Unit 7 ALL vocab

Agglomeration

When businesses from the same industry cluster in one area to reduce costs.

Break-of-Bulk Point

A place where cargo is transferred between transport types, often near ports or major cities.

Bulk-Reducing Industry

Industry where inputs weigh more than the final product; located near raw materials.

Bulk-Gaining Industry

Industry where the final product is heavier or bigger; located near markets.

Commodity

A raw material or primary product that is traded, often globally.

Commodity Chain

The steps in producing and distributing a product: extraction → production → distribution → consumption.

Comparative Advantage

A country’s ability to produce a good at a lower opportunity cost than others.

Complementarity

When two areas can trade goods or services each needs.

Dependency Theory

Core countries exploit periphery ones, keeping them poor and dependent through trade and investment patterns.

Economies of Scale

The more you produce, the cheaper it becomes per unit.

Economic Restructuring

Shift from manufacturing to services, often in developed countries.

Ecotourism

Environmentally friendly tourism that supports conservation and local culture.

European Union (EU)

A political-economic union of European countries promoting free trade and economic cooperation.

Export Processing Zones (EPZs)

Areas in developing countries with favorable trade conditions to attract foreign companies.

Formal Economy

Legal economy with taxed and regulated jobs.

Free Trade Zones (FTZs)

Zones where goods can be imported/exported without tariffs.

Gender Inequality Index (GII)

Measures gender inequality based on reproductive health, empowerment, and labor market participation.

Gini Coefficient

Measures income inequality, where 0 = perfect equality and 1 = total inequality.

Gross Domestic Product (GDP)

Total value of goods/services produced within a country's borders in a year.

Gross National Income (GNI)

GDP plus income earned by citizens abroad minus income sent to foreign countries.

Gross National Product (GNP)

Total value of all goods/services produced by a country's citizens, regardless of location.

Growth Pole

A high-tech or innovative region that attracts investment and spurs economic growth.

Human Development Index (HDI)

Composite measure of development: life expectancy, education, and income.

Informal Economy

Unregulated, untaxed jobs.

International Division of Labor

Global shift of manufacturing to developing countries and services to developed countries.

Just-in-Time Delivery (JIT)

Goods arrive exactly when needed to reduce storage costs.

Least Cost Theory (Weber)

Companies choose factory locations to minimize transportation, labor, and agglomeration costs.

Mass Consumption

A stage of economic development with high production and widespread consumer purchasing.

Maquiladoras

U.S.-owned factories in Mexico near the border that import materials duty-free and export finished goods.

Microloan

Small loans given to people in developing countries to start small businesses.

Multiplier Effect

Investment in one area leads to job creation in others.

Neoliberal Economic Policies

Free-market reforms like privatization, free trade, and reduced government intervention.

Newly Industrialized Countries (NICs)

Nations transitioning from agriculture to manufacturing.

Offshoring

Moving company operations to other countries to cut costs.

OPEC

Organization of Petroleum Exporting Countries; controls oil supply and prices globally.

Outsourcing

Hiring external companies or workers to handle business tasks.

Post-Fordism

Flexible, specialized production with diverse products and global supply chains.

Primary Sector

Extracting raw materials.

Quaternary Sector

Knowledge-based services.

Quinary Sector

High-level decision-making jobs.

Rostow’s Stages of Economic Growth

5 stages from traditional society to mass consumption.

Service Sector

Jobs that provide services rather than goods.

Special Economic Zones (SEZs)

Areas with tax breaks and relaxed regulations to attract foreign businesses.

Sustainable Development

Economic growth that meets needs without harming future generations or the environment.

Tariff

A tax on imports or exports to protect domestic industries.

Tertiary Sector

Services like retail, banking, education, and tourism.

USMCA

Trade agreement between U.S., Mexico, and Canada.

Wallerstein’s World Systems Theory

Core, semi-periphery, and periphery countries exist in a global economic hierarchy.

World Trade Organization (WTO)

International group promoting global free trade and resolving disputes.