AP huG unit 7

Industrial Revolution

The rapid transformation of the economy through the introduction of machines, new power sources and new chemical processes in Europe and the United States between 1760 and 1830.

Fossil Fuels

Natural fuel derived from the fossilized remains of living organisms.

Rostow's Modernization Model

developed the "Stages of Growth" model of economic development.

Wallerstein's World Systems Theory

Wallerstein's theory of economic development that regards world history as moving through a series of socioeconomic systems, culminating in the modern world system by about the year 1900

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

Neocolonialism

The set of economic and political strategies by which wealthy and powerful countries indirectly maintain or extend their influence over less wealthy areas

Structural Adjustment Loans

a set of economic reforms that a country must adhere to in order to secure a loan from the International Monetary Fund and/or the World Bank

Mercantile Colony

Colonies that sought to derive the maximum material benefit from the colony, for the homeland, with a minimum of imperial investment in the colony itself.

Settler Colony

A form of colonization where foreign family move into a region and an imperial political power oversees the immigration of these settlers.

Commodity Dependence

Occurs when commodities account for more than 60 percent of the value of a country’s total exports

Gross National Product (GNP)

Total value of goods & services produced by country's population/businesses, no matter where (at home or overseas)

Gross Domestic Product (GDP)

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

Gross National Income (GNI)

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

Human Development Index (HDI)

A statistical measure of human achievement that combines data on life expectancy at birth, education levels, and gross national income (GNI) per capita

Gender Inequality Income (GII)

A statistical measure of gender inequality that combines data on reproductive health, empowerment, and labor-market participation

Informal Sector

The part of any economy that is not officially recorded, monitored, or taxed by the government

Formal Sector

The part of the economy that is officially recorded with the government

Mercantilism

A theory of trade stating that each country strives to export more than it imports in order to accumulate wealth

Protectionalism

Trade rules that restrict imports in order to protect domestic industries

comparitive advantage

A country's ability to produce one product much more efficiently than it can produce other products within its economy

Complimentarity

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

Transnational Corporation

A firm with the power to coordinate and control operations in more than one country, even if it does not own those operations

Neoliberalism

A range of pro-market and anti-government positions on the economy, such as reducing government ownership and regulation and promoting privatization and market-based solutions

International Monetary Fund (IMF)

International organization that seeks to foster global monetary cooperation, achieve financial stability, facilitate international trade, and promote sustainable economic growth

World Bank

An international financial organization that provides funding and expertise to promote sustainable economic growth in developing countries

World Trade Organization (WTO)

An international organization that regulates trade among 184 member states, providing a framework for negotiating trade agreements and resolving trade disputes

Free-Trade Agreement

A treaty between two or more countries that reduces tariffs and promotes foreign investment

Tariffs

Tax on imported goods or services.

Break-of-Bulk Point

A location where cargo is transferred from one mode of transportation to another

Containerization

The system of intermodal freight transport using shipping containers

Least Cost Theory

Alfred Weber's theory that transportation costs and labor costs play a strong role in determining the location of manufacturing facilities

Fordism

The economic and social arrangement based on the mass production of standardized goods, high labor union membership rates, stable and full-time manufacturing employment, and high factory wages that enable mass consumption

Offshoring

The relocation of manufacturing and support services from one country to another

Outsourcing

The transfer of part of a firm's internal operations to a third party

Deindustrialization

The decline, and sometimes complete disappearance, of employment in the manufacturing sector in the core's industrial centers

Rustbelt

Decay of the once bustling factory-based economy regions of the northeastern United States including steel producing places like Pennsylvania.

Sunbelt

the southern US from California to Florida, noted for resort areas and for the movement of businesses and population into these states from the colder northern states.

Special Economic Zones (SEZs)

Specific area within a country's borders where business and trade laws are different from those in the rest of the country

export processing zones (EPZs)

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

Maquiladoras

a factory in Mexico run by a foreign company and exporting its products to the country of that company.

Free-Trade Zones

Specially designated duty-free area that provides warehousing, storage, and distribution facilities for goods intended for trade or reexport

New International Division of Labor

The spatial shift of manufacturing from developed countries to developing countries, including the global scaling of labor markets and industrial sites

Post-Fordism

The shifts from manufacturing centers to spatially dispersed production sites, from standardized mass production to specialized batch production, and from a permanent workforce to temporary and contract workers

Just-in-time delivery

The production of small batches of goods as needed by customer demand

agglomeration economies

Occur where firms cluster spatially in order to take advantage of geographic concentrations of skilled labor and industry suppliers, specialized infrastructure, and ease of face-to-face contact with industry participants

Growth Poles

Geographically pinpointed center of economic activity organized around a designated industry, commonly in the high-tech sector

Sustainable development

Development that meets present consumption needs without compromising the ability of future generations to meet their consumption needs

Ecotourism

Travel to natural areas of ecological value in support of conservation efforts and socially just economic development

Microloans

A very small loan to poor people with little income or collateral intended to help them establish or expand a small business