unit 7 aphug vocab

Comparative Advantage

The ability of a firm or individual to produce goods and/or services at a lower opportunity cost than other firms or individuals.

Break of Bulk

The point where goods are transferred from one mode of transport to another, often from large cargo ships to smaller vehicles.

Human Development Index (HDI)

A statistic composite index of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development.

Primary Sector

The part of the economy that involves extracting raw materials from the earth, such as agriculture, mining, and forestry.

Gender Inequality Index (GII)

An index that measures gender inequality using three dimensions: reproductive health, empowerment, and labor market participation.

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house.

Tertiary Sector

The segment of the economy that provides services to consumers, including retail, tourism, banking, and education.

Ecotourism

Tourism directed toward natural environments, intended to support conservation efforts and observe wildlife.

Agglomeration

The clustering of similar or related businesses in a geographic area.

Trade

The exchange of goods or services between individuals, businesses, or countries.

Secondary Sector

The part of the economy that involves manufacturing and processing raw materials into finished goods.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Offshoring

The relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting.

Multinational Corporations (MNCs)

Companies that operate in several countries, often with headquarters in one country and operations in many others.

Gross Domestic Product (GDP)

The total value of goods produced and services provided in a country during one year.