Unit 7 Development and Industry vocabulary APHG

vocab for unit 7

Gender Inequality Index (GII)

An indicator constructed by the UN to measure the extent of each country’s gender inequality in terms of reproductive health, education and life expectancy.

Gross Domestic Product (GDP)

The value of the output of goods and services produced in a country each year, not accounting for money that leaves and enters the country

Gross National Income (GNI)

 The value of the output of goods and services produced in a country each year, including money that leaves and enters the country

Human Developed Index (HDI)

an index that measures key dimensions of human development. The three key dimensions are: – A long and healthy life – measured by life expectancy.

Microfinance

Provision of small loans and financial services to individuals and small businesses in developing countries

Rostow’s Stages of Economic Growth

is one of the major historical models of economic growth. It was published by American economist Walt Whitman Rostow in 1960. The model postulates that economic growth occurs in five basic stages, of varying length

Commodity Dependence

When countries, mainly developing/LDC, rely on the majority of their economic growth and security coming from the selling of primary resources (commodities). The prices for these goods are largely declining or hard to keep consistent, causing massive fluctuation and changes in a country’s economy.

Free Trade Agreements

a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

Outsourcing

 The physical separation of some economic activities from the main production facility, usually for the purpose of employing cheaper labor.

Special Economic Zones (SEZ)

 is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration.

Free-Trade Zones (FTZ)

is defined as a “specific class of special economic zone. It is a geographic area where goods may be landed, stored, handled, manufactured, or reconfigured, and re-exported under specific customs regulation and generally not subject to customs duty”

New International Division of Labor

 Transfer of some types of jobs, especially those requiring low-paid less skilled workers, from more developed to less developed countries.

Fordist Methods

manufacturing process broken down into differentiated components, with different groups of people performing different tasks to complete the product.

Post-Fordist Methods

World economic system characterized by a more flexible set of production practices in which goods are not mass produced

Agglomeration

 the spatial clustering or concentration of industrial activities in a relatively small area.

Just-in-time Delivery

An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process

Ecotourism

tourism directed toward exotic, often threatened, natural environments, intended to support conservation efforts and observe wildlife

UN’s Sustainable Development Goals

the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace and justice. The 17 Goals are all interconnected, and in order to leave no one behind, it is important that we achieve them all by 2030

Fair Trade

 An alternative to international trade that provides greater equality to workers, small businesses, and consumers, focusing primarily on products exported from developing countries to developed countries.

Foreign Direct Investment

Investment made by a foreign company in the economy of another country

Purchasing Power Parity (PPP)

 The amount of money needed in one country to purchase the same goods and services in another country.

Industrial Revolution

 A series of improvements in industrial technology that transformed the process of manufacturing goods that occurs in the beginning (1^st) and end (2^nd) of the 1800’s

Cottage Industry

A traditional type of manufacturing in the pre-industrial revolution era, practiced on a small scale in individual households as a part-time occupation and designed to produce handmade goods for local consumption.

Primary economic activities

the extraction of natural resources, such as agriculture, lumbering, and mining.

Secondary economic activities

the processing of raw materials into finished products; manufacturing.

Tertiary economic activities

 associated with the provision of services--- such as transportation, banking, retailing, education, and routine office-based jobs.

Quaternary Economic Sector

the label used to describe a knowledge-based part of the economy, which typically includes knowledge-oriented economic sectors such as information technology, media, research and development

Break of Bulk Point

 A location where transfer is possible from one mode of transportation to another.

Bulk Gaining Industries

An industry in which the final product weighs more or compromises a greater volume than the inputs

Bulk Reducing Industries

An industry in which final product weighs less or compromises a greater value than the inputs

Single Market Manufactures

Specialized manufacturers with only one or two customers. Optimal location for factories is often in close proximity to the customers.

Weber’s Least Cost Theory

 industrial location theory which tries to explain and predict the locational pattern of the industry at a macro-scale. It emphasizes that firms seek a site of minimum transport and labor cost.

Maquiladoras

Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico.

Vertical Integration

the combination in one company of two or more stages of production normally operated by separate companies.

BRICS

 An acronym for the combined economies of Brazil, Russia, India, China and South Africa. speculates that by 2050 these five economies will be the most dominant

Export Processing Zone

Customs area where one is allowed to import plant, machinery, equipment and material for the manufacture of export goods under security, without payment of duty

Renewable Resource

a natural resource which will replenish to replace the portion depleted by usage and consumption, either through natural reproduction or other recurring processes in a finite amount of time in a human time scale.

Nonrenewable Resource

a resource that must be depleted to be used, such as petroleum

Growth Pole

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

Multiplier Effects

Creation of new businesses and jobs in other industries as the result of investment in a different industry

Offshoring

The relocation of manufacturing and support services from country to another

Mercosur

Spanish acronym for the Southern Common Market, a South American customs union that includes Argentina, Brazil, Paraguay, and Uruguay as its full time members

Competitive Advantage

A firm or companies relative ability to outperform its competitors in its industry

Formal Sector

the part of the economy that is officially recorded by the government

Informal Sector

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

Dependency Theory

 Theory that the periphery is poor because it was economically dependent on the Core countries in a relationship established under colonialism and imperialism

Commodity dependent

Occurs when commodities account for more than 60 percent of the value of a country’s exports

Quinary Economic Sector

this sector includes top executives or officials in such fields as government, science, universities, nonprofits, health care, culture, and the media. It may also include police and fire departments, which are public services as opposed to for-profit enterprises