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66 Terms
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Industrial Revolution
a series of technological advances that started in the 18th century, resulted in more complex machinery that could make products faster and at lower costs
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Industrialization
the transformation of agrarian-rural societies to industrial-urban societies that are dominated by manufacturing and services
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deindustrialize
the process of decreasing reliance on manufacturing jobs. as a result of improved technology, companies needed fewer employees to produce the same quantity of goods. manufacturing companies transferred production to semi-periphery companies, where companies could ply workers lower wages and avoid regulations designed to protect workers and the environment
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cotton industry
small, home-based businesses that made goods
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rust belt
regions that have large numbers of closed factories
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primary sector
the focus is extracting natural resources from the earth. examples are fishing, farming, forestry, mining. it dominated the economy until the late 1800s, includes many high-risk jobs, is a small part of todays economy, there are few high-paying jobs, and most jobs require physical skill
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secondary sector
the focus of this sector is making products from natural resources. examples are manufacturing and building. it had significant frowth from 1840-1960s, and the wages vary greatly
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tertiary sector
the focus of this sector is providing information and services to people. examples are retail sales, medicine, and housekeeping. it was a small part of the economy until the mid 1900s, has the most people in the US labor force today, and wages vary widely
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quaternary sector
the focus of this sector is managing and processing information. examples are financial analysis, software development, and data science. it has a small percentage of employees, most jobs require advanced education or technical skills, high wages, and was considered part of the tertiary sector until recently
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quinary sector
the focus of this sector is creating information and making high level decision. examples are research and top managers in corporations of government. it has a very small percentage of employees, very high income, decisions can affect millions of people, and was considered part of the tertiary sector until recently
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break of bult point
the point at which the procedure of transferring cargo from one mode of transport to another occurs
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least cost theory
theory made to explain the key decisions made by businesses about where to locate factories. the theory proposed that factory owners would locate their factories where they could minimize their total costs by balancing 3 factors: minimizing transportation costs, minimizing labor costs, and maximizing agglomeration economies (the spatial grouping of several businesses to share costs, such as access road to a public highway)
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multiplier effect
the potential of a job to produce additional job.
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bulk gaining industries
also known as weight gaining, market oriented, or market dependent industries. the products made by these factories gain bulk when they are processed, such as soft drinks
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bulk reducing industries
also known as weight losing, raw material oriented, or raw material dependent industries. these products lose bulk during processing, such as copper (it is embedded in heavy rock until processing)
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core
places like most of Europe and North America, where standards of living are high and most of the world's products are consumed
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semi periphery
countries that have a standard of living lower than those in the “core,” but much higher than those in the “periphery.”
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periphery
weakest structural and economic position in the world system
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gross domestic product
the dollar amount of all final goods and services produced within a country in one year
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gross national product
the dollar amount of all goods and services produced ny a country’s citizens in one year
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gross national income per capita
GNI divided by a countries total population
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formal sector
the portion of the economy that is monitored by government, so people in it follow regulations and pay taxes
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informal sector
the portion of the economy that is not monitored by government, which includes activities that are done without pay (cleaning your own house, or cooking meals for your friend), or illegal activities (drug dealing and identity theft)
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Gini coefficient
one measure of the distribution of income within a population. the values range between 0 and 1. the higher the number, the higher the degree of income inequality. for example, a 0 would mean everyone’s income is the same, and a 1 would mean one person had all the income in a population and everyone else had none
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gender inequality index
measures several factors indicating gender inequality, such as reproductive health (maternal mortality rates \[death of a mother during birth\] and adolescent fertility rates \[under 19 years old\]), empowerment (the share of government seats held by each gender and the proportion of adult females and males with at least some secondary education), and labor market participation (the labor force participation rate of female and male populations above 15)
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human development index
this index combines GNI per capita with life expectancy, expected years of schooling, and average years of schooling. the scores range from 0-1, the higher values representing higher levels of development
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income distribution
distribution of wealth. countries can have similar GDP per capita but very different _____
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fertility rate
an estimate of the average number of children born to each female in her childbearing years
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infant mortality rate
measures how many babies, per thousand births, die before their first birthday
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access to health care
access to health care
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glass ceiling
women rarely obtain upper-level job companies, the civil service, or in governments, particularly in developing countries
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NGO
programs enacted by governments and international non-profit agencies empower women to find jobs outside their home
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microloans
small loans provided to individuals or small businesses
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rostows stages of economic growth
a theory that focuses on the shift from traditional to modern forms of society. the theory assumed that all countries wanted to modernize, and that all would, though at different speeds. it saw economic development as a linear progression
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wallersteins world system theory
an alternative model to rostow’s. this model is a dependency model, which means all countries are in a intertwined world system and all countries are dependent on eachother.
