unit 7

Backroom operations

The internal workings or activities of a business or organization that occur behind the scenes.

Break-of-bulk point

A location where goods are transferred between different modes of transportation for efficient distribution.

Climate change

Long-term alteration of temperature and weather patterns due to human activities, leading to global warming.

Commodity dependence

Economic reliance on exporting specific commodities, making countries vulnerable to market fluctuations.

Comparative advantage

Ability to produce goods/services at lower opportunity cost, leading to specialization and trade efficiency.

Complementarity

Trading goods/services that benefit from each other's differences, enhancing strengths or meeting needs.

Container (shipping container/containerization)

Standardized metal boxes revolutionizing global trade for efficient cargo handling.

Core

Economically dominant countries exploiting peripheral and semi-peripheral countries in dependency theory.

Dependency theory

Explains global inequality through historical exploitation between core and peripheral countries.

Economic imperialism

Exerting economic influence over countries through trade agreements, investments, or debt.

Economy of scale

Cost advantages from increased production volume, lowering average costs per unit.

Environmentalism

Movement advocating for natural environment protection and sustainable practices.

European Union

Political and economic union of European countries promoting integration and cooperation.

Export processing zone

Designated area for foreign companies to import, manufacture, and re-export goods with incentives.

Free trade zone

Geographic area with minimal customs restrictions to promote trade and economic development.

Gender Empowerment Measure (GEM)

UN measure assessing gender equality in political and economic participation.

Gender gap(s)

Disparities between men and women in education, employment, income, and representation.

Globalization

Increasing interconnectedness among countries through trade, technology, and communication.

Gross Domestic Product (GDP)

Total value of goods and services produced within a country's borders annually.

Gross National Income (GNI)

Total income earned by a country's residents, including domestic and international sources.

Gross National Product (GNP)

Total value of goods and services produced by a country's residents domestically and abroad.

Growth pole

Area stimulating economic development and growth in surrounding regions.

Human Development Index (HDI)

UN index measuring health, education, and standard of living.

Import quota

Government restriction on imported goods quantity to manage trade imbalances.

Income distribution

Distribution of a nation's total income among its population, reflecting wealth disparities.

Industrial Revolution

Transformation from agrarian to industrial societies in the late 18th and early 19th centuries.

Industrialization

Transition to manufacturing-based economies with urbanization and technological advancements.

Informal economy

Unregulated economic activities characterized by irregular employment and low wages.

International Monetary Fund (IMF)

Organization promoting global monetary cooperation and economic growth.

Import substitution

Strategy to reduce dependency on imports by promoting domestic production.

Least cost theory

Economic theory minimizing production costs for optimal industrial facility location.

Maquiladora

Manufacturing plant near the US border for duty-free assembly and re-export.

Mass consumption

Widespread availability and consumption of goods associated with rising standards of living.

Mercosur

South American trade bloc promoting economic integration among member countries.

Microloan

Small loan to individuals for starting or expanding businesses in developing countries.

Neocolonialism

Continued economic dominance over formerly colonized countries by powerful nations.

Neoliberalism (policy)

Advocacy for free-market capitalism, deregulation, and reduced government intervention.

Off-shoring

Relocating business operations to other countries for cost advantages.

OPEC

Organization coordinating oil production levels and pricing policies.

Outsourcing

Contracting business functions to external providers for efficiency.

Periphery

Less developed regions serving as sources of raw materials and labor.

Post-Fordism

Socioeconomic system emphasizing flexibility and innovation over mass production.

Primary industries (sector)

Economic activities involving natural resource extraction.

Quaternary industries

Economic activities involving knowledge creation and dissemination.

Quinary industries

Economic activities involving high-level decision-making roles.

Rostow’s Stages of Economic Growth

Model of economic development through stages of growth.

Secondary industry (sector)

Economic activities involving raw material processing into finished goods.

Semi-periphery

Intermediate regions between core and periphery countries in world systems theory.

Special Economic Zone (SEZ)

Designated area with economic incentives to attract foreign investment.

Structural adjustment program

Economic reforms imposed by international financial institutions on developing countries.

Subsidy

Financial support by the government to reduce costs or stimulate economic activity.

Tariff

Tax on imported/exported goods to protect industries or regulate