Untitled Flashcards Set

Tertiary sector

The part of the economy that provides services rather than goods, such as retail, transportation, and entertainment.

Quaternary sector

Industries focused on information processing, finance, administration, insurance, and legal services.

Quinary sector

High-level decision-making and knowledge-based activities, including scientific research and corporate executives.

Service economy

An economy focused on providing services like education, healthcare, and finance rather than manufacturing goods.

Deindustrialization

The decline of manufacturing industries in a region, often due to outsourcing or automation.

Rust Belt

A region in the northeastern and midwestern United States that experienced economic decline due to factory closures.

Sun Belt

A region in the southern United States that has seen economic growth in service industries.

Multinational corporations (MNCs)

Large companies that operate in multiple countries, such as Walmart, Apple, and McDonald's.

Outsourcing

The practice of moving jobs to other countries where labor is cheaper.

Postindustrial economy

An economy that has moved beyond industrial manufacturing and focuses on services and technology.

Agglomeration

When businesses in the same industry cluster together for mutual benefit.

High-technology corridor

A region designated for technology-based businesses, often receiving government incentives.

Technopole

A hub of high-tech businesses and research institutions.

Back-office functions

Business operations such as customer service and data processing that are often outsourced.

Infrastructure

The basic physical systems of a country, including transportation, telecommunications, and utilities.

Tourism industry

The business sector focused on travel, accommodations, and entertainment for visitors.

Economic spillover

When economic activity in one sector or area benefits others.

Vulnerability in a service economy

The risk that service jobs can disappear due to automation, outsourcing, or economic downturns.

Rostow’s Modernization Model

A five-stage model suggesting all countries move through the same path of development from agriculture to industrialization to a service economy.

Wallerstein’s World-Systems Theory

A theory that divides the world into core, semi-periphery, and periphery countries based on economic power and dependency.

Core countries

Wealthy nations with strong economies and advanced technology.

Periphery countries

Less-developed nations that provide raw materials and labor to core countries.

Semi-periphery countries

Nations that have both industrial power and economic dependence.

Dependency Theory

The idea that poorer countries remain underdeveloped because they are economically controlled by wealthier countries.

Gross National Income (GNI)

The total value of goods and services produced by a country's residents, including income from foreign investments.

Gross Domestic Product (GDP)

The total value of goods and services produced within a country’s borders in a given year.

Per capita GNI

A country’s GNI divided by its population, used to compare economic well-being across nations.

Human Development Index (HDI)

A measure of a country's development based on education, life expectancy, and income.

Informal economy

Economic activities that are not regulated by the government.

Dollarization

When a country adopts the U.S. dollar as its official currency.

Foreign debt crisis

When a country borrows more money than it can repay, leading to economic instability.

Political instability

Government corruption, war, or weak leadership that slows economic development.

Brain drain

The migration of highly educated or skilled workers from poorer countries to wealthier ones.

Infrastructure gap

A lack of essential physical structures needed for economic growth.

Digital divide

The gap between regions with access to modern technology and those without.