Unit 7

Industry

Economic activities related to the production of goods and services.

Raw Materials

Natural resources that can be transformed into products.

Industrialization

The process of developing machine production of goods and transforming economies from agriculture-based to manufacturing-based.

Industrial Revolution

The transition to new manufacturing processes in Europe and the United States in the late 18th and early 19th centuries.

Cottage Industries

Small-scale, home-based production of goods.

Economic Sectors

Categories of the economy based on the type of economic activity.

Primary Sector

Economic activities involved in the extraction and harvesting of natural resources.

Secondary Sector

Economic activities focused on manufacturing and processing raw materials into finished goods.

Tertiary Sector

Economic activities that provide services rather than goods.

Quaternary Sector

Economic activities involved in knowledge-based services such as information technology, research, and education.

Quinary Sector

Economic activities that focus on high-level decision-making and services, often involving specialized knowledge.

Postindustrial Economy

An economy characterized by a shift from manufacturing to services and information.

Gross Domestic Product (GDP)

The total value of goods and services produced within a country's borders in a specific time period.

Dual Economies

Economic systems where two distinct sectors operate, often one modern and one traditional.

Least-Cost Theory

A theory that suggests businesses will locate their facilities where costs are lowest.

Agglomeration

The clustering of businesses and industries in a specific area for mutual benefit.

Break-of-Bulk Points

Locations where goods are transferred from one mode of transport to another.

Bulk-Reducing Industries

Industries that locate near raw materials to minimize transportation costs.

Bulk-Gaining Industries

Industries that locate near markets to reduce transportation costs for heavier final products.

Industrial Parks

Designated areas for industrial development, often with specialized infrastructure.

Human Development

The process of improving the well-being and quality of life of individuals.

Gross Domestic Product (GDP)

The total value of goods and services produced within a country's borders in a specific time period.

Gross National Product (GNP)

The total value of goods and services produced by the residents of a country, regardless of where the production occurs.

Gross National Income (GNI)

The total income received by a country's residents, including wages, profits, rents, and taxes, minus subsidies.

Formal Sector

The part of the economy consisting of regulated, documented, and taxed businesses.

Informal Sector

The part of the economy that is unregulated and not taxed.

Human Development Index (HDI)

A composite index measuring average achievement in key dimensions of human development.

Gender Development Index (GDI)

An index measuring gender disparities in human development.

Gender Inequality Index (GII)

An index measuring gender inequality in reproductive health, empowerment, and labor market participation.

Women’s Empowerment

The process of increasing the capacity of women to make choices and transform those choices into desired actions.

Labor-Market Participation

The extent to which people are engaged in work or the workforce.

Microloans

Small loans given to individuals or small businesses to support their economic development.

Stages of Economic Growth

The theory of economic growth that outlines five stages from traditional society to high mass consumption.

Dependency Theory

A theory suggesting that resources flow from the periphery to the core, enriching the core while impoverishing the periphery.

Commodity Dependence

An economic condition where a significant portion of a country's income comes from the export of a single commodity.

Comparative Advantage

The ability of a country or entity to produce a good or service at a lower opportunity cost than others.

Complementarity

A situation where two or more goods or services enhance each other’s value when used together.

Neoliberalism

A policy model that emphasizes the value of free market competition and reduced government intervention in the economy.

Deindustrialization

The decline of industrial activity in a region or economy.

Growth Poles

Areas where economic development is concentrated and which can stimulate growth in surrounding areas.

Just-in-Time Delivery

A logistics strategy that aligns raw-material orders with production schedules.

Fordism

A manufacturing system based on mass production and the assembly line.

Post-Fordism

An economic system characterized by flexible production processes and a focus on small-batch production.

Offshore Outsourcing

The practice of moving production or services to another country to capitalize on lower labor costs.

International Division of Labor

The allocation of different tasks or processes of production to different countries.

Multiplier Effects

The concept that an initial increase in spending will lead to increased consumption spending and hence results in an increase in national income.

Special Economic Zones (SEZs)

Regions in a country that have different economic regulations than the rest of the country to attract foreign investment.

Export Processing Zones (EPZs)

Areas set up to promote export-oriented production with favorable conditions for foreign investment.

Free Trade Zones

Areas where goods may be landed, stored, handled, manufactured, or reconfigured without intervention from customs authorities.

Ecotourism

Sustainable travel to natural areas that conserves the environment and improves the well-being of local