Vocabulary

Economic Geography
Economic Development
Sectors of the economy (primary, secondary, and tertiary): The primary sector of an
economy makes direct use of natural resources (ex. Agriculture, forestry, fishing,
mining), secondary processes raw materials (ex. Food manufacturing, textile
manufacturing), and tertiary is the service sector or the service industry (ex.
Restaurant, retail, sales)
Economic Base Model: Used to understand regional economic growth and
development; a regions growth is determined by the growth of the export (basic)
sectors
Subsistence economies: Non-monetary economy that relies on natural resources to
provide for basic needs through hunting, gathering, and subsistence agriculture (ex.
ancient societies)
Development (social vs. economic): Social- putting people at the center of
development process (ex. developing to benefit people) Economic- development
that promotes the standard of living and economic health of an area (ex. causing
changes in the economy)
Categories of wealth (More Developed Countries (MDC) vs. Least Developed
Countries (LDC)): MDC per capita income is high, capital is readily available, and
wealth within individual countries is relatively evenly distributed (ex. In Canada 10%
of population owns 24% of the national wealth). LDC per capita income is low and
capital is scarce. Wealth is unevenly distributed (ex. In Gabon 1% of the population
owns 56% of the total wealth)
The Human Development Index (HDI): Composite statistic of life expectancy,
education, and per capita income indicators, which is used to rank countries into
four tiers of human development (ex. Top of the list is Norway, Australia, New
Zealand, United States, and Ireland)
The north/south split: Difference between the rich and poor countries of the world,
shown by people's standard of living and by the level of industrial economic
development (ex. America vs. Africa)
Fair Trade movement: Helps producers in developing countries achieve better
trading conditions and promote sustainability
Micro-lending (Grameen Bank): The lending of very small amounts of money at low
interest (ex. often give to start-up companies)
Non-governmental Organizations (NGOs) impact on development issues: NGOs are
generally nonprofit organizations that work to benefit the environment or other
world problems
Formal vs Informal Economy: Formal economy is an official economy, recognized by
the government (ex. high profile company). The informal economy is neither taxed
nor monitored by any form of government (ex. flee market)
Digital Divide: The gulf between those who have ready access to computers and the
internet and those who do not (ex. difference between developed and least
developed countries)
Foreign Direct Investment: Controlling ownership in a business enterprise in one
country by an entity based in another country

Technology transfer: The transfer of technology from the originator to secondary

user (ex. Transferring outdated technological devices, such as computers, from
developed to less developed nations)
Debt crisis: A period of in which countries faced the collapse of financial institutions
(ex. America in 2009 with the "Great Recession")
Primary Activities Agriculture & Mining
Agriculture: The science of practice of farming (ex. Growing/harvesting crops and
rearing animals to provide for a group of people)
Commercial agriculture: Farming that provides products for sale (ex. Large-scale
farms)
Subsistence agriculture: Farming that provides food for the farmer and his family
(ex. small, family farms)
Agricultural Revolutions: Period of transition that occurs when discoveries,
inventions or new technologies change production (ex. mechanical agricultural
revolution)
Extensive vs. Intensive subsistence agriculture: Extensive - use of large amounts of
land with minimal labor per land unit (ex. pastoral nomadism and shifting
cultivation) Intensive - any kind of agriculture activity that involves effective and
efficient use of labor on small plots of land to maximize crop yield
Extensive vs. Intensive commercial agriculture: Extensive - an agricultural system
characterized by low units of labor per land unit area. Intensive - being effective and
efficient with the use of labor and land area
Von Thunen model of agricultural production: Explains and predicts agricultural land
use patterns (ex. Predicts more intensive rural land use)
Green Revolution and benefits and drawbacks: A large increase in crop production in
developing countries achieved by the use of fertilizers, pesticides, and high-yield
crop varieties. Benefits include the ability to produce more food and growing plants
that are resistant to various diseases. Drawbacks include the need to repurchase
sterile seeds every year and industrial farming equipment is expensive
Agribusiness: Group of industries dealing with agricultural produce and services
Genetically Modified Organisms (GMOs): Organism whose genome has been altered
so its DNA contains one or more genes not normally found there (ex. Some types of
corn)
Monoculture: The cultivation of a single crop in a given area (ex. Iowa and corn)
Examples of Globalization of agriculture: High food prices in 2008, causing some
nations to limit or ban certain food items that are being traded in the world market
Sustainable agriculture: The production of food, fiber or other plant/animal products
using farming techniques that protect the environment, public health, human
communities, and animal welfare (ex. most small-scale farms practice sustainable
agriculture)
Aquaculture: The rearing of aquatic animals or cultivation of aquatic plants for food
(ex. fish farms)
Secondary Activities Manufacturing & Production
The Industrial Revolution (definition, origin, growth, and diffusion): Time of major
industrialization. It took place during the late 1700s and early 1800s. It began in

