APHUG Unit 6 Industrialization

Words and Definitions Only

Primary sector

The part of the economy focused on extracting natural resources (farming

Secondary sector

Manufacturing and processing raw materials into finished goods

Tertiary sector

Service-based economic activities like retail

Quaternary sector

Knowledge-based services such as research

Quinary sector

High-level decision-making roles like CEOs and government leaders

Formal economy

Economic activity that is taxed

Informal economy

Economic activity that is untaxed

World Trade Organization (WTO)

International organization that regulates global trade and resolves trade disputes

NAFTA

Trade agreement between the U.S.

Bulk-gaining industry

Industry where the final product is heavier or bulkier than inputs

located near markets

Bulk-reducing industry

Industry where the final product weighs less than inputs

located near raw materials

Break-of-bulk point

Location where goods are transferred between transportation modes (ship → truck)

Agglomeration

Clustering of related industries for shared labor

Maquiladoras

Factories in Mexico near the U.S. border that assemble goods for export

EPZs

Export Processing Zones—areas with tax incentives to attract foreign manufacturing

FTZs

Free Trade Zones—areas where goods can be imported

Outsourcing

Contracting specific tasks to another company

Offshoring

Relocating entire business operations to another country

Eco-tourism

Tourism focused on natural environments and sustainability

Sustainable Development Goals

UN goals aimed at reducing poverty

Human Development Index (HDI)

Measure of development using life expectancy

Rostow’s Stages of Economic Growth

Model describing five stages countries move through from traditional society to mass consumption

Wallerstein’s World Systems Theory

Framework dividing the world into core

Weber’s Least Cost Theory

Explains industrial location based on minimizing transportation

Dependency theory

Argues that wealthy countries exploit poorer ones

Commodity dependence

When a country relies heavily on exporting one or two raw materials

Fordism

Mass production using assembly lines and standardized labor

Post-Fordism

Flexible production

Economic tigers

Rapidly growing Asian economies (South Korea

Economic lions

Rapidly growing African economies

Economies of scale

Cost advantages gained by producing larger quantities

Commodity chain

The sequence of production from raw materials to finished product

Value added

The increase in value as a product moves through production stages

Comparative advantage

Ability of a country to produce a good at a lower opportunity cost than others