APHG Unit 7

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 Point

A location where goods are transferred from one type of carrier to another (e.g., from barge to railroad).

Core

National or global regions where economic power, in terms of wealth, innovation, and advanced technology, is concentrated.

Fordist System

Henry Ford created this system called the assembly line which used interchangeable parts to create mass production of consumable goods; each person on the assembly line has a simple task to perform

Industrial Revolution

the period of rapid industrial development that began in Great Britain during the late 18th and 19th centuries

fordist system/fordism

assembly line/interchangable paarts

Least Cost Theory (Weber's Model)

theory that describes the optimal location of an industry in relation to costs of transport, labor, and relative advantages of agglomeration

Maquiladora

Factories built by U.S. companies in Mexico near the U.S. border, to take advantage of much cheaper labor costs in Mexico.

Periphery

Regions that usually have low levels of economic productivity, low per capita incomes, and generally low standards of living

Secondary Industries

An industry that assembles, processes, or converts raw or semi processed materials into fuels or finished goods.

Semi-periphery

Places where core and periphery processes are both occurring; places that are exploited by the core but in turn exploit the periphery.

Special Economic Zone

areas within a country where laws and regulations are different from the rest of the country, aiming to attract foreign investment and promote economic growth

ecotourism

the practice and business of recreational travel based on concern for the environment; hiking, rafting, ziplining, etc...

Research Triangle

North Carolina high-tech area located in and around the cities of Durham, Raleigh, and Chapel Hill

Silicon Valley

the area in northern California, southwest of San Francisco in the Santa Clara valley region; a prime example of a high technology corridor

outsourcing

using suppliers outside the company to provide goods and services; often referring to using employees outside of the country to perform jobs

Bulk-reducing industry

An industry in which the final product weighs less or comprises a lower volume than the inputs (Example = copper).

Bulk-gaining industry

An industry in which the final product weighs more or comprises a greater volume than the inputs (Example = auto assembly).

free trade zone

a region where a group of countries agrees to reduce or eliminate trade barriers

Post-Fordist Production

Adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks as opposed to the Fordist assembly line

multiplier effect

an economic principle that describes the multiplied benefits of a new industry in a town. For example, if a new industry is built creating 500 jobs, then the housing market will flourish and local restaurants and stores will also benefit

economies of scale

factors that cause a producer's average cost per unit to fall as output rises

Just-in-time delivery

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

high-technology industries

industry that produces computers and other kinds of electronic equipment

growth poles

economic activities that are deliberately organized around one or more high-growth industries.

UN Sustainable Development Goals

Goals set by the UN in 2015 to be achieved by 2030 that aim at promoting development, reducing poverty and protecting the planet.

small scale finance

small loans given to small businesses in LDCs; especially given to women in order to promote development

export processing zones (EPZs)

zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment

international division of labor

The process where the assembling procedures for a product are spread out through different parts of the world; transnational corporations can now consider the whole world for potential job placement

Fossil Fuels

natural fuel, such as coal or oil, formed in the geological past from the remains of living organisms

Gender empowerment measure (GEM)

Compares the ability of women and men to participate in economic and political decision making.

Gender Inequality Index (GII)

An indicator constructed by the U.N. to measure the extent of each country's gender inequality in terms of reproductive health, empowerment, and the labor market.

Gross Domestic Product (GDP)

The sum total of the value of all the goods and services produced in a nation

Gross National Product (GNP)

The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.

Gross National Income (GNI) per capita

the sum of a country's gross domestic product plus all net income received from overseas, divided by the population

Human Development Index

measurement used by the United Nations to calculate development in terms of human welfare

Informal Economy

Economic activity that is neither taxed nor monitored by a government; and is not included in that government's Gross National Product; as opposed to a formal economy

Formal Economy

The legal economy that is taxed and monitored by a government and is included in a government's Gross National Product; as opposed to an informal economy

income distribution

The way the national income is divided into "shares" ranging from the poor to the rich.

