Unit 7 Vocabulary

Agglomeration

the clustering of different economic activities and industries in a specific geographic area

KEYWORD: CLUSTER

Break-of-bulk Point

places where goods are transferred from one mode of transportation to another

Examples: ports, where cargo ships unload goods and place them on different trucks or trains

Bulk-Gaining Industries

raw materials GAIN weight/volume/complexity through the manufacturing process

Bulk-Reducing Industries

 raw materials LOSE weight/volume/complexity through the manufacturing process

Commodity Dependence

when more than 60 percent of a country's exports and economic health are tied to one or two resources

Comparative Advantage

when a country can produce a good or service at a lower cost than another country

Complementarity

beneficial trade relationship between two countries that results when they have different comparative advantages

Core Countries

have the most advanced economies, typically have a higher standard of living, and have more jobs located in the tertiary sector

Cottage Industries

members of families worked in their homes to make goods

Deindustrialization

process by which a country or area reduces industrial activity, particularly in heavy industry and manufacturing

Dependency Theory

states that the development of certain countries is hindered by their dependence on developed countries for economic growth and resources

Economies of Scale

cost reductions that occur when production rises

Eco-Tourism

form of sustainable tourism that supports both the local environment and people

Main goal: to promote conservation of natural resources while also promoting an enjoyable and educational experience for the tourist

European Union (EU)

A political and economic union of states primarily located in Europe, aiming to promote peace, stability, and economic prosperity in the region

Female Empowerment

process by which women gain power and control over their lives and acquire the ability to make strategic choices

Fordism

a highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production; named after Henry Ford

Formal Economy

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

Free Trade Agreements

a treaty between two or more countries that reduces tariffs and promotes foreign investment

Free-Trade Zones (FTZs)

a relatively large geographical area within a country in which businesses pay few or no tariffs on goods to encourage or facilitate its role in international trade

Gender Development Index (GDI)

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

Gender Inequality Index (GII)

A measure of inequality between women and men in three different areas: reproductive health, empowerment, and the labor market

Globalization

the expansion of economic, cultural, and political processes on a worldwide scale

Gross Domestic Product (GDP)

The total economic output of a country over a given period of time

Gross National Income (GNI)

The income generated by all of the country's citizens, regardless of where they are located in the world

Gross National Product (GNP)

The value of all goods and services produced by a country's citizens, regardless of where they are located in the world

Growth Poles

areas or cities that are centers of economic growth. They are often created by either targeted public or private investments

Human Development Index (HDI)

A measure of a country's life expectancy, expected years of schooling, and gross national income per capita

Industrial Revolution

the radical change in maufacturing 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

Informal Economy

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

NOTE: NOT TAXED BY THE GOVERNMENT

International Division of Labor

a pattern of production and labor in which different countries are engaged in distinct aspects of production

Just-In-Time Delivery

a production strategy in which materials, parts, or products are delivered to a manufacturing facility precisely when they are needed.

Labor Union

Association of workers in particular industries established to collectively bargain

Literacy Rate

the percentage of men and women (over the age of 15) that can read and write

Maquiladora

special economic zone in Mexico, foreign-owned factories that operate in Mexico

Mercosur

A regional trade agreement between countries in South America, aiming to promote a common space that generates business and investment opportunities

Microloans

a very small short-term loan with low interest intended to help people in need

Multiplier Effect

the economic effect in which a change creates a larger change, such as when a new manufacturing plant grows the economy by giving rise to more related jobs and services

Neoliberalism

Policies promoting free trade, reducing government intervention in the economy, and increasing global trade

OPEC

Coordinates and unifies petroleum policies among member countries to secure fair and stable prices for petroleum producers

Per Capita

per person

Periphery Countries

have a lower standard of living, and have many jobs in the primary sector

Post-Fordism

system focused on small-scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market

Postindustrial Society

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

Primary Sector

Consists of activities that are based around the extraction of natural resources.

Examples: farmers, coal miners, fishermen, lumberjacks

Quaternary Sector

Consists of jobs and activities that are all about acquiring, processing, and sharing information

Examples: teachers, professors, journalists

Quinary Sector

Consists of jobs and activities that revolve around making decisions

Examples: politicians, CEO’s . . .etc.

Raw Materials

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

Rostow's Stages of Economic Growth

outlines five stages of development that countries generally go through as they develop economically

Secondary Sector

activities that use raw materials gathered from the primary sector and manufacture them into products of greater value

Examples: processing wheat into flour, strawberries into jam, lumber into plywood

Semi-Periphery Countries

have an emerging economy, are experiencing an increase in their standard of living, and! have many jobs in the secondary sector

Special Economic Zones (SEZs)

areas that seek to provide different incentives and benefits to businesses who operate within the area

Sustainability

the use of Earth's land and natural resources in ways that ensure they will continue to be available in the future

Tariff

a tax or duty to be paid on a particular import or export

Tertiary Sector

Consists of activities that are based around providing services for people

Examples: lawyers, doctors, servers, Uber drivers, real estate agents

Trading Bloc

groups of countes that agree to a common set of trade rules

Transnational Corporation

a firm with the power to coordinate and control operations in more than one country, even if it does not own those operations

Sustainable Development Goals (SDGs)

The United Nations has created 17 Sustainable Development Goals, each focusing on a different aspect of society

Wallerstein's World System Theory

breaks countries down into three main categories: core, semi-periphery, and periphery countries. The theory is based on the belief that all countries are now interdependent on one another.

International Monetary Fund (IMF)

Provides a forum for negotiating agreements aimed at reducing obstacles to international trade and ensuring a level playing field for all

Alfred Weber’s Least Cost Theory

Looks at how the location of an industry is influenced by three main factors:

-Transportation costs

-Labor costs

-Agglomeration

Offshoring

the process of relocating a business's services or processes to a foreign country

Outsourcing

when a business contracts out a service or job to an external provider in order to reduce their costs and increase their efficiency