AP Human Geography Unit 7 Live Review! [Industrial and Economic Development Patterns and Processes]

Brief Summary

This YouTube video by Mr. Sinn provides a comprehensive review of Unit 7 in AP Human Geography, focusing on industrial and economic development patterns and processes. The review covers key concepts, models, and terminology essential for the AP exam.

  • Industrial Revolution and its impacts
  • Economic sectors (primary, secondary, tertiary, quaternary, quinary)
  • Models of economic development (Rostow's stages, Wallerstein's world system theory, dependency theory)
  • Globalization, trade policies, and organizations

Intro

Mr. Sinn introduces the live stream as a comprehensive review of AP Human Geography Unit 7, emphasizing that the session will cover concepts listed in the College Board's exam description (CED). He mentions available resources like guided notes and the ultimate review packet for note-taking. The session will consist of going through the notes and then doing the cahoot at the second half.

Industrial Revolution

The Industrial Revolution had massive impacts, including food surpluses, a new globalized community, colonization, and imperialism. Workers shifted from primary to secondary sector jobs, leading to manufacturing growth and new social classes. The Industrial Revolution connects to various units, such as Unit 2 (demographic transition model), Unit 5 (agricultural revolutions and the enclosure movement), and Unit 6 (urban areas and cities). The social changes included the creation of new class systems with the urban poor, middle class, and upper economic class. The Industrial Revolution also spurred colonialism and imperialism, leading to the diffusion of religions and cultural changes like assimilation, acculturation, and creolization.

Cottage Industries

Cottage industries, small-scale businesses operating out of homes using traditional techniques, were phased out by the Industrial Revolution due to the efficiency of mass production in factories.

Uneven Economic Development

Uneven economic development occurs globally, not just in specific countries or cities. The Industrial Revolution led to increased inequality both socially and globally, with some countries becoming dependent on others due to the exploitation of natural resources.

Economic Sectors

The primary sector involves the extraction of natural resources (e.g., agriculture, mining, fishing). The secondary sector involves manufacturing and construction, using raw materials to produce goods. The tertiary sector provides services (e.g., teaching, retail, healthcare). The quaternary sector focuses on acquiring, processing, and sharing information (e.g., journalism, research, data analysis). The quinary sector involves decision-making roles (e.g., CEOs, government leaders).

Value Added Product

A value-added product is something that has been processed to increase its overall value, with the final good being worth more than the raw resources used to create it. For example, coffee from Starbucks is more expensive than the individual raw resources that went into it.

Capital Investment

Capital investment refers to the resources that go into an activity, project, or business to generate future profits. This can include money, raw resources, or infrastructure components.

Industrialization and De-industrialization

As societies progress from pre-industrial to industrial and post-industrial stages, the proportion of jobs in each economic sector changes. Pre-industrial societies have mostly primary sector jobs. Industrialization leads to an increase in secondary sector jobs and a decline in primary sector jobs. De-industrialization occurs when secondary sector jobs decrease, and tertiary sector jobs increase.

Break of Bulk Point

A break-of-bulk point is a location where goods are transferred from one mode of transportation to another.

Weber's Least Cost Theory

Weber's least cost theory involves three factors: agglomeration (clustering of businesses), labor costs, and transportation costs. Companies cluster to reduce costs and attract more customers. The location of production depends on whether the good is bulk-reducing (locating closer to natural resources) or bulk-gaining (locating closer to the market).

Core, Semi-Periphery, and Periphery Countries

Core countries are economically advanced with more tertiary, quaternary, and quinary jobs and higher labor costs. Semi-periphery countries are developing with more secondary jobs. Periphery countries are the least economically developed, often exporting raw resources to more developed countries.

Multinational Corporation

A multinational corporation is a company that has business operations in at least one country other than its home country.

Formal and Informal Economies

The formal economy is recognized and regulated by laws and the government, while the informal economy is not regulated or protected by the government.

GDP, GNP, and GNI

GDP (Gross Domestic Product) measures the goods and services produced within a country's boundaries. GNP (Gross National Product) measures the total economic output produced by a country's residents and businesses, regardless of location. GNI (Gross National Income) measures the total income generated by a country's residents and businesses both domestically and abroad.

Gender Inequality Measures

The Gender Inequality Index (GII) ranges from 0 to 1, with higher values indicating more inequalities between women and men. Maternal mortality ratio and adolescent fertility rate are also indicators of gender inequality.

Demographic Measures

Total Fertility Rate (TFR) is the average number of children a woman will have. Infant Mortality Rate (IMR) is the number of deaths under one year of age. As economic development happens and IMR falls, family sizes tend to shrink.

Human Development Index (HDI)

The Human Development Index (HDI) ranges from 0 to 1, with higher scores indicating better human development. It tracks development over time and helps identify areas for improvement.

Energy Consumption and Pollution

As economic development and industrialization occur, energy consumption and pollution generally increase.

Microloans and Microfinancing

Microloans are small loans provided to individuals, often women, in developing regions who are excluded from traditional banking services. Microfinancing is a broader category that includes services like savings accounts, insurance, and money transfer services.

Gender Parity

Gender parity refers to equality between men and women. Economic development generally leads to increased gender equality.

Rostow's Stages of Economic Growth

Rostow's model includes five stages: traditional society (subsistence economy, primary sector jobs), preconditions for takeoff (economic growth, infrastructure investment), takeoff (rapid economic growth, shift to secondary sector jobs), drive to maturity (global trade participation, shift to consumer goods), and high mass consumption (tertiary jobs, independence from outside forces). Critiques of the model include its failure to account for historical factors like colonialism and imperialism.

Wallerstein's World System Theory

Wallerstein's world system theory categorizes countries into core, semi-periphery, and periphery, highlighting interdependence. Core countries benefit the most from global trade, exploiting cheaper labor and raw resources from periphery and semi-periphery countries. Critiques include its failure to account for efforts by groups and organizations to help developing areas.

Dependency Theory

Dependency theory suggests that more economically developed countries disproportionately benefit from global trade, while developing countries are often exploited. Decolonization often leaves former colonies dependent on colonizing countries.

Commodity Dependence

Commodity dependence occurs when over 60% of a country's total exports are made up of a commodity, making the country susceptible to price changes in that commodity.

Globalization

Globalization is the process by which countries, economies, cultures, and businesses are interconnected and interdependent on one another.

Free Trade Policies and Neoliberal Policies

Neoliberal policies focus on individual freedom over government control, promoting free trade markets. Free trade involves international trade without barriers like tariffs.

Trade Organizations

Various organizations foster and promote greater globalization by reducing trade barriers and working to improve their particular organization or country.

Tariff

A tariff is a tax or duty imposed by a government on goods and services coming into the country, often to promote domestic production.

