AP HUGE Unit 7 Vocabulary

Agglomeration

Clumping together of industries for mutual advantage.

Break-of-bulk points

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

bulk gaining industries

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

bulk reducing industries

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

commodity dependence

an aspect of dependency theory that occurs when more than 60 percent of a country's exports and economic health are tied to one or two resources

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 and the demand for finished products or services

cottage industries

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

Deindustrialization

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

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

Dual Economies

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

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

Ecotourism

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

export processing zones (EPZs)

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

fordism

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

Formal Sector

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

Free Trade Zones

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

Gender Development Index

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

Gross Domestic Product

The sum total of the value of all the goods and services produced in a nation

Gross National Income

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

Gross National Product

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

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

Human Development

the process involved in the improvement of people's freedoms, rights, capabilities, choices, and material conditions

Human Development Index

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

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

Industrial Revolution

a radical change in manufacturing methods that began in Great Britian in the mid 18th century and was marked by a shift from small scale and hand crafted muscle powered products to machine driven mass production

Industrialization

the process in which the interaction of social and economic factors causes the development of industries on a wide scale

Industry

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

Informal Sector

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

International Division of Labor

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

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

Labor Market Participation

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

Least Cost Theory

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

microloans

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

Multiplier Effects

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

Neoliberalism

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

Off Shore Outsourcing

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

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

Postindustrial economy

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

Primary Sector

The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.

Quarternary 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

Raw Materials

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

Secondary Sector

economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction

Special Economic Zones

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

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 and development

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