Unit 7 vocab

Primary Economic Sector

Activities that are extractive (take natural resources)

Secondary Economic Sector

Activities that process the item or manufacture of something from it (industry)

Tertiary Economic Sector

Activities that revolve around the idea of providing a service

Quaternary Economic Sector

Activities that involve processing information; especially in the areas of finance, insurance, & real estate (FIRE)

Quinary Economic Sector

Activities that are characterized by decisions makers, such as executives or those who serve in government roles

Gross Domestic Product (GDP)

Total value of goods produced and services provided in a country during one year

Gross National Product (GNP)

Measures the value of goods and services produced by country's citizens both domestically and abroad

Gross National Income Per Capita

GNP divided by a country's population so that you have an estimated income per person

Formal Structure of the Economy

Taxed, regulated by the government (5 economic sectors)

Informal Structure of the Economy

Neither taxed, nor monitored by the government (black market/under the table)

Gender Inequality Index (GII)

Measures gender inequality, and looks at the reproductive health, indices of empowerment, and labor-market participation

Human Development Index (HDI)

Examines three features of a country's human development: long and healthy life, knowledge, and standard of living

Income Distribution

The way the national income is divided into "shares" ranging from the poor to the rich

Fertility Rate

The average number of children per woman

Infant Mortality Rate (IMR)

The total number of deaths in a year among infants under 1 year old for every 1,000 live births in a society

Literacy Rate

Percentage of people who can read and write

Non-Governmental Organization (NGO)

Private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development

Rostow's Stages of Economic Growth

A model of economic development that describes a country's progression which occurs in five stages transforming them from least-developed to most-developed counties

Dependency Theory

The idea that resources flow from poor and underdeveloped states (the periphery) to the wealthy states (the core)

Commodity Dependence

More than 60% of a country's exports and economic health are tied to one or two resources such as oil, timber, or plantation crops

Economic Interdependence

A reliance on others, as they rely on you, to provide goods and services to be consumed

Complementarity

Trade is greater if each side has something the other wants or needs

Comparative Advantage

One trade partner might be better at producing agricultural goods while the other partner might be better at manufacturing (each will specialize with what they are good at)

Interdependency

Mutual dependency, in which the actions of nations reverberate and affect one another's economic lifelines

Neoliberalism

Trade policies that favor free market economies and privatization over governmental control; seek lower barriers (duties, taxes, tariffs) to make it easier to trade

World Trade Organization (WTO)

The only international body dealing with the rules of trade between nations

Geographic Scale

The scale at which a geographer analyzes a particular phenomenon, for example: global, national, census tract, neighborhood, etc.

Outsourcing

Moving jobs in manufacturing and production, as well as jobs in services, outside an area or country in which a company is located

Economic Restructuring

Urban areas shift from manufacturing (industry to factories) to a service sector economic base; deindustrialization; industrial to service

Special Economic Zones (SEZs)

An area of a country where the business and trade laws are different from other regions of the country

Free-Trade Zones

Usually an area around an airport or seaport where goods can be landed, stored, handled, manufactured, and re-exported

Export Processing Zones (EPZs)

Zones typically in developing countries that focus on manufacturing for export

International Division of Labor

An outcome of globalization and the inter connectedness of our world economy; a shift of manufacturing from developed countries to developing countries

Post-Fordist Methods of Production

Automation; robots and computer systems replaces the human assembly line

Multiplier Effects

Additional economic opportunities that van be generated

Economies of Scale

Cost advantages reaped by companies when production becomes efficient

Agglomeration

The clustering of similar industries in the same area

Just-In-Time Delivery

Companies receive raw materials or goods only as they need them for the production process, which reduces inventory costs

Growth Poles

Concentration of highly innovative and technically advanced industries

Industrialization

The development of industries for the machine production of goods

Ecotourism

Tourism based in natural environments - often environments that are threatened by booming industrialization or development (helps protect environment and provide jobs)

Sustainability

The ability to keep in existence or maintain

Rustbelt

A term for the region straddling the upper Northeastern United States, the Great Lakes, and the Midwest States, referring to economic decline, population loss, and urban decay due to the shrinking of its once powerful industrial sector

Age of Mass Consumption

Economy shifts from production of heavy industry to consumer goods

Backwash Effect

When one region's economic gain translates into another region's economic loss

Basic Industry

These activities produce goods for export and generate an inflow of money and more jobs through the multiplier effect and agglomeration

Bid Rent Theory

Locations close to the central city have the highest rent or land costs due to accessibility

Break-of-Bulk Point

Locations where good are transferred from one type of carrier to another

Brick-and-Mortar Industry

Industry with actual stores in which trade or retail occurs; doesn't solely exist on the internet

BRICS Countries

Brazil, Russia, India, China, South Africa

Bulk-Gaining Industry

If the finished product costs more to transport, the firm will be located closer to the market to reduce cost (bottling soft drinks, beer, bread products, etc.)