Complimentary Trade and Comparative Advantage

Complimentary trade occurs when countries have goods or resources that the other needs. Comparative advantage refers to countries focusing on producing what they are best at, specializing and becoming more efficient.

Interdependence and Economic Restructuring

Increased international trade leads to more de-industrialization and greater global interdependence. Economic restructuring involves shifts in production, employment, investment, and trade.

Offshoring and Outsourcing

Offshoring is the process of relocating a business to a different country. Outsourcing is when a business contracts a service to a different provider.

Economic Zones

Special economic zones provide economic incentives to attract foreign investment. Free trade zones allow countries to import goods without tariffs. Export processing zones offer economic regulations and incentives to produce goods for export.

International Division of Labor

The international division of labor involves core countries losing secondary sector jobs to periphery and semi-periphery countries.

Multiplier Effect

The multiplier effect is a phenomenon where an initial investment leads to additional economic growth as workers spend their income, creating new jobs and businesses.

Fordism and Post-Fordism

Fordism involves mass production of standardized goods, while post-Fordism involves more flexible production styles with greater variety and customization.

Economies of Scale

Economies of scale occur when a company grows and gains access to more capital, allowing it to produce more products at a cheaper per-unit cost.

Just-in-Time Delivery and Growth Poles

Just-in-time delivery involves factories receiving parts right when they need them, reducing inventory costs but increasing the risk of supply chain disruptions. Growth poles are specific regions or cities focused on one economic sector, promoting industry growth through agglomeration.

UN Sustainable Development Goals

Countries that follow the UN sustainable development goals generally see more economic development and a higher standard of living.

Sustainability, Degradation, and Ecotourism

Sustainability involves using Earth's resources in a way that allows others to use them in the future. Degradation refers to the deterioration of the quality of natural resources. Ecotourism is a form of tourism focused on responsible travel, preserving the environment, protecting local people, and promoting local cultures.

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Transcript

Full transcript of “AP Human Geography Unit 7 Live Review! [Industrial and Economic Development Patterns and Processes]”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.

0:03 [Music] Heat. Heat. [Music] [Music]

0:50 geographers, how are we doing. Woo, man. Unit seven. Holy cow. I mean, if you think about it, this is our seventh day in a row of live streaming. We've streamed seven days straight, and we've gone through now, we're about to seven units of the seven units of AP Human Geography, which for many of you, this is a year-long class. We're essentially reviewing a year's worth of content just in seven days. Man, it's crazy. It's crazy. We're like two days away from the exam and you guys are going to rock it. You're going to crush this exam. So, without further ado, we're going to be getting into unit 7. So, just as a reminder here, let me get it up on the

1:36 screen quick. Um, we're focusing on the concepts that are in the CED. So, these are the things that College Board has said, hey, you might be tested on this. So, you want to have an idea of these concepts. So, if it's listed here, this is what you want to focus on. Uh, so this is in that ultimate review packet or the exam slayer. Um, I it's a spot where you could take notes and that's part of the free thing, but these are the like from the College Board exam description. This is the stuff that you could see on the exam. So, we're going to be going over all of it today. Just a reminder, if you do need some more help, um, there's also the guided notes for the stream. So, if you want to follow along, by all means, you can check these out, download them. They got up a little bit later, so I apologize for that, but they're up now, so hopefully that helps.

2:22 All right, cool. Let's see where everyone's from, and then we're going to get started reviewing unit 7, industrial and economic development patterns and processes. One last kind of massive review. All right, we got people from North Carolina, Florida, Central Florida, Wisconsin, Texas, Virginia, uh Minnesota, Wisconsin, Texas. Um, shout out to Mr. Stakes, you're the GOAT. Iowa, South Dakota, Tennessee, Dallas, Texas, Wisconsin. Love the videos and your shirt. Keep it up. Thank you very much. Love you guys, too. You're awesome. Texas. Um, shout out there to the amazing AP Young teacher. I was going to read the name. It's gone. Florida, the Bay Cal area, Cali represent California, Houston, Texas.

3:10 Woo. All right, we got people from all over. Um, we're going to get started though, so I want to make sure we're respectful of your time. We're going to be now getting into the notes just like all of our other nights. Remember, uh, we're going to start with doing the notes and then we'll do the cahoot at the second half. and I'll interact with the chat every once in a while during the notes, but most of this is going through the notes just to make sure that all these concepts are fresh in your mind. So, all right, let's get this started. Cahoots at the second half of it. Okay, here we go. Got to do the little intro for the YouTube people. Hello there everybody on YouTube land. This is Mr. Sin and we are about to review unit 7, industrial and economic development and patterns and processes for AP human geography. If you're watching this, that means you're either re-watching the live stream, or you

3:55 missed it the first time, which no worries. We have two more live streams tomorrow, the day before the AP exam. We're going to have one at 6:15 p.m., which will go over FRQ tips and tricks, and then another one at 700 p.m. And that will go over multiplechoice tips, and then I'll also take a multiple choice test and kind of go over my thought process. So, check us out there. And then it's the AP exam. So, without further ado, let's get into unit seven here. one last massive review. Alrighty, here we go. So, without further ado, let's start off talking about the industrial revolution. So, we got some images here that you can see. Uh we have our industrial revolution here. Realize this had massive impacts on everything. We're

4:41 talking about food s um surpluses being able to be created. A new globalized connected community starts to form. colonization is going to take off more imperialism. All of these different things. Uh we also started to see workers shift from primary sector jobs into the secondary. We start to see manufacturing take off. New social classes get take um get created. All of that. See in the chat a bunch of people the the low taper fade the ninja meme. So the massive but all right anyways getting back to this. So, one thing to note with the industrial revolution, it can connect to all of our different units. I mean, our ability now to be able to transport food, to transport

5:27 goods across large regions and also the global community transformed economies. Now, one of the things that we can connect into two is into unit two here. So realize the industrial revolution and also the medical revolution is what transformed societies and to be able to go into stage two of that demographic transition model. Also to remember we can connect into unit five with our agricultural revolutions. That second agricultural revolution happened with the industrial revolution that led to the enclosure movement which then increased the amount of migrants moving from rural areas to urban areas. as the enclosure movement and these new processes came and farmers were kind of displaced. They were pushed out. The subsistence farmers were now mo

6:13 relocating to urban areas. So right there we've connected unit two. We've connected unit 7. We've also connected into unit six because we're talking about urban areas and cities. And we've also now connected um into unit five as well with agriculture. So a lot of different things can connect back to this historical event. You don't need to worry about the dates um of when it happened and that stuff. It's more of understanding the impact that it had on these different areas and on our different places as well. Now, one aspect that I did mention for a change is the social changes. This is the British beehive. Um, you don't have to memorize the British beehive, but it it's a great graphic of showing this new class system that's started to get created. So in AP human geography we generally see some

