Studied by 17 people
Cottage Industry
(Learning Topic 7.1) industry whose labor force consists of family units or individuals working at home with their own equipment
Industrialization
(Learning Topic 7.1) The rise of a manufacturing based economy
Industrial Revolution
(Learning Topic 7.1) A historical event that consisted of a series of improvements in industrial technology that transformed the process of manufacturing goods
Fordist/Fordism
(Learning Topic 7.1) Production is completed in an assembly line in which each person has an individual task
Commercial Industry
(Learning Topic 7.1) factory-based and employ many workers. This industry mass produces goods to sell for a profit.
Infrastructure
(Learning Topic 7.1) the basic physical and organizational structures and facilities needed for the operation of a society or enterprise.
Colonialism
(Learning Topic 7.1) Attempt by one country to establish settlements and to impose its political, economic, and cultural principles in another territory.
Imperialism
(Learning Topic 7.1) A policy of extending a country's power and influence through economic influence or military force.
Sectors of the economy
(Learning Topic 7.2) the breakdown of different jobs within a country
Primary level of economic activity
(Learning Topic 7.2) Any job that includes resource extraction
EX: farming, fishing, mining, timber
Secondary level of economic activity
(Learning Topic 7.2) Any job that includes the construction or manufacturing of a product
Ex: canning, petroleum production, smelting
Tertiary level of economic activity
(Learning Topic 7.2) Any job that includes providing a service in exchange for goods or money
Ex: doctor, teacher, lawyer, janitor, waitress
Quaternary level of economic activity
(Learning Topic 7.2) An upper level service based job that facilitates and helps aid in tertiary level services jobs
Ex: researcher, manager, principal
Quinary level of economic activity
(Learning Topic 7.2) A service based job that includes a high level of specialized knowledge. These jobs control and regulate other services
Ex: CEO, Superintendant, FDA
Weber's Least Cost Theory
(Learning Topic 7.2) A concept developed to describe the optimal location of a manufacturing establishment in relation to the costs of transport and labor, and the relative advantages of agglomeration or deglomeration
Bulk-gaining industry
(Learning Topic 7.2) An industry in which the final product weighs more or comprises a greater volume than the inputs. Processing facilities are located close to markets
Bulk-reducing industry
(Learning Topic 7.2) An industry in which the final product weighs less or comprises a lower volume than the inputs, processing facilities are located farther away from the market, close to resources
Periphery
(Learning Topic 7.2) Countries that usually have low levels of economic productivity, low per capita incomes, and generally low standards of living. The world economic periphery includes Africa (except for South Africa), parts of South America, and Asia. These types of countries typically focus on agriculture
semi-periphery
(Learning Topic 7.2) Those newly industrialized countries with median standards of living, such as Chile, Brazil, India, China, and Indonesia, these types of countries typically focus on manufacturing
Core
(Learning Topic 7.2) countries that dominate trade, control the most advanced technologies, and have high levels of productivity within diversified economies. These types of countries typically focus on services
Human Development Index (HDI)
(Learning Topic 7.3) Measurement of Health (TFR, IMR), Education (literacy rates), and Economy (GDI/GNI per capita) to rank countries
Less Developed Country (LDC)
(Learning Topic 7.3) A country that is at a relatively early stage in the process of economic development using social and economic measurements.
Newly Industrialized Country (NIC)
(Learning Topic 7.3) a country that has begun the process of economic development using social and economic measurement
More Developed Country (MDC)
(Learning Topic 7.3) A country that has progressed relatively far along a continuum of development using social and economic measurements.
