Unit 7 APHUGE

Deindustrialization

The decline of industrial activity in a region or economy.

Economic Development

The process of improving the economic well-being and quality of life of people.

Gender Inequality Index (GII)

A measure of gender inequality in a country.

Gini Coefficient

A measure of income distribution within a population.

Gross Domestic Product (GDP)

The total value of all goods and services produced in a country.

Gross National Income (GNI)

The total income of a nation's residents and businesses, including income earned abroad.

GNI Per Capita

A measure of the average income earned per person in a given area.

Human Development Index (HDI)

An index that measures a country’s average achievements in health, education, and income. It is used to assess the economic and social development of countries

Industrialization

The development of industries in a country or region.

Multidimensional Poverty Index (MPI)

A measure of poverty considering various deprivations in health, education, and standard of living.

Postindustrial Economy

An economy characterized by a focus on the service sector rather than manufacturing.

Primary Sector

Activities involving the extraction of natural resources.

Purchasing Power Parity (PPP)

A method of measuring the value of currencies in terms of the goods they can buy.

Secondary Sector

The sector involved in manufacturing and processing.

Standard of Living

The level of wealth, comfort, and material goods available to a certain socioeconomic class.

Tertiary Sector

The service industry, focusing on services rather than goods.

Quality of Life

The general well-being of individuals and societies, outlining negative and positive features of life.

Quaternary Sector

The sector focused on knowledge-based activities involving services such as education, research, and information technology.

Quinary Sector

High-level decision making and services focused on knowledge and information.

Commodity Dependence

When a country relies heavily on the export of raw materials.

Core Dependency Theory

A theory proposing that resources flow from the periphery to the core economies.

Export-Led Growth

Economic growth driven by exporting goods and services.

Import Substitution Industrialization (ISI)

An economic policy that emphasizes domestic production and substitutes imports.

International Trade Approach

Economic growth model that emphasizes the importance of trade.

Neocolonialism

The continued economic exploitation of former colonies.

Periphery

Regions that are less developed and economically backward.

Rostow's Stages of Economic Growth

A model proposing that economies go through five stages of growth.

Self-Sufficiency Model

An economic model where countries focus on producing goods for their own populations.

Semi-Periphery

Countries that fall in between core and periphery, having some industrialization.

Structural Adjustment Programs (SAPs)

Economic policies imposed by international financial institutions that aim to reduce government intervention.

Wallerstein's World Systems Theory

A theory that categorizes countries into core, semi-periphery, and periphery based on economic and political status.

Agglomeration

The clustering of industries or services in a specific area.

Agglomeration Economies

advantages that firms obtain by locating near each other like cost reductions and gains in efficiency.

Ancillary Activities

Supportive economic activities that help the main industry function.

Backwash Effect

The negative economic effect on a region caused by the growth of another region.

Break-of-Bulk Point

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

Bulk-Gaining Industry

An industry whose products gain weight or volume during production.

Bulk-Reducing Industry

An industry whose products lose weight during production.

Economies of Scale

Cost advantages gained by larger production volumes.

Footloose Firm

A business that is not tied to any particular location.

Growth Pole Theory

Economic theory suggesting industries will develop in certain key areas.

Industrial Regions

Areas with a high concentration of industrial activity.

Just-In-Time Delivery

Inventory strategy companies use to increase efficiency by receiving goods only as they are needed.

Multiplier Effect

A change in spending producing an increase in national income and consumption greater than the initial amount spent.

Nearshoring

The practice of transferring business operations to a nearby country.

Offshoring

The relocation of business functions overseas.

Outsourcing

The business practice of hiring third-party firms to handle certain business functions.

Technopole

A hub for high-tech companies and research institutions.

Vertical Integration

A business strategy where a company controls several stages of production.

Weber's Least Cost Theory

A theory that explains the location of industries based on minimizing transportation and labor costs.

Comparative Advantage

The ability of a country to produce goods at a lower opportunity cost than others.

Complementarity

The idea that two areas can benefit from economic exchange if they have similar needs and resources.

Containerization

A system of intermodal freight transport using containers.

Export Processing Zone (EPZ)

Areas in which manufacturers receive incentives to export goods.

Free Trade

Trade between countries without tariffs or restrictions.

Foreign Direct Investment (FDI)

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

Globalization

The process of increasing interconnectedness among countries.

Interdependence

Economic reliance among countries.

Maquiladora

A factory in Mexico run by a foreign company that exports products to the country of that company.

Multinational Corporation (MNC)

company that operates in multiple countries, managing production or delivering services across national borders while maintaining a centralized management structure

Special Economic Zone (SEZ)

Areas in countries that have different economic regulations than the rest of the country.

Supply Chain

The network of entities involved in producing and delivering a product.

Transnational Corporation (TNC)

large companies that operate in multiple countries, often managing production or delivering services across borders while having a headquarters in one country.

World Trade Organization (WTO)

An international body that regulates trade between nations.

Brain Drain

The emigration of highly trained or qualified people from a particular country.

Flexible Production

A system where production processes can be adjusted quickly.

Fordist Production

A mass production system characterized by large scale factories and assembly lines.

Formal Economy

The legal economy that is regulated by the government.

High-Tech Industry

Industries that involve advanced technology.

Informal Economy

Economic activities that are not regulated by the government.

Labor-Intensive Industry

Industries that require a large amount of labor to produce goods or services.

Post-Fordism

A variation of production that allows for flexibility and customization by replacing human workers with machines

Remittances

Money sent back home by workers who are living abroad.

Rust Belt

Regions in the U.S. characterized by declining industry.

Sunbelt

The region of the U.S. known for its warmer climate and growing industries.

Carbon Footprint

The total greenhouse gas emissions caused directly and indirectly by an individual, organization, event, or product.

Circular Economy

An economic system aimed at eliminating waste by promoting the continual use of resources.

Ecotourism

Responsible travel to natural areas that conserves the environment.

Environmental Degradation

Deterioration of the environment through depletion of resources.

Nonrenewable Energy

Energy sources that cannot be replenished in a short period.

Renewable Energy

Energy from sources that are naturally replenished.

Resource Curse

The paradox that countries with an abundance of natural resources tend to have less economic growth.

Sustainable Development

Development that meets the needs of the present without compromising future generations.

Digital Divide

The gap between those who have easy access to technology and those who do not.

Fair Trade

a political movement that started in response to the inequalities in global trade. It promotes sustainability and ethical practices, ensuring fair wages and working conditions.

Gender Empowerment

Promoting women’s rights and opportunities in various aspects of life.

Global Value Chain

The full range of activities that firms engage in to bring a product from conception to consumption.

Income Inequality

The unequal distribution of income within a population.

Microfinance

Financial services provided to low-income individuals or those without access to traditional banking.

North-South Divide

The economic and social disparities between the developed North and the developing South.