated. Core

A model of the spatial structure of development in which underdeveloped countries are defined by their dependence on a developed core region. Core-periphery Model

An industry in which the production of goods and services is based in homes as opposed to factories. Cottage Industry

The dispersal of an industry that formerly existed in an established agglomeration. Deglomeration

Loss of industrial activity in a region. Deindustrialization

The process of economic growth, expansion, or realization of regional resource potential. Development

Web-based economic activities. E-commerce

Regions that fail to gain from national economic development. Economic Backwaters

A form of tourism, based on the enjoyment of scenic areas or natural wonders, that aims to provide an experience of nature or culture in an environmentally sustainable way. Ecotourism

Export-processing Zone (EPZ) Areas where governments create favorable investment and trading conditions to attract export-oriented industries. Export-processing Zone (EPZ)

Areas of the world, usually the economic core, that experience greater levels of connection due to high-speed telecommunications and transportation technologies. Fast World

Manufacturing activities in which cost of transporting both raw materials and finished product is not important for determining the location of the firm. Footloose Farms

System of standardized mass production attributed to Henry Ford. Fordism

Overseas business investments made by private companies. Foreign Investment

A measure of the opportunities given to women compared to men within a country. Gender Equity

The idea that the world is becoming increasingly interconnected on a global scale such that smaller scales of political and economic life are becoming obsolete. Globalization

Gross Domestic Product The total value of goods are services produced within the borders of a country during a specific time period, usually one year. Gross Domestic Product

Gross National Product The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year. Gross National Product

Human Development Index (HDI) Measure used by the United Nations that calculates development not in terms of money or productivity but in terms of human welfare, using three parameters; life expectancy, education, and income. Human Development Index (HDI)

Industrial Revolution The rapid economic and social changes in manufacturing that resulted after the introduction of the factory system to the textile industry in England at the end of the 18th century. Industrial Revolution

Process of industrial development in which countries evolve economically, from producing basic, primary goods to using modern factories for mass producing goods. Industrialization

Industrialized Countries Those countries including Britain, France, the United States, Russia, Germany, and Japan, that were all at the forefront of industrial production and innovation through the middle of the 20th c. These countries still account for a large portion of the world’s total industrial output. Industrialized Countries

A concept developed by Alfred Weber to describe the optimal location of a manufacturing establishment in relation to the costs of transport and labor, and the relative advantages of agglomeration or deglomeration. Least-cost Theory

Least-developed Countries (LDC) Those 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. Least-developed Countries (LDC)

A region in which manufacturing activities have clustered together A region in which manufacturing activities have clustered together. The major US industrial region has historically been in the Great Lakes, which includes the states of Michigan, Illinois, Indiana, Ohio, New York, and Pennsylvania. Manufacturing Region

Those U.S. firms that have factories just outside the United States/Mexican border in areas that have been specially designated by the Mexican government known as Free Processing Zones (FPZ’s). In such areas, factories cheaply assemble goods for export back into the United States. Maquiladoras

A 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. Net National Product

Nonrenewable Resources Natural resources, such as fossil fuels, that do not replenish themselves in a timeframe that is relevant for human consumption. Nonrenewable Resources

Offshore Financial Center Areas that have been specially designed to promote business transactions, and thus have become centers for banking and finance. Offshore Financial Center

Sending industrial processes out for external production Sending industrial processes out for external production. The term outsourcing increasingly applies not only to traditional industrial functions, but also to the contracting of service industry functions to companies to overseas locations, where operating costs remain relatively low. Outsourcing

Countries that usually have low levels of economic productivity, low per capita incomes, and generally low standards of living. This area includes Africa (except for South Africa), parts of South America, and Asia. Periphery

Primary Economic Activities Economic activities in which natural resources are made available for use or further processing, including mining, agriculture, forestry, and fishing. Primary Economic Activities

A measure of the goods and services produced within a particular country. Productivity

Purchasing Power Parity (PPP) A monetary measurement of development that takes into account what money buys in different countries. Purchasing Power Parity (PPP)

Quaternary Economic Activities Economic activities concerned with research, information gathering, and administration. Quaternary Economic Activities