Per capita
(Learning Topic 7.3) Per person
Developed
(Learning Topic 7.3) a country is well off economically and socially
Developing
(Learning Topic 7.3) a country is struggling to develop a stable economy or social system
Reproductive Health
(Learning Topic 7.3) issues of safe sex, contraception, fertility and infertility, sexual health, pregnancy, and childbirth
Total Fertility Rate (TFR)
(Learning Topic 7.3) average number of children a woman would potentially have in her lifetime
Adolescent Fertility Rate (AFR)
(Learning Topic 7.3) The number of births per 1,000 women ages 15 to 19
Infant Mortality Rate (IMR)
(Learning Topic 7.3) the number of deaths of infants under one year old per 1,000 live births.
Economic Development
(Learning Topic 7.3) The improvement of living standards by economic growth.
EX: Sectors of the economy, GDP/GNI per capita
Gross Domestic Product (GDP)
(Learning Topic 7.3) The total values of the goods and services produced by a country's citizens and companies within the country in a year
Gross National Product (GNP)
(Learning Topic 7.3) The total value of all goods and services produced by a country's citizens and companies both domestically (within borders) and internationally (citizens living abroad) in a year
Gross National Income (GNI) per capita
(Learning Topic 7.3) the total value of goods and services globally produced by a country in a year divided by the country's population
Formal Economy
(Learning Topic 7.3) The measurable part of the economy. The jobs that are taxed and regulated by the government
Informal Economy
(Learning Topic 7.3) The unmeasurable part of the economy. The jobs that are not taxed and regulated by the government
Labor market participation (A/I/S)
(Learning Topic 7.3) the percentage of the labor of a country that is involved in either agriculture, industry, or service employment.
For Example in the United States: Agriculture- 0.7% Industry- 20.3% Services- 79%
Fossil Fuels
(Learning Topic 7.3) a natural fuel such as coal or gas, formed in the geological past from the remains of living organisms.
Income Gap
(Learning Topic 7.3) extent to which income is distributed in an uneven manner among a population.
Literacy Rates
(Learning Topic 7.3) The average number of people who can read and write
Gender Development Index (GDI)
(Learning Topic 7.4) calculates gender disparity in the three basic dimensions of human development: health, knowledge, and standard of living. It measures the female HDI as a percentage of the male HDI
Gender Empowerment
(Learning Topic 7.4) a measure of women's participation in the labor force in professional positions, their income level, and their participation in local government positions
Gender Inequality Index (GII)
(Learning Topic 7.4) measures the gender gap in the level of achievement in three dimensions: reproductive health, empowerment, and the labor market participation
Maternal Mortality Rate (MMR)
(Learning Topic 7.4) The number of women who die giving birth per 100,000 births. A measure of reproductive health
Rostow's Stages of Economic Growth
(Learning Topic 7.5) Model that gives an idea of where a country is in their stage of development. There are five stages in this model, including: 1. "The traditional society," 2. "The preconditions for takeoff," 3. "The takeoff," 4. "The drive to maturity," 5. "The age of mass consumption"
Wallerstein's World Systems Theory
(Learning Topic 7.5) A theoretical framework to understand the historical changes involved in the rise of the modern world. The world economy has one market and a global division of labor. The world economy has a three-tier structure. (Peripheral, Semi-peripheral, Core)
Dependency Theory
(Learning Topic 7.5) the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the core at the expense of the periphery.
commodity dependence/one commodity economy
(Learning Topic 7.5) An economy that relies on the export of primary commodities for a large share of its export earnings and hence economic growth
Globalization
(Learning Topic 7.6) The interconnections between countries around the world
Major manufacturing regions
(Learning Topic 7.6) Locations known for a concentrated amount of manufacturing. The world's major manufacturing regions are found in Eastern North American, Western Europe, Eastern Europe and East Asia, though other manufacturing centers are also found elsewhere.
