aphug unit 7 vocab

industrial revolution

change from agricultural economy to one dominated by industry and machine manufacturing

sector

area of economy where business share the same or related product or service

primary sector

extraction of raw materials

secondary sector

activities that make up the processing of raw materials

turning raw materials into finished goods

tertiary sector

selling of services and skills, goods and products from pervious sectors

quaternary sector

providing information services

quinary sector

top level decisions

least cost theory

maximize profit by reducing expenses related to production and distribution

bulk-gaining

final product is heavier than the raw materials

bulk- reducing

final product is lighter than the raw materials

break of bulk point

location where a switch of transportation method to transfer goods

GDP

total value of goods and services produced within a country border in one year

GNP- gross national product

total value of goods and services produced by corporations and individuals regardless of their location to a country

GNI- gross national income

total amount to money earned regardless of their location to a country

gender equality

all genders have equal rights

gender inequality index

shows loss of human development in inequality between men and women in terms of reproductive health, empowerment, and labor market

microloans

loans provided for people who don’t qualify for standard bank loans

free trade

economic policy that allows goods and services to be traded across borders with little to no government restriction

HDI

measures the quality of life based on life expectancy, education levels, and income per capita

Gender empowerment measure

measure of inequalities between men and women’s opportunities in a country

rostows stages of economic growth

5 stages that all countries must go through in order to become developed

dependency theory

structured in a way where it benefits wealthy countries at the expense of poorer countries

complementary advantage

2 countries trading goods they produce

comparative advantage

ability to produce a good at a lower cost than other producers

tariffs

taxes on items leaving or entering the country

trade embargo

external source that has the ability to stop the flow of critical resources

outsourcing

hiring outside company’s from less developed nations to perform a certain task

off shoring

decision by a company to turn over majority of the responsibility to independent suppliers

deindustrialization

process of a region or country by reducing or eliminating industrial activity leading to decline in jobs

special economic zones (SEZs)

specific area in a country where tax incentives are implemented to promote economic growth

Export processing zones (EPZS)

specific area in a country that offers reduced tariffs designed to promote export industrialization

new international division of labor

transfer of some types of jobs, low- paid, from more developed countries to workers in less developed countries

post Fordism

shift from mass production to a more flexible production

agglomeration

businesses are clustered together and benefit from sharing cost and customers

ecotourism

type of tourism based on the enjoyment of natural environments to provide an experience of nature in a sustainable way