Unit 7 APHug

Industry

any economic activity using machinery on a large scale to process raw materials into products

Raw Materials

any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods

Industrialization

the process in which the interaction of social and economic factors causes the development of industries across a community, region, or country

Industrial Revolution

the radical change in manufacturing methods that began in Great Britain in the mid-18th century and was marked by the shift from small-scale, hand-crafted, muscle-powered production to power-driven mass production

Cottage Industries

preindustrial form of manufacture in which members of families spread out through rural areas worked in their homes to make goods

Second Industrial Revolution

Rapid advances in the creation of steel, chemicals and electricity helped fuel production, including mass-produced consumer goods and weapons. It became far easier to get around on trains, automobiles and bicycles. At the same time, ideas and news spread via newspapers, the radio and telegraph.

Third Industrial Revolution

began in the '70s in the 20th century through partial automation using memory-programmable controls and computers. Since the introduction of these technologies, we are now able to automate an entire production process - without human assistance.

Fourth Industrialization

characterized by the fusion of the digital, biological, and physical worlds, as well as the growing utilization of new technologies such as artificial intelligence, cloud computing, robotics, 3D printing, the Internet of Things, and advanced wireless technologies

Economic Sectors

collections of industries engaged in similar economic activities based on the creation of raw materials, the production of goods, the provision of services, or other activities

Primary Sector

economic sector associated with removing or harvesting products from the earth; includes agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas

secondary sector

manufacturing, processing, construction, and production of goods from materials in the primary (ex: automobile, food, electricity, textile production)

tertiary sector

economic sector that includes a host of activities that involve the transport, storage, marketing, and selling of goods or services; also called the service sector

Quaternary Sector

economic sector that is a subset of tertiary sector activities that require workers to process and handle information and environmental technology

Quinary Sector

economic sector that is a subset of the quaternary sector; involves the **very top leaders** in government, science, universities, nonprofits, health care, culture, and media

Post-industrial economy

an economic pattern marked by predominant tertiary sector employment—with a good share of quaternary and quinary jobs

Gross Domestic Product (GDP)

the total value of the goods and services produced by a country’s citizens and companies within the country in a year

Dual Economies

economies with two distinct distributions of economic activity across the economic sectors

Least Cost Theory (Weber)

industrial location theory proposed by Alfred Weber suggesting that businesses locate their facilities in a particular place because that location minimizes the costs of production

Agglomeration

the tendency of enterprises in the same industry to cluster in the same area

Break-of-bulk point

location where it is more economical to break raw materials into smaller units before shipping them further

Bulk reducing industries

industry in which the raw materials cost more to transport than the finished goods

Bulk gaining industries

industry in which the finished goods cost more to transport than the raw materials

Industrial Parks

a collection of manufacturing facilities in a particular area that is typically found in suburbs and is located close to highways to facilitate movement of raw materials and finished products

Human Development

the processes involved in the improvement of people’s freedoms, rights, capabilities, choices, and material conditions

Gross National Product (GNP)

the total value of the goods and services produced by a country’s citizens and companies both domestically and internationally

Gross National Income (GNI)

the total value of goods and services globally produced by a country in a year divided by the country’s population

Formal Sector

includes businesses, enterprises, and other economic activities that have government supervision, monitoring, and protection, and are taxed.

Informal Sector

any part of a country’s economy that is outside of government monitoring or regulation; sometimes called the informal economy

Human Development Index (HDI)

a measure that determines the overall development of a country by incorporating three key dimensions of human development: life expectancy at birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI per capita

Purchasing Power Parity (PPP)

This concept measures economic variables in different countries so that exchange rates don’t distort across-the-board comparisons. Is synonymous with “international dollars.” a measure of how many units of currency are needed in one country to buy the amount of goods and services that one unit of currency will buy in another country

Parity

the balance between two groups; the state or condition of being equal, especially regarding status or pay.

Equality

Refers to the same level of resources and opportunities for everyone, no matter the location or situation.

Equity

Fairness, and it acknowledges how the lack of access to opportunities and certain resources affects underserved people, groups, or communities

Literacy Rate

Refers to the percentage of the population that is able to read and write. High: can indicate a high level of education and a skilled workforce. Low: can indicate a lack of access to education and a lack of opportunities for individuals to reach their full potential.

Gender Development index (GDI)

a measurement that calculates gender disparity in the three basic dimensions of human development: health, knowledge, and standard of living

gender inequality index (GII)

a measurement that calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation

Women’s empowerment

Includes women’s options and access to participate fully in the social and economic spheres of a society

Educational attainment

the highest level of education that an individual has completed

Labor Market participation (LMP)

rate that measures an economy’s active labor force, calculated by taking the sum of all employed workers divided by the working age population

Microloans

a very small short-term loan with low interest intended to help people in need

World Trade Organization (WTO)

International organization that promotes free trade and the liberalization of international trade. It sets rules and standards for international trade, and its member states agree to abide by these rules as part of their membership.

Rostow’s Stages of Economic Growth

a model that suggests that all countries can be categorized on a spectrum from traditional to modern and that to become modern, countries need to pass through distinct stages of economic growth in succession

Wallerstein world system theory

theory describing the spatial and functional relationships between countries in the world economy; categorizes countries as part of a hierarchy consisting of the core, periphery, and semi-periphery

Brandt Line

Theory that says that any countries North of an imaginary line are developed, and any countries South of the line are developing. The concept shows the gap in terms of development and wealth.

Dependency theory

a theory that describes the development challenges and limitations faced by poorer countries and the political and economic relationships poorer countries have with richer countries

Commodity dependence

a network of people, information, processes, and resources that work together to produce, handle, and distribute a commodity or product

Comparative advantage

the relative cost advantage a country or organization has to produce certain goods or services for trade

Complementarity

the mutual trade relationship that exists between two places based on the supply of raw materials

Neoliberalism

beliefs that favor free-market capitalism in which trade has no constraints from government

Deindustrialization

process by which a country or area reduces industrial activity, particularly in heavy industry and manufacturing

Growth Poles

a place of economic activity clustered around one or more high-growth industries that stimulate economic gain by capitalizing on some special asset

Just-in-time Delivery

a system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production

Fordism

a highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production; named after Henry Ford

Post-Fordism

system focused on small-scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market

Outsourcing

process of moving industrial production or service industries to external facilities or organizations often out of the country

Offshore outsourcing

the condition or one or more aspects of production are moved to an organization in another country

Transnational corporations

A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located.

International division of labor

a pattern of production and labor in which different countries are engaged in distinct aspects of production

Multiplier effect

the economic effect in which a change creates a larger change, such as when a new manufacturing plant grows the economy by giving rise to more related jobs and services

Special economic zones (SEZ)

an area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses

Export processing zones (EPZ)

an area within a country that is subject to more favorable regulations (usually including the elimination of tariffs) to encourage foreign investment and the manufacturing of goods for export

Free Trade Zones (FTZ)

a relatively large geographical area within a country in which businesses pay few or no tariffs on goods to encourage or facilitate its role in international trade

Ecotourism

a form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment