AP Human Geography Unit 6

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for Mrs. Watson's Class - 2011 feel free to correct me

agglomeration economics

the savings to an individual enterprise derived from locational association with a cluster of other similar economic activites, such as other factories or retail stores

break - of - bulk point

a location where transfer is possible from one mode of transportation to another; a location along a transport route where goods must be transferred from one carrier to another

bulk gaining industry

an industry in which the final product weighs more or has a greater volume than the inputs

bulk reducing industry

an industry in which the final product weighs less or comprises of a lower volume than the inputs

carrier efficiency

the ratio of output to input for a given carrier

comparative advantage

the principle that an area produces the items for which it has the greatest ratio of advantage or the lease ratio of disadvantage in comparison to other areas, assuming free trade exists

complimentary trade

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

core region

regions that dominate trade, control the most advanced technologies, and have high levels of productivity within diversifies economies

cottage region

areas that are popular locations for recreational properties such as cottages or summer homes

cumulative causation

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

cultural convergence

the tendency for cultures to become more alike as they increasingly share technology and organizational structures in a modern world united by improved transportation and communication


the process of deconcentration; the location of industrial or other activities away from established agglomerations in response to growing costs of congregation and regulation


the cumulative and sustained decline in the contribution of manufacturing to a national economy

dependency theory

the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former; poor states are impoverished and rich ones are enriched by the way poor states are integrated into the "world system"

developed country

a modern, industrialized country in which people are generally better educated and healthier and live longer than people in the developing countries

developing country

a country in which the society is less modern and less industrialized and in which inhabitants are generally poorer than they are in developing countries

distance decay

the effects of distance on interaction, generally the greater the distance the less interaction

economic sector

in modern economics, there are four main sectors of economic activity: primary, secondary, tetiary, and quatinary

economies of scale

cost advantages to manufacturers that accrue from high-volume production, since the average cost of production falls with increasing output


responsible travel that does not harm ecosystems or the well-being of local people

energy consumption

using energy; an indicator of development - MCDs tend to consume much more energy per capita then LCDs do


a trading center,or simply a warehouse, where merchandise can be imported and exported without paying important duties , often at a profit

export processing zone

(EPZ) - designated areas of countries where governments create conditions conducive to export-orientated production

fixed costs

an activity cost (as of investment in land, plant, and equipment) that must be met without regard to level of output; an imput cost that is spatially constant

footloose industry

a descriptive term applied to manufacturing activities for which the cost of transporting material or product is not important in determining location of production; an industry or firm showing neither market nor orientation


the manufacturing economy and system derived from assembly-line mass production and the mass consumption of standardized goods

foreign direct investment

investment in the economies of LCDs by transnational corporations based in MDCs

friction of distance

the increase in time and cost that usually comes with increasing distance


the trend toward increased cultural and economic connectedness between people, businesses, and organizations throughout the world

gross domestic product

(GDP) - a measure of the total value of goods and services produced within a country during a year

gross national product

(GNP) - a measure of the total value of goods and services produced by the people and corporations in a year including goods and services produced within and outside the country

growth pole

an urban center with certain attributes that, if augmented by a measure of investment support, will stimulate regional economic development in its hinterland

high - technology corridors

areas designated by local government to benefit from lower taxes and high-technology infrastructure to provide high tech jobs for the local population

human development index

(HDI) - an aggregate index of development, which takes into account economic, social, and demographic factors, using GDP, literacy and education, and life expectancy

international division of labor

a division of work between rich and poor countries under which low-waged workers in th global south do assembly, manufacturing, and office work on contract to companies based in the global north

just in time production

seeks to reduce inventories for the production process by purchasing inputs for arrival just in time to use and producing output just in time to sell

labor intensive

production processes that employ a large amount of labor relative to the amount of capital equipment

least cost location

(theory) the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration


LCD - less developed country
MDC - more developed country

manufacturing export zones

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


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

market orientation

the tendency of economic activity to locate close to its market

multinational corporation

(MNC) - an organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management

multiplier effect

the direct, indirect, and induced consequences of change in a n activity. 1. In industrial agglomerations, the cumulative processes by which a given change (such as a new plant opening) sets in motion a sequence of further industrial employment and infrastructure growth. 2. In urban geography, the expected additional of non basic workers and dependents to a city's total employment and population that accompanies new basic sector employment.


the economic control MDCs are sometimes believed to have over LDCs


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

peripheral region

poor regions that are dependent in significant ways on the core and do not have as much control over their own affairs


a stage of economic development in which service activities become relatively more important than goods production; professional and technical employment supersedes employment in agriculture and manufacturing; and level of living is defined by the quality of services and amenities rather than by the quantity of goods available

purchasing power parity

(PPP) - a theory of long-term equilibrium exchange rates based on relative price levels of two countries founded on the law of one price, the idea that in absence of transaction costs and official barriers to trade, identical goods will have the same price in different markets when the prices are expressed in terms of one currency

resource orientation

tendency for an industry or other type of economic activity to locate close to its resources

semi-peripheral region

intermediary regions in terms of hierarchy of power between core regions and peripheral regions

specialized economic zones

(SEZ) - specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment

stages of growth

(model) - model that assumes that all countries follow a similar path to development advancing through five stages: traditional, preconditions of takeoff, takeoff, drive to maturity, high mass consumption

stages of growth: traditional

dominant economic activity is subsistence farming, rigid social structure, limited technology

stages of growth: preconditions of takeoff

new leadership, greater flexibility, openness, and diversification

stages of growth: takeoff

industrial revolution and sustained growth, urbanization increases, technology and mass production breakthroughs occur

stages of growth: drive to maturity

technology diffuses, industrial specialization occurs, international trade expands, population growth slows

stages of growth: high mass consumption

high incomes and widespread production of goods and services with the majority of the workers moving to the service sector

substitution principal

the tendency to substitute one factor of production for another in order to achieve optimum plant location

technology gap

the contrast between the technologies available in developed core regions and those present in peripheral areas of development

technology transfer

the diffusion to or acquisition by one culture or retention of the technology possessed by another, usually more developed, society


areas devoted to research, development, and sale of high technology products

threshold / range

(central place theory) - the maximum/minimum market possible/needed to support the supply of a product or service

time-space compression

a term associated with the work of David Harvey that refers to the social and psychological effects of living in a world in which time-space convergence has rapidly reached high levels of intensity

time-space convergence

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

transnational corporation

(TNC) - a company that conducts research, oparates factories, and sells products in many countries, not just where its headquarters or shareholders are located


present or existing everywhere

value added

the gross value of the product minus the costs of raw materials and energy

variable costs

a cost of enterprise and operation that varies either by output level or by location of the activity

world cities

cities most closely integrated into the global economic system because they are in the center of the flow of information and capital

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