Unit 7 Vocab part 1

Fair trade

a movement that encourages multinational corporations to pay living wages to workers in LDCs instead of the lowest possible wage

Development

the changes that occur as a country transitions from an agricultural economy to industry-based economy with rising living standards

Fair trade

a movement that encourages multinational corporations to pay living wages to workers in LDCs instead of the lowest possible wage

Development

the changes that occur as a country transitions from an agricultural economy to industry-based economy with rising living standards

Industrialization

the process by which an economy is transformed from primarily agricultural to one based on the manufacturing of good

Standard of living

level of wealth available to a person or community

Break-of-bulk point

a place where cargo is unloaded from one form of transportation and pieces of it are sent out in different directions to other forms

Bulk-gaining industry

Industry that makes something that gains volume or weight during production

Bulk-reducing industry

industry that makes something that loses volume or weight during production

Core country

in World's Systems Analysis, the core are the powerful, wealthy countries that have great influence on the world economy

Labor union

an organization of workers that aims to protect their rights and further their interests

Least cost theory

Alfred Weber's theory that tries to explain and predict the locational pattern of industry

Market

a place where goods are sold (non-physical markets have expanded greatly since the Internet became mainstream)

Periphery country

in World's Systems Analysis, the periphery are the least economically developed countries that have little influence over the world's economy

Cogeneration

Producing two forms of energy from one fuel

Sectors of the economy

separating jobs into segments of the economy based on the purpose of their job (primary, secondary, tertiary, quaternary, quinary)

Semi Periphery

in World's Systems Analysis, the semi-periphery is the more-wealthy LDCs that have some influence on world economies

Formal economy

economic activities that take place inside the official, legal framework, pay taxes and are monitored by the government

Gender Empowerment Measure (GEM)

a statistic created by the United Nations to measure the inequalities between men and women in countries

Gender Inequality Index (GII)

a statistic created by the United Nations to measure how much development is lost because of inequalities between men and women

Gender-related Development Index (GDI)

a statistic that is an offshoot of the HDI that measures gender gaps in life expectancy, education, and incomes

Gross Domestic Product (GDP)

a monetary measurement of all the goods and services produced in a year inside of a country

Gross National Income (GNI)

a monetary measurement of all the goods and services produced by citizens (including citizens overseas) in a year in a country but NOT non-citizen residents

Gross National Product (GNP)

a monetary measurement of all the goods and services produced by residents of a country (NOT citizens in other countries)

Human Development Index (HDI)

a statistic created by the United Nations to try to measure how economically developed a country is - seen as more complete picture than just GDP PPP per capita

Informal economy

economic activities that are neither taxed, nor monitored by any form of government including illegal activities

Nonrenewable energy

energy from a source that is depleted when used, such as fossil fuels or nuclear

Renewable energy

energy from a source that is not depleted when used, such as wind or solar power

Dependency theory

the idea that MDCs have become wealthy at the expense of LDCs

Microloans

a small sum of money lent at low interest to a new business

Commodity dependence

when a country's economy is reliant on a single product

Comparative advantage

the ability of a group to carry out an economic activity more efficiently than another economic activity