Unit 6: Industrialization & Developement

Fordism (early 20th century)

The system of mass production (Henry Ford’s assembly line) became the standard practice across industries

Weber’s “Least Cost Theory” of Industrial Location

Illustrates how industrial locations chosen to minimize total costs, primarily considering transportation, labor, and agglomeration

Agglomeration

Spatial clustering of people, businesses, or activities in a single area for mutual benefit, leading to economic growth, innovation, and job creation

The Location Triangle

The Weber’s model, where market for a good is at one location and the resources needed to make the good are obtained at two other locations

Weight/Bulk-Gaining Industry

A manufacturing activity where the final product weighs more or takes up more volume than the raw materials

Weight/Bulk-Reducing Industry

A manufacturing operation where the final product is lighter or smaller than the raw materials used

Brick-Bunny

One raw material is heavier than the other, production will be closer to the heavier item

Break-of- Bulk Points

Points where portions of cargo are unloaded and redistributed for redirection

Sectors of the Economy

Deindustrialization

The reduction of the manufacturing industry within an economy

Right to work

state laws in the US that prohibit requiring employees to join a union or pay union dues as a condition of employment

Stagnant Demand

a period of very slow or no growth in the demand for goods and services

Maquiladoras

Foreign-owned assembly plants in Mexico (mostly textiles and consumer electronics)

New International/Global Division of Labor

Transfer of some types of jobs, especially those requiring low-paid, less-skilled workers, from more developed to less developed countries.

Outsourcing

Business practice in which companies use external providers to carry out business processes

Offshoring

a business practice where a company moves some of its operations, such as manufacturing, customer support, or software development, to another country

Gini Coefficient

Measures the distribution of income within a population

BRICS

an acronym for the powerful grouping of the world's leading emerging market economies, namely Brazil, Russia, India, China and South Africa

Purchasing Power Parity (PPP)

a measure of economic productivity that allows for the comparison of different countries' economic performance by adjusting for differences in price levels

Net National Product (NNP)

The total value of goods produced and services provided in one year, after depreciation.

Development

The process of improving the material conditions of people through the diffusion of knowledge and technology

The Brandt Line

Visual depiction of the N/S divide between economies based on GDP per capita. Proposed by Willy Brandt in 1980s\

Dependency Ratio

argues developing countries remain dependent on developed countries for economic and social growth, leading to a cycle of underdevelopment

Debt for Nature Swap

Forgiving foreign debt in exchange for preserving nature (Ecotourism)

IMF (International Monetary Fund)

an organization that promotes global economic stability by providing financial assistance, policy advice, and technical assistance to member countries

Structural adjustment loans

loans from the IMF/World Bank to developing nations needing economic reform

Foreign Debt

involves developing nations borrowing from foreign entities (IMF, World Bank, other countries) for development

Export Processing Zones

designated areas in countries, often developing ones, offering incentives like tax breaks and streamlined customs for companies to manufacture goods.

SEZs: Free-trade zones

Government-designated areas offering incentives like tax breaks, simpler regulations, and duty-free treatment to boost trade and investment

Neoliberal Policies

a set of economic principles that promote free markets, deregulation, and reduction of government intervention in the economy.

Complementarity

the degree to which one place can supply something that another place demands.

Comparative Advantage

a situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor.

NGO’s (Nongovernmental Organizations)

Mostly non profit organizations that try to help, provide opportunities in the most impoverished regions.

Just-in-time Delivery

Inventory strategy where materials, parts, or finished goods arrive exactly when needed for production or sal

Footloose Industry

a business not tied to a specific location because it is not reliant on bulky raw materials

Ubiquitous

The ability to be found anywhere at any time; pervasive.

Post Fordism

Replaced traditional mass production by shifting to flexible specialization driven by technology