Key Concepts in Deindustrialization and Economic Zones

Deindustrialization

The process of reducing industrial activity in a region or economy.

Special economic zones (SEZ)

Designated areas in a country that possess special economic regulations that differ from other areas in the same country.

Maquiladoras

Factories in Mexico that import materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing.

Export-oriented businesses

Companies that focus on producing goods for export rather than for the domestic market.

Tax abatement

A reduction in the amount of tax that a business or individual has to pay.

Right-to-work laws

Laws that prohibit union security agreements between companies and labor unions.

Growth poles

Areas where economic growth is concentrated and from which growth spreads to surrounding areas.

Non-basic jobs

Jobs that serve the local population and do not bring in money from outside the community.

Basic jobs

Jobs that bring in money from outside the community, contributing to the local economy.

Multiplier effect

The phenomenon where an initial increase in spending leads to a larger increase in overall economic activity.

Offshoring

The practice of relocating business processes or services to another country.

Outsourcing

The practice of obtaining goods or services from an external source, often from another company.

New international division of labor

The global allocation of different tasks in the production process to different countries.

Post-Fordism

An economic system characterized by flexible production processes and a focus on consumer demand.

Just-in-time delivery

An inventory strategy that aligns raw-material orders with production schedules.