Vocabulary Unit VII: Industrial Development

Industrial Revolution

The rapid transformation of the economy through
the introduction of machines, new power sources, and new chemical processes in Europe and the United States between 1760 and 1830.

Industrialization

The development of industries in a country or region on a wide scale.

core

A small territorial nucleus from which a country grows in area and over time.

semi-periphery

Countries or regions whose economies have elements of both the core and the periphery.

periphery

States that have relatively little industrial development, simple production systems focused mostly on agriculture and raw materials, and low levels of consumption of manufactured goods.

labor

Expenditure of physical or mental effort especially when difficult or compulsory.

land costs

The sum of all wages paid to employees.

resources

Materials available in our environment which are technologically accessible, economically feasible and culturally sustainable and help us to satisfy our needs and wants.

markets

The exchange of goods and services that takes place as a result of buyers and sellers being in contact with one another.

transportation

The movement of goods and persons from place to place and the various means by which such movement is accomplished.

shipping container

Standardized. stackable, intermodal metal boxes used to transport goods by ship, railroad, or truck.

intermodal container

A large metal box used to transport goods from one port to another by road, rail, sea, or air.

intermodal connections

A transfer of a shipment from one transportation mode to another as the shipment moves from origin to destination.

break of bulk point

A location where cargo is transferred from one mode of transportation to another.

Least Cost Theory

Alfred Weber's theory that transportation costs and labor costs play a strong role in determining the location of manufacturing facilities.

agglomeration

Occur where firms cluster spatially in order to take advantage of geographic concentrations of skilled labor and industry suppliers, specialized infrastructure, and ease of face-to-face contact with industry participants.

footloose industries

A general term for an industry that can be placed and located at any location without effect from factors of production such as resources, land, labor, and capital.

post-industrial society

Society marked by a transition from a manufacturing-based economy to a service-based economy.

GDP (gross domestic product)

The total value of all goods and services produced within a country over a specific period, regardless of the producer's national origin.

GNP (gross national product)

The total value of all the goods and services made by a country's residents and businesses in a specific time period regardless of the country or location in which they were made.

GII (gender inequality index)

A statistical measure of gender inequality that combines data on reproductive health, empowerment, and labor market participation.

HDI (human development index)

A statistical measure of human achievement that combines data on life expectancy at birth, education levels, and gross national income (GNI) per capita purchasing power parity [PPP]) population.

Rostow's Stages of Economic Growth

The process of economic development in all societies divided into five stages: the traditional society, the preconditions for takeoff, the takeoff, the drive to maturity, and the age of high mass consumption.

Wallerstein's World Systems Theory (Core-Periphery Model)

The world economic system is divided into a hierarchy of three types of countries: core, semi-peripheral, and peripheral.

comparative advantage

A country's ability to produce one product much more efficiently than it can produce other products within its economy.

complementary advantage

A measure of how well one country's export profile matches another country's import profile.

neoliberal policies

A range of pro-market and anti-government positions on the economy, such as reducing government ownership and regulation and promoting privatization and market-based solutions.

free trade agreements

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

WTO (World Trade Organization)

An international organization that regulates trade among 184 member states, providing a framework for negotiating trade agreements and resolving trade disputes.

Mercosur

Spanish acronym for the Southern Common Market, a South American customs union that includes Argentina, Brazil, Paraguay, and Uruguay as its full members.

OPEC

An intergovernmental organization created to coordinate and unite petroleum policies among member countries.

tariffs

Tax on imported goods and services.

global financial crisis

a situation where the value of global assets drops rapidly and is often triggered by a panic or a run on banks.

debt crises

Occurs when government's debts exceed its tax revenues to the point that it cannot meet its loan payments.

international lending agencies

An International Financial Organization or any bank, insurance company or other source of financing and sources of suppliers credit.

International Monetary Fund

International organization that seeks to foster global monetary cooperation, achieve financial stability, facilitate international trade, and promote sustainable economic growth.

NGOs (nongovernmental organizations)

A group that functions independently of any government.

outsourcing:

The transfer of part of a firm's internal operations.

Special Economic Zones

Specific area within a country's borders where business and trade laws are different from those in the rest of the country.

Free trade zone

Specially designated duty-free area that provides warehousing, storage, and distribution facilities for goods intended for trade or reexport.

export processing zone

Industrial zone with special incentives to foreign investment to places where imported materials undergo processing or assembly before being re-exported.

international division of labor

The situation in which the labor forces of different countries and world regions play complementary roles in an interdependent global economy.

Fordist

The economic and social arrangement based on the mass production of standardized goods, high labor union membership rates, stable and full-time manufacturing employment, and high factory wages that enable mass consumption.

Post-Fordist methods of production

The saturation of key markets brought on a turn against mass consumption and a pursuit of higher living standards.

multiplier effect

The creation of new business and jobs in other industries as the result of investment in a different industry.

economies of scale

Cost advantages that can come with a larger scale of operations.

just-in-time delivery

A strategy in supply-chain management intended to sync orders to suppliers with production or delivery schedules.

growth poles

Geographically pinpointed center of economic activity organized around a designated industry, commonly in the high-tech sector.

sustainable development

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

ecotourism

Travel to natural areas of ecological value in support of conservation efforts and socially just economic development.

Sustainable Development Goals (Global Goals)

A universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.

primary sector

Industries that extract natural resources from the environment.

secondary sector:

Industries that process the raw materials extracted by primary industries, transforming them into finished, usable forms.

tertiary sector

Industries that provide services to businesses and consumers, including all the different types of work necessary to transport and deliver goods and resources.

Quaternary Sector

The portion of the economy dedicated to intellectual and informational services, such as scientific research and development.

Quinary Sector

The portion of the economy where the highest-level management decisions are made in the areas of business, government, education and science.

Gini Coefficient

The measure of the extent to which the distribution of income or consumption among individuals or households within an economy deviates from a perfectly equal distribution.

gender parity

A way of documenting progress toward gender equality using measures such as relative access to education, average incomes for women versus men, and workforce participation.

microloan

A very small loan to poor people with little income or collateral intended to help them establish or expand a small business.

Dependency Theory

The theory that the periphery is poor because it was economically dependent on the core in a disadvantageous relationship originally established under colonialism and imperialism.

commodity dependence

Occurs when commodities account for more than 60 percent of the value of a country's total exports.

Neo-colonialism

The set of economic and political strategies by which wealth and powerful countries indirectly maintain or extend their influence over less wealthy areas.

Microlending

A very small loan to poor people with little income or collateral intended to help them establish or expand a small business.

Fair trade

A certification program that supports good crop prices for farmers and environmentally sound farming practices.