Deindustrialization
(Learning Topic 7.6) Loss of industrial activity in a region
Break-of-bulk point
(Learning Topic 7.6) A location where transfer is possible from one mode of transportation to another
Intermodal Containerization
(Learning Topic 7.6) A large standardized shipping container, designed and built for intermodal freight transport
Rust Belt
(Learning Topic 7.6) The manufacturing region in the US that is currently debilitated because many manufacturing firms have relocated to countries offering cheaper labor and relaxed environment regulations
Sunbelt
(Learning Topic 7.6) The southern part of the United States where a large amount of previous industrial works migrated to after the United States went through deindustrialization
Complementary Advantage
(Learning Topic 7.6) Good is a good whose use is related to the use of an associated or paired good. Ex: If you own a printer, then you also have to purchase ink.
Comparative Advantage
(Learning Topic 7.6) Countries specialize in what they can produce at the greatest profit to themselves and then trade these products with other countries that have a different comparative advantage.
Neoliberalism
(Learning Topic 7.6) Derives from the idea that government intervention into markets is inefficient and undesirable, and should be resisted wherever possible. People should control the market and the government should not place taxes, tariffs, or quotas on imported goods
Neocolonialism
(Learning Topic 7.6) the practice of a country using monetary incentive, free trade, and cultural imperialism to influence another country, in lieu of either direct military control or indirect political control
Global Financial Crisis
(Learning Topic 7.6) The economic crashes that happened internationally due to the globalization of the world's economy. Problems in some countries (Europe and the United States), caused financial problems in countries that trade with them.
Foreign Direct Investment
(Learning Topic 7.6) Investment by a multinational corporation in a foreign country's economy.
Free Trade Agreement
(Learning Topic 7.6) Groups of countries that form agreements that promote free trade by eliminating taxes, tariffs, and quotas on imported goods
European Union (EU)
(Learning Topic 7.6) the world's largest common market, composed of 28 European nations
North American Free Trade Agreement (NAFTA)
(Learning Topic 7.6) Former agreement that ensures free trade between Mexico, US, and Canada
United States-Mexico-Canada Trade Agreement
(Learning Topic 7.6) is a free trade agreement between Canada, Mexico, and the United States. It replaced the North American Free Trade Agreement (NAFTA) implemented in 1994, and is sometimes characterized as "NAFTA 2.0", or "New NAFTA", since it largely maintains or updates many provisions from its predecessor
World Trade Organization
(Learning Topic 7.6) works to negotiate rules of trade among the member states, promotes free trade around the globe
International Monetary Fund (IMF)
(Learning Topic 7.6) Group of countries that lend massive amounts of money to peripheral and semi-peripheral countries with restriction strings attached.
Organization of Petroleum Exporting Countries (OPEC)
(Learning Topic 7.6) Group of oil producing countries that control the supply and set prices
Mercosur
(Learning Topic 7.6) an organization that promotes trade and economic cooperation among the southern and eastern countries of South America
Tariff
(Learning Topic 7.6) A government tax on imports
World Bank
(Learning Topic 7.6) A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion, and debt consolidation.
Transnational Company
(Learning Topic 7.7) operates in two or more countries, including in its country of origin. Its business, such as sales, extraction or manufacturing, hence spans multiple countries. Its management system also focuses on a global or regional outlook.
Offshoring
(Learning Topic 7.7) Sending industrial processes out for external production beyond country borders
Outsourcing
(Learning Topic 7.7) Hiring a different company to perform aspects of your business
Labor-intensive industry
(Learning Topic 7.7) A process or industry that requires a large amount of labor to produce its goods or services. The degree of labor intensity is typically measured in proportion to the amount of capital required to produce the goods/services; the higher the proportion of labor costs required, the more labor intensive the business.
Maquiladora
(Learning Topic 7.7) Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico and export manufactured goods back to the United States
Island of Development
(Learning Topic 7.7) Place built up by a government or corporation to attract foreign investment and which has relatively high concentrations of paying jobs and infrastructure. The surrounding areas of the country are underdeveloped
growth pole
(Learning Topic 7.7) places of economic activity clustered around one or more high-growth industries that stimulate economic growth by capitalizing on some special asset.
