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Human Development Index (HDI)

An indicator constructed by the UN to measure the level of development for a country through a combination of income, education, and life expectancy.

Inequality-adjusted Human Development Index (IHDI)

A modification of the HDI to account for inequality.

Purchasing Power Parity (PPP)

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

Gross National Income (GNI)

The total income earned by a country's residents in a year, including money from abroad.

Gross Domestic Product (GDP)

The value of the output of goods and services produced in a country in a year.

Gross National Product (GNP)

Gross domestic product but includes the profits of a country’s people and excludes profits of foreigners within the country.

Productivity

The value of a particular product compared to the labor needed to make it.

Wallerstein’s World-Systems Theory

In an increasingly unified world economy, developed countries occupy an inner core area whereas developing countries occupy peripheral locations.

Gender Development Index (GDI)

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

Gender Inequality Index (GII)

Measures the gender gap in the level of achievement in three dimensions; reproductive health, empowerment, labor market, and the amount of education.

Site

Industrial location factors related to the costs of factors of production inside a plant (labor, capital, and land).

Situation

Location factors relating to the transportation of materials into and from a factory.

Quaternary Sector

Involves processing information and services.

Quinary Sector

Involves activities characterized by decision makers, such as executives or those who serve in government roles.

Service Sector

The part of the economy that provides services rather than goods, including retail, entertainment, and financial services.

Weber Least Cost Theory/Theory of Industrial Location

The theory that all major corporations make their decisions about where to house their production and manufacturing facilities based on the least possible combination of costs.

Bulk-Reducing Industry

An industry that makes something that loses volume or weight during production; needs to locate near where the input is.

Bulk-Gaining Industry

An industry that makes something that gains volume or weight during production; needs to locate near where products are sold.

Containerization

Facilitated transfer of packages between transportation lines.

Neoliberal Trade Policies

Favor free market economies and privatization over government control.

Fair Trade

A movement and certification system that aims to ensure fair prices, working conditions, and environmental protection for producers.

Industrialization

The process by which economic activities evolved from producing basic goods to using factories for mass production.

Transnational Corporation

Company that trades, researches, and operates worldwide.

Self-Sufficiency Path Model

Countries encourage domestic production of goods and discourage foreign ownership of businesses and resources.

Rostow's International Trade Model/Stages of Economic Growth

A five-stage model of development in which each country is in one of the five stages of growth.

Income Distribution

The way in which a nation's total income is divided among its population.

Microloans/Microfinance

The provision of small loans and financial services to individuals and small businesses in developing countries.

Dependency Theory

The idea that resources flow from poor and underdeveloped states to wealthy states.

Commodity Dependence

An economy's reliance on exporting primary goods for revenue.

Economic Complementarity

When the industry of one product is associated with the industry of another, linking the demand of one good to another.

Comparative Advantages

The ability of a company to carry out an economic activity more efficiently than another activity.

European Union (EU)

A political and economic union of 27 European countries.

World Trade Organization (WTO)

Promotes international trade development by reducing trade barriers.

North American Free Trade Agreement (NAFTA)

A trade pact that eliminated most tariffs and trade barriers between the US, Canada, and Mexico.

Mercosur

A South American trade bloc promoting free trade and economic cooperation.

Organization of the Petroleum Exporting Countries (OPEC)

An intergovernmental organization coordinating oil market policies.

Tariffs

Taxes imposed on imported goods to protect domestic industries and generate revenue.

International Monetary Fund (IMF)

Provides loans to developing countries facing balance of payments problems.

Fordist or Mass Production

Factories that assign each worker one task to perform repeatedly.

Post-Fordist Production

A flexible system of production characterized by small-batch manufacturing.

Outsourcing

The process of acquiring goods or services from another country which processes them.

Special Manufacturing Zones

Designated areas where businesses receive incentives like tax breaks.

Export Processing Zones

Areas where goods can be manufactured for export with reduced regulations.

Special Economic Zones

Regions with economic laws that are more liberal to attract foreign investment.

Economies of Scale

As a company grows, it reduces the average cost to produce its product.

Agglomeration

Sharing of services with other companies available at major markets.

Deglomeration

Movement of industry away from concentrated areas due to high costs or pollution.

Medical Tourism

Traveling to another country for medical treatment.

Labor-Intensive Industry

Industries that require a large amount of labor to produce goods or services.

Fission

The process of splitting a heavy atomic nucleus into two lighter nuclei, releasing energy.

Fusion

A nuclear reaction where two light atoms combine to form a heavier atom.

Biomass

Organic material from plants and animals used for energy.

Geothermal Energy

Energy from heat stored beneath the Earth's surface.

Passive Solar Energy System

Solar energy systems that use building design to collect and store solar heat.

Active Solar Energy System

Solar energy systems that use mechanical devices to capture, convert, and distribute solar power.

Acid Deposition

The settling of acidic components from the atmosphere to the ground.

Acid Precipitation

Rain, snow, or fog that has a pH lower than normal due to air pollution.

Photochemical Smog

Air pollution formed when sunlight reacts with pollutants.

Sanitary Landfill

A controlled site where waste is isolated from the environment.

Recycling

Converting waste materials into new usable products.

Remanufacturing

Rebuilding products to original specs using reused or new parts.

Right-to-Work Law

Laws that prohibit requiring union membership for employment.

Wealth Inequality

The uneven distribution of wealth among individuals or groups.

Structural Adjustment Program

Economic policies imposed by international institutions to reform developing economies.

Just-In-Time Delivery

A system where goods arrive exactly when needed to reduce storage costs.

High-Tech Industries

Industries that use advanced technology to produce goods or services.

Small-Scale Finance

Financial services for small businesses or individuals often excluded from traditional banking.

Colonialism

The control and exploitation of one country by another.

Imperialism

Extending a country’s power through diplomacy or military force.

Pupil-Teacher Ratio

The number of students per teacher in a school.

Millennium Development Goals

Eight global goals set by the UN to improve life worldwide by 2015.