7:00 themes pop up throughout this whole course. We have political, we have economic, we have social, and then we also have environmental. And so a social thing that's happening here is some people are saying there's an echo. Hopefully there's not an echo. If there is, I can try to adjust it. But all right, that's fine. Uh the social theme though that's happening is as people started to move over to these urban areas we started to see like the urban poor we started to see a middle class form. We started to see an upper um economic class essentially get created. All of these divisions that start to happen now are because we now have different jobs and we have different structures in society forming thanks to the industrial revolution. So there's a lot of

7:46 different changes that happened here. Now another thing that started to happen due to the industrial revolution and we could connect now into unit four is more and more interest in countries colonizing the world. So we can connect again back to colonialism and imperialism. So now we're making a connection to unit 4 which also led to the diffusion of religions and we saw assimilation and culturation and creoleization. So we could also connect into unit three and now we've pretty much connected into every single unit and we could use maps. So that would connect into unit one. But this process remember if we want we could connect back to like the Berlin conference so where Europeans came in and they started dividing Africa up trying to create their own boundaries that would then

8:31 help them. That would be an example remember of superimposed boundaries. So those superimposed boundaries um that ended up shaping um the continent of Africa. So that again industrial revolution how does it connect? Well when we started seeing all this new demand for these raw resources materials and we also started seeing a lot of things like places needed people to sell their stuff to. Well, we saw that increase then in demand of trying to find new colonies, new markets around the world. All right, we're going to go on to our next thing which is a term that you want to be familiar with and it's cottage industries. It is in the CED. These operated a lot more frequently before the industrial

9:17 revolution. It's a very smallcale business generally. It's out of someone's home and this is using a lot more traditional techniques. The tools here they're making things by hand. Now the industrial revolution realized kind of phased out cottage industries because it was more efficient um to produce things in mass and to make things in a factory uh that didn't take so much time. So cottage industries is in there. This is one of the things that the industrial revolution kind of moves away from as more people then go into um that actual factory setting and life there. All right, let's go on to our next term. Hopefully this stuff is making sense for you. All right. The next thing that we have to look at here when we're talking about is uneven economic development. Now, one of the things here that we're looking at is when talking

10:04 about une economic uh development, realize this is across the entire uh globe. It is not just in one particular uh country. It's not in just one particular city. Now, that definitely did happen. by all means there was a lot of division that happened in these cities and in these regions but this was also a global thing that happened and we're going to see this come up too when we look at Wallerstein's world system theory when we talk about uh the dependency theory later in this unit um because we see the impact still today and it's arguably gotten worse where we've seen different countries and different regions of the world actually become dependent on others due to the exportation and exploitation of natural resources So the industrial revolution

10:51 really started to see more and more kind of inequality um get created both socially both locally but also globally as well. So have an idea of that and that'll kind of help you out. All right, moving on to our next thing. We're going to look at the economic sectors and we'll interact a little bit more with the chat here. So uh first one we're going to talk about is the primary sector. What would be some jobs that are part of the primary sector? So what do we got? I'll try to pin some on the screen there. So, what do we got? What do we got? How are we going? Um, all right. Agriculture, minor, raw resources. Yes. Yes, that would work. Fishing, farmer. Awesome. Yeah. Yeah.

11:37 All right. So, now what about the secondary sector? So as people are typing the secondary sector realize the primary sector these are jobs and activities that all involve the extraction of natural resources from the earth. So they're very specific to that. That would be the primary sector. All right. Secondary sector uh manufacturing making stuff factory um industrial jobs construction car manufacturing. Um, some people saying, okay, some people are saying tertiary, getting a little maybe ahead of themselves or mixing some stuff up there. So, remember tertiary are going to be services. So, now put down some tertiary examples and then I'll pin some of those. So, secondary sector, remember jobs and activities. We're taking those raw

12:22 resources from that primary sector and then we are actually manufacturing it. We're producing it. Um, so we are creating something that's a greater value there. So, that construction worker and all that would work. All right. Uh for tertiary teacher, yeah, a teacher would work. Um schools, schools, a lot of schools, teacher, retail stores, McDonald's. Yeah, that could work. A clerk, banking, um doctors, nurses. Yeah. So, tertiary, remember, is jobs, activities that are services for other people. So, for example, right now you're getting a service. When you go to school, you're getting a service. That's a tertiary job. Now the last two are kind of parts of the tertiary sector but they're more specific and that's the quattinary and the quinary. So anyone an

13:08 idea let's see uh for the quattinary sector what do we got quattinary sector uh so quatinary remember these are about so some people are saying CEO CEO is going to be more the quinary quattinary is jobs and activities that are revolving around acquiring or processing or sharing information. So for example like journalists uh research and development that could be um data analyst that could be sometimes a teacher could fall under this as well. Yes that could be as well. So there could be overlap. It depends on the context. Uh for the quinary sector that would be like your CEO of a company that'd be the president of the country. These are the jobs and activities that are the decisionmaking. So, for example,

13:53 all of you wonderful people are about to take an AP human geography national exam in a couple days. Uh, and College Board is going to be that quinary sector, the decision, the Trevor Packer, the head of it. He's the one who's deciding this stuff. He's the decision person. So, that would be that quinary sector there. Um, quatinary then would be like the different teams that are researching, figuring out all this stuff, the information to share with it, and creating some of that CEO um, sorry, the CED stuff. So, uh, hopefully that makes sense for the economic sectors. I've used them a lot in the other streams because they connect into a lot of our different topics. Um, you're also going to hear those terms come up throughout the rest of this unit. So, make sure that is making sense for you. Uh, for the people saying, "What's the CED?" That is the course exam description. You

14:39 can check it out. I have a link to it in the description of this video. Uh you can also just Google AP human goce CED but that is what is actually college board this document that they made uh to show everyone what's actually on the test. All right our next term that we're going to go into is a value added product. So similar to value added crop what we're looking at here is a product. It's a little bit more broad but we're looking at something that's been processed in a way that increases the overall value. So essentially, we have raw resources coming in and that final good is worth more than the raw resources themselves. So there's a bunch of different things that that could be. Um, for example, generally if you go and get coffee from Starbucks, that coffee cup is going to be more expensive than the raw resource individually that went

15:24 into it. Um, and that's because it's a value added product. So that final product there is worth more. So hopefully that helps with understanding a value added product. Don't get thrown off if you see it on the test. Uh some people were saying like jam. We gave that example. Yes. When we were looking um at unit five and we talked about like taking strawberries and then turning it into strawberry jam. You could sell strawberry jam for more money than you could just strawberries on their own. So that final product is worth more. Um and this can connect into bulk gaining and bulk reducing goods. We'll talk about that a little bit later in the stream. So I saw some people making that connection as well. Um but it could connect into those. All right. Another thing you might see um maybe is capital investment. And just realize this is

