Economic Development and Trade

These flashcards cover key concepts related to economic sectors, patterns of development, theories of development, trade, and sustainable development.

Primary sector

The portion of the economy concerned with the direct extraction of materials from Earth’s surface, such as mining and fishing.

Secondary sector

The portion of the economy concerned with processing raw materials into finished products, such as manufacturing and construction.

Tertiary sector

The portion of the economy focused on the provision of goods and services for exchange for money, including retail and banking.

Quaternary sector

The knowledge-based sector involving business development and education administration.

Quinary sector

The highest level of decision making, including top government and business officials.

Break of bulk point

A location where goods are transferred from one mode of transport to another.

Containerization

The process of loading goods into containers to be shipped for transport.

Bulk-reducing industry

An industry where the inputs weigh more than the final products, necessitating proximity to the source of materials to minimize costs.

Bulk-gaining industry

An industry that gains volume or weight during production, requiring proximity to the market to minimize costs.

Core countries

Countries located in MDCs with high GDP, literacy rates, education levels, and low gender inequality.

Semi Peripheral countries

Countries that are in between core and peripheral countries, primarily in Latin America, parts of Africa, and Asia.

Peripheral countries

Countries located in LDCs with low GDP, literacy rates, education levels, and high gender inequality.

Rostow’s stages of development

A theory outlining five stages of economic growth: Traditional Society, Pre-conditions for Take-off, Take-off, Drive to Maturity, and Age of High Mass Consumption.

Complementary advantage

A measure of how well one country’s export profile matches another country’s import profile.

Comparative advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than any other activity.

Outsourcing

Contracting work out to noncompany employees or other companies.

Export processing zones (EPZs)

Areas in LDCs where special regulations benefit foreign-controlled businesses to promote manufacturing.

Ecotourism

Travel to a region by people interested in its distinctive ecosystems, aimed at funding conservation efforts.