Studied by 81 people
Colonialism
Settlements established by a country that then impose their political, economic, and cultural principles
Imperialism
To control a territory that is already occupied and organized by another indigenous society
Industrialization
Development of industries that use machines to produce their goods
Manufacturing
Using raw materials and processed goods to create finished products
Break of bulk point
A place where you can transfer goods from one mode of transportation to another (usually with lowest/minimal cost)
Core Countries
Developed countries (have a lot of control over the world market)
semi-periphery
Those newly industrialized countries with median standards of living, such as Chile, Brazil, India, China, and Indonesia
periphery countries
the least developed and least powerful nations; often exploited by the core countries as sources of raw materials, cheap labor, and markets
Markets
A place that people can buy or sell goods and items
Alfred Wegener Least Cost Theory
Industries can make the most profit by decreasing transportation, labor costs, and
agglomeration (<def: extended town area consisting of the built-up area of a central place and any suburbs linked by continuous urban area)
based on their location
industry
the manufacturing of goods in a factory
Primary sector
The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.
Secondary sector
The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
Tertiary Sector
The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.
Quaternary Sectors
"Knowledge sector": intellectual activities, technological innovations (Ex: scientific research, government, literature )
Quinary Sector
Service sector industries that require a high level of specialized knowledge or technical skill. Examples include scientific research and high-level management.
Formal Economy
Any economic activities that has some form of government monitoring and is taxed
Fossil fuels
Gender empowerment
Designed to achieve gender equality
Gender Inequality Index(GII)
An indicator constructed by the U.N. to measure the extent of each country's gender inequality in terms of reproductive health, empowerment, and the labor market.
Gross Domestic Product(GDP)
the total value of goods and services produced in a country in a year
Gross National Income(GNI)
Value of a country's final income in a year divided by its population.
Gross National Product(GNP)
Total value of goods and services produced in the country per year. GDP + net income of foreign investments
Foreign Direct Investment
Investment made by a foreign company in the economy of another country.
Human Development Index
Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy
life expectancy
average number of years a newborn infant can expect to live.
Income Distribution
How a nation's GDP is distributed among its population
Infant Mortality Rates
Number of deaths per 1000 live births
Literacy rates
How many people out of 100 are literate
Informal economy
Part of economy that is not taxed or monitored by the government in any sort of way
Labor-market participation
Measure of an economy's active workforce
Renewable energy
Energy that is produced at the same rate, or faster than we are using it
Reproductive health
State of complete physical, mental and social well-being,
Microloans
Small loans often used to reduce poverty
Small-scale finance
Obtaining money to start a new small business.
Commodity Theory
Value of a product or service is related to its availability
Dependency theory
Resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states,
commodity dependence
An economy that relies on the export of primary commodities for a large share of its export earnings and hence economic growth
Complementarity
two places are said to exhibit a degree of this if each offers something to the other that it needs or wants.
comparative advantage
the ability to produce a good at a lower opportunity cost than another producer
Rostow's Economic Development Model
indicates that before high level economic development can occur, countries must pass through predictable and sequential stages
high mass consuption is the last stage
countries will proceed through a series of states in which a country focuses on the development of industries in which it has a comparative advantage
economics
World Bank
A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion, and debt consolidation. Its formal name is the International Bank for Reconstruction and Development.
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
Structural Adjustment Program
Economic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such as raising taxes, reducing government spending, controlling inflation, selling publicly owned utilities to private corporations, and charging citizens more for services.
fair trade
Alternative to international trade that emphasizes small businesses and worker owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organizing, and comply with minimum environmental and safety standards.
Wallerstein's world system theory
illuminated by his three-tier structure, proposing that social change in the developing world is inextricably linked to the economic activities of the developed world.
Gini Coefficient
A measure of income inequality within a population, ranging from zero for complete equality, to one if one person has all the income.
