Economic Development & Industry Terms Industrial Revolution: A period (starting in the 1700s in Britain) of rapid industrial growth marked by the shif

Industrial Revolution

A period starting in the 1700s in Britain of rapid industrial growth marked by the shift from hand-made goods to machine-based manufacturing.

Industrialization

The process of developing industries in a country or region on a wide scale, transforming it from primarily agricultural to manufacturing-based.

Primary Sector

Economic activities that extract natural resources such as farming, fishing, and mining.

Secondary Sector

Activities that process raw materials into finished goods, including factories and construction.

Tertiary Sector

Service-based activities such as retail, healthcare, and education.

Quaternary Sector

Knowledge-based services, including research and information technology.

Quinary Sector

High-level decision-making roles, such as CEOs and government officials.

Break of Bulk Point

A location where goods are transferred from one mode of transportation to another, like from a port to a truck.

Least Cost Theory

A model by Alfred Weber predicting industrial location based on minimizing transport, labor, and agglomeration costs.

Gross Domestic Product (GDP)

Total value of goods and services produced within a country in one year.

Gross National Product (GNP)

GDP plus income earned by citizens abroad, minus income earned by foreigners in the country.

Gross National Income (GNI) per capita

GNI divided by the population, reflecting average income.

Formal Economy

Economic activities regulated and taxed by the government.

Informal Economy

Unregulated, untaxed economic activity, such as street vending or black market.

Income Distribution

How income is divided among different groups in a society.

Fertility Rates

The average number of children a woman is expected to have in her lifetime.

Infant Mortality Rates

The number of babies who die before their first birthday per 1,000 live births.

Literacy Rates

The percentage of people who can read and write in a population.

Gender Inequality Index (GII)

Measures gender disparities in health, empowerment, and economic participation.

Human Development Index (HDI)

A composite score of life expectancy, education level, and income per capita to measure development.

Microloans

Small loans given to individuals in developing countries to start or grow businesses.

Rostow’s Stages of Economic Growth

A model describing five stages of development from traditional society to mass consumption.

Wallerstein’s World System Theory

A model that divides countries into core, semi-periphery, and periphery based on economic and political power.

Dependency Theory

Argues that developing countries remain poor due to dependence on wealthy nations for markets and investment.

Commodity Dependence

Reliance on one or a few primary goods for export, making economies vulnerable to price changes.

Comparative Advantage

The ability of a country to produce a good at a lower opportunity cost than others.

Neoliberal Policies

Market-oriented reforms such as privatization, deregulation, and reduced government spending.

Free Trade Agreements

Treaties that reduce or eliminate tariffs between member countries.

Tariffs

Taxes on imported goods, used to protect domestic industries.

Outsourcing

Hiring external companies or workers to perform tasks, often in other countries.

Special Economic Zones (SEZs)

Designated areas with special economic regulations to attract foreign investment.

Free-Trade Zones

Areas where goods can be imported/exported with reduced or no tariffs.

Export Processing Zones (EPZs)

Zones where goods are manufactured mainly for export, often with special tax incentives.

International Division of Labor

Global specialization in different tasks or industries by different countries or regions.

Post-Fordist Methods of Production

Flexible production using just-in-time manufacturing, automation, and skilled labor.

Multiplier Effects

Economic growth generated when an initial investment causes related jobs and services to grow.

Economies of Scale

Cost advantages that arise with increased production.

Agglomeration

Clustering of related businesses in the same area for mutual benefit.

Just-in-Time Delivery

System where materials arrive exactly when needed to reduce storage costs.

Growth Poles

Economic development centered around a high-growth industry or region.

Ecotourism

Sustainable travel to natural areas that conserves the environment and benefits local communities.

UN Sustainable Development Goals (SDGs)

17 global goals adopted by the UN to address poverty, inequality, and environmental sustainability by 2030.