Great Britain, but rapidly spread throughout the entire world over the 50 years after
the initial start
Manufacturing regions of the World/US: Areas of the world where manufacturing
activities have clustered together. US: Great Lakes. World: SE Brazil, Central
England, Tokyo
Fordism: Notion of modern economic and social system based on an industrialized
and standardized form of mass production (ex. Ford production in the 20s)
Bulk gaining vs. bulk reducing industries (examples and applications): Bulk-gaining an industry where the products increase in size or weight during manufacturing (ex.
soft drink bottling). Bulk-reducing - an industry whose products decrease in size or
weight during manufacturing (ex. car manufacturing)
Site factors of industrial location: Industries require cheap, flat land on which to
build factories
Situational factors of industrial location: Location factors related to the
transportation of materials into and from a factory
Just-in-time manufacturing: Strategy to increase efficiency and decrease waste by
receiving goods only as they are needed in the production process
Maquiladoras: A factory in Mexico run by a foreign company and exporting its
products to the country of the company
Agglomeration/ Deglomeration: Agglomeration- snowballing geographical process
by which secondary and service industrial activities become clustered in cities (ex.
Industrial centers) Deglomeration - the process of industrial deconcentration in
response to technological advances and/or increasing costs
Export-Processing Zones (EPZs) & Special Economic Zones (SEZs): EPZ- areas within
developing countries that offer incentives and a barrier-free environment to
promote economic growth. SEZ- designated areas in countries that possess special
economic regulations that are different from other areas in the same country
Rise of Chinese economy: From 1978 to 2013 GDP growth has risen from 9.5% to
11.5% a year. They've experienced an increase in total factor productivity. They
export products to a majority of the world, and it's seen as an engine of growth for
all of Asia
Outsourcing (examples and reasons): Contract work abroad with generally low labor
costs (ex. Nike being produced in China)
Deindustrialization: Decline in industrial activity in a region or economy (ex. during
an economic recession)
Tertiary Activities Services & the Knowledge Economy
Economies of scale: Proportionate saving in costs gained by an increased level of
production
Footloose industry: Industry that can be placed and located at any location without
effect from resources or transport
International division of labor: Occurs when the process of production is no longer
confined to national economies (ex. incorporating both developed and
underdeveloped nations into the global economy)
Multiplier effect: Increase in final income arising from any new injection of spending
(ex. depends on marginal decisions to consume or save)
Outsourcing/Offshoring: Contracting work abroad, basing a companys processes or
services overseas. Used for lower labor costs (ex. Nike)

Postindustrial: Relating to an economy that no longer relies on heavy industry (ex.

Japan)
Transnational Corporation: Companies that operate in several countries (ex. building
a factory or shop abroad)
Threshold/range: The magnitude or intensity that much be exceeded for a result to
occur (ex. The lowest and highest amounts possible)
Environmental Geography
Sustainable Development: Economic development that is conducted without
depletion of natural resources (ex. solar panel use)
Renewable vs. Nonrenewable Resources: Resources that can or will be replenished
naturally (ex. Wood, solar energy) Resources are those that cannot be readily
replaced by natural means on a level equal to its consumption (ex. fossil fuels)
Industrial pollution issues (air and water pollution): Disrupting the health of
ecosystems located in water and on land. This includes human life as well as animal
and plant ecosystems. Many water resources have been rendered useless for
humans and wildlife at this point due to pollution
Global warming: A gradual increase in the overall temperature of the earth's
atmosphere (generally attributed to the greenhouse effect)
Acid rain: Rainfall made sufficiently acidic by atmospheric pollution that causes
environmental hard (Comes from burning of fossil fuels)
Biodiversity: Variety of life in the world or in a particular habitat or ecosystem
Alternative energy: Energy generated in ways that do not deplete natural resources
or harm the environment (ex. solar energy)
Kyoto Protocal: International treaty among industrialized nations that sets
mandatory limits on greenhouse gas emissions
Carbon emissions: Release of carbon in the atmosphere (ex. burning fossil fuels)
Carbon trading: A system by which countries and organizations receive permits to
produce a specified amount of carbon dioxide and other greenhouse gases