HGAP Unit 7 Vocabulary

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.

Least Cost Theory (Alfred Weber)

Businesses seek locations that minimize transportation and labor costs.

Break

of

Colonialism

Attempt by one country to establish settlements and to impose its political, economic, and cultural principles in another territory.

Commodity Theory

the scarcer something is, the more desirable it becomes

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

Core countries

industrialized former colonial states that dominate the world economic system

Debt crisis

The massive accumulation of loans taken out by third world countries and owed to northern banks and governments from the 1970s onward

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

Economies of scale

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

Ecotourism

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

Export

processing zones

Fordist methods

Manufacturing process broken down into differentiated components, with different groups of people performing different tasks to complete the product.

Formal Economy

The legal economy that is taxed and monitored by a government and is included in a government's Gross National Product; as opposed to an informal economy

Fossil fuels

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

Free trade agreements

Goal is to increase trade among countries by reducing tariffs (NAFTA

Gender empowerment

Compares the ability of women and men to participate in economic and political decision making.

Gender Inequality Index (GII)

A measure of the extent of each country's gender inequality

Global financial crisis

The economic crashes that happened internationally due to the globalization of the world's economy. Problems in some countries (Europe and the United States), caused financial problems in countries that trade with them.

Gross Domestic Product (GDP)

A measurement of the total goods and services produced within a country.

Gross National Income (GNI) per capita

the figure that results from dividing a country's GNI by the total population

Gross National Product (GNP)

The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.

Growth poles

economic activities that are deliberately organized around one or more high

High technology industries

Companies that support the growth and development of sophisticated technologies. It is a very new industry that has rapidly transformed many cities and countries.

Human Development Index

Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy

Imperialism

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

Income distribution

The way the national income is divided into "shares" ranging from the poor to the rich.

Industrialization

The development of industries for the machine production of goods.

Infant mortality rates

Annual number of deaths of infants(one and under) compared to the number of live births

informal economy

Economic activity that is neither taxed nor monitored by a government; and is not included in that government's Gross National Product; as opposed to a formal economy

international division of labor

The process where the assembing procedures for a product are spread out through different parts of the world

International Monetary Fund

a United Nations agency to promote trade by increasing the exchange stability of the major currencies

Just

in

Labor

market participation

Literacy rates

percentage of people who can read and write

Manufacturing

The process of making a raw material into a finished product; especially in large quantities.

Markets

Bring buyers and sellers together to exchange goods and services

MERCOSUR

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

Microloans

Small

Multiplier effects

the idea that every one dollar of government spending creates more than one dollar in economic activity

Neoliberal policies

economic policies that are predicated on a minimalist role for the state, assuming the desirability of free markets as the ideal condition not only for economic organization but also for political and social life

OPEC

Organization of Petroleum Exporting Countries

Outsourcing

A decision by a corporation to turn over much of the responsibility for production to independent suppliers.

Post

Fordist methods of production

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.

Public transportation projects

a public project in development or under construction to provide a new transportation facility or to improve or maintain the existing system of state highways.

Quaternary sector

Service sector industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, administration, insurance, and legal services.

Quinary sector

Service sector industries that require a high level of specialized knowledge or technical skill. Examples include scientific research and high

Renewable energy

A resource that has a theoretically unlimited supply and is not depleted when used by humans.

Reproductive health

issues of safe sex, prevention and treatment of STIs, contraception, fertility and infertility, sexual health, pregnancy, and childbirth

Stages of Economic Growth

A theory developed by Walt Rostow in which five stages of economic organization are recognized: traditional society, preconditions for takeoff, takeoff, drive to maturity, and high mass consumption.

Secondary sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

Semi

periphery countries

Service Sectors

Produces intangible goods, more precisely services instead of goods and is comprised of various service industries.

Small

scale finance

Special economic zones

specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment

Sustainable development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Tariffs

Taxes on imported goods

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.

World System Theory (Immanuel Wallerstein)

One world connected by a network of economic exchange relationship// control flows from Core

least

cost theory (Weber)

World Trade Organization

Administers the rules governing trade between its 144 members. Helps producers, importers, and exporters conduct their business and ensure that trade flows smoothly.

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.

Least Cost Theory (Alfred Weber)

Businesses seek locations that minimize transportation and labor costs.

Break-of-bulk point

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

Colonialism

Attempt by one country to establish settlements and to impose its political, economic, and cultural principles in another territory.

Commodity Theory

the scarcer something is, the more desirable it becomes

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

Core countries

industrialized former colonial states that dominate the world economic system

Debt crisis

The massive accumulation of loans taken out by third world countries and owed to northern banks and governments from the 1970s onward

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

Economies of scale

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

Ecotourism

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

Export-processing zones

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

Fordist methods

Manufacturing process broken down into differentiated components, with different groups of people performing different tasks to complete the product.

Formal Economy

The legal economy that is taxed and monitored by a government and is included in a government's Gross National Product; as opposed to an informal economy

Fossil fuels

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

Free trade agreements

Goal is to increase trade among countries by reducing tariffs (NAFTA - no tariffs between US, Canada, and Mexico)

Gender empowerment

Compares the ability of women and men to participate in economic and political decision making.

Gender Inequality Index (GII)

A measure of the extent of each country's gender inequality

Global financial crisis

The economic crashes that happened internationally due to the globalization of the world's economy. Problems in some countries (Europe and the United States), caused financial problems in countries that trade with them.

Gross Domestic Product (GDP)

A measurement of the total goods and services produced within a country.

Gross National Income (GNI) per capita

the figure that results from dividing a country's GNI by the total population

Gross National Product (GNP)

The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.

Growth poles

economic activities that are deliberately organized around one or more high-growth industries.

High technology industries

Companies that support the growth and development of sophisticated technologies. It is a very new industry that has rapidly transformed many cities and countries.

Human Development Index

Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy

Imperialism

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

Income distribution

The way the national income is divided into "shares" ranging from the poor to the rich.

Industrialization

The development of industries for the machine production of goods.

Infant mortality rates

Annual number of deaths of infants(one and under) compared to the number of live births

informal economy

Economic activity that is neither taxed nor monitored by a government; and is not included in that government's Gross National Product; as opposed to a formal economy

international division of labor

The process where the assembing procedures for a product are spread out through different parts of the world

International Monetary Fund

a United Nations agency to promote trade by increasing the exchange stability of the major currencies

Just-in-time delivery

Shipment of parts and materials to arrive at a factory moments before they are needed

Labor-market participation

A statistic that determines what percentage of an age group or gender is currently working

Literacy rates

percentage of people who can read and write

Manufacturing

The process of making a raw material into a finished product; especially in large quantities.