Studied by 2 peopleJust in Time Production
Shipment of parts and materials to arrive at a factory moments before they are needed. Diffusion from Toyota in Japan
Export Processing Zone (EPZ)
Areas where governments create favorable investments and trading conditions to attract export-oriented industries.
Free Trade Zones
A geographic are where goods may be landed, handled, manufactured or reconfigured, and re exported without intervention of the customs authorities.
Maquiladoras
Factories built by US companies in Mexico near the US border to take advantage of much cheaper labor costs in Mexico and close proximity to US markets.
Special Economic Zones (SEZ)
specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment
Market Orientation
The tendency of an economic activity to locate close to its market to limit transportation costs because it is a bulk gaining activity
Resource Orientation
The tendency of an economic activity to locate close to its resources to limit transportation costs because it is a bulk reducing activity
Microloans
The practice of loaning people in poverty small amounts of money, in order for people to start their own small business. Often loans to women in LDCs
Multinational Corporations (MNC)
A business that has its facilities and other assets in at least one country other than its home country.
Neocolonialism
International economic arrangements where colonial power maintains control of colonies and dependencies after WWII.
Outsourcing
A decision by a corporation to turn over much of the responsibility for production to independent suppliers (usually out of the country) for cheaper labor costs
Postindustrial
Economic transition from a manufacturing based economy to a service based economy.
Purchasing Power Parity (PPP)
Equilibrium exchange rate between currencies to equalize their purchasing power. The Big Mac index is an example.
Substitution Principle
Substitution of a product, service, or process to another that is more efficient and beneficial while retaining the same functionality, such as bettering the environment.
Technology Transfer
Already existing knowledge, facilities, or capabilities developed with money from the government and can be used for a number of things rather than a particular group.
Techno Pole
Centers or nodes of high technology research and activity around which a high-tech corridor is sometimes established.
High-Tech Corridors
Place where technology and computer industries agglomerate.
Growth Pole
An urban center with certain attributes that will stimulate regional economic development and its hinterland.
Value Added
Gross value of the product minus the cost of raw materials and energy
Deindustrialization
Jobs shift from secondary to tertiary sector; leading to Rust Belt phenomenon in the US Midwest
Asian Tigers
(S Korea, Taiwan, Singapore, Hong Kong) Succeeded Japan as leading Asian manufacturers in 1980s
BRICs
(Brazil, Russia, India, China) predicted economic growth with sizable domestic economies, predicted to dominate world economy by 2050
NICs
Newly Industrialized Countries
Rowstow's Five Stages of Development
a liberal developmental model showing traditional society, pre-conditions for take-off, take-off, drive to maturity, age of mass consumption
United States Mexico Canada Agreement
replaced NAFTA, Canada, US and Mexico free trade agreement
WTO
The World Trade Organization - an international body that enforces agreements that reduce barriers to international trade; successor to the GATT
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Flashcard