Studied by 6 people
MAP QUIZ LINK
https://online.seterra.com/en/vgp/3033?c=936Y6
industry
A collection of businesses with a common line of products or services
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.
outsourcing
A decision by a corporation to turn over much of the responsibility for production to independent suppliers.
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. They're small areas of a country with exceptional investment and trading conditions that are created by its government to stimulate and attract foreign investors and business.
special economic zones
A specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment (ex: In China)
maquiladoras
Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico.
primary sector
The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.
secondary sector
The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
teritary sector
The portion of the economy concerned with transportation, communications, marketing, banking and utilities (providing services).
quaternary sector
Service sector industries concerned with the collection, processing, and manipulation of information and capital. Focused on research and development. Examples include finance, administration, insurance, and legal services.
quinary sector
The most advanced form of Quaternary activities consisting of high-level decision making for large corporations or high-level scientific research (top officials in government or business)
multiplier effect
An effect in economics based on the potential of a job to produce additional jobs. Secondary sector has this a lot.
weber's least cost theory
The theory that described the optimal location of a manufacturing firm in relation to the cost of transportation, labor, (minimize these two), and advantages through agglomeration (maximize this)
bulk reducing
An industry in which the final product weighs less or comprises a lower volume than the inputs. (ex: copper ore losses weight when refined and then costs less to transport)
bulk gaining
An industry in which the final product weighs more or comprises a greater volume than the inputs. (ex: soft drink manufacturers mix syrup with water so it weighs more therefore locate factory near market to minimize transport cost).
energy-oriented industry
Industry with high demands for abundant, cheap sources of power that need to be near power plants or dams (ex: aluminum industry)
locational interdependence
Theory that industries choose locations based on where their competitors are located.
new international division of labor
Transfer of some types of jobs, especially those requiring low-paid less skilled workers, from MDCs to LDCs. MDCs focus more on research + development, middle-income countries manufacture goods, and LDCs extract and export natural resources.
NIC (acronym)
Newly Industrialized Countries
just-in-time delivery
Shipment of parts and materials to arrive at a factory moments before they are needed (ex: automobile manufacturing). Risk that the materials won't come on time due to unforeseen conditions
opportunity cost
The opportunity cost is what you must forgo in order to get something. The benefit/value that was given up can refer to decisions in your personal life, in a company, in the economy, in the environment, or on a government level.
comparative advantage
The ability of a country to produce a good at a lower cost than another country can. (ex: dairy farming in Ireland, software manufacturing in China)
complementary advantage
When both parties have goods or services that the other party desires
trading blocs
A group of neighboring countries that promote trade with each other and erect barriers to limit trade with other blocs. (ex: NAFTA)
containerization
The transporting of goods in standard-sized shipping containers. The process of combining several unitized loads into a single, well-protected load for shipment.
single market manufacturers
Manufacturers that produce goods for one type of market. Usually located near the market--save money on transportation, aka products sold primary in one location.
global supply chain
A system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer.
break-of-bulk point
A location along a transport route where goods must be transferred from one carrier to another. In a port, the cargoes of oceangoing ships are unloaded and put on trains, trucks, or perhaps smaller riverboats for inland distribution.
postindustrial economy
An economic phase in which manufacturing no longer plays a dominant role (MDCs)
The Rust Belt
The northern industrial states of the United States, including Ohio, Michigan, and Pennsylvania, in which heavy industry was once the dominant economic activity. In the 1960s, 1970s, and 1980s, these states lost much of their economic base to economically attractive regions of the United States and to countries where labor was cheaper, leaving old machinery to rust in the moist northern climate. The manufacturing region in the United States is currently debilitated because many manufacturing firms have relocated to countries offering cheaper labor and relaxed environmental regulations.
technopole
Centers or nodes of high-technology research and activity around which a high-technology corridor is sometimes established.
