Unit VI: Industrial and Economic Development Patterns and Processes

industry

Any economic activity using machinery on a large scale to process raw materials into products

raw materals

Any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods (input)

industrialization

The process in which the interaction of social and economic factors causes the development of industries on a wide scale

industral revolution

The radical change in manufacturing methods that began in Great Britain in the mid-18th century and was marked by the shift from small-scale, hand-crafted, muscle-powered production to power-driven mass production

cottage industries

Preindustrial form of manufacture in which members of families spread out through rural areas worked in their homes to make goods

primary sector

Economic sector associated with removing or harvesting products from the earth; includes agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas

secondary sector

Economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction

tertiary sector

Economic sector that includes a host of activities that involve the transport, storage, marketing, and selling of goods or services; also called the service sector

quaternary sector

Economic sector that is a subset of tertiary sector activities that require workers to process and handle information and environmental technology

quinary sector

Economic sector that is a subset of the quaternary sector; involves the very top leaders in government, science, universities, nonprofits, health care, culture, and media

postindustrial

An economic pattern marked by predominant tertiary sector employment—with a good share of quaternary and quinary jobs

Gross Domestic Income (GNI)

The total value of the goods and services produced by a country's citizens and companies both domestically and internationally, includes remittance and foreign aid

dual economies

Economies with two distinct distributions of economic activity across the economic sectors

least cost theory

Industrial location theory proposed by Alfred Weber suggesting that businesses locate their facilities in a particular place because that location minimizes the costs of production

agglomeration

The tendency of enterprises in the same industry to cluster in the same area

break-of-bulk point

Location where it is more economical to break raw materials into smaller units before shipping them further

bulk reducing industries

Industry in which the raw materials cost more to transport than the finished goods

bulk gaining industries

Industry in which the finished goods cost more to transport than the raw materials

industral parks

A collection of manufacturing facilities in a particular area that is typically found in suburbs and is located close to highways to facilitate movement of raw materials and finished products

multinational corporation

a corporation that owns businesses in two or more countries, is typically headquartered in a core country

just-in-time delivery

A system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production

Fordism

A highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production (assembly line); named after Henry Ford

Post-Fordism production

System focused on small-scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market

offshore outsourcing

The condition of one or more aspects of production (manufacturing or service)are moved to an organization in another country

international division of labor

A pattern of production and labor in which different countries are engaged in distinct aspects of production

multiplier effect

The economic effect in which a change creates a larger change, such as when a new manufacturing plant grows the economy by giving rise to more related jobs and services

special economic zone (SEZ)

An area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses

export processing zone (EPZ)

An area within a country that is subject to more favorable regulations (usually including the elimination of tariffs) to encourage foreign investment and the manufacturing of goods for export

free trade zones (FTZ)

Designated areas where foreign companies can warehouse goods without paying taxes or customs duties until they move the goods into the marketplace

Gross Domestic Product (GDP)

The total value of the goods and services produced by a country's citizens and companies within the country in a year

Gross Domestic Product (GDP) per capita

The total value of goods and services globally produced by a country in a year divided by the country's population

formal sector

Businesses, enterprises, and other economic activities that have government supervision, monitoring, and protection, and are also taxed

informal sector

Any part of a country's economy that is outside of government monitoring or regulation; sometimes called the informal economy

Human Development Index (HDI)

A measure that determines the overall development of a country by incorporating three key dimensions of human development: life expectancy at birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI per capita

microloans

A very small short-term loan with low interest intended to help people in developing economies (Grameen Bank)

Stages of Economic Growth Model

A theory developed by Walt Rostow in which five stages of economic organization are recognized: traditional society, preconditions for takeoff, takeoff, drive to maturity, and high mass consumption.

World Systems Theory

Theory developed by Immanuel Wallerstein that explains the emergence of a core, periphery, and semi periphery in terms of economic and political connections first established at the beginning of exploration in the late 15th century and maintained through increased economic access up until the present.

dependency theory

A theory that describes the development challenges and limitations faced by poorer countries and the political and economic relationships poorer countries have with richer countries

commodity dependence

An aspect of dependency theory that occurs when more than 60 percent of a country's exports and economic health are tied to one or two resources

Sustainable Development Goals

Seventeen goals adopted by the U.N. in 2015 to reduce disparities between developed and developing countries by 2030.

ecotourism

A form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment

comparative advantage

The relative cost advantage a country or organization has to produce certain goods or services for trad

complementarity benefit

The mutual trade relationship that exists between two places based on the supply of raw materials and the demand for finished products or services

horizonal integration

A form of corporate organization in which several branches of a company or several commonly owned companies work together to sell their products in different markets

vertical integration

The combining of a company's ownership of and control over more than one level of the production process of goods.

World Bank

A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion, and debt consolidation.

International Monetary Fund (IMF)

an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation

Neoliberalism

a modified form of liberalism tending to favor free-market capitalism. (Very Rowtow!)

growth pole

an urban center with certain attributes, attracts an agglomeration from the same industry. (Silicon Valley)

de-industrialization

a process of social and economic change caused by the removal or reduction of industrial capacity or activity in a country or region, especially of heavy industry or manufacturing industry.