AMSCO AP Human Geography - 7.7: Changes as a Result of the World Economy

Outsourcing

The practice of relocating production or services to external suppliers, often in different countries, to reduce costs and improve efficiency.

Offshoring

The process of relocating business operations to another country, typically to take advantage of lower labor costs and favorable economic conditions.

New international division of labor

The global arrangement of production where tasks are divided among countries (core, semi-periphery, periphery), often based on comparative advantages in labor costs and skills.

Basic economic activity (Don’t worry about this one)

Actions that create new wealth for a region, such as manufacturing goods and commercial farming products.

Non-basic economic activity (Don’t worry about this one)

Economic activities that do not create new wealth for a region, such as retail services and local government.

Multinational corporations (MNCs)

Companies that operate in multiple countries, usually with headquarters in a developed nation, involved in global production and operations.

Transnational corporations (TNCs)

Companies that operate in multiple countries and do not adhere to one national boundary, often coordinating production and operations globally.

Export-processing zone (EPZ)

A designated area in a country that promotes foreign investment by offering favorable tax rates and regulations, primarily for the purpose of exporting goods.

Special economic zones (SEZs)

Regions in a country with economic regulations that differ from the rest of the country, intended to attract foreign investment and enhance economic growth.

Free-trade zone (FTZs)

A designated area where goods can be imported, stored, and exported without being subject to tariffs and duties.

Maquiladoras

Manufacturing plants in Mexico operating under favorable tax regulations, primarily for export to the United States.

Postindustrial economy

An economy characterized by a shift from manufacturing-based industries to service-oriented sectors, focusing on technology, information, and research.

Assembly Line

A manufacturing process where goods are produced in a sequential manner through a series of tasks performed by workers or machines, enhancing efficiency and reducing production costs.

Fordism

A system of mass production founded by Henry Ford that emphasizes assembly line techniques, standardization, and efficient production to reduce costs and increase output.

Substitution Principle

An economic theory stating that producers will replace a factor of production with another factor if it reduces costs while maintaining output levels.

post-Fordism

A production system characterized by flexible manufacturing, customization of products, and the integration of new technologies, allowing for greater adaptability and innovation in response to market changes.

Just-in-time delivery

A logistics strategy that reduces inventory costs by delivering materials and products precisely when they are needed in the production process, minimizing storage space and waste.

Locational interdependence

A theory that explains how the location of a firm’s competitors influences its own location decisions, focusing on minimizing costs and maximizing market access.

Technopole

A hub for high-tech industries where research, development, and innovation are concentrated, often supported by universities and government policies.

Growth pole/growth centers

Economic areas that stimulate regional development by attracting industries, investments, and services, driving growth in surrounding areas.

Spread effect/Spin-off benefits

The positive impacts that occur in a region as a result of economic growth in another area, leading to job creation and increased investments.

Backwash effects

The negative consequences experienced by a region due to economic growth in another area, often leading to resource depletion, job loss, and reduced investments.

Brownfields

Former industrial or commercial sites that are vacant or underused, often contaminated, and require remediation before redevelopment.

Rust Belt

A region in the Northeastern and Midwestern United States that experienced industrial decline due to the loss of manufacturing jobs and economic shifts, often characterized by vacant factories and population decline.

Corporate Parks/Business Parks

Designated areas for office and industrial use, often providing shared amenities and infrastructure to support businesses and attract investments.