Unit 7 Vocabulary

break-of-bulk point

a place where cargo is unloaded from one form of transportation and pieces of it are sent out in different directions to other forms

bulk-gaining industry

Industry that makes something that gains volume or weight during production

bulk-reducing industry

industry that makes something that loses volume or weight during production

Comparative advantage

the ability of a group to carry out an economic activity more effieciently than another economic activity

Development

the changes that occur as a country transitions from an agricultural economy to industry-based economy with rising living standards

Fair trade

a movement that encourages multi-national corporations to pay living wages to workers in LDCs instead of the lowest possible wage

Fordist production

form of mass production in which each worker is assigned one specific task to perform repeatedly.

Foreign direct investment (FDI)

a company or individual from one country spending money in business interests in another country, in the form of either establishing business operations or acquiring assets

Gender Empowerment Measure (GEM)

a statistic created by the United Nations to measure the inequalites between men and women in countries

Gender-related Development Index (GDI)

a statistic that is an offshoot of the HDI that measures gender gaps in life expectancy, education, and incomes

Gross Domestic Product (GDP)

a monetary measurement of all the goods and services produced in a year in a country

Gross National Income (GNI)

a monetary measurement of all the goods and services produced by citizens (including citizens overseas) in a year in a country but NOT con-citizen residents

Human Development Index (HDI)

a statistic created by the United Nations to try to measure how economically developed a country is - seen as more complete picture than just GDP PPP per capita

Informal economy

the part of an economy that is neither taxed, nor monitored by any form of government including illegal activities

Just-in-time delivery

a strategy for maintaining just the right amount of inventory so as to not have to pay for storage

Literacy Rate

the percentage of people in an area that can read and write

Maquiladora

a factory in Mexico owned by a foreign company that only creates products to export to other countries

Outsourcing

(not exactly how it is used in real life) transferring part of a company's operations to an outside company or in another place

Post-Fordist production

Adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks and goods are put together in stages all over the world, with sections often outsourced.

Right-to-work state

States in the USA whose laws prevent unions from requiring people to join the union to work in an industry (mainly Republican states)

Textile

cloth or woven fabric

Vertical integration

different companies involved in different steps of a manufacturing process combining into a single company that handles different steps of the process

Industrialization

the process by which an economy is transformed from primarily agricultural to one based on the manufacturing of good

Standard of living

level of wealth available to a person or community

Labor union

an organization of workers that aims to protect their rights and further their interests

Core

in World's Systems Analysis, the core are the powerful, wealthy countries that have great influence on the world economy

Least cost theory

Alfred Weber's theory that tries to explain and predict the locational pattern of industry

Market

a place where goods are sold (non-physical markets have expanded greatly since the Internet became mainstream)

Periphery

in World's Systems Analysis, the periphery are the least economically developed countries that have little influence over the world's economy

Sectors of the economy

separating jobs into segments of the economy based on the purpose of their job (primary, secondary, tertiary, quaternary, quinary)

Semiperiphery

in World's Systems Analysis, the semi-periphery is the more-wealthy LDCs that have some influence on world economies

Formal economy

economic activities that take place inside the official, legal framework, pay taxes and are monitored by the government

Gender Inequality Index (GII)

a statistic created by the United Nations to measure how much development is lost because of inequalities between men and women

Gross National Product (GNP)

a monetary measurement of all the goods and services produced by residents of a country (NOT citizens in other countries)

Nonrenewable energy

energy from a source that is depleted when used, such as fossil fuels or nuclear

Renewable energy

energy from a source that is not depleted when used, such as wind or solar power

Dependency theory

the idea that MDCs have become wealthy at the expense of LDCs

Microloans

a small sum of money lent at low interest to a new business

Commodity dependence

when a country's economy is reliant on a single product

Complementarity

when two regions, through trade, can specifically satisfy each other's demands

European Union (EU)

a supranational organization in Europe that allows for free trade, freedom of movement between members states, and a common currency (the Euro)

Free trade agreement

a treaty between countries that eliminates tariffs on goods sent between the countries

International Monetary Fund (IMF)

an supranational organization that aims to promote global economic stability and helping LDCs grow

Mercosur (or Southern Common Market)

an economic supranational organization dedicated to improving trade between it's members in South America

Neoliberal policies

when countries institute economic rules that promote sustained economic growth as the means to achieve human progress and confidence in free markets

Organization of Petroleum Exporting Countries (OPEC)

a supranational organization of countries (mainly in Southwest Asia and Africa with Venezuela) dedicated to maintaining a steady supply of oil

Tariff

a tax a country puts on goods that were created in an outside country encouraging people to buy locally produced goods

World Trade Organization (WTO)

an economic supranational organization that deals with trade rules between countries and settling trade disputes

Agglomeration

the benefits that companies experience due to being clumped closely together

Deindustrialization

decline in industrial activity in a region or economy often due to lower labor costs elsewhere

Export processing zone

regions in LDCs that offer tax breaks to attract export-driven production processes like factories producing goods for foreign markets

Free trade zone

regions in LDCs where tariffs are waived by governments wanting to encourage MNCs to invest in their countries

Growth Pole

an innovative, high-tech industry that stimulates economic growth in linked businesses

International division of labor

a shift in manufacturing away from the advanced economies where most multi-national corporations are owned to developing countries as different parts of items are made all over the world

Multiplier Effects

an increase in spending produces an increase in national income and consumption greater than the initial amount spent

Special economic zone

an area that has different laws governing trade and business than the rest of the country and aim to attract FDI

Ecotourism

tourism directed toward natural environments (often threatened) intended to support conservation efforts

Mass consumption

the purchase of standardized products or services by large numbers of customers

Natural resource depletion

consuming resources faster than they can be replenished

Sustainable development

economic development that is conducted without depletion of natural resources at rapid rates