16:10 talking about those resources that go into the activity or a project um or a business. Essentially, it's going into production to generate future profits. So, this could be you're getting money. It could be maybe we're getting raw resources or different infrastructure components. But this is the stuff where we're actually coming together to produce stuff. So like a lot of times businesses will get investors to donate money or essentially they'll sell uh they will sell equity in the business um and then that's how they'll fund it. So that would be capital investment. So don't get thrown off if you do see it there. Um the next thing I actually want to talk about is going to connect back to those sectors of the economy. So our primary, our secondary, our tertiary, quatinary and quinary, but we're also

16:55 now going to connect into industrialization and de-industrialization. and realize when you're looking at what I'm going to show you right now that it also can connect to into that demographic transition model. Again, right now, unit seven, hopefully you're seeing all the different connections between these units because there's a lot now. So, what we're seeing here is as we're going through this um pre-industrial, this is going to be like your really early stages of that demographic transition model. But notice right here, primary sector because we're reading left to right. So like at this moment this is where our primary sector jobs are. This lots of primary sector jobs and that makes sense. The majority of people are working in agriculture. We're going to have a lot of more

17:41 subsistence farming here. Now we might have some secondary sector jobs here which is great. Um but most of the economy is that primary sector. Now eventually we can see we see that our secondary and I'll make it full screen again. um that our secondary sector starts to increase. All of this is industrialization is occurring and so we're starting to see more and more factories open up. Our primary sector jobs, those raw resources, realize this is declining. This is going down. And so as economic development happens, as we're going through, we're going from pre-industrial to industrial to post-industrial, we see these changes in our primary sectors. Eventually, we hit this point where we see

18:26 de-industrialization occur. Again, primary just continues to fall. Notice now though, these secondary jobs start to decrease as well. And at the same time, the tertiary sector takes off. And so, what's happening here is we are now becoming more and more economically developed. Now, some of you maybe are panicking a little bit here. Some of you maybe are not. I can see a little bit in the chat um where people are like, "What model is this? What model is this?" This connects into essentially the economic proportion of like the demographic transition model or Resto's uh stages of economic growth which we're going to talk about at the end of this stream. The reason why I'm using this graph, this is not a specific graph that you need to have like memorized. It just does such a good job of showing how our

19:11 second or sorry, not our secondary sectors, but all of our economic sectors change as we're seeing industrialization occur. You do need to know what industrialization is and you do need to know what de-industrialization is. And you want to have an idea of these I like uh things that are happening here because what this is showing is this change. This is our demographic transition model to an extent. This is about some of the stuff that we're going to be looking at later in this course. So these changes happen. If we want, we could also connect this too into like opportunities for women. What we can see too is as we're seeing more industrialization occur, we're seeing more services, more people are getting out of agriculture, women would get more opportunities. Again, too,

19:59 realize that when we're looking at this, and I can put it back up. Um, we can also see like those stage four countries. Uh, if we're looking here, like the United States, lot of talk in the news right now of what jobs should we have, what jobs should we not have. We have a lot of tertiary jobs in the US. Once you get to post-industrial with the which the US is we also start to see the quattinary sector start to rise and the quinary would follow but we have a lot more sec tertiary jobs. Our secondary jobs have continued to decrease our agricultural density connecting back to unit two which would be example of some primary sector jobs also has decreased. We're a much more service-based economy. And so these are things that we can see when looking at this kind of graphically. And that was the point of doing this. Don't worry

20:45 about like memorizing that graph perfectly, but I was trying to show you how these concepts connect to um development, which is something that you do need to understand for the test. All right. Um someone was saying about industrializa or de-industrialization. De-industrialization is just when we start to see those secondary jobs start to decrease. Manufacturing is going down and we're now getting more tertiary and service jobs. All right. Next vocab term that you need to know is a break of bulk point. So we'll put this on the screen there. This is just a location where goods are transferred. We're going from one mode of transportation to another. That's it. But break of ballpoint. Have an understanding of that concept. It definitely could come up on the test. Um

21:30 some people are asking about what is industrialization? This is the process of actually getting more factories, manufacturing. industrialization happens when we're seeing those secondary sector jobs take off, when we're getting a lot more of those. Cool. All right, we're going to go on to the next one. Also, I realized I missed some super chats. I will try to get to the super chats uh later. I just right now want to make sure I focus on the actual notes um since we're getting down there in crunch time. Okay, Weber's least cost theory. Here we go. Um all right, three things that you want to make sure you understand. You can see them on the screen right now. But elomeration, labor clo costs, and also transportation costs. These are the three factors that were used to kind of create the theory. Now, one thing you can see the

22:16 definitions there and I can make it so people can quick take notes. Um, but a lomeration, this is that clustering. The reason why different businesses do this and why companies would do it because I already saw some people asking is because it helps them make more money. It reduces some of their costs. If we decide, for example, to look at a real life example, we could talk about the car industry. Uh if you're going to buy a new car, you're going to notice that all the car dealerships are generally right by each other. Conglomeration. They're also all clustered around highways or interstates. And that's because it allows for people to get in and out there really quick. It allows also because they have large vehicles that they're constantly shipping in. It allows product to come in easier and

23:03 product to go out easier. So when we use elomeration, when companies do it, it's because they're trying to reduce their costs. Car dealerships know that generally people are going to actually shop around between different dealerships. And so by locating actually near each other, it allows them to get more customers because it makes it more convenient for the customers. And so they get the benefit then of that. Um it's the same thing like why malls work. Um you have all these different stores there. Like the Mall of America has all of these different stores that compete with one another, but because they're all located in the same area and they share some different resources and they're all clustered together, it brings in more customers. And so all the stores actually are better off and can make more money than if they were doing it by themselves. So that's what the

23:50 llomeration and why that kind of happens. Labor costs, just remember, we're talking about the employees there and how much they're getting paid. And transportation costs is the shipping of different products. All right. So the important thing that is going to happen with Weber's lease cost is understanding where we're going to locate though our production. And so we can see a couple different things. One, we have bulk reducing goods. Now realize bulk reducing goods as production's happening, it's going to become easier to ship. It's going to become easier and cheaper. And so that's why production is going to be located farther away from our market. In this case, it's IKEA, so we're maybe building furniture here. But if this is our market, if this is our store, and I have a bulk reducing good,

24:36 I'm going to then produce closer to my natural resources so that when I have my final good, which is lighter and easier to ship, I will ship that to the store. I'm saving money. Now, on the other hand, if it's a bulk gaining good, I'm going to want to then make sure that this is closer to the market. A bulk gaining good, remember, is a good that as production's happening, it gets heavier. it's harder to transport and that it's also going to be more expensive. In this case, the resources are actually lighter. They're easier to transport. So, it makes sense then for me to transport my resources a farther distance, create the product closer to the market and then I don't have to ship it as far. So, that is the kind of the important thing to understand Weber's

