Unit 7 Vocab Terms

Industry

Industry

Using of machines and large-scale processes to convert raw materials into manufactured goods

Cottage Industries

Small-home businesses that made goods called _____. These industries depended on intensive human labor since people used simple spinning wheels, looms, and other tools. Before the 18th century(industrial rev replaced labor-intensive ____ with capital-intensive factory production), a subsistence econonomy dominated, and the manufacturing that happened, did it domestically(homes.)

Industrial revolution diffusion

\The _____ spread from Great Britain to neraby France and the Netherlands. Then spread east to Germany and west to the US.

Location of factories with the industrial rev

With the industrial rev, as ______ grew larger, its location near a large workforce became more important. (______ began to cluster in cities.) Cities grew both outward(horizontally) and upward(vertically).

Industrial rev population growth consequences

insutral revolution causes _____, which increases diseases, air pollution, expansion of the middle class with industrialization, and demand for literate workers.

Industrial belt and the end of it

An area that stretched across the midlatitudes of the Northern Hemisphere. Included the northeastern and midwestern United States, much of Europe, part of Russia, and Japan. At the end of 1900 however, these areas began to deindustrialize, and manufacturing companies transfer production to semiperiphery countries.

Postindustrial

Areas where most job growth has been in the tertiary sector, after the decline of primary and secondary sectors in the area.

Multiplier effect and secondary sector jobs

the secondary sector jobs have a large _________, which is the potential of a job to produce additional jobs. The secondary sector has the greatest multiplier effect of all the sectors. They are often activities in the basic sector and generate new wealth.

Alfred Weber least cost theory

A model that explains the key decisions made by businesses about where to locate factories. (based on labor, transport, and agglomeration. NOT government)

Least cost theory 3 factors

factory owners would locate their factories where they could minimize their total cost by balancing three factors:

• Minimizing transportation cost (which are usually closely related to bulk)

• minimizing labor cost

• maximizing agglomeration economies

Locational triangle

____ model can be shown with a triangle, with one of the three points of the triangle being the market of a good and two resources needed to make the good are the other two points. The factory will be at the middle of the triangle.

Bulk

weight and size of a material that is usually related with transportation costs. some raw materials lose ___ during processes, some do not, and some gain it.

Bulk reducing industry

A type of industry that is also known as weight-losing, raw metrial oriented, or raw material dependent. When the material is manufactured it looses bulk, and since transporting the extracted material is more expensive than transporting the finished product, a company can save money by moving production to the sources of that raw material.

Ex Bulk reducing industry

(EX) Copper is embedded in heavy rock when first mined, but it looses bulk as it is processed.

Bulk-gaining industries

An indutsry also known an weight-gaining, market-oriented, or market-dependent indutry, where the good increases in bulk as it is manufactured, so it is more conveneient for companies to locate the production near markets since the manufactured good will be more expensive to transport than the raw material.

Ex Bulk-gaining industries

(EX) Soft drinks become bulkier as processing occurs, the heaviest component of a soft drink is water, but since it is ubiquitous, companies try to add it as close to the market as possible, rather than pay to ship the weight of water.

Ubiquitous

existing or being everywhere at the same time : constantly encountered : widespread. (water is ___)

Limitations of Webers model

Model did not take into account labor-oriented industry/labor-dependent indsyry, where an industry is highly dependent on a workforce and will want to be near a source of those workers. didnt take energy-oriented industry either, where companies locate processing plants near low-cost sources of energy and ship the bauxite to the plant rather than process it near a mine where energy costs are high. Does not take into account environmental, governmental, and cultural concerns.

Break of bulk

The procedure of transferring cargo from one mode of transportation to another, such as from a ship to a truck or from a train to a warehouse.

Containerization

The system in which goods are loaded into standardized shipping units. The containers are intermodel(can be carried on a truck train, ship of plane.)

Footloose businesses

Manufacturing activities in which the cost of transporting both raw materials and finished product is not important for determining the location of the firm.an industry that can be placed and located at any location without effect from factors such as resources or transport.

EX Footloose business

(EX) These industries often have spatially fixed costs, which means that the costs of the products do not change despite where the product is assembled. Diamonds and Electronics industries are some examples of________ industries.

Wallerstein World Systems theory/Dependency theory/Core-periphery model

A model that explains the relationship between core countries, semiperipheries, and peripheries. Explains that countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other. Colonialism/ neocolonialism are the cause of global inequalities. Includes both political and economic elements. Businesses and governments in non-core countries borrow money to finance large-scale projects and purchase technology from core countries, increasing dependency. Countries can change categories.

