Unit 7 APHUG terms

study

agglomeration

the grouping of industries to share in infrastructure and labor pool

break-of-bulk point

change in freight, shipping to trains, trains to trucks

climate change (global warming)

unnatural warming of the atmosphere due to greenhouse gasses

colonialism

development of former colonies are affected by former colonization; commodity dependence

comparative advantage

based on the available resources and infrastructure what a country can do best or cheaper than other countries

complementarity advantage

state’s exports compliment each other; A makes software B makes hardware

complex commodity chain

all of the steps in the production of goods from raw materials to markets

containerization

a system using standardized intermodal containers

debt for nature swaps

forgive loans and interests in LDCs to protect the natural environment

deindustrialization

the closing of factories in the core and outsourcing to periphery

economic restructuring

shifting economies; agriculture to manufacturing or manufacturing to services

economic sectors

primary, secondary, tertiary, quaternary, quinary (can you define them?)

European Union

supranational free trade and open borders

gross domestic product

total amount of goods and services INSIDE a country

gross national income

goods and services AND FDI divided

growth pole

highly innovative and technically advanced industries that foster economic development

Human Development Index

measures economic AND social development; economy, education, life expectancy

just-in-time delivery

making parts on demand instead of storing them in warehouses

least cost theory

factory location based on bulk-gaining or bulk-reducing

Mercosur

south American supranational economic trade bloc

microloan

loans made by individuals in core to individuals in the periphery

neocolonialism

the theory that the core controls former colonies economically and culturally

New International Division of Labor

manufacturing moves to periphery core shifts to information services Organization of Petroleum Exporting

Countries (OPEC)

supranational gives LDCs control of oil bypass NeoCol

Rostow’s Stages of Economic Growth

5 stages, all states independent (closed) economies

• 1. traditional economy: agriculture

• 2. pre conditions for take-off: infrastructure investment

• 3. take-off: early industrial manufacturing

• 4. drive to maturity: mature industrial economy

• 5. high mass consumption: consumer spending

special economic zones

regions of a country with few laws or restrictions on industry and trade

sustainable development

improves standards of living but protects the environment

**Wallerstein’s World System’s Theory

what each country provides for the world based on level of development. core-periphery world order was created by Col and Imp; The core provides information services and capital, the semi-periphery does mature industrial manufacturing, and the periphery provides raw materials and cheap labor (by making textiles).