Quinary Economic Activities The most advanced form of quaternary activities consisting of high-level decision making for large corporations of high- level scientific research. Quinary Economic Activities

The process by which specific regions acquire characteristics that differentiate them from others within the same country. In economic geography, regionalization involves the development of dominant economic activities in particular regions. Regionalization

Any natural resource that can replenish itself in relatively short period of time, usually no longer that the length of a human life. Renewable Resources

Rostow’s Stages of Development A model of economic development that describes a country’s progression which occurs in five stages transforming them from least-developed to most-developed countries. Rostow’s Stages of Development

Secondary Economic Activities Economic activities concerned with the processing of raw materials such as manufacturing, construction, and power generation. Secondary Economic Activities

Those newly industrialized countries with median standards of living, such as Chile, Brazil, India, China, and Indonesia. These countries offer their citizens relatively diverse economic opportunities but also have extreme gaps between rich and poor. Semiperiphery

Service-based Economies Highly developed economies that focus on research and development, marketing, tourism, sales, and telecommunications. Service-based Economies

The developing world that does not experience the benefits of high speed telecommunications and transportation technology. Slow World

An input cost in manufacturing that remains constant wherever production is located. Spatially Fixed Costs

Spatially Variable Costs An input cost in manufacturing that changes significantly from place to place in its total amount and in its relative share of total costs. Spatially Variable Costs

Goods that are not mass-produced but rather assembled individually or in small quantities. Specialty Goods

Sustainable Development The idea that people living today should be able to meet their needs without prohibiting the ability of future generations to do the same. Sustainable Development

Tertiary Economic Activities Activities that provide the market exchange of goods and that bring together consumers and providers of services such as retail, transportation, government, personal, and professional services. Tertiary Economic Activities

Transnational Corporation A firm that conducts business in at least two separate countries; also known as multinational corporations. Transnational Corporation

A group of cities that form an interconnected, internationally dominant system of global control of finance and commerce. World Cities

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 c. and maintained through increased economic access up until the present. World-systems Theory

Multiple Choice Questions

Section 1: Industrialization 1. The Industrial Revolution A. began in Germany in the 16th century. B. was initiated by Henry Ford. C. began in England in the 18th century. D. reached its peak in the 1970’s. E. began in the United States in the early 20th century. Section 1: Industrialization

Section 1: Industrialization 2. Which of the following are commonly associated with the Industrial Revolution? A. Specialty goods B. Cottage industries C. New forms of capital investment D. The printing press E. Guild industries Section 1: Industrialization

Section 1: Industrialization 3. Deindustrialization has had a dramatic impact on which of the following regions? A. The lower Mississippi Valley B. The Great Plains C. The Great Lakes D. The Pacific Northwest E. The Cotton Belt Section 1: Industrialization

Section 1: Industrialization 4. _____ take advantage of geographic differences in wages, labor laws, environmental regulations, taxes, and the distribution of natural resources by locating various aspects of their production in different countries. A. Conglomerate corporations B. E-business C. Transnationals D. Service industries E. Footloose industries Section 1: Industrialization

Section 1: Industrialization 5. Mexico’s maquiladoras are examples of A. offshore financial centers. B. transnationals. C. brick-and-mortar businesses. D. export-processing zones E. ancillary activities. Section 1: Industrialization

1. Niger’s economy is mostly limited to A. service industries. B 1. Niger’s economy is mostly limited to A. service industries. B. primary economic activities. C. export-processing activities. D. quaternary economic activities. E. nonbasic industry. Section 2 & 3: Models of Development and Measures of Productivity and Global Economic Patterns

2. Rostow’s stages of development model predicts that each country’s economy will progress from A. high consumption to ecological sustainability. B. low output to high output. C. low per capita incomes to high per capita incomes and high consumption. D. high levels of pollution to efficient resource use. E. low employment in tertiary activities in high employment in primary activities. Section 2 & 3: Models of Development and Measures of Productivity and Global Economic Patterns

