Trade & the World Economy (College Board AP® Human Geography): Flashcards
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Define complementarity.
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Cards in this collection (44)
Define complementarity.
Complementarity exists between two places when each has an item that the other wants, encouraging trade between them.
Define comparative advantage.
Comparative advantage exists when trading partners each specialize in producing the goods they can most easily and cheaply produce.
Which country does the revision note give as having a comparative advantage in coffee production?
Brazil has a comparative advantage in coffee production, because its environment, soil, and local experience let it grow coffee more efficiently than other countries.
Define neoliberal policies.
Neoliberal policies favor privatization over government control and seek to reduce barriers to trade, giving the state the smallest possible role in the economy.
Neoliberal policies seek to lower barriers to trade by reducing or eliminating customs duties, taxes, and .
Neoliberal policies seek to lower barriers to trade by reducing or eliminating customs duties, taxes, and tariffs.
Define tariff.
A tariff is a tax imposed on imported goods to protect domestic businesses by making imports more expensive than domestic goods.
Name two supranational organizations that promote free trade named in the revision note.
The European Union (EU), Mercosur, and the Organization of Petroleum Exporting Countries (OPEC) are supranational organizations named in the revision note.
What does OPEC coordinate between its member nations?
OPEC coordinates global oil prices between its member nations.
True or False?
The 2008 global financial crisis began in Europe.
False.
The 2008 global financial crisis began in the United States with the collapse of the housing market and banking sector before spreading worldwide.
What type of financial assistance does the IMF provide to countries facing economic crises?
The IMF provides short-term financial assistance, often with strict conditions about restructuring their economies.
What does the World Bank focus on funding?
The World Bank focuses on funding long-term development projects, such as infrastructure and poverty-reduction programs.
Define microlending.
Microlending is the practice of making small loans to poor borrowers in developing countries who could not otherwise secure credit.
At a national scale, what tool can governments use to protect domestic businesses from imported goods?
At a national scale, governments can impose tariffs or import and export taxes to make imported goods more expensive and protect domestic businesses.
The European Union is a politico-economic union of member states that acts as a free-trade zone with no internal customs tariffs.
The European Union is a politico-economic union of 27 member states that acts as a free-trade zone with no internal customs tariffs.
Define outsourcing.
Outsourcing is the movement of jobs outside of the area or country in which a company is located.
Define economic restructuring.
Economic restructuring occurs when urban areas shift from a manufacturing economy to a service sector economy.
Why might US companies locate call centers in India or the Philippines?
US companies locate call centers in India or the Philippines because these countries have a comparative advantage from their large number of English speakers.
Name one impact of economic restructuring on more developed countries (MDCs).
In MDCs, economic restructuring causes unemployment, population losses and urban decay in manufacturing cities, and a shift to the service sector.
True or False?
Outsourcing shifts manufacturing jobs from less developed countries to more developed countries.
False.
Outsourcing and economic restructuring shift manufacturing jobs from more developed countries to less developed countries.
Define special economic zone (SEZ).
A special economic zone (SEZ) is an area of a country where business and trade laws differ from the rest of the country in order to attract foreign companies to build factories.
Why are special economic zones typically located near ports?
Special economic zones tend to be located near ports so that items can be shipped easily.
Define free-trade zone.
A free-trade zone is an area where no tariffs or customs duties apply and all trade barriers between countries are eliminated.
Define export processing zone.
An export processing zone is an area in a developing country focused on manufacturing goods exclusively for export.
Define maquiladora.
A maquiladora is a factory in Mexico where US companies import raw materials, assemble them without paying taxes, and export the finished products back to the United States.
Where are most maquiladoras located?
Most maquiladoras are located near the border with the United States, since they process materials for re-export to US companies.
Special economic zones tend to be located in developing countries, especially in South America, East Asia, Southeast Asia, and .
Special economic zones tend to be located in developing countries, especially in South America, East Asia, Southeast Asia, and South Asia.
What incentives do LDC governments offer to attract MDC companies to build factories?
LDC governments offer incentives such as tax breaks or cheap labor to attract companies from more developed countries.
As MDCs deindustrialize, newly industrializing countries such as Brazil, Russia, India, China, South Africa, and increase their manufacturing.
As MDCs deindustrialize, newly industrializing countries such as Brazil, Russia, India, China, South Africa, and Mexico increase their manufacturing.
What is the new international division of labor?
The new international division of labor refers to the shift of manufacturing industries from more developed countries to less developed countries.
Define global supply chains.
Global supply chains involve production processes spread across multiple countries, with each specializing in different stages of production.
Define just-in-time delivery.
Just-in-time delivery is a manufacturing strategy where companies receive raw materials or goods only when they are needed in production.
Define Fordism.
Fordism is the form of mass production introduced by Henry Ford in which each worker performs one specific task repeatedly on an assembly line.
True or False?
Post-Fordist production relies on assembly-line workers each performing one repetitive task.
False.
Post-Fordist production relies on automation and is a more flexible form of production that can adapt to changing customer needs.
Define economies of scale.
Economies of scale occur when increasing the number of goods produced spreads costs over more units, decreasing the cost per unit.
Why does producing 1000 shirts cost less per shirt than producing 100?
Producing 1000 shirts spreads fixed costs such as factory space, electricity, and labor over more units, lowering the cost per unit.
Define multiplier effect.
The multiplier effect refers to the additional economic opportunities generated by a business in a location.
How does a new sports stadium illustrate the multiplier effect?
When a sports stadium opens in a city, hotels, restaurants, and shopping districts may be built nearby to take advantage of increased tourist traffic, illustrating the multiplier effect.
Define agglomeration.
Agglomeration refers to the clustering of similar industries in the same location.
Which location does the revision note give as an example of technology-company agglomeration?
Silicon Valley is the revision note's example of agglomeration, where multiple technology companies are headquartered together.
Through agglomeration, regions develop specialization: Detroit for automobiles, New York for finance, and Los Angeles for the .
Through agglomeration, regions develop specialization: Detroit for automobiles, New York for finance, and Los Angeles for the movie industry.
Define high-technology industries.
High-technology industries focus on producing technology products, creating high-paying jobs and encouraging urbanization around tech hubs.
Which type of country dominates high-technology production?
MDCs dominate high-technology production, due to strong infrastructure, high educational levels, and government investment in research and development.
Define growth pole.
A growth pole is an area of strong economic growth from key industries that stimulates economic development in nearby areas.
What is the Research Triangle in North Carolina known for?
The Research Triangle in North Carolina is known for research institutions in biotechnology, healthcare, and I.T.
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