Reproductive Health

issues of safe sex, prevention and treatment of STIs, contraception, fertility and infertility, sexual health, pregnancy, and childbirth

labor-market participation

A statistic that determines what percentage of an age group or gender is currently working

The Human Development Index (HDI)

Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy

Industrialization

process that occurs when countries evolve from primarily agricultural producing basic, primary goods to one based on mechanized mass manufacturing of goods

Literacy rates

percent of population who can read and write

dependency theory

Model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones. It states that LDCs are economically dependent upon MDCs. This structure will not likely change.

Rostow's Stages of Economic Growth

developed in 1960 that describes a country's development progression as occurring in five stages transforming it from a less developed to a more developed country.

Wallerstein's World Systems Theory

Wallerstein's theory of the core, semi-periphery, and periphery. The core benefited the most from the development of a capitalist world economy. The semi-periphery was the buffer between the core and periphery. The periphery are states that lack strong central governments or are controlled by other states.

primary sector

economic activity concerned with the direct extraction of natural resources from the environment-- such as mining, fishing, lumbering, and especially agriculture

secondary sector

economic activity involving the processing of raw materials and their transformation into finished industrial products; the manufacturing sector

tertiary sector

Economic activity associated with the provision of services - such as transportation, banking, retailing, education, and routine office-based jobs.

quaternary sector

Service sector industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, administration, insurance, and legal services.

quinary sector

sector where high level decisions are made by government, industry, and education

comparative advantage

The ability of a country to produce a good at a lower cost than another country can.

European Union

A family of democratic countries committed to working together for peace and prosperity in Europe. A strong emphasis is on economic cooperation.

microloans

very small loans, often provided to entrepreneurs in less developed countries; these have been especially important in helping women to develop small businesses

microlending

The practice of loaning small amounts of money to help people in less developed countries start small businesses. This is a practice of giving microloans.

commodity dependence

An economy that relies on the export of primary commodities for a large share of its export earnings and hence economic growth

neoliberal policies

economic policies that are predicated on a minimalist role for the state, assuming the desirability of free markets as the ideal condition not only for economic organization but also for political and social life

Free Trade Agreement

member countries agree to remove duties and trade barriers on products traded among them

World Trade Organization (WTO)

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

Mercosur

Pact am ong Argentina, Brazil, Paraguay, and Uruguay to establish a free trade area

OPEC

An organization of countries formed in 1961 to agree on a common policy for the production and sale of petroleum; Organization of Petroleum Exporting Countries

Tariffs

Taxes on imported goods

International Monetary Fund (IMF)

an international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation

interdependence

A relationship between countries in which they rely on one another for resources, goods, or services

Mass Consumption

Caused by an increase in purchasing power, this allowed for customers to spend more money on goods.

The United Nations Sustainable Development Goals

Goal 1- end poverty, 2- end hunger, 3- ensure healthy living for all children 4- ensure equal and good education, also am equal opportunity, 5-achieve gender equality, 6-ensure availability of water, 7-ensure access to modern energy 8- promote employee and economic growth 9-build infrastructure 10- reduce inequality 11-17 deal with ensuring clean air and clean oceans and ecosystemsRenewable energy

Renewable energy

energy from a source that is not depleted when used

Service sectors

businesses that provide services rather than manufactured goods including retail, hospitality, and healthcare.

Complementary Advantage

advantages created when producing goods that are consumed together

Debt crisis

situation in which a country is unable to pay back its government debt caused when spending exceeds revenues for a prolonged period of time

offshoring

A decision by a corporation to turn over much of the responsibility to independent suppliers

Public Transportation Projects

a public project in development or under construction to provide a new transportation facility or to improve or maintain the existing system of state highways.

trickle-down economics

economic policies benefiting the wealthy will eventually benefit the broader population - tax breaks and benefits for corporations and the wealthy will trickle down to everyone else

creative destruction

the process where innovation leads to the demise of old technologies, industries, and economic structures, ultimately paving the way for new ones