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Cultural Convergence
The blending of cultures as ideas and technology spread, often seen in LDCs adopting traits from former colonial powers (MDCs).
Dependency Theory
The concept that poorer (periphery) countries depend on wealthier (core) countries, shaping global economic relationships.
Development
Improvement in a place’s material conditions through technology and knowledge diffusion.
Energy Consumption
A key indicator of a country’s level of development.
Foreign Direct Investment
Investment in LDCs by transnational corporations from MDCs.
Gender
Classification as male or female.
Gross Domestic Product (GDP)
The total market value of all goods and services produced within a country. Measures economic size and prosperity.
Gross National Product (GNP)
Measures a country's total income, including foreign earnings.
Human Development Index (HDI)
Measures life expectancy, literacy, education, and GDP per capita to assess well-being.
Levels of Development
Classification of countries as MDCs (more developed) or LDCs (less developed).
Agricultural Labor Force
Percentage of a population working in agriculture; indicates economic development and living standards.
Calorie Consumption
The percentage of daily nutritional requirements met, reflecting development.
Physical Quality of Life Index
Measures literacy, infant mortality, and life expectancy on a 0–100 scale.
Neocolonialism
Continued economic control by former colonial powers over their ex-colonies post-WWII.
Purchasing Power Parity (PPP)
Adjusted exchange rate to equalize currency purchasing power, reflecting economic strength.
Technology Gap
The disparity in technological development between nations or groups.
Technology Transfer
The spread of technology and knowledge from developed to developing regions.
Third World
Term for developing countries, regardless of political alignment.
World Systems Theory/Core-Periphery Model
The idea that the global economy is divided into core (wealthy), semi-periphery, and periphery (poor) nations.
Acid Rain
Rain made acidic by atmospheric pollutants.
Agglomeration
The clustering of businesses or industries for mutual benefit.
Agglomeration Economies
Cost savings due to the concentration of businesses in urban areas.
Air Pollution
Harmful substances in the air affecting health and the environment.
Aluminum Industry
Industry balancing clean air regulations and profitability.
Assembly Line Production/Fordism
A system where workers or machines perform specific tasks to mass-produce goods efficiently.
Bid Rent Theory
Land prices and demand change based on proximity to the Central Business District (CBD).
Break-of-Bulk Point
A location where goods are transferred between transport modes.
Canadian Industrial Heartland
Canada’s main manufacturing region, centered in Central Canada, notably in the auto industry.
Carrier Efficiency
Compares shipping methods: air (fast but costly) vs. sea (slow but cheap and high capacity).
Comparative Advantage
The ability to produce goods at a lower opportunity cost than others.
Cumulative Causation
The self-reinforcing growth of an advantaged region.
Deglomeration
The dispersal of industries due to high costs or inefficiencies.
Deindustrialization
The decline of industrial activity in a region, leading to economic shift.
Economic Sectors
The economy is divided into three main sectors: Primary (raw materials), Secondary (manufacturing), and Tertiary (services).
Economies of Scale
Cost advantages gained as production increases.
Ecotourism
Environmentally responsible travel that supports conservation and local communities.
Energy Resources
Sources of energy, including renewable and non-renewable.
Entrepôt
A port where goods are imported, stored, and exported without tariffs.
Export Processing Zone (EPZ)
Areas with relaxed trade regulations to encourage foreign investment.
Fixed Costs
Business expenses that remain constant regardless of production.
Footloose Industry
Industries that can locate anywhere without being tied to resources or transport costs.
Four Tigers
The rapidly industrialized economies of Taiwan, Singapore, Hong Kong, and South Korea.
Greenhouse Effect
The warming of the Earth due to trapped infrared radiation.
Growth Poles
Areas where economic growth is concentrated, influencing surrounding regions.
Heartland
The central region of a country, often strategic in geopolitics.
Rimland
The coastal or border areas surrounding a core region, important in geopolitical strategy.
Industrial Location Theory
Businesses seek locations that minimize costs and maximize profits.
Industrial Regions (Place)
Areas chosen for industry based on environment and cost factors.
Industrial Regions (Fuel Source)
Areas selected based on fuel availability.
Industrial Regions (Characteristics)
Highly urbanized areas with dense industry.
Industrial Revolution
The 18th–19th century shift to mechanized production, transforming economies.
Industry
The economic sector focused on goods and services production.
Infrastructure
Public systems like roads, railways, and airports that support economic activity.
International Division of Labor
The specialization of labor across countries to enhance efficiency.
Labor-Intensive
Industries requiring a high amount of labor compared to capital.
Least-Cost Location
The optimal business location balancing land and transport costs.
Major Manufacturing Regions
Key industrial hubs: Eastern U.S., Mexico, Europe, and East Asia.
Manufacturing Exports
Goods produced in one country and sold abroad.
Industrial Parks
Areas designated for industrial activities.
Shared Services
Centralized business services used by multiple departments.
Zoning
Dividing land into areas for specific uses, like residential or industrial.
Transportation
The movement of goods and people.
Taxes
Government-mandated payments by individuals and businesses.
Environmental Considerations
Factors like climate and pollution affecting development.
Market Orientation
Tendency of industries to locate near consumers due to distribution costs.
Multiplier Effect
Increased spending leading to greater national income and economic growth.
NAFTA
A trade agreement between the U.S., Mexico, and Canada.
Outsourcing
Shifting business operations to third parties for lower costs.
Ozone Depletion
The thinning of the ozone layer due to pollutants like CFCs.
Plant Location (Just-in-Time Delivery)
Manufacturing strategy that minimizes inventory by producing goods as needed.
Postindustrial
The transition from manufacturing-based to service-based economies.
Refrigeration
Cooling technology for preserving perishable goods during transport.
Resource Crisis
Shortages of non-renewable resources requiring alternative solutions.
Resource Orientation
Industries locating near their resource supply.
Special Economic Zones (China)
Areas with favorable trade laws to boost foreign investment.
Specialized Economic Zones
Regions with economic laws promoting trade and investment.
Substitution Principle
Replacing processes with more efficient or sustainable alternatives.
Threshold/Range
The market area required for a service to be profitable.
Time-Space Compression
The reduction of distance barriers due to technological advances.
Topocide
The destruction of a place’s identity due to industrialization.
Trade
The exchange of goods and services.
Transnational Corporation (TNC)
A company operating in multiple countries.
Ubiquitous
Found everywhere, anytime.
Variable Costs
Business expenses that fluctuate with production.
Weight-Gaining Industry
Products that increase in size during production (e.g., cars, soda).
Weight-Losing Industry
Products that shrink during production (e.g., lumber, sugar).
World Cities
Cities with global influence in economy, culture, and politics.
Fordism
Mass production using assembly lines and high wages.
Gross National Income (GNI)
GDP plus income earned abroad.
Just-in-Time Production
Manufacturing that reduces inventory by producing on demand.
Maquiladora
U.S. factories in Mexico using cheaper labor.
Transferability
The ease of moving goods between locations.
Big Box Stores
Large retail stores with extensive product selections.
Complimentary
A product given for free.