Unit 7: Industrial and Economic Development Patterns and Processes (copy)

Sectors

Different categories the economy can be divided into.

Primary Production

Includes agriculture, mining, energy, forestry, and fisheries.

Secondary Production

Includes the processing of raw materials drawn from the primary sector.

Tertiary Production

Includes the transportation, wholesaling, and retailing of finished goods to consumers.

Quaternary Production

Includes wholesaling, finance, banking, insurance, real estate, advertising, and marketing.

Quinary Production

Includes retailing, tourism, entertainment, and communications among other services.

Commodity Chain

The series of processes involved in the production and distribution of a commodity.

Renewability

Refers to whether a natural resource can be replenished naturally.

Sustainability

The ability to maintain ecological balance by avoiding depletion of natural resources.

Manufacturing

The process of converting raw materials into finished goods.

Deindustrialization

The shift away from manufacturing as the main source of economic production.

Gross Domestic Product (GDP)

The dollar value of all goods and services produced in a country in one year.

Gross National Income (GNI)

The dollar value of all goods and services plus exports minus imports.

Per Capita

A measure expressed per person.

Human Development Index (HDI)

An index that combines GDP per capita, literacy rates, education levels, and life expectancy.

Gini Coefficient

A measure of income inequality within a nation.

Dependency Theory

A theory that suggests LDCs depend on MDCs for capital and technology.

Prebisch Thesis

Argues that Third World economies rely on first-world loans for development.

Import Substitution

Developing domestic industries to reduce reliance on imported goods.

Free-Trade Agreements

Treaties between countries to facilitate trade and reduce tariffs.

Economic Imperialism

The influence or control of a country over another, often economically.

Asian Tigers

Refers to the highly developed economies of Hong Kong, Singapore, South Korea, and Taiwan.

Commodity Prices

The market price for raw materials like oil, coffee, and metals.

Just-in-Time Production

An inventory strategy that aligns raw-material orders with production schedules.

Weight-Losing Industry

Manufacturing that produces finished goods that weigh less than the inputs.

Weight-Gaining Industry

Manufacturing that results in finished goods that weigh more than the raw inputs.

Agglomeration Economies

Benefits that firms experience by locating near each other.

Supply Chain

The sequence of processes involved in the production and distribution of a product.

Post-Fordism

A modern approach to production emphasizing flexibility and quality.

Service Economy

An economic system where service industries dominate manufacturing.

Fossil Fuels

Non-renewable energy sources formed from decomposed plants and animals.

Natural Resources

Materials and components that can be found in nature.

Urbanization

The process of populations moving to urban areas, typically for work.

Technological Advancement

Progress in technology that improves efficiency and productivity.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Investment Value

The perceived worth of an asset, often evaluated for its potential return.

Labor Market

The supply of available workers in relation to available work.

Economic Development

Progress in an economy that typically leads to improvements in quality of life.

Technological Transfer

The process of transferring technology from one organization or country to another.

Millennium Development Goals (MDGs)

A UN mandate aimed at eradicating poverty and improving global conditions.

Asian Economic Crisis

A period of financial turmoil that affected many Asian countries in the late 1990s.

Industrial Location Theory

A theory that analyzes the optimal location of manufacturing plants.

Service Location Theory

The study of the factors that influence the location of service firms.

Footloose Industry

Industries that can operate in a variety of locations without being tied to resources.

Creative Class

A socio-economic class of workers in industries like technology, education, and arts.

Women in Development

The inclusion and empowerment of women in the economic development process.

Ecotourism

Tourism directed toward exotic, often threatened natural environments.

Trade Surplus

When a country's exports exceed its imports.

Trade Deficit

When a country's imports exceed its exports.

Economic Indicators

Statistics used to assess the overall health and performance of an economy.

Level of Development

A measure of the economic and social progress of a country.

First World

Industrialized and service-based economies with high standard of living.

Third World

Countries primarily reliant on agriculture and with low levels of productivity.

Newly Industrialized Countries (NICs)

Countries transitioning from agriculture to industrial production.

Cash-Crop Farming

The cultivation of crops for sale rather than for personal consumption.

Subsistence Farming

Farming in which crops are grown primarily for the farmer's family.

Market Stagnation

A period in which economic activity slows down or stops.

Urban-Rural Migration

The movement of people from rural areas to urban centers.

Commodity Market

A marketplace for buying and selling raw materials.