25:21 lease cost theory when we're looking at is trying to figure out where should we actually locate our production. So hopefully this is making sense. Again, don't mix up bulk reducing and bulk gaining. Um the names kind of give it away a little bit like bulk gaining. As production happens, it's going to gain weight. Bulk reducing, it's going to reduce weight. Things that are uh lighter are easier to transport. So we don't need that to be right there. So things that are heavier are going to be more expensive. They're heavier to transport. So hopefully that kind of helps with Weber's lease cost theory. definitely make sure you spend some time on it. Um, oh, one other quick thing too. If depending So if you see it on the test, this this could theoretically

26:06 be there. Um, but if you see where like the production is closer to one resource over another, what that's telling you is that that one resource is heavier and bulkier than the other one. So it makes more sense to locate the production near resource one over resource two because then that will make it so again we're saving money. It still could be a bulk producing good because the end product is cheaper. Um but we maybe locate it next to the heavier resource there. Again just trying to save more and more money there. So hopefully that makes sense. Um also too I realize this model is only looking at two resources. Um, in real life, many more resources go into the production of a product. However, if you understand this model,

26:52 you could apply it to theoretically five resources, six resources, or seven. You don't have to do that for the AP test. We're just trying to understand the concept. So, you don't have to like go into all the other things um there. So, just focus on the core model. All right. Couple things here. Speaking of core, we have core countries, we have semi-p periphery countries, and we have periphery countries. These are looking at economic development. Core is going to be our most economically advanced and periphery is going to be the least economically advanced. This also can connect back into our different standard of living. We could connect back as well into the sectors of the economy. So core countries generally are going to have more tertiary jobs, more quattinary and quinary. Um core countries are going to have higher labor costs generally because the standard of living is higher. Semi-p periphery generally these

27:39 are developing countries. Um, and we're going to have more secondary jobs. Tertiary jobs are starting to come as well. Periphery is going to be the least economically developed. A lot of times they're going to be um exporting raw resources to more developed countries. And this is kind of connecting into Wallerstein's world system theory that we're going to talk about a little bit later. But have an idea of these terms. Realize it connects us into connects into economic development. And we can actually see all of these if we're looking at the world today and world trade. And again, we're going to go into the world system theory a little bit later to try and um connect everything together, but here you can see all of the different countries of kind of where they're at um for core, semi-p periphery, and periphery. So hopefully this makes sense. You don't need to

28:24 memorize all the countries of where they are um and exactly what classification they are, but uh just wanted to show a visual so you could see it on the map. And yes, nice connection. Unit one, we got a global scale here and a national scale of analysis. So, great connection connecting it all together. Woo! Nice. Good job. All right, moving on to our next one. Um, you also might see multinational corporation. Now, this can come up with neoc colonialism, which is from unit 4. Um, it also could come up a lot in unit 7. Just realize this is a company that has business across the globe in at least one other country than its home country. So Tesla, Google, Microsoft, Apple, all of these are

29:12 multinational or organizations, corporations, all of those are. So um just wanted to define that term. It could come up so that way you know what it is. All right. Speaking of the economy, we are now on formal and informal economies. So I'll put it up quick so you can see this. Realize the formal economy. There's a bunch of indicators that we're about to talk about in a little bit. Um, so we'll get to that. But formal economic activities, they're recognized by laws. They're overseen by the government. Um, informal, they are not regulated or protected by the government. So you can see I have examples here. Street vendors, domestic workers, unregistered small businesses, doctors, servers, teachers, um, would fall into formal. Um, so these are things that are unregulated over here and regulated over

29:58 here. uh it is good to have a formal economy because that means workers get protection. So generally we see the informal economy um kind of flourish in like squatter settlements if we want to connect to unit six um or some like the favllas or these areas where people don't actually even own the land that they are residing on and so that has a variety of different issues that come up. All right, with our formal economy comes the next part which is going to be a GDP, GNP and GNI. Um, these are the indicators that you want to understand what they mean and you also don't need to worry about like calculating them. You do not need to have like the GDP formula me um like memorized. That's

30:44 going to be like more AP macro, AP micro where you're looking at like calculating out GDP. you don't have to worry about calculating out inflation. So, there's no need that for you to have like a calculator on this test. They're not going to let you have one because you don't need it. Um, but let's go over these to help you out. I'll put the definitions just on the screen here because there is a lot. Um, we have starting off our gross domestic product. Realize when we're talking about the GDP, we're just talking about the goods and services that are produced within a country's boundaries. GNP though is the total economic output produced by a country's residents and business. Doesn't matter where they are actually

31:30 located. So hopefully that makes sense kind of real quick between those. Um so again GDP if it was produced in the United States it is part of the United States's GDP. But if let's say something was produced in London it's not part of the United States's GDP. So, if Ford has a factory here in the US, that's part of our GDP. If Ford has a factory over in Hong Kong, then that factory in Hong Kong is not part of the US's GDP. However, because Ford is an American company, the Hong Kong factory that is a Ford, whatever, uh that would be part of our GMP. So, that would be part of the United States's GMP. So realize the

32:16 difference there. Hopefully that kind of helps. I'll put it back up so people can take some notes there. Um, but the other thing then when we're going down gross national income, this is just looking at the total amount of income generated by a country's residence and business both domestically and abroad. So when you're hearing the word abroad, realize we're talking about overseas. We're not talking about um within our actual country. So just have an idea of those different components there. And these are all ones that are going to measure the actual formal economy. So generally we can see the higher the GNI per capita there and remember per capita is looking at per person uh the more economic opportunities we actually see uh in a society. So we want a higher GNI per

33:03 capita because that means more economic opportunities. So which is great. It shows that the average income earned by each person is a little bit higher. All right going on to our next thing. We have our next measures. So, here we go. We got more. Um, we have gender inequality. So, that's the GI. We have the maternal mortality ratio. There we go. And we have the adolescent fertility rate. So, these are all kind of dealing with gender. Um, wanted to put the definitions up here. Realize when we're looking at these that a country's GI can range between zero and one. On the AP test, you're not going to have to calculate necessarily the GI, but you do need to understand how to interpret it. So, it can range from zero to one. And

33:50 the higher the value, that generally indicates then more inequalities, more disparities between women and men. Now, don't mix that up with the HDI. We will talk about the HDI in a little bit. Um, the HDI is going to be the opposite. So, that's the one with the GI. Remember, the higher the value, the more inequalities. However, when we get to uh the HDI, the higher is going to be the opposite there. All right, cool. I'm going to move on to the next thing there. Um, if you do need more time copying down the definitions, by all means, you can. Um, hopefully this stuff is a little bit more of a review. Yeah, the closer you get to zero is going to be the better for the GI. Um, the higher then you're gonna have more inequalities. Now, no country is at a

34:36 perfect zero. like there is no perfect society that has zero gender inequality um which we have seen um time and time kind of throughout this course here. All right, next couple things just as a reminder that kind of come back in parts of this unit um I just want to make sure we retouch on is one total fertility rate. So remember don't mix up on the test total fertility rate with the CBR. In the past, there has been some FRQs that have asked about the total fertility rate and students got questions wrong because they described CBR instead of total fertility rate. So remember, with total fertility rate, you have to talk about the average number of children a woman will have. CBR is just that crude birth rate. So we're just looking at the average amount of births.

