APHG Unit 7 Industry and Development TWHS-9

Agglomeration

The benefits that companies experience due to being clumped closely together.

Break-of-bulk point

A place where cargo is unloaded from one form of transportation and pieces of it are sent out in different directions to other forms.

Capitalist economy

An economic system in which a country's trade and industry are controlled by private owners for profit, rather than by the state; based on supply and demand.

Climate change

Any significant change in the measures of climate lasting for an exceeded period of time; can pose harmful effects to people and the environment.

Commodity dependence

When a country's economy is reliant on a single product.

Communist/command economy

An economic system where factors of production are collectively owned and directed by the state.

Complementarity

When two regions, through trade, can specifically satisfy each others demands.

Comparative advantage

The ability of a group to carry out an economic activity more efficiently than another economic activity.

Core

In World Systems Theory, these are the powerful, wealthy countries that have great influence over the world economy.

Debt Crisis

Occurs when a government's debts exceed its tax revenues to the point that it cannot meet its loan payments.

Dependency Theory

The theory that the periphery is poor because it was economically dependent on the core in a disadvantageous relationship originally established under colonialism and imperialism.

Development

Improvement in human well-being through economic advancement.

Deindustrialization

Employment in manufacturing as a share of total employment that has fallen dramatically in the more developed countries.

Economic restructuring

Changes in the way the economy, firms, and employment relations are organized, often sending jobs to newly industrialized countries.

Economic Sectors

"Sections" of an economy. The three main sectors are the primary, secondary, and tertiary sectors.

Economy of scale

A proportionate saving in costs gained by an increased level of production.

Ecotourism

Strategy used by some countries to promote tourism while trying to protect the environment and generate jobs.

Export processing zone

Industrial zone with special incentives to attract foreign investment to places where imported materials undergo processing or assembly before being re-exported.

Fordist production

Form of mass production in which each worker is assigned one specific task to perform repeatedly.

Formal economy

Economic activities that take place inside the official, legal framework, pay taxes and are monitored by the government.

Free trade agreement

A treaty between countries that eliminates tariffs on goods sent between the countries.

Free trade zone

A region where a group of countries agrees to reduce or eliminate trade barriers.

Gender Inequality Index (GII)

A measure of the extent of each country's gender inequality.

Gender parity

Ensuring that males and females have equal opportunities in areas such as education, employment, voting and decision making, and access to health care and other resources.

Global financial crisis

Economic crashes that happen internationally due to the globalization of the world's economy.

Gross Domestic Product (GDP)

The total value of all goods and services produced within a country over a specific time period regardless of the producer's national origin.

Gross National Income (GNI) per capita

The total income of a country's residents and businesses, including investment income, regardless of where it was earned, as well as money received from abroad such as foreign investment and development aid. Per capita is total divided by total population.

Gross National Product (GNP)

The total value of all the goods and services made a country's residents and businesses in a specific time period, regardless of the country or location in which they were made.

Growth pole

An innovative, high-tech industry that stimulates economic growth in linked businesses.

Human Development Index (HDI)

An indicator of level of development for each country, constructed by United Nations to show a more complete picture, combining income, education, and life expectancy.

Income Distribution

How the nation's or region's total income is distributed among its population.

Industrial Revolution

A series of improvements in industrial technology that transformed the process of manufacturing goods.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.

Informal economy

Economic activity that is neither taxed nor monitored by a government, including illegal activities.

Infrastructure

The basic physical and organizational structures and facilities (e.g., buildings, roads, and power supplies) needed for the operation of a society.

International division of labor

Transfer of some types of jobs, especially those requiring low-paid less skilled workers, from more developed to less developed countries.

International Monetary Fund (IMF)

An international lending agency (supranational organization) that aims to promote global economic stability and helping LDC's grow.

Just-in-time delivery

Parts and materials arrive at a factory moments before they are needed; a strategy used to have just the right amount of inventory so as to not have to pay for storage.

Least Cost Theory/Industrial Location Theory

Theory that tries to explain and predict the location pattern of industry; focuses on key variables of transportation, labor and agglomeration.

Maquiladora

Factories built by U.S. companies in Mexico near the U.S. border, to take advantage of much lower labor costs in Mexico.

Mass consumption

The use or purchase of goods or services by a large number of people.

Microloan

Provision of small loans and other financial services to individuals and small businesses in developing countries.

Multiplier effect

The creation of new businesses and jobs in other industries as the result of investment in a different industry.

Neoliberal policies

When countries institute economic rules that promote sustained economic growth as the means to achieve human progress and confidence in free markets. Ex: eliminating trade barriers

Newly industrialized country

A country that has begun transitioning from primarily agricultural to primarily manufacturing and industrial activity.

Periphery

In the World Systems Theory this is the least economically developed countries that provide the core countries with raw material and labor.

Outsourcing

The transferring of manufacturing or other tasks (such as data processing) to an outside company or a less developed region.

Post-Fordist production

Adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks.

Primary sector

The portion of the economy concerned with the direct extraction of raw materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.

Quaternary sector

Knowledge based service sector that includes research and development, business development, financial services, and education.

Quinary sector

The most advanced service sector consisting of high-level decision in government and business.

Semi-periphery

In World Systems Theory, this is the more wealthy LDC's that have some influence over world economies; sometimes known as emerging economies that are newly industrialized.

Secondary sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

Socialist economy

Economy in which the government owns and operates large-scale companies for the benefit of the public and small businesses are often privately owned.

Standard of living

The degree of wealth and material comfort available to a person or community.

Stages of Economic Growth Model/Modernization Model

Model of development that assumed all countries wanted to modernize and all would, though at different speeds.

Tariff

A tax on imported goods and services

Special Economic Zone

An area that has different laws governing trade and business than the rest of the country and aim to attract foreign direct investment.

Tertiary sector

The portion of the economy that provides services to people and businesses.

UN Sustainable Development Goals

Goals set by the UN in 2015 to be achieved by 2030 that aim at promoting development, reducing poverty and protecting the planet.

Uneven development

The increasing gap in economic conditions between core and peripheral regions as a result of the globalization of the economy.

World System Theory/Core-Periphery Model

Wallerstein's theory on economic development that says in an increasingly unified world economy countries depend on each other, with some benefiting more than others.

Bulk-gaining industry

an industry in which the final product weighs more or comprises a greater volume than the inputs

bulk-losing industry / bulk-reducing

an industry in which the final product weighs less or comprises a lower volume than the inputs

Foreign Direct Investment (FDI)

Investment made by a foreign company in the economy of another country either by establishing business operations or acquiring assets

Labor Union

an organization of workers that aims to protect their rights and further their interest, more common in NE US than in the South.

Right-to-work state

A U.S. state that has passed a law preventing a union and company from negotiating a contract that requires workers to join a union as a condition of employment.

Footloose Industry

Industry in which the cost of transporting both raw materials and finished product is not important for the location of firms.