Complementary advantage
Two regions specifically have goods the other needs (trade with e/o)
Comparative advantage
Ability to produce a good at a lower cost than another producer (like whats happening with the oil and russia rn i think )
Debt crisis
Me. jk; When a country can't pay off a large amount of debt
Economies of scale
Larger companies usually produce goods at a cheaper price than smaller companies
Neoliberal Policies
Market-oriented reform policies such as "eliminating price controls, deregulating capital markets, lowering trade barriers" and reducing state influence in the economy, especially through privatization and austerity (set of political-economic policies that aim to reduce government budget deficits)
Tarrifs
Tax placed on importing/exporting goods
Global Financial Crisis
Financial crisis of 2007-8 due to deregulation in banks, allowing banks to trade with derivatives, and then raise mortgages to increase the profitable sale of these derivatives
International Monetary Fund
Organization with 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
MERCOSUR
South African trade bloc established by Argentina, Brazil, Paraguay and Uruguay. Goal: promote free trade, fluid movement of goods, people, currency
OPEC (Organization of Petroleum Exporting Countries)
Group with 14 of the major producers of oil. Goal: coordinate the petroleum policies of its members and to provide member states with technical and economic aid.
renewable resource
A natural resource that can be replaced at the same rate at which the resource is consumed
WTO(World Trade Organization)
Negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, an j,hhb,jd importers conduct their business.
Agglomeration
Grouping together many industries in an area to share infrastructure and labor resources.
Bulk-reducing industry
An industry in which the final product weighs less or comprises a lower volume than the inputs.
Bulk-gaining industry
An industry in which the final product weighs more or comprises a greater volume than the inputs.
Traditional Society
The economy is focused on primary production (fishing, agriculture.) The country's limited wealth is spent internally on things that do not promote economic development. Technical knowledge is low.
Preconditions for takeoff
the stage of Rostow when an elite group starts economic activity; educated leaders start to take charge of the economy
Takeoff
Economy shifts to industrialization and some labor shifts to factories with new urban infrastructure.
Industrial Revolution
A series of improvements in industrial technology that transformed the process of manufacturing goods.
cottage industry
Manufacturing based in homes rather than in a factory, commonly found before the Industrial Revolution.
Drive to Maturity Stage
A stage in economic development, described by Rostow, as characterized by the technological and entrepreneurial skill to produce anything society chooses to produce.
high mass consumption
advanced technology fuels mass production and mass consumption as people now "need" countless goods
Export-processing zones
Location where the government allows the import of goods under security, without payment of duty.
Footloose Firms
Manufacturing activities in which cost of transporting both raw materials and finished product is not important for determining the location of the firm.
Brownfields
abandoned polluted industrial sites in central cities, many of which are today being cleaned and redeveloped
Backwash effect
Occurs when other regions suffer a drain of resources and talent due to agglomeration in another region.
Deglomeration
The dispersal of an industry that formerly existed in an established agglomeration.
Fordist methods
System of standardized mass production attributed to Henry Ford.
Maquiladora
Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico.
Free trade agreements
Trade policy that does not restrict imports or exports (Ex: NAFTA)
Growth Poles
Point of economic growth; usually urban locations and benefit from agglomeration economies.
gross domestic product per capita
a country's GDP divided by the number of people who live in the country
Back office processing
office or center in which the administrative work of a business is carried out, as opposed to its dealings with customers
free trade zone
an area of a country in which trade restrictions do not apply
High technology industries
Industries with the most advanced technologies available. (Ex: Solar energy)
International division of labor
Core countries are dependent on periphery for cheap labor.
Periphery are dependent on core for manufacturing jobs.
Just-in-time delivery
Tryin to reduce time in production system and response time from suppliers to consumers
Labor-intensive industry
An industry for which labor costs comprise a high percentage of total expenses.
Capital
money for investment
right-to-work laws
A state law forbidding requirements that workers must join a union to hold their jobs.
Multiplier Effects
Idea that government use of money is reflected in a change in the economy
Outsourcing
Turning over production in part or in whole to another firm or business outside the country.
(Ex: US shoe company opens factory in China and hires Chinese workers)
Post-Fordist methods of production
More flexible production practices and not mass produced.
Special Economic Zones
Specific area within a country in which taxes and incentives are used for attracting foreign and domestic businesses and development.
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