Unit 7 aphug

Industrial Revolution

A series of improvements in industrial technology that transformed the process of manufacturing goods; started in Great Britain

Causes of the Industrial Revolution

Natural resources, large labor force, new inventions, free enterprise and railroads

Diffusion of Industrial Revolution

-Great Britain in mid 18th century

-Europe in late 18th century

-North America in mid 19th century

-Japan in late 19th century

-Asian 4 tigers since the 1960s

-Many other developing countries since the 1980s

Effects of the Industrial Revolution

Everyday goods are mass produced and cheaper, workers are exploited, workers go on strike, lower class moves into cities and are exploited, better roads/bridges/canals

Primary Economic Sector

those concerned directly with natural resources of any kind. Ex. agriculture, mining, fishing

Secondary Economic Sector

(manufacturing) Processes, transforms and assembles raw materials into useful products.

Tertiary Economic Sector

those involving the sale and exchange of goods and services. ex. warehousing, retain stores, hairdressing

Quaternary Economic Sector

(research & development) consists of intellectual activities often associated with technological innovation.

Quinary Economic Sector

includes the highest levels of decision making in a society or economy. This sector would include the top executives or officials in such fields as government, science, universities, nonprofit, healthcare, culture, and the media.

Break-of-bulk point

A location where transfer is possible from one mode of transportation to another.

Weber's Least cost theory/Location theory

theory of industrial location which tries to explain and predict the locational pattern of the industry at a macro-scale. It emphasizes that firms seek a site of minimum transport and labor cost.

Gross Domestic Product (GDP)

A measurement of the total goods and services produced within a country.

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)

the income of a nation calculated based on goods and services produced, plus income earned by citizens and corporations headquartered in that country (per person)

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.

Human Development Index (HDI)

An indicator constructed by the U.N. to measure the level of development for a country through a combination of income, education, and life expectancy.

Microloans

A very small, often short-term loan made to an impoverished entrepreneur, as in an underdeveloped country

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.

Wallerstein's World Systems Theory

1. The world economy has one market and a global division of labor.

2. Although the world has multiple states, almost everything takes place within the context of the world economy.

3. The world economy has a three-tier structure. (Peripheral, Semi-peripheral, Core)

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

Complimentarity

A measure of how well one country's export profile matches another country's import profile

Free Trade Agreement

an agreement between member countries to remove duties and trade barriers on products traded among them.

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

Outsourcing

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

Offshoring

Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.

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

free trade zones/maquiladoras

designated areas where foreign companies can warehouse goods without paying taxes or customs duties until they move the goods into the marketplace

Maquiladora

Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico.

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

Transfer of some types of jobs, especially those requiring low-paid less skilled workers, from more developed to less developed countries.

Post-Fordist Production

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

multiplier effect

An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.

economies of scale

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

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.

Just-in-time delivery

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

sustainable development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Ecotourism

the practice and business of recreational travel based on concern for the environment

UN Sustainable Development Goals (SDGs)

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

growth pole

industries designed to stimulate growth through the establishment of various supporting industries (Bentonville, AR)

World Trade Organization (WTO)

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

Mercosur (Common Market of the South)

A South American customs union of Argentina, Paraguay, Brazil, and Uruguay

Organization of Petroleum Exporting Countries (OPEC)

An economic organization consisting primarily of Middle East nations that controls the price of oil and the amount of oil its members produce and sell to other nations.

Tariffs

Taxes on imported goods

core countries

According to world systems theory, the most advanced industrial countries, which take the lion's share of profits in the world economic system.

periphery countries

the least developed and least powerful nations; often exploited by the core countries as sources of raw materials, cheap labor, and markets

semi-periphery countries

nations ranking in between core and periphery countries, with some attributes of the core countries but with less of a central role in the global economy

raw materials

the basic material from which a product is made.

market

a group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade

life expectancy

A figure indicating how long, on average, a person may be expected to live

Literacy Rate

The percentage of a country's people who can read and write.

gender gap

a distinctive pattern of voting behavior reflecting the differences in views between women and men

trade

the business of buying and selling or exchanging items

Neoliberalism

A range of pro-market and antigovernmental positions on the economy, such as reducing government ownership and regulation and promoting privatization and market-based solutions

service sector

businesses that provide services rather than manufactured goods

high-technology industries

Companies that support the growth and development of sophisticated technologies; a very new industry that has rapidly transformed many cities and countries.

agglomeration economies

Occur where firms cluster spatially in order to take advantage of geographic concentrations of skilled labor and industry suppliers, specialized infrastructure, and ease of face-to-face contact with industry participants