Unit 7 Vocabulary

A set of vocabulary flashcards covering essential terms related to industrialization, economic sectors, and related concepts.

Industrial Revolution

A shift from the agricultural era into the manufacturing era.

Industrialization

Development of industries in a country or region on a wide scale.

Cottage Industry

A business or manufacturing activity carried on in a person's home.

Bulk-Gaining Industry

Industries whose finished products are heavier than inputs.

Bulk-Reducing Industry

Industries that make products that weigh less after assembly than before assembly.

Break of Bulk Point

Where the transportation of products changes modes or ways of movement.

Quaternary Sector

Industry based on human knowledge which involves technology, information, etc.

Quinary Sector

Important organization structures like government organizations, public services, healthcare, education, etc.

Weber's Least Cost Theory

Describes and predicts the location of manufacturing industries based on transportation costs, labor costs, and agglomeration.

Primary Sector

Activities that exploit natural resources.

Secondary Sector

Industries that use basic materials to form new and improved materials.

Tertiary Sector

Provision of services instead of end products.

Infrastructure

Organizational facilities or physical structures.

Colonialism

The practice of gaining full political control of another country.

Imperialism

Extending power over foreign nations through diplomacy.

gross domestic product

the value of all goods and services produced within the borders of a country

gross national product

value of all goods and services produced within and the countries interest outside (foreign products)

informal economy

economic activity that is not recognized or regulated by the government

formal economy

data that government can collect, formal business regulated by the government

human development index

a statistic composite index of life expectancy and per capita income indicators

uneven developement

the increasing gap in economic conditions between core and peripheral regions as a result of the globalization of the economy

microloans

small loans provided to impoverished individuals and groups

Rostow’s stages of development

international trade model that focuses on a shift from traditional society to modernized forms of society

wallerstein’s world systems theory

recognizes the interdependence of countries

frank’s dependency theory

colonialism created lasting inequalities with core countries benefiting at the expense of poorer/peripheral countries

commodity dependence

an economy based on a primary agricultural product or raw material

deindustrialization

1970’s, people started to work service/tertiary jobs rather than manufacturing/primary jobs and shifted to the suburbs

complementarity

the measure of how well one country’s export profile matches another country’s export profile, dependence of exports

comparative advantage

a country’s ability to produce a good or service at a lower opportunity cost than other countries

trade agreements

a treaty between 2 or more countries that follow an arrangement of rules

tariff

import taxes on foreign items

international monetary fund

works to achieve sustainable growth and prosperity for all of its 191 member countries by supporting economic stability and financial policies

foreign direct investment

the purchase of an asset, such that it gives direct control to the purchaser over the said asset

global supply chain

distribution of goods and services, throughout a transnational company’s global network

OPEC

organization of petroleum exporting countries, major oil exporting countries - coordinate and unify petroleum policies

outsourcing

when a company transfers parts of its operations to a third party in order to lower costs

offshoring

when companies move their production to another country to lower costs

special economic zones

geographically delineated areas within a country’s borders where businesses and trade laws are different

free trade zones

duty free areas where there are no taxes

export processing zones

an industrial zone with special incentives to attract foreign investments without tariffs

maquiladora

manufacturing plants that imports and assembles duty-free components for exports

international division of labor

a global division of labor associated with the growth of transnational corporations and deindustrialization of advanced economies

neo-fordism

the growth of new production methods defined by flexible production

silicon valley

a popular growth pole located in California

vertical integration

companies expand their operations by merging with other companies at different stages of production within an industry

fordism

the use of labor specialization and a moving assembly line to create lots of goods at low costs

footloose industry

an industry not tied to any particular location or country because of their lightweight products and resources

multiplier effect

economic stimulus can cause a ripple effect and increase economic development

just in time delivery

inventory management made possible by efficient transportation and communication systems, companies keep on hand just what they need

fair trade

a global movement aimed at ensuring that producers in developing countries receive fair wages and working conditions

agglomeration

clustering of people, businesses, and activities in a particular area, creating max efficiency and collaboration

economies of scale

the cost advantage that businesses experience as they increase their production levels

research triangle

a research park located in Raleigh, NC

• research, business, and medical complex

growth pole

specific area or sector that drives economic development in a region

world trade organization

established by UN in 1994, regulates trade among 184 member states to resolve trade disputes and stabilize the global financial system

ecotourism

a form of tourism involving responsible travel to natural arears, designed and managed for sustainability

sustainable development

approach to growth that seeks to meet the needs of the present without compromising needs of the future generations

united nations sustainable development goals

a universal set of 8 interconnected goals established in 2015 by the UN, targets poverty, inequality, climate, conflicts, etc.

gross national income per capita

dividing the total amount of money earned by a nations people by the population

gender inequality index

index designed to measure gender inequality

• usually a low number