Unit 7

colonialism

colonialism

The physical act of setting up colonies or territories in another country or territory.

imperialism

A policy of extending a country's power and influence through diplomacy or military force.

industrialization

The development of industries for the machine production of goods.

Industrial Revolution

A period of rapid growth in the use of machines in manufacturing and production that began in the mid-1700s

raw materials

Unprocessed natural products used in production. EX: cotton, rubber, wool, etc...

mass consumption

a large number of people purchasing large quantities of goods

pollution

Release of harmful materials into the environment

ecotourism

the practice and business of recreational travel based on concern for the environment

UN's Sustainable Goals

17 interlinked global goals designed to be a "blueprint to achieve a better and more sustainable future for all"

Outsourcing

Hiring workers in other countries to do a set of jobs

economic restructuring

changes in the way the economy, firms, and employment relations are organized

free trade zones/maquiladoras

designated areas where foreign companies can warehouse goods without paying taxes or customs duties until they move the goods into the marketplace

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

post-Fordist methods

the idea that modern industrial production has moved away from mass production in huge factories and instead production has been accelerated and dispersed around the globe by multinational companies that shift production, outsourcing it around the world and bringing places closert together in time and space than would have been imaiginable at the beginning of the

multiplier effect

proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of capital.

economies of scale

factors that cause a producer's average cost per unit to fall as output rises

agglomeration economies

grouping of businesses in order to share costs. (EX: sharing the cost of building an access road to connect with a public highway

just-in-time delivery

a system in which the inputs needed in the assembly process arrive at the assembly plant very close to when they are needed.

technopoles

a hub for information-based industry and high-tech manufacturing.

growth poles

the term for a new city, a resource, or some development in heretofore under settled area that begins to attract population growth and economic development.

complementary advantage

when both parties have goods or services that the other party desires

comparative advantage

the ability to produce a good at a lower opportunity cost than another producer.

neoliberal policies

policy that government intervention into market is inefficient and undesirable, and should be resisted whenever possible.

European Union

a supranational organization whose goal is to unite Europe so that goods, services, and workers can move freely among member countries

World Trade Organization (WTO)

a global institution to promote international trade and to settle international trade disputes

Mercosur

Pact among Argentina, Brazil, Paraguay, and Uruguay to establish a free trade area

OPEC (Organization of Petroleum Exporting Countries)

An organization with the goal of coordinating and unifying petroleum policies of member countries to ensure the stabilization of oil market.

OPEC Member countries

Indonesia, Libya, UAE, Algeria, Nigeria, Gabon, Angola, Equatorial Guinea, Congo

tariffs

Taxes on imports or exports

International Monetary Fund (IMF)

an international organization that promotes global economic growth and financial stability, encourages international trade, and reduces poverty.

microlending

The practice of loaning small amounts of money to help people in less developed countries start small businesses.

deindustrialization

process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment

Rostow's Stages of Development

A model of economic development that describes a country's progression which occurs in five stages transforming them from least-developed to most-developed countries.

Rostow's Stage One

Traditional Society; dependent on primary sector activities, limited technology, local & regional trading, limited socio-economic mobility

Rostow's Stage Two

Pre-Conditions for Take-Off; improved infrastructure, improvements in farming, exports of agriculture and raw materials, diffusion of technology, start of individual socio-economic mobility.

Rowstow's Stage Three

Take-Off; open to major technological innovations, starts industrialization and primary sector begins to shrink, entrepreneurial mentality, urbanization begins, self-sustaining growth starts.

Rostow's Stage Four

Drive to Maturity; creats new industries, improves energy, transportation and communication, economic growth greater than population growth, investments in social infrastructure

Rostow's Stage Five

High Mass Consumption; spends money on nonessentials. purchase high order goods becomes common, desires to create an egalitarian society, supports strong tertiary sector

Egalitarian

promoting equal rights for all people

essential goods

An item that can be seen and touched and is necessary for survival; food, water, clothing, shelter.

nonessential goods

items that are no essential to survival such as cell phones, tv, beauty products, fancy shoes, etc...

dependency theory

countries do not exist in isolation bur are part of an intertwined world system in which all countries are dependent on each other.