35:23 TFR is specific to the average number of children that a woman will have. And remember too a TFR when we're looking at that uh a replacement rate which would be 2.1 that's going to be how many essentially where we're getting that like zero population growth where we're able to maintain our current population. On the other hand too remember IMR that is different as well. That's looking at the number of deaths under one years of age. Um so one real quick just to take a quick pause. Uh I see some people in the chat are like the test leaked. The test leaked. There's no leak. Stop worrying about it. it's people trolling you. Um, just focus on studying and prepping for the test. We're a couple days out and the last thing you need is people just distracting you with nonsense. So, let's actually just focus on learning. Focus

36:09 on reviewing and just getting ready for the actual test and focus on the things you can control. You can't control what other people are going to say. You can't control what all these other things online are, what the curve is, or what the actual test is going to have on it. Instead, what we can control is being able to rock this exam. You've prepped all year for this test. You've been putting the work in. You have been making sure that you're doing your homework. You're listening to your teacher. Last thing you need to do now is get distracted by some random people on the internet. So, lock it in, geographers. You've got this. I'm going to go back to this. I'm not going to acknowledge it again. So, that's just going to be my two cents on it. Um, and we're moving back. So, cool. All right. Um before we get into the next indicators, I do want to though kind of

36:54 highlight again infant mortality rate. One thing that some students also get confused with or have in the past. So I'm trying to also highlight some of the things I've noticed in past tests here. But as economic development happens and the infant mortality rate falls, sometimes people think, oh that means the birth rate is going to go higher or our population is going to grow. Less children are dying, so we're going to get a bigger population like boom. But the opposite's actually true. remember going from stage two to three to four in that demographic transition model as infant mortality rates come down people realize that their families um the children aren't dying which is great and so we start to see then family sizes shrink that's also because of women getting more economic opportunities more urbanization and other things as well but just realize that in the back of

37:40 your mind so you don't make that mistake there all right uh real quick looking at the world today we can also see that a little bit here's our gender inequality index for 2022 two. Um, again, I realize I kind of keep harping on it. Um, I don't want you to make the mistake on there. So, here is the lower is the better. There's no like true 100% zero. The higher means more inequality that we are going to have. The lower here is what we would want. This is less inequality um that's happening there. So, we can see different countries around the world. If I was to overlap this even with some other maps, we have a chloroplath map. I can see a bunch of people saying um but if I was to overlap this with like education, economic

38:26 development, we would also probably see some trends here. So we can see a couple things um that overlap in this class. All right, our next index is the human development index. This is the one where it is ranging from zero to one. So again 0 to one. The big difference here is the higher the score the better. So don't make that mistake um where you flip it with the GI. So understanding this HDI really allows us to see um how different countries compare on the level of human development. So we're using this to track development over time and it's a great way to be able to see where we can improve in the future. If we wanted to look at the world today, we can actually see here's kind of our ranking.

39:12 Um it's a little bit maybe outdated. Um this is from earlier in the year, but this is where we are. Again, the higher the HDI value we can see uh the better. So here we can see Switzerland right now is ranked number one. Iceland, Denmark, Germany, Singapore, Netherlands going all the way down. United States we are 20. So right here it goes one, two, three, four, five, six. So that's how you'd read this going back and forth there. Um hopefully this is kind of interesting for you. I just wanted to show it. You don't have to memorize this. This is just showing the data. So if you do see any of the data here again higher the better. All right. Another thing we can see we have another chloroplath map here global scale and we're looking at a national scale of analysis. Um this is looking at oil

39:58 consumption as economic development occurs as industrialization occurs realize that we see more pollution generally happen more oil consumption more energy usage continues to occur. So I just wanted to include this. it is in the CD. There's a little thing about energy consumption and pollution and stuff. So, I want to be able to connect in to an example there. So, we can see on the map generally the more economically developed countries start to have some more consumption there. So, hopefully that kind of helps. All right, two more concepts and vocab terms. We have microloans and micro financing. So these are ways in which individuals or organizations, small businesses can actually help people out in other communities. So um particularly developing regions. So

40:43 microloans, we have these smaller loans are provided to individuals and generally they're going to focus on people who are excluded from traditional banking services or from different parts of society. So a lot of times they help women get out of poverty in more economically challenged areas. Now micro financing is a little bit broader. This is a category there where we got these services um that are for an individual or these small businesses that are lacking. This might include a savings account, insurance money, um transfer services. Microloans is just the money itself. Micro financing is broader. So it' be like, hey, you don't have access to a bank account. let's get you a bank account or you don't have a line of credit. So that's is it. Um just realize

41:28 these are connecting back and a lot of times there is debate over how effective they are but the goal is to try and help like women or people in poverty be able to escape that. So uh have an idea for that. Um a line of credit would be I'm going to give you like hey you have a $5,000 line of credit which means you can take 5,000 of debt out. So I'm giving you access to money that's mine. you can take it out as loans and then you'll have to pay that back. Uh, cool. We're gonna go on to the next thing. I realize I am missing a couple of the different um super chats. I'll get to those at the end. I apologize. So, I want to go through that all of this stuff first. Okay. Gender parity. We've been talking about gender for a little bit. Gender parity is in the CD. It's mentioned, I think, once, maybe twice. Um, but it's one that students often

42:14 like kind of skip over. And just in case it's on the test, let's make sure you know it. All this is talking about here is we're looking I can make it so you can see it better but we're really looking at inequalities. So economic development what we can see again is we're going to generally see this increase in the gender equality. So that parity we're getting closer and closer now where we're going to be equal there. So we're just talking here about gender inequalities. All right here we go. We are at some of the models that we need to get um all of the fun resto stages of economic growth. Um one of the things this model earlier in the stream when we were looking at um pre-industrial industrial and post and then we were looking at like the different sectors

