Unit 7 vocab

the process of using machines and large-scale processes to convert raw materials into manufactured goods.

the process of using machines and large-scale processes to convert raw materials into manufactured goods.

Industry

the basic substances such as minerals and crops needed to manufacture finished goods.

Raw materials

a place where products are sold.

Market

small home-based businesses that made goods, which depended on intensive human labor since people used simple spinning wheels, looms, and other tools.

Cottage industries

starting in the 18th century, a series of technological advances known as water or steam power could make products faster and at lower costs, than could cottage industries

Industrial Revolution

stretched across the midlatitudes of the Northern Hemisphere, including the northeastern and midwestern United States, much of Europe, part of Russia, and Japan.

Industrial Belt

a process of decreasing reliance on manufacturing jobs, resulting in improved technology, companies needed fewer employees to produce the same quantity of goods.

Deindustrialization

regions that have large numbers of closed factories, because of the rusting metal, the region of the United States hit hardest by deindustrialization–the Northeast and lands around the Great Lakes.

Rust Belt

(farming, mining, fishing forestry) dominated the economy until the 1800s including many high-risk jobs, and few high-paying jobs, most jobs require physical skill.

Primary Sector

(manufacturing, building) significant growth from the 1840s to the 1960s, wages vary greatly.

Secondary Sector

(retail sales, medicine, housekeeping) a part of the economy until the mid-1900s, most people in the US labor force today, wages vary widely.

Tertiary Sector

(financial analysis, software development, data science) small percentage of employees, most jobs require advanced education or technical skills, high wages, considered part of the tertiary sector until recently.

Quaternary Sector

(research, top managers in corporations/government) very small percentage of employees, very high income, decisions can affect millions of people, considered part of the tertiary until recently.

Quinary Sector

the potential of a job to produce additional jobs. (Secondary sector has the greatest multiplier effect)(can work in reverse)

Multiplier Effect

German economist Alfred Weber developed an influential theory, to explain the key decisions made by businesses about where to locate factories. (minimizing transportation costs, labor costs, maximizing agglomeration economies)

Least Cost Theory

the spatial grouping of several businesses to share costs, such as an access road to a public highway or the development of a workforce with special skills.

Agglomeration Economies

(Weber’s model) the 3 points of the triangle are the market for a good and two resources needed to make the good.

Locational Triangle

(copper production) (weight-losing, raw material-oriented, raw-material-dependent industry) raw materials losing bulk during processing, factories are closer to resources.

Bulk-Reducing Industry

(soft drinks/water)(weight-gaining, market-oriented, market-dependent industries) the final product becomes heavier as processes, and factories move closer to the market.

Bulk-Gaining- Industry

is highly dependent on a workforce and will want to be near a source of those workers. (high-tech companies located at major universities of that skill)

Labor-oriented Industry/Labor-dependent Industry

the procedure of transferring cargo from one mode of transportation to another

Break-of-Bulk

the system in which goods are loaded into a standardized shipping unit

Containerization

can be carried on a truck, train, ship, or plane. (a container might be loaded in a computer factory in China and not unloaded until after it has been carried by train to a port on the coast, transported across the ocean to the United States on a ship, taken by a truck to Dallas, and then finally delivered to a warehouse)

Intermodal

businesses can pack up and leave for a new location quickly and easily.

Footloose

are designed to impress clients.

Front Offices

companies may decide to locate the rest of their employees in less expensive office spaces.

Back Offices

⤵Gross National Product(GNP)

the total value of all goods and services produced by a country’s economy in a given year (all goods/services produced by corporations and individuals of a country).

⤴Gross National Income(GNI)

the total amount of money earned by a nation’s people/businesses (measures/tracks a nation’s wealth from year to year).

Gross Domestic Product(GDP)

the total monetary or market value of all the finished goods and services produced within a country's borders in a year.

Remittances

the profits from a foreign-owned company were leaving the county and going back to the home country (migrant workers sending their earnings back to family members in their home country).

Per Capita

amount per person.

Purchasing Power Parity(PPP)

a measure of what similar goods cost in different countries.

Formal Sector

is the portion of the economy that is monitored by the government, so people in it follow regulations and pay taxes.

Informal Sector

the portion of the economy that is not monitored by the government, activities that are done without pay, some activities are legal, and some activities are always illegal.

Gini Coefficient/Gini Index

measures the distribution of income within a population, the higher the number, the higher the degree of income inequality. (Zero would mean the population had no inequality, and everyone's income was exact;y the same, 1 would mean total inequality, one person had all the income and everyone else had none.)

Literacy Rate

the percentage of the population that can read and write, usually at an 8th-grade+ level.

Gender Gap

differences in the privileges afforded to males and females in society.

Gender Inequality Index(GII)

a composite measure of several factors indicating gender disparity. (reproductive health, empowerment, labor market participation/ measures the percentage of potential human development lost due to gender inequality.

Human Development Index(HDI)

combines one economic measure (GNI per capita) with 3 social measures (life expectancy/standard of living, expected years of schooling, and average years of schooling)(higher levels represent high development)

Non-Governmental Organizations(NGOs)

empower women to find jobs outside the home.

Microcredit/Microfinance

programs to provide loans often to women to start or expand a business.

Stages of Economic Growth Model

a modernization theory that focuses on the shift from traditional to modern forms of society, based on how the United States and western European evolved and how people live.

World’s System Theory/Dependency Model

countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other.

⤴Core-Periphery Model

divided countries into 3 types, core, semi periphery, and periphery.

Commodities

raw materials such as coffee, cocoa, and oil, that have not undergone any processing. (semiperiphery and periphery rely heavily on the export of these.)(Sub-Saharan Africa, Latin America, and the Caribbean region.)

Barter

a system of exchange in which no money exchanges hands.

Comparative Advantage

the ability to produce a good or service at a lower opportunity cost/cost than others. (China’s workers receive lower wages than U.S. workers, so Chinese companies can manufacture goods at a lower cost.)

Complementarity

when a country has the income, goods, or services that another country desires.

Free Trade

policies or laws, that reduced 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. (USMCA, Mercosur/Southern Common Market, OPEC, EU, WTO)

World Trade Organization (WTO-168 members-98% of global trade)

created in 1995, the global organization, 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 international trade policies.

Tariffs

taxes on items leaving/entering a country (raises the price of imported goods).

Trade Embargo

an embargo is a government order that restricts commerce with a specified country/exchange of specific goods (political reasons).

Mercosur

(southern common market) includes several South American countries/the main objective of Mercosur is to bring about the free movement of goods, capital, services, and people among its member states.

Organization of the Petroleum Exporting Countries (OPEC)

a permanent intergovernmental organization of 13 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries (Venezuela, Algeria, Nigeria, Iraq, Iran, Libya, Kuwait, Gabon, Angola, Saudi Arabia, Republic of Congo, United Arab Emirates, and Equatorial Guinea)

European Union (EU)

promotes peace, its values, and the well-being of its citizens, offering freedom, security, and justice without internal borders, while also taking appropriate measures at its external borders to regulate asylum and immigration and prevent and combat crime/has open borders; allows free movement of people as well as good from one country to another.

U.S-Mexico-Canada Agreement (USMCA)

will support mutually beneficial trade leading to freer markets, fairer trade, and robust economic growth in North America/(Free-trade Agreement)

International Monetary Fund (IMF)

created in 1945 to aid countries caught in need of financial assistance/promotes economic stability for countries dealing with financial struggles/promote monetary cooperation, facilitates international trade, increase employment, encourage, sustainable growth, and reduce poverty. (new, more manageable loans–assistance in overhauling the country's economic system.

Outsourcing

(to reduce costs, companies use this/secondary, semi periphery) contracting work to non-company employees or other companies (company might be less expensive since it specializes in work, lower wages, manufacturing work/administrative functions, such as handling payroll, and paying taxes)(comparative advantage)

Offshoring

companies will locate services/manufacturing in other countries if the cost of doing business is lower and worth the risk of moving some operations overseas (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)

Economic Restructuring

shift in primary economic activity from a focus on production to a focus on services. (Rostow)

New International Division of Labor

a changes system of employment in the various economic sectors throughout the world. (globalization/core-tertiary, quaternary, quinary/ semiperiphery-secondary, a decline in primary/periphery-primary increase)

Basic Economic Activity

actions that create new wealth for a region (most manufactured foods and commercial farm products/are usually sold beyond the area where the factory/commercial farm is located, so new money from outside the area is used to purchase the products)(city-forming activities)

Non-Basic Economic Activity

(a grocery store) does not generate new money for the area, but still provides services/goods, but doesn’t really play a role in bringing money into the local economy (city-serving activities/limited multiplier effect)

Transnational corporations(TNCs)/Multinational Corporations (MNCs)

businesses that operate in multiple countries/the jobs and wealth these corporations can bring to a country, government compete with each other to entice them to their shore.

Export-Processing Zones(EPZs)

offer foreign corporations major tax savings, inexpensive labor, fewer environmental regulations, well-serviced industrial sites, and proximity to good transportation networks that allow for easy delivery of raw material and shipping of finished products.

Special Economic Zones(SEZs)

an area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign businesses/investment.

Free-Trade Zones(FTZs)

locations where a foreign company can store, warehouse, transfer, or process without additional taxes or duties if goods are exported/ specific regions that have free trade between other nations and themselves.

Postindustrial Economy

one that no longer employs large numbers of people in factories but has people who provide services and process information.

Assembly Line

in which an item is moved from worker to worker, with each repeatedly performing the same task/allowed companies to rapidly produce more standardized products and with less-skilled workers than ever before.

Fordism

a system of mass production, that changed manufacturing and became standard practice across industries.

Substitution Principle

in which businesses maximize profit by substituting one factor of production for another, has been applied to the labor force.

Post-Fordist

industrial adaptability (the 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

a system in which the inputs in the assembly process arrive at the assembly location when they are needed/reduces the expensive storage costs of extra inventory, but at risk of running short on inputs.

Locational Interdependence

the location decision for one factory is dependent upon the location of other related factories/allows businesses to use the same services, such as transportation companies or accounting firms that might specialize in providing service to the industry.

Agglomeration economies

most businesses, whether they are secondary, tertiary, or quaternary businesses, located in proximity to similar businesses to take advantage of this.

Technopole

is a hub for information-based industry and high-tech manufacturing/often located near universities well known for their computer, mathematics, engineering, science, and entrepreneurial business programs.

Growth poles/centers

technopoles often act as these/ the concentration of high-value economic development in the growth pole attracts even more economic development.

Spin-off benefits/Spread effects

are positive economic outcomes beyond the growth pole/farmers that are 100 miles away from a growth pole should have expanded markets in which to sell their produce, resulting in increased sales and profits/multiplier effect.

Back-wash effects

negative effects on one region that result from economic growth in another region/ the loss of highly educated young people from distant communities who migrate to growth poles for employment/distant communities can face depopulation, loss of tax revenue, and the closure of various services.

Brownfields

(postindustrial landscape) one of deteriorating buildings surrounded by weeks, marked by broken or boarded-up windows, and rusting metal/abandoned factories.

Rust Belt

because of rusting metal, the region of the United States was hit hardest by deindustrialization, the Northwest, and lands around the Great Lakes.

Corporate Parks/Business Parks

office buildings and other commercial spaces are more likely to be evident on the landscape, where they can take advantage of agglomeration economies.

Agglomeration

a process involving the clustering/concentrating of people/activities (manufacturing plants, well-established supply networks, transportation links, supply of trained workers, specific infrastructure—break of bulk/seen in detroit+Silicon Valley)

Sustainability

using the earth's resources without doing the permanent damage to the environment.

Sustainable Development

the goal is to address problems caused by the depletion of natural resources, mass consumption of goods, pollution of air and water, and the impact of climate change (can apply at any scale).

Ecological Footprint

impact on the environment/how much land is needed to provide one person with resources and to handle the person’s garbage.

Ecotourism

travel to a region by people who are interested in its distinctive and unusual ecosystem/the money spent by ecotourists and the jobs created can provide incentives to people to protect these rare areas rather than convert them to agriculture or industry (if too many people visit a fragile ecosystem, they can damage it even as they learn to appreciate it.

Sustainable Development Goals (SDGs)

(17 new goals) replaced MDGs, which were intended to finish the job that the MDGs had begun, but with more awareness of environmental challenges and ways to overcome them/UN gave countries 15 years to achieve the goals.

Millennium Development Goals (MDGs)

(was 8 steps) they helped countries with low levels of human development improve the lives of their citizens.

Environmental Integrity

trips/visits to beautiful landscapes, keeps that by conserving the environment.

Social Equity

people of varied cultures provide unique opportunities to learn about the likes of other people.

Economic Vitality

tourism allows communities to have a stable source of income meaning they do not need to alter the environment to earn income or leave the city for work.