hgap unit 6/7 vocab

Unit 7: Industrial and Economic Development

agglomeration

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

Break of Bulk

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

bulk gaining industry

the weight of the final product is greater than the weight of the raw material

bulk reducing industry

weight of the final product is less than the weight of the raw material used in manufacturing the product

commodity dependence

occurs when commodities account for more than 60% of the value of a country's total exports

comparative advantage

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

competitive advantage

firm's relative ability to outperform other Transnational Corporations in its industry

complementarity

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

containerization

system of intermodal freight transport of goods using standardized stackable metal boxes by ship, railroad, or truck

core countries

national economies with the majority of their workforces in the secondary and tertiary sectors (MDC)

debt crisis

occurs when a government's debts exceed its tax revenues to the point that it cannot meets its loan payments

deindustrialization

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

dependency theory

theory that the periphery is poor because it was economically dependent on the core in a disadvantageous relationship originally established under colonialism and imperialism

economies of scale

cost advantages that can come with a larger scale of operations

ecotourism

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

export processing zone

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

financial market

financial instruments are traded; stock markets, bond markets, and foreign exchange markets

fixed costs

business costs, such as rent, that are constant whatever the quantity of goods or services produced

fordism

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

Foreign Direct Investment

investments made by a foreign company in the economy of another country.

formal economy

officially recorded by the government

fossil fuels

natural fuel derived from the fossilized remains of living organisms

Four Asian Dragons

A group of countries that first adopted the international trade alternative. This includes South Korea, Singapore, Taiwan and Hong Kong.

free trade zone

specifically designated as duty free areas that provides warehousing, storage, and distribution facilities for good intended for trade or re-export

Gender Empowerment Measure (GEM)

measures gender equality that includes political and economic decision making positions and women's versus men's share of earned income

Gender Inequality Index

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

global financial crisis

people were able to easily qualify for loans and those loans were bundled and sold to corporations all over the world, when people defaulted it led to the the worst global economic downturn in 80 years caused massive unemployment, corporate and personal bankruptcies around the world,

government initiatives

plans, at various scales (central, regional, local, provincial, etc.), to help promote economic development.

Gross Domestic Product (GDP)

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

Gross National Income

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

growth poles

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

high technology industries

an industry that develops and uses the most advanced technologies available and has the highest levels of research and development

Human Development Index (HDI)

statistical measure of human achievement (and quality of life) that combines data on life expectancy at birth, education levels, and GNI per capita (PPP) population

Industrial Revolution

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

informal economy

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

International Division of Labor

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

International Monetary Fund

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

International Trade Model

developing countries can choose to open themselves to foreign investment and international markets as a path to improving development

just-in-time delivery

Method of inventory management made possible by efficient transportation and communication systems, whereby companies keep on hand just what they need for near-term production, planning that what they need for longer-term production will arrive when needed

labor intensive industry

the cost of workers comprise a high percentage of total expenses.

labor unions

associations of workers in particular industries established to collectively bargain with capitalists

least cost theory

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

maquiladoras

Factories built by the U.S. companies in Mexico near the U.S. border, to take advantage of much lower labor costs in Mexico after NAFTA was passed

microloans

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

multiplier effect

creation of new business and jobs in other industries as the result of investment in a different industry

Organization of the Petroleum Exporting Countries

international trade agreement designed to regulate the output of oil

outsourcing

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

per capita

value for each person in the country

periphery countries

developing economies with the majority of their workforces in the primary sector (LDC)

post Fordism

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

primary sector

industries that extract natural resources from the environment

protectionism

trade rules that restrict imports in order to protect domestic industries

Purchasing Power Parity (PPP)

measures how much a common "basket of goods" costs locally in the currency of each country being compared

quaternary sector

portion of the economy dedicated to intellectual and informational services, such as scientific research and development

quinary sector

portion of the economy where the highest-level management decisions are made in the areas of business, government, education, and science (example: CEO)

renewable energy

Any source of energy that can be continually produced and is inexhaustible given current conditions.

reproductive health

have the capacity to reproduce and the freedom to decide if, when and how often to do so (often used in gender equality or inequality measurements)

Right

to

Rostow's stages

theory that all countries will inevitably progress in similar fashion through the same five levels of development

secondary sector

industries that process the raw materials extracted by primary industries, transforming them into finished, usable forms

self sufficiency model

to improve development countries encourage domestic production of goods, discourage foreign ownership of businesses and resources, and protect their businesses from international competition. – Most popular for most of 20th century

semi-periphery countries

countries or regions whose economies have elements of both the core and periphery

Special Economic Zones

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

tariff

tax on imported goods and services

tertiary sector

industries that provide services to businesses and consumers, including all the different types of work necessary to transport and deliver goods and resources

trade embargo

an official ban on trade with a specific country or of a specific good

trading blocs

A group of neighboring countries that promote trade with each other and erect barriers to limit trade with other blocs

Transnational corporation

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

UN Millennium Sustainable Goals

collection of 17 global goals aimed at improving the planet and the quality of human life around the world by the year 2030

USMCA

free trade between US, Mexico, and Canada; formerly NAFTA

value added productivity

the gross value of the product minus the costs of raw materials and energy. The value added per worker is 30 X greater in more developed countries than in less developed countries

vertical integration

Practice where a single entity controls the entire process of a product, from the raw materials to distribution

Wallerstein's Theory

idea 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 that employs core-periphery-semi-periphery

World Trade Organization (WTO)

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