APHG Unit 7 Vocab

Industry

Any economic activity that uses machinery on a large scale in orders to process raw materials into finished goods.

Raw Materials

Substances that are used to make goods intend for scale.

Industrialization

Interaction of social and economic factors leads to the development of industries across a community, region, or country.

Industrial Revolution

A period of rapid growth in the use of machines in manufacturing and production that began in Britain in the mid-1700s. It spread to Western Europe and North America in the 19th century.

Cottage industries

Members of families, spread out through rural areas, worked in their homes to make goods.

Economic Sectors

Collections of similar Econ. Activity based on the collection of raw materials, the production of goods, the provision of services, or other activities.

Primary sector

The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.

Secondary sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

Tertiary Sector

The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.

Quaternary Sector (part of tertiary)

a way to describe a knowledge-based part of the economy which typically includes research work in health care, information technology, government, and scientific fields.

Quinary Sector (part of tertiary)

Service sector industries that require a high level of specialized knowledge or technical skill. For example, CEOs of companies are part of the quinary sector.

Gross Domestic Product (GDP)

the total value of goods produced and services produced in a country during one year.

Dual economy

the existence of two separate economic sectors within one country, divided by different levels of development, technology, and different patterns of demand.

Postindustrial Economy

an economic phase in which manufacturing no longer plays a dominant role. Based mostly in the Tertiary sector

Least-Cost Theory

Theory that states businesses locate in certain areas because it minimizes the cost of production

Agglomeration

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.

Break-of-bulk-points

location where it is more economical to break raw materials into smaller units before shipping them further

Bulk-reducing industries

An industry in which the final product weighs less than the raw materials needed to produce it.

Bulk-gaining industry

An industry in which the final product weighs more than the raw materials needed to produce it.

Industrial Parks

a collection of manufacturing facilities in a particular area that is typically found in suburbs and is located close to highways to facilitate movement of raw materials and finished products

Human Development

the processes involved in the improvement of people's freedoms, rights, capabilities, choices, and material conditions

Gross National Product (GNP)

Total value of goods and services produced by a countries citizens and companies both domestically and internationally.

Gross National Income (GNI)

The total value of goods and services globally produced by a country in a year divided by the countries population.

Formal Sector

businesses, enterprises, and other economic activities that have government supervision, monitoring, and protection, and are also taxed

Informal Sector

Economic activity that is outside government monitoring, regulation, and aren't taxed.

Human Devlopment Index (HDI)

measure of achievement in key dimensions of human development: a long and healthy life, being knowledgeable and have a decent standard of living. Hint: 1.0 is the best measure.

Gender Development Index (GDI)

calculates gender disparity in the three basic dimensions of human development: health, knowledge, and standard of living.

Gender Inequality Index (GII)

Calculates gender inequality based on reproductive health, empowerment, and labor market participation (LMP). Hint: 0 is the best and 1 is the worst.

Women's empowerment.

Women's options and access to participate in the social and economic spheres of society.

Labor-Market Participation (LMP)

Measure an economy's active labor force, sum of all employed workers divided by the working age population.

Female LMP rates

The percent of female LMP compared to male LMP.

Microloans

A very small, often short-term and low interest loan intended to help people in need.

Dependency Theory

Peripheral countries offer cheap labor and raw materials to the global market. Core countries buy the raw materials and hire the cheap labor. Non-industrialized countries are financially dependent on industrialized countries.

Commodity Dependency

More than 60% of country's exports and economic health are tied to 1 or 2 resources such as oil, diamonds, vanilla, etc.

Rostow's Stages of Development

A model of economic development that describes a country's progression which occurs in five stages transforming them from least-developed to most-developed countries.

Comparative advantage

the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors

Complementarity

the mutually beneficial trade relationship between two countries that results when they have different comparative advantages

Neoliberalism

The belief that open markets and free trade (two key characteristics of capitalism) will lead to: 1. Economic development everywhere 2. Lessen competition/tension between countries by fostering support for common values 3. Spread democracy and human rights. If we see each other as trade partners, then we'll seek cooperation over conflict!

Deindustrialization

process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment

Growth Poles

places of economic activity clustered around one or more high-growth industries that stimulate economic growth by capitalizing on some special asset.

Tarrifs

Taxes on imported goods

Just-in-time delivery

Materials are delivered when they are needed for short-term production, so that companies can avoid paying to store extra inventory at their facilities

Fordism

A division of labor in which each worker has just one task. Machines replace several workers in the secondary sector, enabling large-scale mass production.

Post Fordism

The system of production that relies on automation through the use of robots and computer systems and is centered on low volume manufacturing and flexible systems that allow for quick responses to changes in the market.

Offshore Outsourcing

Moving production to places outside the country in which they are headquartered in an effort to reduce costs.

International Division of Labor

Colonies or other countries in peripheral regions specialized in producing the raw materials required by more developed economies, and then served as markets for the manufactured goods produced by core countries.

Multiplier Effects

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

Special Economic Zones (SEZs)

an area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses.

Export Processing Zones (EPZs)

Sites where manufacturing of exports is done without tariffs. The purpose is to attract multinational organizations to invest in labor intensive assembly and manufacturing in the host country.

Free Trade Zones (FTZs)

A region within a country where imported goods can be stored and processed without being subject to tariffs or trade barriers

Gender Parity

ensuring that males and females have equal opportunities in areas such as education, employment, voting and decision making, and access to health care and other resources. Trying to make things 50-50

Ecotourism

A form of tourism, based on the enjoyment of scenic or natural areas, that aims to provide an experience of nature or culture in an environmentally sustainable way.