43:00 that's kind of this model. So if you can remember that connect back to those economic sectors. So, I'll put the model on the screen so you can see how it builds over time and then I'm going to kind of explain each of the stages and I'll try to highlight some of the different things that are happening with this model and at the end we'll talk about some critiques of it um because that is something you want to be aware of is some of the issues that people have put out here. So, one right away notice this builds off the previous stages. So, we can kind of see um it's not like you're starting at high mass consumption. You're starting down here at the bottom, traditional society, and we're going to kind of work our way up. So realize during that traditional society, the economy is mainly going to be subsistence. We're going to have a lot of jobs that are in the primary sector. We're going to have a lot of

43:46 subsistence farmers. Um eventually we're going to start to see some new economic development happen. And that's what's going to lead us to these preconditions for takeoff. This is really where we start to see the economy grow. More investment comes in infrastructure. We start to see more focus in education. As time goes on, then more production starts to happen and we start to see new industries emerge here. And these new industries generally are opening up in that secondary sector. So that secondary sector again if we connect back remember earlier in the stream we saw primary sector jobs they started to decrease the secondary sector started to go up we started to see this

44:31 shift happen so in his model if you can remember that chart that's what's happening right now as this happens we start to see more access to foreign states really they start looking like hey look at this developing country over here all of a sudden now they've got all these roads They have some factories that are starting to open up and other countries start to take in interest because all of a sudden now they're saying, "Hey, we kind of want some of their resources." So eventually as all this stuff starts to go, we start to move into this takeoff stage. This is going to be this next stage here. So we're going from preconditions for takeoff to takeoff. During this stage is when we see massive like rapid economic growth. This is where a lot of jobs are moving

45:18 um out of that traditional agricultural based activities. So out of that primary sector and really we're moving now into that secondary sector. We have a lot more jobs coming right here into um the factories and this manufacturing and all of this new growth leads to more urbanization. More opportunities are opening up for citizens which is great. And as this continues to happen though, other states, they also start to see what's going on. And more and more states now are going to be interested in trying to actually take advantage of that. And so this is where we could start to see some exploitation happen if we connect into unit 4. Again, like some of those European powers got interested in some of the less economically developed areas because they're like, look at all these resources they have. All of a sudden, now we're able to kind

46:04 of extract some of that and help ourselves out eventually. Then we go into this drive to maturity stage. Um this is where we start to participate more and more in global trade. Uh during this stage is we see a big shift from these heavy industries to a little bit more consumer goods. So we're starting to see this transition now into the tertiary that could be happening. So de-industrialization, a term we talked about earlier in this review, could start to happen here. Um a lot of influence from outside states is still happening here. So, the world economy is still kind of taking advantage of the state here. Um, but we're starting to slowly become independent. They're starting to be able to get their own needs covered. And then lastly, we get to the high mass consumption, which this is where we have a lot of tertiary jobs. You're pretty independent now from

46:50 outside forces. Um, it doesn't mean everything. Remember, all of this stuff is connected. So, when we're looking at this high mass consumption stage, it's not like we are 100% on our own as a country here. Um, so this is this Rustto's model of economic growth. I realize I'm probably also mispronouncing his name a little bit, but um I've already said it. So, uh, we're going on to the next thing. Oh, uh, before I forget, one of the things remember for cons here, this doesn't factor in like historical economic growth factors. So, different things such as, uh, colonialism, imperialism, uh, things that would have prevented countries from moving up on this. So, that is a critique of this model. People have looked at it and said like, well, hey, scramble for Africa, the Berlin

47:36 Conference, for example, kind of colonized all of Africa, created these superimposed boundaries that made states that were not efficient and created conflict. And so, they didn't have the opportunity to just progress through this. And other states were able then to essentially enrich themselves with other people's resources and labor. And so, that created some different issues there. And people critique this model for essentially oversimplifying this economic development that occurs because it didn't really factor in some of those other things. All right, our next model is Wallerstein's world system theory. This is where we start to see our core semi-p periphery and periphery concepts all come back. And again, we can also see interdependence here. Remember interdependence, we've talked about it

48:21 in some of our earlier units. This is how places are connected and how they rely on one another. If you're interdependent, you depend on them. And so I'll make it full screen so you can see it a little bit better here. Um, but when we are looking at this, we can see core countries generally are going to get the most benefit. So what we're seeing here is this high profit consumption goods. They're going to sell stuff back, make money there, but they're going to get the advantage of the periphery, the semi-p periphery. These areas that have cheaper labor markets, that have more raw resources, they're getting shipped over to them. If we want to connect into the real world, the United States, whether you realize it or not, um the US, we have more access to a ver

49:06 larger variety of goods, to cheaper goods than pretty much any country in the world. Um and that's because of this global trade and it does benefit the US in quite a few ways. Um we get the advantage of having cheaper goods because we use a lot of the cheaper labor from other countries and we I mean like the companies and the different production that happens. Um, we also too are going to extract a lot of natural resources from other countries as well. It's more expensive to produce stuff in the US. And so if we take advantage of the international division of labor, which we're going to talk about in just a little bit, uh, we're able to reduce costs, increase profits, um, and increase that standard of living. And there's a lot of debate that's happening today um, on this. Like, if you have been following the news at all, there's a lot of talks of tariffs and trade

49:51 embaros and all these different things. Um, and should manufacturing jobs come back to the US? Should we have more secondary jobs? And we'll have to see what happens with all that. Um, and it's up for debate of where people side on that. We'll talk about tariffs in just a little bit because that is part of this course. But Wallerstein's world system theory just realized that this interdependence that is seen benefits more economically developed countries more. So that's one thing to realize about this model here. Um one thing too for critiques they people have pointed out uh this model does not actually take into account the fact that like other groups and organizations um could actually try and go against this and try to like help out those developing areas.

50:36 So we could see like non-GMOs or micro financing, micro lending, all that stuff. Um even different individuals like I said in the exclusive live stream earlier today, but like Mr. Beast in Feastables. If you follow the Feastable story at all, he's doing a lot of work to try and remove child labor out of the cocoa production. And so Mr. Beast has spent a lot of time trying to make sure that he has a supply chain that's ethical. Um, and has tried to ramp it up so he could compete with the larger chocolate companies and making sure that his workers there are getting paid a fair wage and so they don't have to have children working in the fields um to produce the cocoa for festivals. So, it's kind of a really interesting um story there. Yeah, some people are saying like sponsored there. No. Uh definitely not sponsored at all by Mr.

