APHuG Unit 7: Industrial and Economic Development Patterns and Processes

UN Sustainable Development Goals (SDGs)

17 goals, examples: no poverty, zero hunger, good health and well being, quality education

Just-in-time delivery

Shipment of parts and materials to arrive at a factory moments before they are needed

economies of scale

the property whereby long-run average total cost falls as the quantity of output increases

Export-Processing Zones (EPZs)

Small areas of a country with exceptional investment and trading conditions that are created by its government to stimulate and attract foreign investors and business

Special Economic Zones (SEZs)

specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment

primary sector

portion of a country's economy employed in extracting natural resources

secondary sector

portion of a country's economy employed in processing natural resources

tertiary sector

the service sector; consists of providing services to people and businesses

quaternary sector

the knowledge-based sector that includes research and development, business consulting, financial services, education, public administration, and software development

quinary sector

highest levels of decision-making and includes the top officials the top officials in various levels of government and business

Alfred Weber/Least Cost Theory

explains the key decisions made by businesses about where to locate factories; attempts to predict the location of a manufacturing site relative to the location of the resources needed to produce the product and where the final product will be sold (market)

agglomeration

the spatial grouping of businesses in order to share costs, as when several factories share the cost of building an access road to connect with a public highway

outsourcing

contracting work out to non-company employees or other countries

newly industrialized counties (NICs)

country whose national economy has transitioned from being primarily based in agriculture to being primarily based in goods-producing industries, such as manufacturing, construction, and mining

maquiladoras

a type of export processing zone (physical spaces within a country where special regulations benefit foreign-controlled business) located specifically in Mexico

Gross National Income (GNI)

the dollar value of a country's final income in a year, divided by its population; it reflects the average income of a country's citizens

Gender Inequality Index (GII)

a composite index for measurement of gender disparity, which affects a country's development

human development index (HDI)

combines one economic measurement (GNI) with several social measures, such as life expectancy and the average education level

Walt W. Rostow/Stages of Economic Development

postulates that economic growth occurs in five basic stages, of varying length

Immanuel Wallerstein/World Systems Theory (Core-Periphery Model)

a dependency model that postulates that countries do not exist in isolation but are apart of an intertwined world system in which all countries are dependent on each other.

core countries

includes the economically advantaged area of the world and the center of world businesses and finances

semi-periphery countries

includes middle income countries that provide services for core countries

periphery countries

includes the least-developed countries that have a high percentage of jobs in low-skill, labor intensive production

Commodity Dependency

Heavy reliance on export of primary commodities

sustainable development

any economic development that serves the current needs of people without making it harder for people in the future to live well

ecotourism

tourism that attempts to protect local ecosystems and to educate visitors about them

free trade zones (FTZs)

tax-free area where goods can be landed and 'value added', through handling and manufacturing, and re-exported without the intervention of customs

growth poles

the concentration of high-value economic development attracts even more economic development; example - Silicon Valley

European Union (EU)

organization formed to promote development within the member states through economic and political cooperation; essentially eliminated tariffs among member nations and has fostered economic growth.

deindustrialization

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

indicators of development

sectoral structure of the economy, literacy rates, birth and death rates, access to healthcare, infant mortality rates, gender equality, gross national income, etc.

OPEC (Organization of Petroleum Exporting Countries)

a permanent intergovernmental organization of 13 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries.

comparative advantage

a situation in which a country, individual, company, or region can produce a good at a lower opportunity cost than a competitor

complementarity

the degree to which one place can supply something that another place demands

microlending

The practice of loaning small amounts of money to help people in less developed countries start small businesses.

International Monetary Fund (IMF)

an international organization that acts as a lender of last resort, providing loans to troubled nations.

tariffs

A tax on imported goods

World Trade Organization (WTO)

a permanent global institution to promote international trade and to settle international trade disputes

free trade

international trade left to its natural course without tariffs, quotas, or other restrictions.

Dependency Theory

a model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones

Microloans

Small-business loans often used to buy equipment or operate a business

Gross National Product (GNP)

The total value of all goods and services produced by a country's economy in a given year.

Gross Domestic Product (GDP)

The total output of all economic activity in the nation, including goods and services.

Break-of-bulk point

A location along a transport route where goods must be transferred from one carrier to another. In a port, the cargoes of oceangoing ships are unloaded and put on trains and trucks.