Anna Walker Sarah Turner Mary Claire Coats Gabby Trillo Unit 6 Study Guide 1.

Development The process of improving the material conditions of people through diffusion of knowledge and technology. 2. Human Development Index Indicator of level of development for each country, constructed by United Nations a. Uses Three Types of Factors One economic factor Two social factors One demographic factor

Norway has the highest HDI with approximately 0.96 The country with the lowest HDI is Niger with about 0.28 3. Gross Domestic Product The value of the total output of goods and services produced in a country in a given time period, usually a year. Examples: GDP per capita is about $40,000 in the United States 4. Primary Sector directly extracts raw materials from Earth Examples: mining, fishing, farming, and forestry 5. Secondary Sector manufacturers that process, transform, and assemble raw materials into valuable products Examples: factory workers 6. Tertiary Sector the provision of goods and services to people in exchange for payment Examples: banking, law, education, and government 7. Optional Quaternary Sector business services Examples: insurance, advertising, and trade 8. Optional Quinary Sector Research, health, tourism, and recreation 9. Most consider quaternary and quinary jobs in the tertiary economic sector. 10. Productivity The value of a particular product compared to the amount of labor needed to make it 11. Value Added The gross value of the product minus the costs of raw materials and energy 12. Nine development regions More Developed Regions

a. Anglo-America b. Western Europe c. Eastern Europe d. Japan and the South Pacific are considered more developed, but not categorized as part of the nine regions

Less Developed Regions e. Latin America f. East Asia

g. Middle East h. Southeast Asia i. j. South Asia Sub-Saharan Africa

13. Gender-Related Development Index Compares the level of development of women with that of both sexes. Similar to the HDI, looks at income, literacy, education, and life expectancy Indicators of Development Economic Factor Gross domestic product per capita Social Factors Education and Literacy Demographic Factor Life expectancy,( Infant Mortality Rate, Natural Increase Rate, Crude Birth Rate) 14. One of the indexes created by the United Nations to measure the extent of each countrys gender inequality is the Gender Empowerment Measure (GEM), which compares the ability of women and men to participate in economic and political decision making. 15. Countries like China, India, and most African and Eastern European countries have taken a balanced growth approach, called self-sufficiency. This approach requires a country to sustain itself and for investment to be spread equally across all sectors of the countrys economy and in all of its regions. 16. W.W. Rostows Development Model is a model of international trade that has five stages: traditional society, preconditions for takeoff, takeoff, drive to maturity, and the age of mass consumption. MDCs are usually in the 4th or 5th stages, while LDCs are usually in one of the three earlier stages.

17. The first four countries to adopt the international trade alternative are called the Four Asian Tigers. These countries are South Korea, Taiwan, Hong Kong, and Singapore, which used the strategy of export-oriented industrialization. They lacked natural resources, but they promoted development by concentrating on producing a handful of manufactured goods, such as clothing and electronics. 18. The World Trade Organization (WTO) was established in 1995 by countries representing 97% of world trade in order to promote the international trade development model. This organization works to reduce barriers to international trade in two ways: by enforcing agreements and allowing countries to negotiate reduction or elimination of international trade restrictions on manufactured goods, quotas, and tariffs. 19. Investment made by a foreign company in the economy of another country is known as foreign direct investment (FDI). International trade requires corporations based in a particular country to invest in other countries. Transnational corporations invest and operate in countries other than the one in which their headquarters are located. 20. In order to grant debt relief to a LDC, it is required that a structural adjustment program is outlined, which includes economic goals, strategies for achieving the objectives, and external financing requirements. LDCs must only spend what they can afford on doing this, so that they can make their economy more stable. 21. Fair trade is when products are made and traded according to standards that protect workers and small businesses in LDCs. One type of this applies to workers and factories while the other type applies to producers. 22. A maquiladora is a factory built by U.S. companies in Mexico near the U.S. border to take advantage of much lower labor costs in Mexico. Companies receive tax breaks if materials are shipped from the United States, assembled at maquiladoras in Mexico, then shipped back to the United States to be sold. 23. The Industrial Revolution began in northern England during the eighteenth century, resulting in new social, economic, industrial, and political inventions. It started here because of the raw materials available in England. The textile industry was one of the first industries to emerge. Railroads, steam engines, and factories are key elements of this event. 24. Abraham Darby- produced coke, a more efficient energy source than coal, out of highquality iron smelted with purified carbon from coal. 25. Bulk-gaining industries- the products of these industries gain weight as they go through the manufacturing process. (ex. soft-drink bottling)

26. Perishable Products- products that spoil soon after they are manufactured, producers of these must locate close to the market (ex. newspapers, dairy products) 27. Break of Bulk Points- location where transfer among modes of transportation can happen (ex. seaports and airports) 28. Site Factor- the three most important site factors are labor, land, and capital. Industries want cheap labor, efficient and usable land, and access to capital (money.) 29. Cottage Industries- products were made in the home instead of a factory, mostly found before the Industrial Revolution (ex. thread spinning, textile weaving) 30. Right-to-Work laws- requires factories to allow employees to work without joining a union. 31. Proximity to Skilled Labor- many industries are now located near areas with skilled labor sources versus cheaper labor because they now require employees with higher skills. 32. Henry Ford- created method of mass-production where each worker performs one task repeatedly on an assembly. His method didnt require workers with much education or high-wage demands. 33. Just-in-Time Delivery- materials arrive at a factory periodically throughout the day/week and are used immediately (reduces prices of keeping up an inventory.)

