Development and Indusrialization

Break-of-bulk point

Break-of-bulk point

A location where transfer is possible from one mode of transportation to another.

Industrial Revolution

A series of improvements in industrial technology that transformed the process of manufacturing goods.

Globalization

Actions or processes that involve the entire world and result in making something worldwide in scope.

Maquiladora

Factories built by U.S. companies in Mexico near the U.S. border, to take advantage of much lower labor costs in Mexico; Factories in free trade zones, that import materials tariff free, manufacture and then export back to original country,

Footloose Industries

Manufacturing activities in which cost of transporting both raw materials and finished products is not important for determining the location of the firm.

EEZ (Exclusive Economic Zone)

The zone prescribed by the Law of the Sea where a state has jurisdiction over economic and resource management; The 200 mile zone into the see of a coastal state, in which the state has full economic jurisdiction over resources.

SEZ (Special Economic Zone)

A geographic region that is designed to export goods and provide employment. This area is therefore often given tax incentive, tax breaks, and special economic opportunities. Designated areas in countries that possess special economic regulations that are different from other areas in the same country, usually meaning that a company will receive tax incentives and the opportunity to pay lower tariffs.

Deindustrialization

Loss or removal of industrial activity in a region.

Development

A process of improvement in the material conditions of people through diffusion of knowledge and technology; The process of economic growth, expansion, or realization of regional resource potential.

HDI (Human Development Index)

Measure used by the United Nations that calculates development not in terms of money or productivity but in terms of human welfare. Evaluates human welfare based on three parameters: life expectancy, education, and income.

Outsourcing

Sending industrial processes out for external production. The term outsourcing increasingly applies not only to traditional industrial functions, but also to the contracting of service industry functions of companies to overseas locations, where operating costs remain relatively low.

Core-periphery model

A model of the spatial structure of development in which the center of an area (core) is the industrial and business center, and the exterior (periphery) is primarily rural and consumers. Core uses materials to make goods, Periphery uses goods and makes materials.

Core

National or global regions where economic power, in terms of wealth, innovation, and advanced technology, is concentrated.

Periphery

National or global regions that are primarily rural and provide raw materials instead of manufacturing. Land rent is less and there is lots of open space for agricultural use.

GDP (Gross Domestic Product)

The total value of goods and services produced within the borders of a country during a specific time period, usually one year.

GNP (Gross National Product)

The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.

Semiperiphery

Countries and regions that are currently industrializing and carry characteristics of both core and periphery areas. Those newly industrialized/industrializing countries with median standards of living. These countries offer their citizens relatively diverse economic opportunities but also have extreme gaps between rich and poor. Ex: Chile, Brazil, India, China, Indonesia

World Systems Theory

Theory developed by Immanuel Wallerstein that explains the emergence of a core, periphery, and semiperiphery in terms of economic and political connections first established at the beginning of exploration in the late 15th century and maintained through increased economic access up until the present.

Bulk-gaining industry

An industry in which the final product weighs more or compromises a greater volume than the inputs.

Bulk-reducing industry

An industry in which the final product weighs less or compromises a lower volume than the inputs.

Agglomeration

Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and/or sharing of labor resources.

Deglomeration

The dispersal of an industry that formerly existed in an established agglomeration.

Least-cost theory

A concept developed by Alfred Weber to describe the optimal location of a manufacturing establishment in relation to the costs of transport and labor, and the relative advantages of agglomeration or deglomeration.

Asian Tigers

A term used to refer to the highly developed and sophisticated economies of Singapore, Hong Kong, South Korea, and Taiwan.

Cartel

An association of producers or consumers (or both) of a certain products, formed for the purpose of manipulating its price on the world market.

Comparative advantage

The principle that says states should specialize in trading goods that they produce with the greatest relative efficiency and at the lowest relative cost (relative, that is, to other goods produced by the same state).

Enclosure

The splitting of a common area or good into privately owned pieces, giving individual owners an incentive to manage resources responsibly.

Tariff

A duty or tax levied on certain types of imports (usually as a percentage of their value) as they enter a country.

Free Trade

The flow of goods and services across national boundaries unimpeded by tariffs or other restrictions.

WTO (World Trade Organization)

An organization begun in 1995 that expanded the GATT's traditional focus on manufactured goods and created monitoring and enforcement mechanisms.

GATT (General Agreement on Tariffs and Trade)

A world organization established in 1947 to work for freer trade on a multilateral basis; the GATT was more of a negotiating framework than an administrative institution. Succeeded by the WTO.

NAFTA

(North American Free Trade Agreement) A free trade zone encompassing the U.S., Canada, And Mexico since 1994.

Brandt Line

An imaginary line separating the MDCs of the Northern Hemisphere from the LDCs of the Southern Hemisphere.

LEDC

Less Economically Developed Country

MEDC

More Economically Developed Country

Underdevelopment

A state where capital is not fully utilized and there are inadequate material conditions for the population.

Developing Country

A country that is at a relatively early stage in the continuum of development.

Developed Country

A country that has progressed relatively far along a continuum of development.

Managed Trade

International trade restricted by government market intervention policies and/or tariffs.

Multinational Corporation

A company based in one state with affiliated branches and/or subsidiaries operating in other states.

Substitution Principle

A maxim stating that products and services should, whenever possible, be replaced with alternatives which have lower impacts on the environment.

Entrepot

A port where items can be imported and then exported without paying tariffs.

Fair Trade

Trade in which fair prices are paid to producers in LDCs.

Trade

The exchange of goods and/or money between two states.

EU (European Union)

International organization comprised of Western European states in order to promote development through economic cooperation.

Walter Rostow

A modernization model developed in the 1960's which states that countries developed through five stages:

1. Traditional

2. Preconditions for Takeoff

3. 3. Takeoff

4. Drive to Maturity

5. Age of Mass Consumption

Bid Rent

The amount of money offered to buy a piece of land in association with Von Thunen's model. Places further from the city cost less.

Dependency

A territory subject to a state in which it does not border; A territory that is controlled by another state.

Feudalism

A social system that existed in Europe during the Middle Ages in which people worked and fought for nobles who gave them protection and the use of land in return.

Locational Interdependence

Theory developed by economist Harold Hotelling that suggests competitors, in trying to maximize sales, will seek to constrain each other's territory as much as possible which will therefore lead them to locate adjacent to one another in the middle of their collective customer base.

Newly Industrialized Country (NIC)

A country whose national economy has transitioned from being primarily based in agriculture to being primarily based in goods-producing industries, such as manufacturing, construction, and mining, during the late 20th and early 21st centuries.

ex: South Korea, Taiwan, Malaysia, South Africa, China