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vocab from Rubenstein's 9th edition Introduction to Human Geography, chapter 9

agglomeration economies

Economy in which like things are put together to their benefit all businesses. But bringing all people to one area increases congestion.

basic industries

Industries that sell their products or services primarily to consumers outside the settlement.

non-basic industries

Industries that sell their products primarily to consumers in the community.

Brandt Line

divides the more developed north from the less developed south

Comparative advantage

the ability to produce a good at a lower opportunity cost than another producer

Dependancy Theory

conflict; as developing countires make economic advancement, they are dependent on the core countries in an intertwined global economy. most will never achieve first world status. the mnc exploits local workers to maximize profits and forces out local companies. workers in developing countires serve as cheap labor pool

developing country

country in the process of becoming industrialized

Gender Empowerment Index

compares the ability of women and men to participate in economic and political decision making

Gross Domestic Product

The value of the total output of goods and services produced in a country in a given time period

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.

Human Development Index

Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy

import substitution

a government policy that uses trade restrictions and subsidies to encourage domestic production of manufactured goods

literacy rate

percentage of people who can read and write


control by a powerful country of its former colonies (or other less developed countries) by economic pressures

primary sector

The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.


The value of a particular product compared to the amount of labor needed to make it.

purchasing power parity

the principal that exchange rates are set so that the prices of similar products in different countries are about the same, a measure of how many units of currency are needed in one country to buy the amount of goods and services that one unit of currency will buy in another country

quarternary sector

Sector that includes jobs that focus on business services, such as trade, insurance, banking, advertising, and wholesaling.

raw material orientation

The location of the manufacturing plant in relation to the source of raw materials.

regional multiplier

The stimulation of economic growth by growth itself. As secondary industries develop they create a demand for raw materials and goods. Thus, machinery is made from steel and this stimulates steel manufacturing while the development of the steel industry requires more machinery. As manufacturing industry prospers, more jobs arise in service industries.

Rostow's Modernization Model

a 5 stage model of development where MDCs are in stages 4 or 5 and LDCs are in in the first 3 stages.

secondary sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

subsistence economy

a type of economy in which human groups live off the land with little or no surplus

tertiary sector

The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.

trickle- down effects

incresed wealth for upper class means benifit for the lower class

value added

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

economic development

The improvement of living standards by economic growth.

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