AP Human Geo / APHUG Unit 7

Outsourcing

Contracting work to noncompany employees or other companies

Offshoring

Tertiary and quaternary sector companies move their back offices to other countries

Reshoring

Process of a company returning manufacturing or business operations back to the home country

New International Division Of Labor

Changed system of employment in the various economic sectors throughout the world

Basic Economic Activity

Actions that creates new wealth for a region

Non-Basic Economic Activity

Does not generate new money for an area

Transnational Corporations (TNCs)

Businesses that operate in many different countries

Multinational Corporations (MNCs)

Businesses that operate in many different countries

Export Processing Zones (EPZs)

Over 100 countries in the world have attracted TNC’s and MNC’s by using special manufacturing zones

Special Economic Zones (SEZs)

Designated areas within a country operating under more liberal economic laws than the rest of the nation, designated to attract foreign direct investment, boost exports, and encourage industrialization

Maquiladoras

Foreign owned manufacturing plants, located in Mexico near the border, that duty-free import raw materials to assemble, process, or manufacture goods for export back to the country of origin

Free-Trade Zones (FTZs)

Designated, secure, or fenced in areas within a country usually near international airports, seaports, or borders where goods can be loaded, handled, manufactured, or reconfigured and reexported without customs intervention or duties

Postindustrial Economy

No longer employs large numbers of people in factories but has people who provide services and processes information

Assembly Line

Item moved from worker to worker with each repeatedly performing the same task

Fordism

Use of assembly lines allowed companies to rapidly produce more standardized producers and with less skilled workers than ever before

Substitution Principle

Businesses maximize profit by substituting one factor of production for another

Post-Fordist

Remaining workers are often trained to do more than one job, so they can rotate among a few different workstations during a day, reducing the risk of injuries

Just-In-Time Delivery

System in which the inputs in the assembly process arrive at the assembly location where they are needed

Locational Interdependence

Location decision for one factory is dependent upon the location of other related factories

Agglomeration Economies

Spatial grouping of several businesses to share costs

Technopoles

Hub for information based industry and high tech manufacturing

Growth Poles (Growth Centers)

Concentrated high value industrial center often driven by technology or manufacturing that sparks regional economic development and innovation

Spin-Off Benefits (Spread Effects)

Positive economic outcomes beyond the growth pole

Backwash Effects

Negative effects on one region that result from economic growth in another region

Brownfields

Deteriorating building surrounded by weeds, marked by broken or boarded up windows, and rusting metal

Rust Belts

Deindustrialization of the northeast and lands around the Great Lakes

Corporate Parks (Business Parks)

A suburban area containing grouped, low-rise office buildings, often landscaped, located near major highways/beltway’s for car accessibility

Dexterous

Showing or having skill especially with the hands

Sustainability

Using the earth’s resources without doing permanent damage to the environment

Sustainable Development

Address problems caused by depletion of natural resources, mass consumption of goods, pollution of air and water, and the impact of climate change

Ecological Footprint

Impact on the environment

Ecotourism

Travel to a region by people who are interested in its distinctive and unusual

Sustainable Development Goal

17 interlinked global objectives established by the UN in 2015 to act as a blueprint to achieve a better and more sustainable future for all by 2030

Industry

The process of using machines and large scale processes to convert raw materials into manufactured goods

Raw Materials

Basic substances such as minerals and crops needed to manufacture finished goods

Market

Place where products are sold

Cottage Industry

Small home based businesses that made goods

Industrial Revolution

Series of technological advances

Industrial Belt

Concentrated region of manufacturing, factories, and industrial infrastructure, typically located among a strip of the mid latitudes in the northern hemispheres

Deindustrialize

Process of decreasing reliance on manufacturing jobs

Rust Belt

Region that have large numbers of closed factories

Primary Sector

Extracting natural resources from the earth

Secondary Sector

Making products from natural resources

Tertiary Sector

Providing information and services to people

Quaternary Sector

managing and processing information

Quinary Sector

Creating information and making high level decisions

Multiplier effect

Potential of a job to produce additional jobs

Least Cost Theory

Explain the key decisions made by business about where to locate factories

Agglomeration Economies

Spatial grouping of several businesses to share costs

Locational Triangle

The three points of the triangle are the market for a good and two resources needed to make the good

Bulk-Reducing Industries

Manufacturing process where the final product weighs less or has a lower volume than the raw materials

Bulk-Gaining Industries

Manufacturing process where the finished product weighs more or has a greater volume than the raw materials

Labor-Oriented Industry

Highly dependent on a workforce and will want to be near a source of those workers

Break Of Bulk

Procedure of transferring cargo from one mode of transportation to another

Containerization

System in which goods are loaded into a standardized shipping unit

Intermodal

Can be carried on a truck, train, ship, or plane

Footloose

Pack up and leave for a new location quickly and easily

Front Offices

Designed to impress clients

Back Offices

Less expensive office spaces

Gross National Product (GNP)

Dollar amount of all goods and services produced within a country in one year

Gross National Income (GNI)

Dollar amount of an goods and services produced within a country in one year

Gross Domestic Product (GDP)

Dollar amount of all final goods and services produced within a country in one year

Remittances

Profits from the foreign company were leaving the country and going back to the home country

Per Capita

Each country’s total output can be divided by the country’s total population this produces a amount per person

Purchasing Power Parity (PPP)

Measure of what similar goods cost in different countries

Formal Sector

Portion of the economy that is monitored by the government so people will follow regulations and pay taxes

Informal Sector

Portion of the economy that is not monitored by government

Gini Coefficient

Measure of the distribution of income within a population

Life Expectancy

The number of years a person’s expected to live

Literacy Rate

Percentage of the population that can read and write

Gender Gap

Differences in the privileges afforded to males and females in a society

Gender Equality Index (GII)

Composite measured of several factors indicating gender disparity

Human Development Index (HDI)

Combines one economic measure with three social measures

Non-Governmental Organization (NGOs)

Programs enacted by governments and international non- profit agencies

Microcredit

Provide loans often to women to start or expand a business

Stages of Economic Growth Model

Focuses on the shift from traditional to modern forms of society

World Systems Theory/Core-Periphery Model

Divided countries into three types Core, Semi-periphery, and periphery

Dependency Model

Countries don’t exist in isolation but are part of an intertwined system in which countries are dependent on one another

Commodities

Raw Material

Commodity Dependence

When more than 60 percent of its exports are raw materials

Trade

Exchanging one item for another

Barter

System of exchange in which no money changes hand

Comparative Advantage

Ability to produce a good service at a lower cost than others

Complementarity

A country has income, goods, or services that another country desires

Free Trade

Laws or policies that reduced barriers to trade

Neoliberalism

A set of reforms that reduced governments regulations and taxation

Trading Blocs

Groups of countries that agree to a common set of trade rules

Mercosur

Southern common market

World trade Organization (WTO)

Monitor rules of international trade by providing a forum for negotiating trade deals, settling disputes between its members, supporting the needs of trade policies

International Monetary Fund (IMF)

Aid countries caught in need of financial assistance