Unit 7 APHUG Vocab

Agglomeration

The clustering of industries or businesses in the same area to benefit from shared services, resources, and labor.

Break-of-bulk points

Locations where transportation modes change, typically where goods are transferred from one mode of transport to another (e.g., from ship to rail).

Bulk-gaining industries

Industries that produce products that weigh more or are more costly to transport than the raw materials, leading to production near markets (e.g., automobiles).

Bulk-reducing industries

Industries that produce products that weigh less or are less costly to transport than the raw materials, leading to production near resources (e.g., copper mining).

Commodity dependence

An economy's reliance on a single or few raw materials or commodities for economic stability and growth.

Comparative advantage

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

Complementarity

The idea that two regions or countries can benefit from trade if they have different, but complementary, resources or needs.

Cottage industries

Small-scale, home-based manufacturing industries, typically run by families and producing handmade goods.

Deindustrialization

The decline of industrial activity in a region or country, often associated with the relocation of industries to cheaper locations.

Dependency theory

A theory that suggests that global inequality is caused by the exploitation of poorer nations by wealthier nations through colonialism and economic systems.

Dual economies

An economy characterized by the coexistence of two sectors: one modern, industrial, and connected to global markets, and the other traditional, agricultural, and disconnected.

Economic sectors

Divisions of economic activity, typically categorized into primary, secondary, tertiary, quaternary, and quinary sectors.

Ecotourism

Tourism that focuses on visiting natural areas to conserve the environment and support local communities.

Export processing zones (EPZ)

Areas where goods can be imported, processed, and re-exported with few restrictions or tariffs, typically in developing countries.

Fordism

The system of mass production and consumption, characterized by standardized products, assembly line production, and high wages.

Formal sector

The part of an economy that is regulated by government and includes official jobs that are taxed and contribute to government revenue.

Free trade zones (FTZ)

Areas where goods can be imported and exported with few or no tariffs, usually set up to promote international trade.

Gender Development Index (GDI)

A measure of gender equality that compares the level of development for women to that of men in a country.

Gender Inequality Index (GII)

A composite index that measures gender inequality in three dimensions: reproductive health, empowerment, and labor market participation.

Gross Domestic Product (GDP)

The total value of all goods and services produced within a country’s borders in a given time period.

Gross National Income (GNI)

The total income of a country, including income from abroad, calculated by adding net income from foreign investments to GDP.

Gross National Product (GNP)

The total market value of all final goods and services produced by a country’s residents in a given time period, including income from abroad.

Growth poles

Areas where economic development is concentrated, often spurring growth in surrounding regions.

Human development

The process of improving people's well-being, particularly in terms of education, healthcare, and economic opportunities.

Human Development Index (HDI)

A composite index used to measure a country's level of human development based on life expectancy, education, and income.

Industrial parks

Designated areas of land for industrial development, often with infrastructure and services provided to attract businesses.

Industrial Revolution

The period of significant technological, economic, and social change in the 18th and 19th centuries, when industries grew rapidly, especially in Europe and the U.S.

Industrialization

The process of developing industries on a large scale, typically accompanied by the growth of cities and economic transformation.

Industry

Economic activities concerned with the production of goods and services, especially through manufacturing and construction.

International division of labor

The global distribution of tasks or jobs, where specific regions or countries specialize in different stages of production.

Just-in-time delivery

A logistics strategy where materials or products are delivered just before they are needed for production, reducing storage costs.

Labor-market participation (LMP)

The percentage of the working-age population that is either employed or actively seeking employment.

Least-cost theory

A theory that attempts to explain the optimal location of manufacturing businesses based on minimizing transportation, labor, and agglomeration costs.

Microloans

Small loans provided to individuals or businesses in developing countries to support entrepreneurship and alleviate poverty.

Multiplier effects

The economic impact that an initial investment has on the broader economy, leading to increased employment, income, and economic activity.

Neoliberalism

An economic philosophy advocating for free-market capitalism, limited government intervention, and a focus on privatization and deregulation.

Offshore outsourcing

The practice of hiring external businesses or workers in other countries, often to take advantage of lower labor costs.

Post-Fordism

A shift away from mass production and rigid assembly lines to flexible production methods and specialization in industries.

Postindustrial economy

An economy focused on services, information, and technology rather than manufacturing and industry.

Primary sector

The economic sector involving the extraction and harvesting of natural resources (e.g., mining, farming, fishing).

Quaternary sector

The economic sector related to knowledge-based activities, such as information technology, research, and development.

Quinary sector

The economic sector focused on high-level decision-making, such as government, education, and scientific research.

Raw materials

Natural resources or primary products used in the production of goods.

Secondary sector

The economic sector involved in the processing and manufacturing of raw materials into finished goods.

Special economic zones (SEZ)

Areas within a country where business and trade laws are different from the rest of the country to encourage foreign investment.

Stages of economic growth

Theories that describe the progression of a country's economic development, often depicted in models such as the Rostow's stages of growth.

Tertiary sector

The economic sector focused on providing services rather than producing goods, such as retail, education, and healthcare.

Women’s empowerment

The process of increasing women's control over their own lives, often through increased access to education, employment, and political representation.