Energy Source Pros and Cons: Hydroelectric
Pros: clean/renewable, reduces fossil fuel dependence, water collected in dams can be used for irrigation
Cons: too much water can flood areas + displace people, flooding can negatively affect ecosystems
Energy Source Pros and Cons: Solar Energy
Pros: reduces energy bill to heat homes, solar panels decrease coals being burned
Cons: when it's not sunny there's less energy, at night the house runs on electricity (not as eco friendly as one might think), solar panels are very expensive
Energy Source Pros and Cons: Wind
Pros: renewable energy, there are monetary incentives to build them
Cons: kill birds (RIP THAT .... AYEEEE), if wind turbines don't produce enough energy then electricity is used
Energy Source Pros and Cons: Geothermal
Pros: almost 100% non-polluting, renewable, direct power source, cheap to operate
Cons: only available in certain regions in the world, drilling is expensive and complex, it is unreliable and not continuous
Energy Source Pros and Cons: Tidal
Pros: predictable pattern of wave movement (more predictable than solar and wind)
Cons: constructing the infrastructure is expensive
Energy Source Pros and Cons: Fossil Fuels
Pros: can create a large amount of energy for cheap, easy location and transportation, low production time
Cons: releases CO2 and other greenhouse gases, can cause acid rain, coal causes air pollution, oil spills
Energy Source Pros and Cons: Nuclear
Pros: energy independence, no air pollution
Cons: radioactivity is dangerous (especially radioactive waste), expensive to operate
per capita
per person
GNP
Gross National Product - the value of goods/services made by Americans in any country. Good for showing the wellbeing of American transnational corporations
GDP
Gross Domestic Product- the measure of production inside of a country no matter the nationality of who makes it (ex: Toyota, a Japanese company, in the United States)
GNI per capita
Gross National Income per capita- the total income of a country's residents and businesses, including investment income, regardless of where it was earned, as well as foreign investment and aid
commodity dependence
economic dependence primarily on exports of agricultural and mineral raw materials
2008 Financial Crisis
The largest downturn since the Great Depression, this crisis began with mortgages (loans from banks to pay for homes). Borrowers must repay their loans plus interest that the bank charges. Many banks made risky loans and increased their interest rates. As the economy slowed, many borrowers found they could not repay what they owed because they lost their jobs or the interest rates were too high.
HDI
Human Development Index- measure of quality of life using factors like life expectancy, literacy, access to clean water, income, birth rate etc. Country rankings similar to income rankings
GII
Gender Inequality Index- a composite index measuring gender disparity. Influenced by factors such as reproductive health, female empowerment, labor market participation, maternal health, etc
Gini Coefficient
A measure of income inequality within a population, ranging from zero for complete equality, to one if one person has all the income.
Growth Pole Theory
The belief that by investing heavily in capital-intensive or highly innovative and technically advanced industries and concentrating in large urban centers or regional capitals, business, industry, and economic development will be stimulated in the surrounding area. Calculated strategy to try and increase economic development. (ex: Silicon Valley)
Neoliberalism
A strategy for economic development that calls for free markets, balanced budgets, privatization, free trade, and minimal government intervention in the economy.
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 (colonization, especially in Latin America)
Rostow's Modernization Model
Developed in the 1950s, this model exemplifies the liberal development ideology. Under the model, all countries develop in a five-stage process (Traditional, Pre-Condition, Take Off, Drive to Maturity, High Mass Consumption). The development cycle is initiated by investment in a takeoff industry that allows the country to grow a comparative advantage, which sparks greater economic gain that eventually diffuses throughout the country's economy. Drawbacks to this model include it not identifying cultural and historic differences in development trajectories because it is based on North American and western European development histories.
Wallerstein's World Systems Theory
This model exemplifies the world economy has one market and a global division of labor. Under the model, all countries develop in a three-stage process (Peripheral, Semi-peripheral, Core). Although the world has multiple states, almost everything takes place within the context of the world economy (interdependence). Drawbacks to this model include it saying that countries can change their status but not explaining how and failing to recognize the importance of NGOs.
The Four Asian Dragons
South Korea, Singapore, Taiwan, and Hong Kong promoted economic development by concentrating on producing a handful of manufactured goods due to a lack of natural resources.
Petrolium Arabian Peninsula States
Saudi Arabia, Kuwait, Oman and UAE became wealthy through oil prices rising (oil revenue financed housing, hospitals, highways, airports, universities, etc).
Millenium Development Goals (MDGs)
The UN's creation of eight goals for economic development and social progress in 2000. Members agreed to reach the goals by 2015.
Eliminate extreme poverty
Guarantee universal education
Promote equality for women
Reduce child mortality rates
Better maternal health services and reduction of maternal mortality rate
Reduce spread snd improve treatment for HIV/AIDS and other diseases
Environmentally sustainable development
Global development partnerships among member nations
sustainable development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Ecotourism
A form of tourism, based on the enjoyment of scenic areas or natural wonders, that aims to provide an experience of nature or culture in an environmentally sustainable way. It supports the conservation and sustainable development of ecologically unique areas
Microfinance Programs
Provision of small loans and financial services to individuals and small businesses in developing countries (common for women in South Asia and South America)
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