Key Concepts of Industrialization and Economic Sectors

Industrial Revolution

The period of major industrialization during the late 18th and early 19th centuries, characterized by a shift from agricultural to industrial economies.

Primary Sector

The economic sector involved in the extraction and collection of natural resources, such as farming, fishing, mining, and forestry.

Secondary Sector

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

Tertiary Sector

The economic sector involved in services rather than goods, including retail, education, healthcare, and finance.

Quaternary Sector

The economic sector involving knowledge-based activities such as research, technology, and information services.

Quinary Sector

The economic sector involving high-level decision-making and services such as scientific research, high-level management, and non-profit work.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing as scale increases.

Localization Economies

Economic advantages that arise from the concentration of industries or businesses in the same area.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Multinational Corporation

A company that operates in multiple countries, often having headquarters in one country and production in others.

Outsourcing

The practice of obtaining goods or services from an external provider, often from a country with lower labor costs.

Offshoring

The practice of relocating business processes or production to another country to reduce costs.

World Trade Organization (WTO)

An international organization that regulates international trade.

Deindustrialization

The decline in industrial activity in a region or economy, often due to outsourcing and automation.

Industrialization

The process by which an economy transforms from an agrarian society into one dominated by industry and machine manufacturing.

Cottage Industry

A small-scale industry that is carried out at home or in small workshops, often producing handmade goods.

Agglomeration

The clustering of industries or businesses in a particular area to take advantage of shared services, labor, or infrastructure.

Fordist Production

A system of mass production that uses assembly lines, standardized products, and high labor specialization.

Post-Fordist Production

A system of flexible production that focuses on customized goods, outsourcing, and decentralized production processes.

Agglomeration Economies

Cost advantages that result when firms in the same industry locate near one another, benefiting from shared services, infrastructure, and labor pools.

Technopole

A center of high-tech manufacturing and information-based industries.

Core-Periphery Model

A model that explains the global distribution of wealth and development, where the 'core' countries dominate and exploit the 'periphery' countries.

Free-Trade Zone

An area where goods can be imported, handled, and exported without being subject to customs duties.

Creative Destruction

The process by which new innovations lead to the demise of older industries, creating both positive and negative effects on the economy.

Specialization

The concentration of production on a limited range of products or activities, allowing firms or regions to achieve efficiencies and focus on particular markets.

Spatial Fix

The movement of capital and industries to new locations to resolve economic contradictions, such as rising labor costs or saturated markets.

Substitution Principle

The idea that if the cost of one factor of production rises, another factor can be substituted to maintain the level of production.

Vertical Integration

When a company controls multiple stages of production or supply chain within the same industry, from raw materials to final product.

Horizontal Integration

When a company acquires or merges with competitors to increase its market share within a specific industry.

Export Processing Zone (EPZ)

A special area where businesses can operate with fewer regulations, often focused on export activities.

Industrial District

A geographic area where multiple firms in related industries cluster together, benefiting from shared resources and knowledge.

Deindustrialization

The process of reducing or eliminating industrial activity in an area, often due to factors like outsourcing, automation, or market decline.

Maquiladora

A factory in Mexico, often near the U.S. border, where goods are assembled from imported components and exported back to the U.S.

Footloose Industry

Industries that are not tied to a specific location, typically due to minimal transportation costs and the ability to relocate easily.

Pollution Haven

A country or region with lax environmental regulations, attracting industries that seek to reduce their production costs by avoiding strict environmental rules.

Just-In-Time Production (JIT)

A production system where inventory is minimized, and materials arrive exactly when needed, reducing storage costs and waste.

Technological Determinism

The belief that technology drives the structure and development of society, shaping social, political, and economic systems.

Social Factory

A concept where the boundaries between work and personal life become blurred, often due to technology and globalized economic systems.