Studied by 5 people
12% - 17%
Special Economic Zones (SEZ’s)
An area in a country that is subject to different economic regulations that other regions in the same country. Designed to attract domestic and foreign businesses. (i.e. Free Trade Zone)
Just-in-time-delivery
A system in which the inputs in the manufacturing process arrive to be assembled only when they are needed, and the finished product is delivered in a speedy process.
Deindustrialization
Decline of industrialization in a region or economy.
Economic Restructuring
An economy moving from one sector as its focus to another.
Outsourcing
When a company moves its factories or other job sources from its home country to a foreign country to save costs on labor.
Export Processing Zones
An area where one is allowed to import machinery, equipment, and material for manufacturing and export without payment of duty or taxes. Ex./ Maquiladoras
Maquiladoras
A low cost factory in Mexico that is owned by a foreign corporation. Usually goods are manufactured there then exported back to the country of origin (such as Mexico to the US).
Growth Poles
The concentric of high-value economic development in one area (Ex./ Silicon Valley and technology companies).
Post-Fordism
Use of automation in manufacturing then retraining factory workers to do other, multiple jobs in a factory.
Foreign Direct Investment
Countries seeking other countries to invest in their economic development. Often encouraged with the use of SEZ’s or Free Trade Zones.
Economies of Scale
When manufacturers use technology/mechanization to increase outputs and efficiency, thereby lowering costs.
Multiplier Effect
When a government invests money in a certain sector of an economy and that money then works its way through the economic system. (growing GDP)
Agglomeration
Creating Business Parks/Corporate parks with similar businesses so that each business can benefit from customers who may need several of their services.
New International Division of Labor
Work is divided between Core, Semi-Periphery, and Periphery countries as it pertains to different economic sectors.
