Unit 7: Industrial & Economic Development Patterns and Processes

Agglomeration

A cluster of enterprises that can provide assistance to each other through shared talents, services, and facilities.

Break-of-bulk point

A location along a transport route where goods must be transferred from one carrier to another. In a port, the cargoes of oceangoing ships are unloaded and put on trains, trucks, or perhaps smaller riverboats for inland distribution.

Brownfields

Brownfield: abandoned polluted industrial sites in central cities, many of which are today being cleaned and redeveloped

Bulk-gaining industry

Bulk-gaining: An industry in which the final product weighs more or has a greater volume than the inputs.

commodity dependence

economic dependence on exports of agricultural and mineral raw materials

cottage industry

a method of production in which tasks are done by individuals in their rural homes

Deindustrialization

process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment

Dependency Theory

a model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones; the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former.

Neo-colonialism

Country that displays economic dependence on another country; a country that displays so much economic dependence on another country, that it seems to be a colony of the independent country

bulk-reducing industry

industry in which the raw materials cost more to transport than the finished goods

Ecotourism

A form of tourism that supports the conservation and sustainable development of ecologically unique areas

export processing zones (EPZs)

zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment

fair trade

Alternative to international trade that emphasizes small businesses and worker owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organizing, and comply with minimum environmental and safety standards.

"Fordism" (post-Fordism)

Mass production where every worker does a single task repeatedly. (post: flexible work rules with a team working on tasks)

Foreign Direct Investment

Investment made by a foreign company in the economy of another country.

Free Trade Zone (FTZ)

a duty-free and tax-exempt industrial park created to attract foreign corporations and create industrial jobs

GDP/GDP per capita

the total market value of all final goods and services produced by a country's citizens and companies within the country in a year (per capita: per person)

Gender Inequality Index (GII)

An indicator constructed by the U.N. to measure the extent of each country's gender inequality in terms of reproductive health, empowerment, and the labor market.

growth pole

an urban center with certain attributes that, if augmented by a measure of investment support, will stimulate regional economic development in its hinterland

Human Development Index (HDI)

An indicator constructed by the U.N. to measure the level of development for a country through a combination of income, education, and life expectancy.

Inequality-adjusted HDI (IHDI)

Modification of an HDI to account for inequality within a country.

international division of labor

Transfer of some types of jobs, especially those requiring low-paid less skilled workers, from more developed to less developed countries.

Just-in-time delivery/lean production

Just-in-time delivery: Shipment of parts and materials to arrive at a factory moments before they are needed

lean production: a management approach that organizes resources such as people and machines around the flow of business processes and that only produces units in response to customer orders

LDC

Less Developed Country: A country that is at a relatively early stage in the process of economic development

least-cost theory (Weber)

Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.

Mass Consumption

Caused by an increase in purchasing power, this allowed for customers to spend more money on goods.

Greenfield

relating to or denoting previously undeveloped sites for commercial development or exploitation

microloans/microcredit

a loaning innovation that has helped large numbers of people deal with the lack of credit records and assets needed to secure a loan to buy seeds and fertilizer for farming or tools and materials for a small business; many are used by women and have helped people to work their way out of poverty

offshore outsourcing

A decision by a corporation to turn over much of the responsibility for production to independent suppliers, usually in LDCs

Renewable energy

replaced continually or at least within a human lifespan: solar energy, hydroelectric, geothermal, fusion, and wind are examples

right-to-work laws

A state law forbidding requirements that workers must join a union to hold their jobs.

Rostow's Stages of Development

A model of economic development that describes a country's progression which occurs in five stages transforming them from least-developed to most-developed countries.

5 Stage model of development, each country is in one of five stages; LDC's move to later stages to advance

Traditional; Pre conditions for take off; take off to self-sustained growth; the drive to maturity; age of mass-consumption.