Wallerstein's World Systems Theory

A dependency theory that includes both political and economic elements. Countries are divided into three types: core, semi-periphery, and periphery

Core country examples

USA, UK, Japan, Australia

Core county characteristics

economically advantaged, focus on higher skills, promotes capital accumulation, dominates periphery and semi-periphery economically and politically, benefits greatly from international trade.

Semi-periphery country characteristic

middle income countries, sometimes referenced as emerging economies, provide core with manufacturing goods and service that the core provided for itself, but no longer does.

Semi-periphery country examples

India, Mexico, South Africa, Brazil, China

Periphery country characteristics

least-developed countries, high % of jobs in low-skilled labor-intensive production and extraction of raw materials, provide core and semiperiphery with inexpensive raw materials, labor, and agricultural production, receives jobs but few profits from manufacturing, often times have weak laws to protect workers and the environment.

periphery country examples

Afghanistan, Zimbabwe, Peru, Kenya

gender parity

equality among men and women

Microloans

Small-business loans often used to buy equipment or operate a business

uneven development

The increasing gap in economic conditions between core and peripheral regions as a result of the globalization of the economy.

Gross Domestic Product (GDP)

A measurement of the total goods and services produced within a country. Does NOT count money coming into and out of the country.

Gross National Product (GNP)

an estimate of the total value of all the final products and services turned out in a given period by the means of production owned by a country's residents. Income from overseas investments counts.

Gross National Income (GNI)

The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country

fossil fuels

Coal, oil, natural gas, and other fuels that are ancient remains of plants and animals.

renewable energy

A resource that has a theoretically unlimited supply and is not depleted when used by humans. EX: air, sunlight, etc...

nonrenewable energy

A source of energy that is a finite supply capable of being exhausted. EX: fossil fuels, water, trees, etc...

literacy rate

The percentage of a country's people who can read and write.

Formal Economy

The legal economy that is taxed and monitored by a government and is included in a government's Gross National Product.y

Informal Economy

Economic activity that is neither taxed nor monitored by a government; and is not included in that government's Gross National Product.

Gender Inequality Index (GII)

An indicator constructed by the U.N. to measure the extent of each country's gender inequality in terms of reproductive health, empowerment, and the labor market.

inequality

unequal and/or unjust distribution of resources and opportunities

empowerment dimensions of GII

measurement of the share of parliamentary (government) seats held by each gender AND female and male population with at least secondary education.

health dimensions of GII

measured by maternal mortality ratio and adolescent birth rate.

labor market dimension of GII

female and male labor force participation rates

Human Development Index (HDI)

summary measure of average achievement in key dimensions of human development

Long and healthy life dimension of HDI

Life expectancy at birth

Access to education (knowledge) dimension of HDI

Expected years of schooling and mean years of schooling

Decent standard of living dimension of HDI

GNI per capita (PPP $)

Three Dimensions of GII

Reproductive health, Empowerment, Labor market participation

Five Indicators of GII

Maternal mortality, adolescent fertility, parliamentary representation, education above secondary level, labor force participation

High GII, close to 1, means

men or women fare poorly compared to the other in all dimensions

Low GII, close to 0, means

men and women fare equally

High HDI, closer to 1, means

the country's social and economic development are "better"

Low HDI, closer to 0, means

the country's social and economic development are "bad"

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.

Tertiary sector

The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.

quaternary sector

the knowledge-based sector that includes research and development, business consulting, financial services, education, public administration, and software development

quinary sector

consists of the highest levels of decision making and includes the top officials in various levels of government and business.

Break-of-bulk point

A location where transfer is possible from one mode of transportation to another.

least cost theory

Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.

containerization

grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination