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Flashcards for all the necessary terminology of Unit 7
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Industry
any economic activity using machinery on a large scale to process raw materials into products
Raw Materials
any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods
Industrialization
the process in which the interaction of social and economic factors causes the development of industries on a wide scale
Industrial Revolution
the radical change in manufacturing methods that began in Great Britain in the mid-18th century and was marked by the shift from small-scale hand-crafted, muscle-powered prudction to power-driven mass production
Cottage Industries
preindustrial form of manufacturing in which members of families spread out through rural areas worked in their homes to make goods
Economic Sectors
collections of industries engaged in similar economic activites based on the creation of raw materials and production of goods
Primary Sector
removing or harvesting of products from the Earth
Secondary Sector
manufacturing, processing, and construction of goods from raw materials
Tertiary Sector
involves the transportation, storage, and marketing of goods and services
Quaternary Sector
activities that require workers to process and handle information and environmental technology
Quinary Sector
subset of quaternary, involves top leaders in government, science, media, etc.
Postindustrial Economy
economic pattern marked by predominant tertiary sector and good share of 4th and 5th sector jobs
Dual Economies
economies with two distinct distributions of economic activity across the economic sectors
Least-Cost Theory
industrial location theory by Alfred Weber, businesses locate their facilities in a particular place because that location minimizes the costs of production
Agglomeration
the tendency of enterprises in the same industry to cluster in the same area
Break-of-Bulk Points
location where it is more economical to break raw materials before shipping further
Bulk-Reducing Industries
industry in which the raw materials cost more to transport than the finished goods
Bulk-Gaining Industries
industry in which the finished goods cost more to transport than the raw materials
Industrial Parks
collection of manufacturing facilities in a particular area that is found in suburbs near highways, facilitates movement of raw materials and finished products
Human Development
the processes involved in the improvement of people’s freedoms, rights, choices, and capabilities
Gross Domestic Product (GDP)
total value of goods and services produced by a country’s economy in a year
Gross National Product (GNP)
total value of goods and services produced by a country’s citizens and companies both domestically and internationally per year
Gross National Income (GNI)
total value of goods/services globally produced by a country in a year divided by the country’s population
Formal Sector
businesses and other economic activities that have government recognition and are taxed
Informal Sector
any part of a country’s economy that is outside the government or regulation
Human Development Index (HDI)
measure that determines the overall development of a country by incorporating 3 factors of human development:
Life expectancy at birth
Level of schooling
Standard of living by GNI per capita
Gender Development Index (GDI)
measure that calculates gender disparity through dimensions of health, knowledge, and standard of living
Gender Inequality Index (GII)
measure that calculates gender inequality through reproductive health, empowerment, and LMP
Women’s Empowerment
women’s options and access to participate fully in the social and economic spheres of society
Labor Market Participation (LMP)
measure of an economy’s active labor force
Microloans
a small, short-term loan with low interest intended to help people in need
Stages of Economic Growth
model that suggests that all countries can be categorized on a spectrum from traditional to modern
Dependency Theory
theory that describes the developmental challenges of peripheral countries and their relationship with core countries
Commodity Dependence
aspect of dependency theory that occurs when more than 60% of a country’s exports are tied to 1 or 2 resources
Comparative Advantage
relative cost advantage a country has to produce a certain good/service for trade
Complementarity
mutual trade relationships that exists on the supply of raw materials and demand for finished products
Neoliberalism
beliefs that favor free-market capitalism in which trade has no constraints from the government
Deindustrilization
process by which a country or area reduces industrial activity, especially that of heavy indunstry
Growth Poles
place of economic activity clustered around one or more high growth industry that grow due to capitalizing a special asset
Just-in-Time Delivery
a system in which goods are delivered so that companies keep inventory for near-term production
Fordism
highly organized/specialized system of industrial production that focuses on the efficiency and productivity in mass production
Post-Fordism
system focused on small scales batch production for a specialized market which allows for quick change
Offshore Outsourcing
condition when one or more aspects of production moves to an organization in another country
International Division of Labor
pattern of production and labor in which different countries engage in different parts of production and
Multiplier Effects
economic effect in which change leads to larger change
Special Economic Zones
area within a country that offers more favorable economic regulations
Export Processing Zones
area within a country subject to more favorable regulations to encourage foreign investment and manufacturing of goods
Free Trade Zones
large geographical area within a country in which businesses pay few or no tariffs
Ecotourism
a form of tourism based on enjoyment of natural area that minimizes impact to environment
Economies of Scope
companies benefit from the increase in the number of different products under a larger brand name
Deglomeration
when a location is overloaded with similar firms and services
Gini Coefficient
measures the level of income disparity between the country’s richest and poorest population groups on a scale of 0 to 100
Brandt Line
visually depicts the divide between the richer "Global North" and the poorer "Global South" based on GDP per capita
Losch’s Theory
suggests that settlements and businesses are strategically located to maximize profit
Asian Tigers
Hong Kong, Singapore, South Korea, and Taiwan