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Cottage Industry
Small-scaled businesses typically operated from home, using traditional techniques to produce custom goods by hand.
Industrialization
Process that led to the decline of the cottage industry due to the rise of large-scale manufacturing.
Enclosure Movement
Movement in England privatizing publicly owned agricultural land, increasing food production and countering the tragedy of the commons.
Primary Sector
Involves extracting natural resources from the Earth, like fishermen and coal miners.
Secondary Sector
Involves processing raw resources to manufacture products of greater value.
Tertiary Sector
Involves providing services, like lawyers.
Quaternary Sector
Involves acquiring, processing, and sharing information, like journalists.
Quinary Sector
Involves decision-making activities, like politicians.
Value-added Products
Products processed to increase their value and sell at a higher price than raw materials.
Gross Domestic Product (GDP)
Total value of goods and services within a country's borders over a specific period.
Core Countries
Most advanced economies with high living standards and political influence.
Semi-periphery Countries
Emerging economies industrializing.
Periphery Countries
Rely heavily on exporting raw resources, less economically developed.
Multinational Corporation
Company with operations in at least one country other than its home country.
Alfred Weber’s Least Cost Theory
Considers transportation and labor costs in industrial location decisions.
Agglomeration
Clustering of economic activities in a specific geographic area.
Formal Economy
Regulated economic activities overseen by the government.
Informal Economy
Unregulated economic activities like street vending.
Gross National Product (GNP)
Total economic output produced by a country's residents and businesses.
Gender Inequality Index (GII)
Measures gender-based inequalities in health, education, and economic participation.
Maternal Mortality Ratio
Measures maternal deaths per 100,000 live births due to pregnancy complications.
Human Development Index
Measures life expectancy, education, and income for development assessment.
Rostow’s Stages of Economic Growth
Describes stages from traditional society to high mass consumption.
Dependency Theory
Developing countries depend on developed countries for economic growth.
Offshoring
Relocating business processes to foreign countries for cost advantages.
Outsourcing
Contracting services to external providers for cost reduction.
Urban Blight
Abandoned, vandalized homes with little value.
Special Economic Zones
Regions offering economic incentives to attract investments and promote growth.
Fordism
Emphasizes mass production of standard goods.
Post-Fordism
Emphasizes flexible production methods and custom goods.