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dependency theory
all countries do not exist in isolation but are part of an intertwined world system, in which all countries are dependent on each other. this theory argues that colonialism and neocolonialism are the cause of global inequities.
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barter
exchange (goods or services) for other goods or services without using money
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comparative advantage
the ability to produce a good or service at a lower cost than others. for example, Chinese workers receive lower wages than US workers, so Chinese companies can manufacture goods at a lower cost.
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complementarity
a country has the income, goods, or services that a country desires
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neoliberal policies
a set of reforms that reduced government regulation and taxation
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world trade organization
a global organization created in 1995 to monitor the rules of international trade by providing a forum for negotiating trade deals, settling disputes between its members, supporting the needs of developing countries, and helping companies follow similar trade policies
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mercosur
Southern Common market, which includes several South American countries
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OPEC
the organization of the petroleum exporting countries
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tariffs
taxes imposed on imported products make these products less attractive and domestically produced goods more attractive
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international monetary fund
created in 1945 to aid countries caught in need of financial assistance.
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outsourcing
contracting work to noncompany employees or other companies. the contracted company might be less expensive because it specializes in the work and does it more efficiently
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economic restructuring
globalization has increased competition among companies based around the world. many companies have adopted new technology that needs fewer periphery and semi periphery ones with lower wages. as a result, many workers in core countries have lost jobs or had their wages cut.
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newly industrialized countries
countries that have just started to be industrialized - Thailand, Mexico, South Africa, Brazil, Turkey, Taiwan, India, and more
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new international division of labor
a changed system of employment in the various economic sectors throughout the world. in core countries, people design and develop products for the global market. tertiary, quaternary, and quinary jobs are increased. in semiperiphery countries, people often manufacture goods that are marketed in core countries. the employment in the secondary sector has increased and employment in the primary sector has declined. in periphery countries, there are large primary sectors and export minerals to core and semiperiphery countries for processing and consumption
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manufacturing zones
locations known for a concentrated amount of manufacturing. the world's major manufacturing regions are found in North American, Europe, and East Asia, though other manufacturing centers are also found elsewhere.
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maquiladoras
SEZ’s in mexico
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special economic zones
SEZ’s in china
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free trade zones
SEZ’s in singapore
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export processing zones
special manufacturing zones used to attract TNC’s and MNC’s
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fordism
system of mass production using an assembly line
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post fordist
after workers started to be replaced by machines, many workers became unemployed. the remaining workers were trained to do many jobs. this system was called ___
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just in time delivery
a system in which the inputs in the assembly process arrive at the assembly location when they are needed, reducing storage costs
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agglomeration
when businesses locate in proximity to similar businesses
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technopoles
a hub for information-based industry and high-tech manufacturing
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growth poles
the economic stimulus associated with technopoles often makes them act as ____
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brownfields
sites of abandoned factories
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sustainability
using the earth’s resources without doing permanent damage to the environment
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sustainable development
addressing problems caused by depletion of natural resources, mass consumption of goods, pollution of air and water, and climate change
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ecological footprint
impact on the environment
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ecotourism
travel to a region by people who are interested in its distinctive and unusual ecosystem
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sustainable development goals
17 goals created by the UN to create awareness of environmental challenges. countries were given 15 years to achieve the goals