Special Economic Zones (SEZs)

government-designated areas in China where foreign investment is allowed and capitalistic ventures are encouraged

sustainable development

development that balances current human well-being and economic advancement with resource management for the benefit of future generations

Sustainable Development Goals (SDGs)

Goals resulting from a UN-led effort to end extreme poverty by focusing on 17 key indicators, the top five of which are no poverty, zero hunger, good health, quality education, and gender equality, with key benchmarks for 2030.

Tariff

A tax on imported goods

uneven development

The increasing gap in economic conditions between core and peripheral regions as a result of the globalization of the economy.

World Systems Theory (Wallerstein)

Theory developed by Immanuel Wallerstein that explains the emergence of a core, periphery, and semi periphery in terms of economic and political connections first established at the beginning of exploration in the late 15th century and maintained through increased economic access up until the present.

World Trade Organization (WTO)

a permanent global institution established in 1995 to promote international trade and to settle international trade disputes (replaced GATT: General Agreement on Trade and Tariffs)

World Bank and IMF

A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion, and debt consolidation. Its formal name is the International Bank for Reconstruction and Development and a United Nations agency to promote trade by increasing the exchange stability of the major currencies

women's empowerment

women's options and access to participate fully in the social and economic spheres of a society

comparative advantage

the relative cost advantage a country or organization has to produce certain goods or services for trade

Complementarity

the mutual trade relationship that exists between two places based on the supply of raw materials and the demand for finished products or services

Primary Sector

economic sector associated with removing or harvesting products from the earth; includes agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas

Secondary Sector

economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction

Tertiary Sector

economic sector that includes a host of activities that involve the transport, storage, marketing, and selling of goods or services; also called the service sector

Quaternary Sector

economic sector that is a subset of tertiary sector activities that require workers to process and handle information and environmental technology

Quinary Sector

economic sector that is a subset of the quaternary sector; involves the very top leaders in government, science, universities, nonprofits, health care, culture, and media

Gross National Product (GNP)

Is the total value of all the goods and services produced by a country's citizens and companies both domestically and internationally in a single year.

Gross National Income (GNI) per capita

the total value of goods and services globally produced by a country in a year divided by the country's population

Gender Development Index (GDI)

a measure that calculates gender disparity in the three basic dimensions of human development: health, knowledge, and standard of living

labor-market participation (LMP)

rate that measures an economy's active labor force, calculated by taking the sum of all employed workers divided by the working age population

Human Development

the processes involved in the improvement of people's freedoms, rights, capabilities, choices, and material conditions

industry

an economic activity using machinery on a large scale to process raw materials into products

raw materials

any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods

Industrialization

the process by which the interaction of social and economic factors causes the development of industries on a wide scale

Industrial Revolution

the radical change in manufacturing methods that began in Great Britain in the mid-18th century and was marked by the shift from small-scale, hand-crafted, muscle-powered production to power-driven mass production

industrial park

a collection of manufacturing facilities in a particular area that is typically found in suburbs and is located close to highways to facilitate movement of raw materials and finished products

Neoliberalism

beliefs that favor free-market capitalism in which trade has no constraints from government

postindustrial economy

an economic pattern marked by predominant tertiary sector employment-with a good share of quaternary and quinary jobs

dual economies

economies with two distinct distributions of economic activity across the economic sectors

formal sector

businesses, enterprises, and other economic activities that have government supervision, monitoring, and protection, and are also taxed

Informal sector

any part of a country's economy that is outside of government monitoring or regulation

MDC

A country that has progressed relatively far along a continuum of development.

Non-renewable energy

Energy that cannot be replaced once it is used: examples include coal, oil, and natural gas

OPEC (Organization of Petroleum Exporting Countries)

An organization of countries formed in 1961 to agree on a common policy for the production and sale of petroleum.

Mercosur (Common Market of the South)

(1991) free trade within, and a common external tariff for, Argentina, Brazil, Paraguay, Uruguay, and Venezuela; accounts for 70 percent of South America's total economy

Footloose industry

Industry that locates in a wide variety of places without a significant change in its cost of transportation, land, labor, and capital