3. The _____ is a measure of all goods and services produced by a country in year, including production from its investments abroad, minus the loss or degradation of natural resource capital as a result of productivity. A. Net National Product B. Gross National Product C. Human Development Index D. Intrinsic Productivity Index E. Purchasing Power Parity Section 2 & 3: Models of Development and Measures of Productivity and Global Economic Patterns

4. Gender equity is related to A. Gross National Product. B 4. Gender equity is related to A. Gross National Product. B. cultural traditions. C. education. D. All of the above E. Only A and B Section 2 & 3: Models of Development and Measures of Productivity and Global Economic Patterns

5. First tier world cities include A 5. First tier world cities include A. Tokyo, Mexico City, and Sao Paulo B. Tokyo, London, and New York C. Paris, Brussels, and Moscow D. Washington, Moscow, and London E. Los Angeles, London, and Paris Section 2 & 3: Models of Development and Measures of Productivity and Global Economic Patterns

Section 4: Location Principles 1. Firms try to locate their production facilities to A. maximize spatial accessibility. B. maximize visibility and minimize transportation. C. maximize agglomeration. D. minimize costs and maximize profits. E. minimize competition. Section 4: Location Principles

Section 4: Location Principles 2. The clustering of financial firms on Wall Street in New York is an example of A. least-cost theory. B. agglomeration. C. deindustrialization. D. ancillary industry. E. central place theory. Section 4: Location Principles

Section 4: Location Principles 3. Mr. Gemstone located his jewel shop in a place near his home so that he can eat lunch with Mrs. Gemstone every afternoon. A. His locational decision represents a market orientation. B. Since Mr. Gemstone owns his own business, he has chosen an optimal site as he minimizes transport costs to and from work C. It doesn’t matter too much where Mr. Gemstone put his jewelry shop because it is a footloose industry and as long as a viable market exists, he can locate pretty much anywhere. D. Because most jewelry shopping occurs online, the actual location of the shop is unimportant. E. Mr. and Mrs. Gemstone probably participate in a cottage industry. Section 4: Location Principles

Section 4: Location Principles 4. Economic activities that increase and thereby benefit from agglomerations in particular regions are called A. ancillary activities. B. tertiary activities. C. basic sector services. D. quinary activities. E. footloose industries. Section 4: Location Principles

Section 4: Location Principles 5. Which of the following regions is NOT and economic backwater? A. Buenos Aires, Argentina B. Western China C. Sao Paolo, Brazil D. Lower Mississippi Valley E. Upper Great Plains Section 4: Location Principles

1. The idea that resources should be conserved so that people living today can meet their needs without limiting the ability of future generations to do the same is called A. globalization. B. gross national happiness. C. sustainable development. D. environmental conservation. E. subsistence economics. Sections 5 & 6: Development, Equality, and Sustainability and Globalization.

2. Globalization A. is a new and unique phenomenon. B 2. Globalization A. is a new and unique phenomenon. B. has penetrated the entire world. C. is always good for people in the poorest countries. D. has a long and circuitous history. E. does not cause a countermovement of localization. Sections 5 & 6: Development, Equality, and Sustainability and Globalization.

Free Response Questions

Section 1: Industrialization 1. Economic activities are often categorized as being either primary, secondary, tertiary, or quaternary. A. What is deindustrialization? How does it fit into this categorization of economic activities from a geographic and development perspective? B. What are the effects of deindustrialization? C. How does deindustrialization fit into the global geography of production that has emerged in the last 30 years? What are its backwash effects? Section 1: Industrialization

1. Consider Rostow’s stages of development model. A 1. Consider Rostow’s stages of development model. A. What are its assumptions? What evidence would you use to support it? B. What are its shortcomings? Will all countries eventually conform to this model? Sections 2 & 3: Models of Development and Measures of Productivity and Global Economic Patterns

1. Globalization is a fairly recent concept used in Human Geography. A 1. Globalization is a fairly recent concept used in Human Geography. A. What is globalization? Discuss how the spatial patterns of globalization might coincide with levels of development. B. What are possible explanations for these patterns? Sections 5 & 6: Development, Equality, and Sustainability and Globalization