Bulk-Reducing Industry

If the finished product cost less to transport, the firm will be located closer to the raw materials to reduce cost (smelting, steel production, paper products)

Commodity

A raw material or primary agricultural product that can be bought and sold, such as copper or coffee

Commodity-Dependent Developing Countries (CDDC)

Countries that have a heavy reliance on the export of primary commodities

Containerization

Grouping individual items into an economical shipping quantity and sealing them in protective containers for transit to the final destination

Cottage Industry

Manufacturing based in homes rather than in a factory, commonly found before the Industrial Revolution

Deglomeration

The movement of activity, usually industry, away from areas of concentration

Deindustrialization

Multinational Corp. moving manufacturing to developing countries for lower production costs resulting in large manufacturing plants being abandoned in cities; creates rust belts

Drive to Maturity

Development of wider industrial and commercial base

Emerging Economies

Term that has gradually replaced the term "developing countries" since the 1990s

Entrepôt

A duty free or tariff free pert, city or trading post where merchandise map be imported, stored and/or traded, typically to be exported again

European Union (EU)

A free trade zone encompassing 27 European countries

Fixed Costs

Remain the same regardless of your level of sales, depending on your type of business, some typical examples would be rent, interest on debt, insurance, plant and equipment expenses, business licenses, and salary of permanent full-time workers

Footloose Industry

Site and situation are not important in the location of the business and had neither a market nor material orientation

Four Tigers

High-growth economies of Hong Kong, Singapore, South Korea, and Taiwan

Freight Rates

The cost to deliver cargo from one point to another

Friction of Distance

The increase in time and cost that usually comes with increasing distance

Gender Parity

A policy by which women have to make up either a certain number of the candidates in an election or a certain number of those elected

Global Financial Crisis

A worldwide period of economic difficulty experienced by markets and consumers

Greenhouse Effect

Heat from the earth is radiated into the atmosphere preventing heat from disappearing into space and keeps Earth warm enough to sustain life

Horizontal Integration

Ownership by the same firm of a number of companies that exist at the same point on a commodity chain

Informal Economy

Economic activity that is neither taxed nor monitored by a government; and is not included in that government's Gross National Product; as opposed to a formal economy

Infrastructure

The basic physical and organizational structures and facilities (e.g., buildings, roads, and power supplies) needed for the operation of a society or enterprise

Intermodal Connections

Many routes of transportation that connect

Labor-Intensive

Work needing a large workforce or a large amount of work in relation to output

Least-Cost Location

The location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration

Line Haul Costs (Over-The-Road)

Costs incurred in transporting goods over a route but not including cots of loading and unloading

Manufacturing Exports

Products that are produced and shipped to another country

Maquiladora

A manufacturing plant owned by a foreign country (US/Mexican border)

Mercosur

Pact among Argentina, Brazil, Paraguay, and Uruguay to establish a free trade area

Mixed Economy

Economic system that has some combination of traditional, command, and market economies

North American Free Trade Agreement (NAFTA)

University A trilateral trade block in North America created by the governments of the U.S., Canada, & Mexico (now known as USMCA)

Newly Industrialized Country (NIC)

Refers to countries that are building up their industries and infrastructure, these countries are generally shifting from an agricultural to and industrial economy

Nonbasic Industry

Dependent entirely, or almost entirely, on local demand, and usually employed local workers (services, public schools, local government, retail)

Per Capita

Per Person

Postindustrial

A shift from predominantly secondary economic activities

Primary Activities

Extractive economic activities such as mining or traditional farming

Right to Work State

A U.S. state that has passed a law preventing a union and company from negotiating a contract that requires workers to join a union as a condition of employment

Site

The physical character of a place (land, labor, available capita)

Situation

The location of a place relative to other places (transportation of materials to and from a factory)

Special Administrative Zone

An area that receives special political rights, freedoms, and government (Hong Kong, China)

Sunbelt

A region of the United States generally considered to stretch across the South and Southwest that has seen substantial population growth in recent decades, partly fueled by a surge in retiring baby boomers who migrate domestically, as well as the influx of immigrants, both legal and illegal

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs

Take Off

Technology innovation and industrialization

Technopole

Areas devoted to research, development, and scale of high technology products; they usually locate near colleges where their is high skilled labor (Silicon Valley)

Terminal Costs

Transport costs incurred by the handling of goods at each end of a route, or at break-of-bulk point

Space-Time Compression

The reduction in the time it takes for something to reach another place

Traditional Economy

An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next

Transaction Costs

Any cost associated with the exchange of a good from one hand to another

Transnational Corporation (TNC)

Has its headquarters in one country and other operations in one or more other countries