Criticism of the Wallerstein World Systems theory/Dependency theory/Core-periphery model

A model that payed little attention to the pervasive influence of culture, establishes countries ca change ther status but does not explain how, fails to recognize role on NGO’s/private orgs.

Commodity dependence

When more than 60% of its exports are raw material. Semiperiphery and many periphery countries rely heavily on the export of commodities, raw materials.

Barter

Trade sometimes occurs through ___, a system of exchange in which no money can change hands.a good or service is traded for another good or service

Trade deficit

when a country imports more goods and services than it exports.it represents the amount by which the value of imports exceeds the value of exports over a certain period.

Statistics to indicate the overall wealth of a country

• Gross Domestic Product (GDP)

• Gross National Product (GNP)

• Gross National Income (GNI)

all measure the total output of a country to indicate a countryes overall ____.The higher the wealthier and more economically developed.

GNP and GNI

The dollar amount of all goods and services produced by a country’s citizens.Counts the money generated by citizens and businesses of a country, regardless of where the citizens are, or live, when money is earned.

EX GNP and GNI

(EX) what statistic would count the income of an american citizen working in south korea and the profits from an American-owned factory in mexico as part of the US ______. Mexican migrant workers in a foreign owned factory on US soil would not count.

GDP

The dollar amount of all final goods and services produced within a country in one year. Based upon geography, money generated by any business or person within a country. It does not matter if the money stays in the country where it was earned- the key is the money was generated within the country.

3 adjustments to statistics to make financial comparisons among countries

• Money converted into US dollars to make comparisons easier since countries use different currencies

• Each countrys total output is divided by the countrys total population to measure money per capita. Countries with a higher population will prob have lower per capita ratings

• PPP- purchasing power party

PPP-Purchasing power party

to adjust for the variations in the prices of goods in various countries, economist use _____, a measure of what similar goods cost in different countries.

Formal sector

The portion of the economy that is monitored by government, so people in it follow regulations and pay taxes. This is the portion of economic activity meausred by GDP, GNP, GNI.

Informal sector

The portion of the economy that is not monitored by government. the part of any economy that is neither taxed nor monitored by any form of government. Usually located in disamenity zones.(Latoin America model)

Gini index. gini coefficient, meaning of numbers

The higher the number, the higher the degree of income inequality. In general, periphery and semiperiphery countries have higher _____ than do core countries.

Gender inequality Index (GII)

provides insights into gender disparities in health, empowerment and the labour market.

Measures used by the Gender Inequality Index (GII)

• maternal mortality rate

• number of women that hold seats in government

• labor force participation rate of female and male populations

are all factors that help measure the _____ of a country. The lower the number the better. (The ___ for switzerland indicates that the country lost only 2.5 percent of its potential human development as a result of _____ in the country.)

High number of GII is good or bad?

The worst number for GII since it means more inequality

Gender Empowerment measure (GEM)

seeks to measure relative female representation in economic and political power. It considers gender gaps in political representation and in professional and management positions, as well as gender gaps in incomes.

Human Development Index (HDI)

Since money alone does not reflect human-well being, the _____ combines economic measure(GNI) with three social measures (life expectancy, expected years of schooling, and average years of schooling). Rankings of countries by ___ and income are often similar, however, usually some countries that are rich in oil or other natural resources rank higher in income than ___. (ex: Qatar)

High number of HDI is good or bad? Numbers near to one (since it is ranked from 0-1)

The best number for HDI

Glass Ceiling

a colloquial term for the social barrier preventing women from being promoted to top jobs in management. Women rarely obtain upper-level jobs in companies, the civil sector, or in governments, particularly in developing countries

opportunities for women through new labor

TNCs offer employment to women. decrease is birth rate(low birth rates) in countries such as Japana and Singapore demand for women participation in workforce.

Mircocredit & microfinance programs

NGO programs that help women by providing loans so they can start businesses or expand it. Active in south asia and south america.helps with opening bank accounts, etc.   attempt to help people break poverty cycle

Roswtows model- stages of economic growth model

A model based on a modernization theory that explains the shift from traditional to modern forms of society. Explains economic development as a linear progression. Explains how different inputs and levels of investment are required to allow countries to move from one stage to the next.

1.TRADITIONAL SOCIETY

Stage of economic growth model:

• Depends upon primary sector activities

• limited tech

2. PRECONDITIONS FOR TAKE-OFF

Stage of economic growth model:

• Advances in infrastructure

• International trade

• shift to commercial agriculture(improvement in agriculture)

3. TAKE-OFF

Stage of economic growth model:

• Starts industrialization and primary sector begins to shrink

• begins to urbanize- secondary sector

• core countries start exploiting their resources/labor

• BIG tech improvements/innovations

4. DRIVE TO MATURITY

Stage of economic growth model:

• economic growth greater than population

• invests in social infrastructure (schools, hospitals)

• new industries/ strengthen old ones

5. HIGH MASS CONSUMPTION

Stage of economic growth model:

• Spends money on nonessential goods

• purchases of higher order goods become common

Criticisms of economic growth model

A model that was based on America/European examples. Countries might regress in economic development so economic development wont alwasy be linear, suggested all countries have potential to dveelop which might not always be true. Failed to recognize most countries that achieved highest level of model did so by exploiting the resources of less-developed countries. Does not factor the the importance of neocolonialism.

Special Economic Zone (SEZ)-China

Regions within a country that provide different economic incentives with the objective of attracting foreign investment and promoting economic growth. Goal is to attract foreign investment from multinational corporations (MNCs)(tax breaks, less regulations, access to different services and infrastructure.)

Export Processing Zones (EPZ)

Regions within a country’s border that offer special economic regulations and incentives to promote the production of goods and services for export. Primary focus is to manufacture goods in the area and then export them. ____ offer foreign corporations major tax savings, inexpensive labor, fewer enviormneta. regulations, well-serviced industrial sites, and proximity to good transportation networks that allow for easy delivery of raw material and shipping of finished product. Near international airports, seaports, or land borders from where the products can be exported easily. (tax breaks) Majority of workers hired are female, decreasing birth rates.

Maquiladoras

export-processing cities that exist in northern Mexico, close to the border with the United States.They are major centers of industry for a wide variety of American companies who do their manufacturing in the region because it enables them to save a great deal of money. Second largest source of income in Mexico after petroleum. Recently has been decreasing though.

Free Trade Zones (FTZ)-Singapore

A region within a country where imported goods can be stored and processed without being subject to tariffs and trade barriers. Centered around a port or infrastructure that allows for the movement of goods in and out of an area. Where a foreign company can store, warehouse, transfer, or process without additional taxation or duties if goods are exported. no trade tax- no tariffs, incentivizing trade/imports

Free trade policies

goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. Policies that reduce barriers to trade.

Neoliberal policies

A set of reforms that reduced government regulations and taxation

Trading Blocs

Groups of countries that agree to a common set of trade rules. a type of intergovernmental agreement, often part of a regional intergovernmental organization, where barriers to trade (tariffs and others) are reduced or eliminated among the participating states.

International Financial Institutions (IFI)

Institutions that assist struggling countries with financing and provide professional advice on development.

International Monetary Fund (IMF)

The best known IFI created to aid countries in need of financial assistanmce. It helped with argentinas 2018 financial crisis and during COVID

Microloans-microlending

____ are designed to help entrepreneurs with small-scale businesses by providing small loans. try to help people break poverty cycle

Urban Blight

Homes that hold close to no value due to being abandoned, vandalized, and /or stripped

Detroit- Deindustrialization

_____ used to be a thriving industrial city- top manufacturing citys. As companies desired to reduce prices, they began to offshore. Caused ___ to suffer deindustrialization, making the city loose its main economic driver. People started leaving, causing the city an increase in urban blight.

Outsourcing

obtaining key products from alternative, cheaper locations - often abroad - than original home-sources. To reduce cost, comaonies obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source. delegating functions or tasks to a third-party vendor.contracting work out to an external organization. Contracted company might be less expensive because it specializes in the work and does not it more efficiently or may pay workers less.

Offshoring

Multinational manufacturing companies, some tertiary and quaternary sector companies move their back offices to other countries. getting work done in a different country. moving jobs or operations to another country.

EX Offshoring

(EX) Many software and manufacturing companies in the United States and Europe locate facilities in India and China to take advantage of the highly skilled but lower cost labor

International Division of labor

a concept that describes how countries utilize their comparative advantage to specialize in different economic activities, resources, and capabilities. Results in hierarchy of countries.

Assembly Line

Arrangement of workers, machines, and equipment in which the product being assembled passes consecutively from operation to operation until completed.

Fordism

A system of mass production that changed manufacturing and became standard practuce across industries.highly specialized and organized mass production at a single site.

Post fordism

a way of organizing work and production that focuses on flexibility, customization, and innovation rather than mass production and standardization. It emphasizes things like teamwork, technology, and creativity to meet diverse consumer demands in a globalized economy. where workers are trained in multiple tasks and produce custom goods

The substitution principle

in which business maximize profit by substututing one facxtor of production for another, has been applied to the labor force. the tendency to substitute one factor of production for another in order to achieve optimum plant location.

