AO Human Unit 7

agglomeration

firms cluster spatially in order to take advantage of geographic concentrations of skilled labor and industry suppliers, specialized infrastructure and ease of face

Break of Bulk

location where cargo is transferred from one mode of transportation to another

bulk gaining industry

the weight of the final product is greater than the weight of the raw material

bulk reducing industry

weight of the final product is less than the weight of the raw material used in manufacturing the product

commodity dependence

occurs when commodities account for more than 60% of the value of a country's total exports

comparative advantage

country's ability to produce one product much more efficiently than it can produce other products within its economy

competitive advantage

firm's relative ability to outperform other Transnational Corporations in its industry

complementarity

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

containerization

system of intermodal freight transport of goods using standardized stackable metal boxes by ship, railroad, or truck

core countries

national economies with the majority of their workforces in the secondary and tertiary sectors (MDC)

debt crisis

occurs when a government's debts exceed its tax revenues to the point that it cannot meets its loan payments

deindustrialization

decline and sometimes complete disappearance of employment in the manufacturing sector in the core's industrial centers

dependency theory

theory that the periphery is poor because it was economically dependent on the core in a disadvantageous relationship originally established under colonialism and imperialism

economies of scale

cost advantages that can come with a larger scale of operations

ecotourism

travel to natural areas of ecological value in support of conservation efforts and socially just economic development

export processing zone

industrial zone with special incentives to attract foreign investment to places where imported materials undergo processing or assembly before being re

financial market

financial instruments are traded; stock markets, bond markets, and foreign exchange markets

fixed costs

business costs, such as rent, that are constant whatever the quantity of goods or services produced

fordism

economic and social arrangement based on the mass production of standardized goods, high labor union membership rates, stable and full

Foreign Direct Investment

investments made by a foreign company in the economy of another country

formal economy

officially recorded by the government

fossil fuels

natural fuel derived from the fossilized remains of living organisms

Four Asian Dragons

a group of countries that first adopted the international trade alternative. This includes South Korea, Singapore, Taiwan and Hong Kong

free trade zone

specifically designated as duty free areas that provide warehousing, storage, and distribution facilities for goods intended for trade or re

Gender Empowerment Measure (GEM)

measures gender equality that includes political and economic decision

Gender Inequality Index

measure of gender inequality that combines data on reproductive health, empowerment, and labor

global financial crisis

financial downturn caused by widespread loan defaults, leading to global unemployment and bankruptcies

government initiatives

plans, at various scales, to help promote economic development

Gross Domestic Product (GDP)

total value of goods and services produced within a country over a specific period, regardless of the producer's national origin

Gross National Income

total income of a country's residents and businesses including investment income and money received from abroad

growth poles

geographically pinpointed center of economic activity organized around a designated industry

high technology industries

industries that develop and use the most advanced technologies and have high levels of research and development

Human Development Index (HDI)

statistical measure of human achievement combining life expectancy, education levels, and GNI per capita

International Monetary Fund

organization that fosters global monetary cooperation and financial stability

Industrial Revolution

rapid transformation of the economy through machines, new power sources, and chemical processes in Europe and the US between 1760 and 1830

informal economy

part of the economy not officially recorded or taxed by the government

International Division of Labor

shift of manufacturing from developed to developing countries and global labor market expansion

International Trade Model

development strategy based on opening to international markets and foreign investment

just

in

labor intensive industry

industry where the cost of workers makes up a high percentage of total expenses

labor unions

associations of workers established to bargain collectively with employers

least cost theory

Weber’s idea that manufacturing locations are determined by transportation and labor costs

maquiladoras

factories near the US

microloans

small loans for people with little income to help start or expand a business

multiplier effect

investment in one industry creates jobs and business growth in related industries

Organization of the Petroleum Exporting Countries

international organization that regulates oil production and prices

outsourcing

transferring part of a company’s operations to a third party

per capita

value per person in a population

periphery countries

developing economies with most labor in the primary sector (LDC)

post Fordism

economic shift toward dispersed production and flexible work arrangements

primary sector

industries that extract natural resources from the environment

protectionism

trade policies designed to protect domestic industries from foreign competition

Purchasing Power Parity (PPP)

measures cost of a standard basket of goods in each country’s local currency

quaternary sector

part of the economy based on knowledge services like research and development

quinary sector

sector involving high

renewable energy

energy from sources that are naturally replenished

reproductive health

the capacity and freedom to make reproductive decisions

Right

to

Rostow's stages

theory that countries progress through five stages of economic development

secondary sector

industries that manufacture products from raw materials

self sufficiency model

economic strategy that emphasizes domestic production and limits foreign competition

semi periphery countries

countries or regions whose economies have elements of both the core and periphery

Special Economic Zones

areas where business laws differ to encourage trade and investment

tariff

tax on imported goods

tertiary sector

industries that provide services rather than goods

trading blocs

groups of countries that trade freely with each other while limiting trade with outsiders

trade embargo

official ban on trade with a specific country or of a specific good

Transnational corporation

firm that operates in multiple countries

UN Millennium Sustainable Goals

17 goals to improve global conditions by 2030

USMCA

free trade agreement between the US, Mexico, and Canada (formerly NAFTA)

value added productivity

gross value of a product minus the costs of materials and energy

vertical integration

control of all steps in the production and distribution of a product

Wallerstein's Theory

world systems theory dividing the world into core, semi

World Trade Organization (WTO)

organization that regulates international trade and resolves disputes