Unit 6 Study Guide 1. The process of improving the material conditions of people through diffusion of knowledge and technology. 2. United Nations a. Uses Three Types of Factors i. One factor factors Indicator of level of development for each country, constructed by

ii. Two

iii. One b.

factor

has the highest HDI with approximately 0.96 with about 0.28 The value of the total output of goods and services produced in a

c. The country with the lowest HDI is 3.

country in a given time period, usually a year. Examples: GDP per capita is about $40,000 in the United States 4. directly extracts raw materials from Earth Examples: mining, fishing, farming, and forestry 5. manufacturers that process, transform, and assemble raw materials into valuable products Examples: factory workers 6. the provision of goods and services to people in exchange for payment Examples: banking, law, education, and government 7. 8. business services Examples: insurance, advertising, and trade Research, health, tourism, and recreation. Most consider quaternary and quinary jobs in the tertiary economic sector. 9. The value of a particular product compared to the amount of labor needed to make it 10. energy 11. development regions Developed Regions a. Anglo-America b. Western Europe c. Eastern Europe d. are considered more developed, but not categorized as part of the nine regions The gross value of the product minus the costs of raw materials and

Developed Regions e. Latin America f. East Asia

g. Middle East h. Southeast Asia i. j. South Asia Sub-Saharan Africa

12.

Compares the level of development of women with that of both sexes. Similar to the HDI, looks at income, literacy, education, and life expectancy

13. . Indicators of Development Rate, Crude Birth Rate) 14. One of the indexes created by the United Nations to measure the extent of each countrys gender inequality is the , which compares the Gross domestic product per capita Education and Literacy Life expectancy,( Infant Mortality Rate, Natural Increase

ability of women and men to participate in economic and political decision making. 15. Countries like China, India, and most African and Eastern European countries have taken a balanced growth approach, called countrys economy and in all of its regions. 16. is a model of international trade that has five stages: traditional society, preconditions for takeoff, takeoff, drive to maturity, and the age of mass consumption. MDCs are usually in the 4th or 5th stages, while LDCs are usually in one of the three earlier stages. 17. The first four countries to adopt the international trade alternative are called the Four Asian Tigers. These countries are , which used . This approach requires a

country to sustain itself and for investment to be spread equally across all sectors of the

the strategy of export-oriented industrialization. They lacked natural resources, but they promoted development by concentrating on producing a handful of manufactured goods, such as clothing and electronics. 18. was established in 1995 by countries representing 97% of world trade in order to promote the international trade development model. This organization works to reduce barriers to international trade in two ways: by enforcing agreements and allowing countries to negotiate reduction or elimination of international trade restrictions on manufactured goods, quotas, and tariffs. 19. Investment made by a foreign company in the economy of another country is known as International trade requires corporations based in a particular country to invest in other countries. Transnational corporations invest and operate in countries other than the one in which their headquarters are located.

20.

, it is required that a structural adjustment program is outlined, which includes economic goals, strategies for achieving the objectives, and external financing requirements. LDCs must only spend what they can afford on doing this, so that they can make their economy more stable.

21.

is when products are made and traded according to standards that protect workers and small businesses in LDCs. One type of this applies to workers and factories while the other type applies to producers.

22.

is a factory built by U.S. companies in Mexico near the U.S. border to take advantage of much lower labor costs in Mexico. Companies receive tax breaks if materials are shipped from the United States, assembled at maquiladoras in Mexico, then shipped back to the United States to be sold.

23.

began in northern England during the eighteenth century, resulting in new social, economic, industrial, and political inventions. It started here because of the raw materials available in England. The textile industry was one of the first industries to emerge. Railroads, steam engines, and factories are key elements of this event.

24.

- produced coke, a more efficient energy source than coal, out of high-quality iron smelted with purified carbon from coal.

25.

- the products of these industries gain weight as they go through the manufacturing process. (ex. soft-drink bottling)

26. these must locate 27.

- products that spoil soon after they are manufactured, producers of to the market (ex. newspapers, dairy products)

- location where transfer among modes of transportation can happen (ex. seaports and airports)

28.

- the three most important

are labor, land, and capital. Industries

want cheap labor, efficient and usable land, and access to capital (money.) 29. - products were made in the home instead of a factory, mostly found before the Industrial Revolution (ex. thread spinning, textile weaving) 30. union. 31. - many industries are now located near areas with versus cheaper labor because they now require employees with higher skills. 32. - created method of mass-production where each worker performs one task repeatedly on an assembly. His method didnt require workers with much education or high-wage demands. sources - requires factories to allow employees to work without joining a

33.

- materials arrive at a factory periodically throughout the day/week and are used immediately (reduces prices of keeping up an inventory.)