International Division of Labor and Economic Concepts

Practice flashcards covering key concepts related to the international division of labor and economic theories.

International Division of Labor

The spatial distribution of manufacturing and service jobs from developed (core) countries to developing periphery and semi-periphery countries.

Just-In-Time Delivery (JIT)

An inventory management strategy where parts and materials arrive at a factory or retailer exactly when needed for production or sale.

Least Cost Theory

A theory that states industries locate to minimize costs and maximize profits, focusing on transportation, labor, and agglomeration.

Mass Consumption

The final stage of Rostow's Stages of Economic Growth, where high-income societies focus on purchasing durable goods and services.

Maquiladoras

Foreign-owned assembly plants in Mexico that import raw materials to produce goods for export.

Mercosur

A South American trade bloc established in 1991 to promote regional economic integration and free trade.

Microlending

The practice of providing credit to impoverished borrowers, often managed by NGOs and community-based organizations.

Microloan

Small short-term loans provided to entrepreneurs in developing countries who lack access to traditional banks.

Multiplier Effect

How an economic investment triggers a chain reaction of increased spending, creating more jobs and income than the initial investment.

Neoliberal Economic Policies

Strategies promoting free-market capitalism, liberalization, and privatization to minimize government intervention.

Newly Industrialized Countries (NICs)

Nations transitioning from agrarian to manufacturing-based economies, experiencing rapid economic growth and urbanization.

Organization of Petroleum Exporting Countries (OPEC)

A supranational organization founded in 1960 to coordinate petroleum policies and stabilize oil markets.

Outsourcing

Business practice of delegating tasks to external companies, often to reduce costs.

Post-Fordism

Flexible production methods focusing on customization and service-oriented economies.

Primary Sector

The direct extraction and harvesting of natural resources from the Earth.

Secondary Sector

Manufacturing, processing, and construction that transforms raw materials into finished goods.

Tertiary Sector

The service sector that provides services instead of producing goods.

Quaternary Sector

Economic sector that includes knowledge-based services.

Quinary Sector

High-skill, knowledge-based services including decision-making roles.

Service Sector

The combined sectors of tertiary, quaternary, and quinary.

Special Economic Zones (SEZs)

Designated areas with liberalized laws to attract foreign investments.

Sustainable Development

Balancing economic growth, social equity, and environmental protection for future generations.

Tariff

Government-imposed taxes on imported goods and services.

Wallerstein's World System Theory

A theory that describes a capitalist system where core countries exploit the periphery.

World Trade Organization (WTO)

The only global international organization dealing with the rules of trade between nations.