Automation

Increased _____, or replacement of workers with machines, allowed assembly line production to greatly increase.

optimum plant location

An ideal location is one where the cost of the product is kept to minimum, with a large market share, the least risk and the maximum social gain. It is the place of maximum net advantage or which gives lowest unit cost of production and distribution.

Just-in-time delivery

A system in which the inputs in the assembly process arrive at the assembly location when they are needed. reduces expensive storages cost of extra inventory— but at the risks of running short on inputs.

Locational interdependence

the location decision for one factory is dependent upon the location of other related factories. The finished product from one factory could be an input at another factory.

Agglomeration economies

Most businesses locate in proximity to similar businesses to take advantage of ____. Certain store locations close together can be more attractive to sutomers because they have easy and efficient acess to many products. resembles gravity model= the larger the mall, the more pull, or gravity, it will have to draw customers from farther away.

(EX: Large shopping districts)

Technopole

A hub for information-based industry and high-tech manufacturing. Located near universities well known for their computer, mathematics, engineering, science, and entreprenuruial business programs.

Ex Technopole

(EX) sillicon valley located near the university of california-berkely and stanford.

Growth pole or growth centers

a specific area or sector that drives economic development in a region. A point of economic growth. Each time businesses are attracted to the____, the “magnbet” becomes even stronger and attracts more businesses. The concentration of high-value economic development which attracts even more economic development. //OR// Refers to the concentration of highly innovative and technically advanced industries that stimulate economic development in linked businesses and industries.

Spin-off benefits or spread effects

Positive economic outcomes beyond the growth pole.positive outcomes in addition to the main outcome.

Backwash effects

Negative effects on one region that result from economic growth of another. (EX: the loss of highly educated young people from distant communities who migrate to growth poles for employment.)

Rust Belt

states were the manufacturing center of the United States, employing a large part of the population in manufacturing jobs. a region describe industry that has "____ out”, usually referring to the impact of deindustrialization, economic decline, population loss, and urban decay on these regions attributable to the shrinking industrial sector.The Northeast and lands around the Great Lakes (the region of the United States hit hardest by de-industrialization). includes:llinois, Indiana, Michigan, Missouri, New York, Ohio, Pennsylvania, West Virginia, and Wisconsin.

corporate parks or business parks

Office buildings congregate in ____, where they can take advantage pf agglomeratopon economies. Office buildings and other commercial spaces that congregate together. //OR// An area of land in which many office buildings are grouped together. (EX: Samsung in south Korea)

Reduction of emissions in cores and peripheries

Core countries have been able to reduce ____ more than non-core countries. Core countries have greater wealth to pay for cleaner technology and higher standards of living so they can better absorb changes.

Ecotourism

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

EX Ecotourism

people travelling to

• Costa Rica

• Australia

• Rwanda

• New Zealand

• Galapagos Islands

• Iceland

for the natural landcsape/activities with the enviorment

Economic development

Process whereby simple, low-income national economies are transformed into modern industrial economies. the ability of the income of countries or regions to create wealth in order to maintain the prosperity or economic and social well-being of their inhabitants.

World Bank

A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion and debt consolidation.

North-South Split- the brandt lime

divides the world between the developed North and the less developed South.

Top 5 industrailized regions

Eastern- North America, Western and Central Europe, Eastern Europe and Eastern Asia.

New International Division of Labor (NIDL)

A global division of labour associated with the growth of transnational corporations and the deindustrialization of the advanced economies. The most common pattern is for research and development in more economically developed countries, and cheap, less skilled labour in less economically developed countries.A system of employment in the various economic sectors spread throughout the world. a way of organizing global production where different countries specialize in different stages of manufacturing based on their strengths and resources.

Economic indicators of development

Infant mortality rate, life expectancy, literacy rate, natural increase rate, crude birth rate are all indicators of _____

Trade Deficit

occurs when a country imports more goods and services than it exports. This means that the value of the goods and services that the country imports is greater than the value of the goods and services it exports. can have a variety of economic and political consequences.

Gender Parity

Economic development increases the amount of gender equality in society. Women gain more roles in society as the societies advance in the DTM.

neoliberal policies

economic ideas that push for limited government intervention in markets and emphasize privatization, deregulation, and free trade. In simpler terms, it's about letting businesses and markets operate with minimal interference from the government, often with a focus on maximizing profit and competition.

Tariff

Taxes on items leaving or entering a country, often used to raise the price of imported goods.  tries to attempt people not to offshore- encourage people to produce in the country not others

Rust Belts

Regiosn that have a large number of closed factories

Eminent Domain

The authority of a government to take private property when doing so serves the publics interests.

Commodity Dependence and EX

A country exports are made up of the countries natural resources (60%+) (ex: venezuela with oil)