Unit 7 Vocab AP HUG

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

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 consumption

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

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 (Weber)

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

Rostow's Stages of Economic Growth

All countries will inevitably progress in similar fashion through the same five development stages, all ending in wealthy, mass-consumption societies

World systems theory (Wallerstein)

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

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

GDP

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

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

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

HDI

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

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

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

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

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

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

Neoliberalism

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

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 agreements

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

Tariff

Tax on imported goods and services

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 Petroleum Exporting Countries (OPEC)

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

Trade embargo

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

Debt crisis

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

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

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 reexport

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

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

Climate change

A long-term shift in global or regional climate patterns

Ecotourism

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