51:23 Beast. If Mr. Beast ever wants to talk AP human geography concepts and promote his brand at the same time, connect education there. Reach out to me, Mr. Beast. You guys tag him. Let me know. Uh we'll do a live with that. That would be cool. But I just want to give an example because it's probably relevant since you guys have probably heard of Fastables. Um, and it's something that can connect into a crit critique of here fair trading practices a little bit more um, and helping stuff out. So, all right, last theory and then we're going to go on to a couple other concepts and it's the dependency theory. I realize the AI art is kind of controversial, but this is kind of an interesting one. It's trying to highlight and show how connected things are and today how dependent the world is and it's imbalanced. Now what I

52:10 mean by that is like more economically developed countries disproportionately benefit from a lot of the global trade. The US it's not really a question. We benefit a lot from it. Developing countries generally are getting the short end of the stick there. And that reason why is because their resources are being exported to other countries. We talked about in unit five when we're looking at countries that are struggling uh to have enough food to feed their population. This cycle that gets created because of the global economy where farmers there are producing cash crops which remember are crops that are going to be for sale. The whole point is to make money. It's not for consumption. And so farmers are producing those to

52:55 then ship out to more developed countries to make profit. At the same time, their country needs more of their farmland to actually grow food for them, but they don't have enough money and resources to do it. So, we can see this dependency theory come up in some of our other units as well. Uh, one concept that can connect here, I have the term on there, it's decolonization. Just realize this is the process in which colonies become independent of the colonizing country. Now, the reason why I have it here is because oftenimes what we see is once we see a colony become free, they often are still dependent on the colonizing country. And that's because a lot of the systems were set up to support them. Um, and also that they don't have all the tools that they necessarily needed. So, they are kind of connected. We've seen that in the past like when Africa, a lot of the different countries inside the continent of Africa

53:40 became independent. a lot of them still relied on European countries uh for trade and for support. So have an idea of those. Um hopefully that helps there for those theories. All right, here we go. Next term it did come up also in unit 5 and it is a commodity dependence. So I'm not going to spend too much time on here's an example of it. This is just when over 60% of um the country's total export are made up of like a commodity. So here we're looking at uh Venezuela right here. Crude petroleum 83.8%. Refined petroleum 12.2%. This right here is like their entire economy. So when anything happened and eventually it did, prices fell. When prices fell the entire

54:29 economy collapsed this is one of the things that's an issue with commodity dependence. If a country has a commodity dependence, they are really susceptible for any price changes in the actual commodity that they depend on. So have an idea about that on the actual exam. Commodity dependence uh would be an issue there. A commodity I see some people saying like what is a commodity? Uh commodity is going to be like a raw natural resource there. Generally a lot of times talking about like food like corn is a commodity that can be traded. So we're talking about things that can be traded. Um oil we can trade um that could be a commodity. It can be traded. It can be exchanged for money. So that would be a commodity uh there. All right. Next one. Globalization. We've talked about this all class. So we're not going to spend a ton of time here.

55:15 Uh realize this is that process by which countries, economies, cultures, businesses are all interconnected and interdependent on one another. Remember interdependence means we are reliant. We are connected on each other. So we both need to have um trade to exist. Okay, globalization again we're going to go over pretty quick. All right, free trade policies, neoliberal policies. So neoliberal policies, these are economic political ideology where we're focusing on individual freedom over government control. So this is going to be that free trade markets um and things of that nature. Right now in the news, if you're following again I mentioned earlier this is what's kind of being challenged. There's a lot of debate on the effectiveness of neoliberal policies.

56:01 Many economists will argue that neoliberal policies are amazing. Some economists argue against it. Some politicians argue against, some are for. It's up to you which way you want to. I'm not going to take a stance. Um but just realize in general what we see free trade um means that there is not going to be tariffs or different things that are going to add extra cost to trade. So this is international trade that allows us to trade with other countries around the world without barriers. Um, some economists, for example, like Morgan, um, wow, I was gonna say Morgan Freeman, but it's not. Milton Freeman. Milton Freeman. There we go. Uh, he argued like free trade that we should have free trade. Um, because when we trade, we're always better off. And some people would put out like, oh, well, what if there's

56:47 an imbalance in trade? So, like if country A and country B trade, but country A buys a lot more from country B, is that fair then? Is it lopsided? And some economists would argue like, well, of course it's fair because you've decided to trade and that was a deal that you made. Free trade, you're going into it, you're go like when you go to Target and you give Target money. This will be an easier example for you. You give Target money. In return, you get a good. You're not mad that Target never gives you money. Target's not mad that you don't give them goods. You are saying when you go to Target, take my money. I value that good more than the money. And Target's saying, I value your money more than the good. So you exchange, it all works out. Everyone's happy. So that's trade in a nutshell. Um, cool. Let's go on to the next thing

57:32 here. Um, when we're talking about these, these are different organizations that are listed in the CD. So I'll put them up there. You can see um, all of these foster and promote greater globalization. These are things that are going to be focusing on trying to reduce trade barriers or to try and make sure that their particular organization or country is better off. So like OPEC for example um they do a lot of trying to OPEC sometimes gets called a cartel because of the amount of manipulating they do of oil and gas. They will try to reduce the supply to try and increase prices. So they change the supply for the globe to actually try and influence there. Um so have an idea of these. We're not going to go into all of them right now. Um

58:17 don't worry about memorizing the countries that are in each one. Focus more of what they are. Um also remember a lot of these then are going to be those super national organizations which is a concept from unit 4. And that's going to be those um multiple countries all coming together. All right. Tariff. A tariff has been in the news a lot. Uh, one of the things with a tariff, and I'll make it a little bit bigger so you can just quick take notes, then I'll switch it back. But realize this tariff is a tax, a duty it's also called. It's imposed. The government puts it on goods, services that are coming into the country. So, a lot of times governments are going to do this when there's trade deficits. Um, the goal that they try to do is they're trying to promote domestic production. So they want to move

59:03 production from overseas back to the actual country itself. So tariffs when we're looking at this um one misconception that does come up with tariffs is that the country pays it. So a tariff essentially like let's say Apple can produce this phone for I don't know maybe I should have picked something that's less expensive. I don't but Apple can produce the phone for like 50 bucks if we put a tariff on and let's say the tariff is going to equal like 10 bucks. Now when this comes in, it now costs Apple that 60 bucks to produce the phone. So Apple to business, they're gonna have to pay it. Now businesses are about making money. So generally what the businesses are going to do then is raise their price. So if we put tariffs on goods, the goods then that are tariffed are coming in. The country

59:48 doesn't pay it. What's happening there then is that the company is going to have to take that cost. Then they pass that cost on to the consumer. So generally then it makes it so the prices go up which then balances the playing field per se um so that way more people would buy domestic goods like for the United States for example there's a lot of talk about tariffs um we're trying to favor Americanmade goods it normally costs more to produce stuff here so a tariff is supposedly balancing that so have an idea there uh the next thing with trade is complimentary index and comparative advantage so I'll put these back up here and you'll be able to see um the concepts here and then we'll kind of talk a little bit more in depth about comparative advantage. So all complimentary is looking at is just

1:00:35 country A needs oil. Country B has oil. Let's trade. It makes sense. We both have the two things that we need. One's trying to sell it, one's trying to buy it. It works. That's complimementaryary. Comparative advantage is referring to countries focusing on what they are best

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