EX: Frisco/Plano, the agglomeration of Toyota and other transnational company head quarters
Economic Restructuring
(Learning Topic 7.7) When a country transitions it's main economic activity to a different economic activity.
Postindustrial
(Learning Topic 7.7) When a country moves beyond industry as their major source of income towards services as their major source of income
Vertical Integration
(Learning Topic 7.7) a strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor.
Horizontal Integration
(Learning Topic 7.7) the process of a company increasing production of goods or services at the same part of the supply chain. A company may do this via internal expansion, acquisition or merger. The process can lead to monopoly if a company captures the vast majority of the market for that product or service.
Asian Tigers
(Learning Topic 7.7) the highly developed economies of Hong Kong, Singapore, South Korea, and Taiwan.
Economies of Scale
(Learning Topic 7.7) factors that cause a producer's average cost per unit to fall as output rises
Post-Fordist
(Learning Topic 7.7) the idea that modern industrial production has moved away from mass production in huge factories, as pioneered by Henry Ford, towards specialized markets based on small flexible manufacturing units.
Agglomeration
(Learning Topic 7.7) Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources. This are the services or industries that support each other rather than compete with each other
Deglomeration
(Learning Topic 7.7) The dispersal of an industry that formerly existed in an established agglomeration
Footloose Industry
(Learning Topic 7.7) Manufacturing activities in which cost of transporting both raw materials and finished product is not important for determining the location of the firm. For example, diamonds: diamonds are bulk reducing so the raw materials are heavier than the manufactured product and expensive to transport. However the final product (cut diamonds) require increased security while transported which also makes transportation to the market expensive. Therefore the location of diamond manufacturing is not based on the cost of transportation.
multiplier effect
(Learning Topic 7.7) An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.
Real world example- For example, if a corporation builds a factory, it will employ construction workers and their suppliers as well as those who work in the factory. Indirectly, the new factory will stimulate employment in laundries, restaurants, and service industries in the factory's vicinity.
Free Trade Zones (FTZs)
(Learning Topic 7.7) areas established on major trade routes to provide duty (tax) free areas for warehousing, storage, and transport of goods. These are much larger areas then either SEZs or EPZs
Special Economic Zones (SEZs)
(Learning Topic 7.7) Designated areas in countries that possess special economic regulations that are different from other areas in the same country. Moreover, these regulations tend to contain measures that are conducive to foreign direct investment.
EX: China is a communist economy but the SEZs within China allow for those places to practice capitalism/socialism
export processing zones (EPZs)
(Learning Topic 7.7) Areas where governments create favorable investment and trading conditions in cities where the surrounding areas have a different economic system to attract export-oriented industries. EPZs are smaller areas than either FTZs or SEZs
Just-in-time delivery
(Learning Topic 7.7) An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs (land and construction costs to build warehouses).
Global/International Division of Labor
(Learning Topic 7.7) The reorganization/relocation of economic activities (jobs) from a national to a global scale
High Technology Industries
(Learning Topic 7.7) Manufacturing jobs that require higher skills and more advanced technology. These are typically not offshored to developing countries because the skilled labor force is located in the developed countries.
Sustainable Development Goals
(Learning Topic 7.8) a set of 17 goals that comprise an international agenda for reducing poverty and economic inequality and improving lives
Fair Trade
(Learning Topic 7.8) a social movement whose stated goal is to help producers in developing countries achieve better trading conditions and to promote sustainability. Members of the movement advocate the payment of higher prices to exporters so that more money goes to the workers, as well as improved social and environmental standards.
Eco Tourism
(Learning Topic 7.8) economic activity directed toward exotic, often threatened, natural environments, especially to support conservation efforts and observe wildlife. Allows a country to make money off of the resources while still preserving the environment
EX: Eco Lodges in Peru
Microcredit/loans programs
(Learning Topic 7.8) a general term to describe financial services to low-income individuals or to those who do not have access to typical banking services.
