Unit 7 Vocab part 2

Agglomeration

the benefits that companies experience due to being clumped closely together

Complementarity

when two regions, through trade, can specifically satisfy each other's demands

Deindustrialization

decline in industrial activity in a region or economy often due to lower labor costs elsewhere

Ecotourism

tourism directed toward natural environments (often threatened) intended to support conservation efforts

Export processing zone

regions in LDCs that offer tax breaks to attract export-driven production processes like factories producing goods for foreign markets

Fordist production

form of mass production in which each worker is assigned one specific task to perform repeatedly.

Foreign direct investment (FDI)

a company or individual from one country spending money in business interests in another country, in the form of either establishing business operations or acquiring assets

Free trade agreement

a treaty between countries that eliminates tariffs on goods sent between the countries

Free trade zone

regions in LDCs where tariffs are waived by governments wanting to encourage MDCs to invest in their countries

Growth Pole

an innovative, high-tech industry that stimulates economic growth in linked businesses

Import Substitution Industrialization

An economic development policy intended to replace imported goods with domestically produced goods as a way to spur industrialization and reduce dependence on other nations

International division of labor

a shift in manufacturing away from the advanced economies where most multinational corporations are owned to developing countries as different parts of items are made all over the world

International Monetary Fund (IMF)

an supranational organization that aims to promote global economic stability and helping LDCs grow

Just-in-time delivery

a strategy for maintaining just the right amount of inventory so as to not have to pay for storage

Mass consumption

the purchase of standardized products or services by large numbers of customers

Mercosur (or Southern Common Market)

an economic supranational organization dedicated to improving trade between its members in South America

Multiplier Effects

an increase in spending produces an increase in national income and consumption greater than the initial amount spent

Natural resource depletion

consuming resources faster than they can be replenished

Neoliberal policies

when countries institute economic rules that promote sustained economic growth as the means to achieve human progress and confidence in free markets

Organization of Petroleum Exporting Countries (OPEC)

a supranational organization of countries (mainly in Southwest Asia and Africa with Venezuela) dedicated to maintaining a steady supply of oil

Outsourcing

(not exactly how it is used in real life) transferring part of a company's operations to an outside company or in another place

Post-Fordist production

Adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks.

Purchasing Power Parity

Measures how much a common "basket of goods" costs locally in the currency of each country being compared

Special economic zone

an area that has different laws governing trade and business than the rest of the country and aim to attract FDI

Sustainable development

economic development that is conducted without depletion of natural resources at rapid rates

Tariff

a tax a country puts on goods that were created in an outside country encouraging people to buy locally produced goods

Textile

cloth or woven fabric

Transnational Corporation

a company that conducts research, operates factories, and sells products in multiple countries, not just where its headquarters or shareholders are located, playing a crucial role in the global economy

Vertical integration

different companies involved in different steps of a manufacturing process combining into two

World Trade Organization (WTO)

an economic supranational organization that deals with trade rules between countries and settling trade disputes