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Cottage Industry
small-scale business, typically operated out of a person’s home
uses traditional techniques to produce (not massed produced with machines)
Berlin Conference
split the continent of AFRICA and made the boundaries - still used today
no consideration for ethnicities and religions
Value-Added Products
products that have been processed in a way that increases their overall value and makes the finish product have an increased value
Sectors in the Economy
Primary
Secondary
Tertiary
Quaternary
Quinary
Primary Sector
jobs and activities that involve extracting natural resources from the Earth
EX) farmer
Secondary Sector
jobs and activities that take raw resources to produce or manufacture products of greater value
EX) construction worker
Tertiary Sector
jobs and activities that provide services for other individuals
EX) lawyer
Quaternary Sector
Tertiary Sector:
jobs and activities that revolve around acquiring, processing, and sharing information
EX) journalist
Quinary Sector
Tertiary Sector:
jobs and activities that revolve around making decisions
EX) CEO of a company
Core Countries
countries with the most advanced economies and highest standard of living
have a degree of political and economic influence over the other countries and regions in the world
Semi-Periphery Countries
countries that have emerging economies that are industrializing
located between core countries and periphery countries in terms of development
Periphery Countries
countries that still rely heavily on the exportation of raw resources to more economically developed countries
less economically developed and have a lower standard of living
Multinational Corporation
a company that has business operations in at least one other country other that its home country
Break-of-Bulk Point
a location where goods are transferred from one mode of transportation to another
Wallerstein's World Systems Theory
claims that rich core capitalist societies succeed by exploiting poorer peripheral ones
Alfred Weber’s Least Cost Theory
displays that an industry is situated within the area where the costs of transporting raw materials and the final output are minimal
transportation costs
labor costs
agglomeration - occurs when many different companies, within the same industry, set up their offices in the same area
Bulk Reducing Goods
a product that becomes lighter and easier to transport as production occurs
Bulk Gaining Goods
a product that becomes heavier and more difficult to transport as production occurs
Formal Economy
economic activities that are recognized by law and are overseen by the government
EX) doctors, servers, and teachers
Gross Domestic Product (GDP)
the total value of all goods and services produced within a country’s borders over a specific period of time
Gross National Product (GNP)
the total economic output produced by a country’s residents and business, regardless of their location, during a specific period of time
Gross National Income (GNI)
the amount of income generated by a country’s residents and businesses, both domestically and abroad, in a given year
Gender Inequality Index (GII)
a composite index that measure gender-based inequalities in health, education, and economic participation
Maternal Mortality Ratio
a measure of the number of maternal deaths per 100,000 live births that occur due to pregnancy or childbirth-related complications
Human Development Index (HDI)
used to measure the social and economic development of a country
Adolescent Fertility Rate
the number of live births per 1,000 women aged 15-19 years old in a specific year
Microloans
small loans provided to individuals or small businesses who are typically excluded from traditional banking services
Microfinancing
a category of financial services that are for individuals and small businesses who lack access to traditional banking services
EX) saving accounts
Rostow's Stages of (Economic Growth) Development
displayed the five steps that all countries must pass to become developed
to be used as a guide for underdeveloped countries
Dependency Theory
a theory that suggests that developing countries are dependent on developed countries for their economic growth
LDCs are highly dependent on foreign factories and technologies from MDCs
Interdependent
a situation in which two or more people, organizations, or states are dependent on each other
Tariff
a tax or duty imposed by the government on goods and services that are imported into the country
Offshoring
the process of relocating a business process or service to a foreign country
EX) Company ______ moves its manufacturing centers out of a core country and into a semi-periphery country to take advantage of the low labor costs
Outsourcing
when a business contracts out a service or job to an external provider in order to reduce their costs and increase their efficiency
EX) Company ______ outsources their bookkeeping services to a professional accounting firm to take advantage of their accounting firm experts (increases efficiency in the service)
Note 
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