economic theory that states that a countries wealth is tied to its supply of gold and silver. Therefore, the government should take steps to increase exports and decrease imports to accumulate precious metals

policy of extending a country's power and influence through diplomacy or military force

the policy or practice of a country extending or maintaining its authority and power over other territories, often by establishing settlements and occupying/conquering the land

economic activity of extracting/taking something from the earth (ex. Democratic Republic of Congo, the Phillipines)

economic activity of processing products or manufacturing goods (industry) ex. China and Mexico

economic activity revolving around services - two sections:

• Quaternary activities - processing info; especially in finance, insurance and real estate

• Quinary activities - characterized by decision makers such as executives, government roles 

(ex. US, Canada, most of Europe, Japan)

place where goods are transferred from one mode of transport to another

locate factories close to raw materials because raw materials are heavier than the finished product

location is usually determined by accessibility to the consumers

total value of officially recorded goods and services by the citizens and corporations within a country's border in a year

goods + services = GDP

total value of goods and services by the citizens and corporation of a country as well as foreign investments in a year

domestic + international goods + services = GNP

most accurate measure of wealth, accounts for trade

GDP + (exports-imports) = GNI

average per capita income is higher in developed countries because people typically work in the tertiary sector, which pays more than the other two sectors

• Formal sector - regulated/taxed by gov. and included in GDP and GNI

• Informal sector - mostly illegal products (NOT regulated by gov) can be drugs, black market but also babysitting

Gini Coefficient - measures distribution of income within a pop.

• values between 0-1; the higher the #, higher the income inequality

• generally, MDC's (more developed countries) have lowers ginis and LDC's (less developed countries)

Energy Consumption - MDC's have highest per capita consumption of energy; demand in DC's (developing countries) is increasing

Renewable Energy - nuclear energy is increasing in MDC's; hydroelectric is higher in DC's

High in LDC's - Nigeria is 7.29

Low in MDC's - Spain is 1.25

High in LDC's - Afghanistan is 111

Low in MDC's - Japan is 2

Low in LDC's

High in MDC's

Low in LDC's - Central African Republic is 50.9 years

High in MDC's - Australia is 83.4 years 

Low in LDC's - Niger is 19%

Almost widespread for most other countries

• economically/politically dominant

• strong military/allies

• highly interconnected transportation and communication infrastructure

• control of global market

• usually former colonial power

• high skill, capital-intensive production

• ex. US, UK, Japan, Australia, Germany

• Middle Income

• aspects of core/periphery

• process of industrialization

• active manufacturing/exporting goods and raw materials

• better transportation and communication than periphery

• ex. BRICS - Brazil, Russia, India, China, and South Africa

• often unstable government

• less wealth, lower levels of education

• export natural resources to core/semi-periphery 

• not reliable transportation or communication infrastructure

• usually former colonies

• low skill, low wages

• weak laws to protect workers

• ex. Afghanistan, Peru, Kenya

degree to which one place can supply something that another place demands

ex. Florida provides supply of fresh fruits that northeastern cities have demand for

situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor

trade policies that favor free market economies and private business ownership

Organizations such as EU, WTO, Mercouser, etc reduce or eliminate tariffs and trade barriers to encourage trade

• specific area within a country in which different tax and investment policies are implemented to attract foreign businesses and investment

• Provide local/international businesses with interest to invest because of reductions in tax and regulation

ex. maquiladoras, Shenzhen, tskandar (Malaysia)

• tax free area where goods can be landed and 'value added' through handling and manufacturing and re-exported without need for customs

• These zones generally focus on labor intensive goods

• Usually have reduced environmental and labor controls

ex. Colón FTR in Panama Canal

• attract foreign investment to create jobs

• expand the industrial base

• introduce technology

• create backward linkages between zones and domestic economy

• has resources that can attract natural resources, cheap skilled labor, or logistical advantages

companies get resources shipped at the exact time they need them; don't need storage space or halt production

Fordist: assembly lines

Post-Fordist: automation replacing workers in assembly lines

additional economic opportunities that can be generated (ex. hosting the Olympics)

a situation in which increasing production decreases per unit costs (ex. electricity)

clustering similar industries in the same area to cut cost or pool resources (ex. medical areas)

• usually start with agglomeration

• as a large number of businesses and workers move to one area, other private sector businesses will emerge to support them

• Growth Poles