Unit 7 APHUG Vocab

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.

Textile

A fabric or cloth woven from the fibers of wool, cotton, or flax.

Labor Productivity

The average amount of goods or services produced per worker per unit of time.

Fossil Fuels

Natural fuel derived from the fossilized remains of living organisms.

Crude Oil

A yellowish-black liquid fossil fuel found in geologic deposits.

Commercial Farming

Farmers who raise crops and livestock to sell in the market at a profit rather than raising them for their own consumption.

Wage Labor

A socioeconomic relationship in which an employer pays a worker to complete a task, sometimes by the day or by the hour.

Working Class

The people in an industrial economy who depend on wage labor to obtain the necessities of life.

Capitalist Class

People who own the means of production and pay the wages of workers.

Middle Class

People who are either salaried professionals (such as lawyers, educators, and physicians) or office wage workers (such as bank tellers and store clerks).

Labor Unions

Associations of workers in particular industries established to collectively bargain with capitalists.

Mass Production

The machine manufacture of large quantities of identical products.

Assembly Line

A system of manufacturing in which parts and procedures are added one step at a time through a series of workstations until a finished product is assembled.

Mass Production

The purchase of large amounts of mass-produced goods by large numbers of people.

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.

Economic Sectors

Groupings of industries based on what is produced and the activities of the workforce.

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.

Base Industry

An industry of disproportionate economic importance and on whose existence other industries and employment sectors depend.

Semi-Periphery

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

Break-of-Bulk Point

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

Shipping Containers

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

Containerization

The system of intermodal freight transport using shipping containers.

Least-Cost Theory

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

World Systems Theory

Wallerstein's theory of economic development that regards world history as moving through a series of socioeconomic systems, culminating in the modern world system by about the year 1900.

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.

Gross National Product (GNP)

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.

Gross Domestic Product (GDP)

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

Gross National Income (GNI)

The total income of a country's residents and businesses, including investment income, regardless of where it was earned, as well as money received from abroad such as foreign investment and development aid.

GDP Per Capita

A country's GDP divided by its total population.

Purchasing Power Parity (PPP)

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

Gender Inequality Index (GII)

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

Human Development Index (HDI)

A statistical measure of human achievement that combines data on life expectancy at birth, education levels, and GNI per capita (PPP) population.

Informal Sector

The part of any economy that is not officially recorded, monitored, or taxed by the government.

Formal Sector

The part of the economy that is officially recorded with the government.

Income Distribution

How a country's total GDP is distributed among the individuals in its population.

Gender Empowerment Measure (GEM)

A measurement of gender equality that includes the proportion of seats held by women in national parliaments, the percentage of women in economic decision-making positions, and women's versus men's share of earned income.

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

Mercantilism

A theory of trade stating that each country strives to export more than it imports in order to accumulate wealth.

Protectionism

Trade rules that restrict imports in order to protect domestic industries.

Absolute Advantage

A country's ability to produce a good or service more efficiently than another country.

Comparative Advantage

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

Complementarity

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

Transnational Corporation (TNC)

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

Competitive Advantage

A firm's relative ability to outperform other TNCs in its industry.

Neoliberalism

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

International Monetary Fund (IMF)

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

World Bank

An international financial organization that provides funding and expertise to promote sustainable economic growth in developing countries.

World Trade Organization (WTO)

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

Free-Trade Agreement

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

Tariff

Tax on imported goods and services.

Customs Union

A free trade agreement among two or more member countries, combined with a single, common external trade policy for nonmembers.

Mercosur

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

Organization of the Petroleum Exporting Countries (OPEC)

An international trade agreement designed to regulate the output of oil.

Trade Embargo

An official ban on trade with a specific country or of a specific good.

Financial Market

Marketplace where financial instruments are traded; stock markets, bond markets, and foreign exchange markets are all financial markets.

Debt Crisis

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

Import Substitution Industrialization (ISI)

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

Fordism

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.

Corporate Disinvestment

A process in which companies stop investing in factory construction, equipment, and improvement and begin selling off assets, such as machinery, buildings, and land.

Offshoring

The relocation of manufacturing and support services from one country to another.

Outsourcing

The transfer of part of a firm's internal operations to a third party.

Deindustrialization

The decline, and sometimes complete disappearance, of employment in the manufacturing sector in the core's industrial centers.

Special Economic Zone (SEZ)

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

Export Processing Zone (EPZ)

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

Free-Trade Zone (FTZ)

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

New International Division of Labor

The spatial shift of manufacturing from developed countries to developing countries, including the global scaling of labor markets and industrial sites.

Post-Fordism

The shifts from manufacturing centers to spatially dispersed production sites, from standardized mass production to specialized batch production, and from a permanent workforce to temporary and contract workers.

Just-In-Time Manufacturing (JIT)

The production of small batches of goods as needed by customer demand.

High-Technology Industry

An industry that develops and uses the most advanced technologies available and has the highest levels of research and development.

Agglomeration Economies

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.

Multiplier Effects

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

Growth Pole

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.

Resource Development

The consumption of natural resources faster than they can be replenished.

Environmental Pollution

The contamination of the physical (air, water, earth) and biological components of the environment to the point that normal functions are negatively affected.

Point Source Pollution

Any single identifiable source from which contaminants are discharged, such as a pipe or smokestack.

Nonpoint Source Pollution

Contamination originating from multiple, diffuse sources.

Climate Change

A long-term shift in global or regional climate patterns.

Cogeneration

Producing two forms of energy from one fuel.

Carbon Neutrality

Achieving zero CO2 releases through a combination of emissions reduction and carbon removal.

Carbon Offsets

Processes that remove or sequester (store) carbon from the atmosphere to make up for CO2 emissions elsewhere.

Ecotourism

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