unit 7 aphug

Industrial Revolution

A period of rapid growth in the use of machines in manufacturing and production that began in the mid-1700s

Second Agricultural Revolution

improved methods of cultivation, harvesting, and storage of farm produce in the 1700s and 1800s

Enclosure Acts

a series of United Kingdom Acts of Parliament which enclosed open fields and common land in the country, creating legal property rights to land that was previously considered common.

textile

woven cloth

Flying shuttle and spinning Jenny

made cotton and wool production more efficient

Steam Engine (James Watt)

A machine that turns the energy released by burning fuel into motion. Steam power was then applied to machinery.

cottage industry

a method of production in which tasks are done by individuals in their rural homes

interchangeable parts

Identical components that can be used in place of one another in manufacturing

consumerism

A preoccupation with the purchasing of material goods.

raw materials

Unprocessed natural products used in production

colonization

The expansion of countries into other countries where they establish settlements and control the people

Economic Sectors

"sections" of an economy. The three main sectors are the primary, secondary, and tertiary sectors.

Primary Sector

the part of the economy that draws raw materials from the natural environment (farming, mining, logging, etc..)

Secondary Sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

Tertiary Sector

the part of the economy that involves services rather than goods (tour guide, waiter, housecleaner, sales clerk)

Quaternary Sector

Service sector industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, insurance, real estate, and legal services.

Quinary Sector

Service sector industries that require a high level of specialized knowledge or technical skill. Examples include scientific research and high-level management.

service sector jobs

Produces a service rather than a product. Information processing, finance, medicine, transportation, education. (aka tertiary, quaternary, quinary)

LDCs / periphery

most people work in primary sector

LDCs / semi-periphery

more jobs in secondary sector (manufacturing)

MDCs / Core

More jobs in service sectors (tertiary, quaternary, quinary)

Break-of-bulk point

A location where large shipments of goods are broken up into smaller containers for delivery to local markets.

container shipping

has made it easier to combine water transportation with land transportation

least cost theory

a concept developed by Alfred Weber to describe the optimal location of a manufacturing establishment in relation to the location of raw materials, cost of transport and labor

Agglomeration

Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources.

Bulk-Reducing Activity

An industry in which the final product is smaller and lighter than the inputs it is made of (ex: ethanol production)

material-oriented location

when the location of an industry is close to where the raw materials are produced

Bulk-gaining industry

An industry in which the final product weighs more or comprises a greater volume than the inputs (example- beverage bottling, car production)

market oriented location

when the location of an industry is close to where the product will be sold

Formal Economy

The legal economy that is taxed and monitored by a government and is included in a government's Gross National Product; as opposed to an informal economy

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

Human Development Index (HDI)

Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy

uneven development

The increasing gap in economic conditions between core and peripheral regions as a result of the globalization of the economy.

Gross Domestic Product (GDP)

The sum total of the value of all the goods and services produced in a nation

Gross National Product (GNP)

The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year. (similar to GNI)

Gross National Income (GNI) per capita

The value PER PERSON of the output of goods and services produced in a country in a year, including money that leaves and enters the country

infant mortality rate (IMR)

The total number of deaths in a year among infants under one year old for every 1,000 live births in a society. (global average is 30, MDCs under 5, Sub-Saharan Africa highest with 60+)

Maternal Mortality Rate (MMR)

annual number of deaths of women from pregnancy-related causes per 100,000 live births (US=15, most MDCs=under 5, South Asia=150, Sub-Saharan Africa=300)

Literacy Rate

The percentage of a country's people who can read and write.

Gender Inequality Index (GII)

An indicator constructed by the U.N. to measure the extent of each country's gender inequality in terms of reproductive health, empowerment, and the labor market.

Demographic Transition Model (DTM)

change in a population from high birth and death rates to low birth and death rates

Crude Birth Rate

The total number of live births in a year for every 1,000 people alive in the society.

Crude Death Rate (CDR)

The total number of deaths in a year for every 1,000 people alive in the society.

labor force participation

the percentage of the adult population that is in the labor force

wage gap

the difference between the amount paid to women vs men (hint, men generally are paid more)

Microloan

a very small, short-term loan often associated with entrepreneurs in developing countries (microloans to women in LDCs often can be very effective)

Wallerstein's World Systems Theory

sees the world economy as an interdependent core, periphery and semi-periphery

core country

developed, economically, socially thriving w/ technology EX. US, Canada, Western Europe

semi-periphery

countries that have more industrialization than a periphery but less wealth than a core country

periphery countries

the least developed and least powerful nations; often exploited by the core countries as sources of raw materials, cheap labor, and markets

commodities imported into the core

cocoa, coffee, sugar, bananas, cobalt, copper, oil, etc...

BRICMS / MCRIBS

Way to remember the main semi-periphery countries (Brazil, Russia, India, China, Mexico, South Africa)

Rostow's Stages of Development

traditional society Stage 1, preconditions for take-off Stage 2, take-off Stage 3, drive to maturity Stage 4, high mass consumption Stage 5

commodity

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

commodity dependence

An economy that relies on the export of one type of raw materials for a large share of its export earnings and hence economic growth

Dependency Theory

the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former.

Interdependence

A relationship between countries in which they rely on one another for resources, goods, or services

Global Economy

the interdependent economies of the world's nations, regarded as a single economic system

Deindustrialization

process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment

complementarity

when two countries or regions, through an exchange of commodities, can specifically satisfy each others needs or wants

comparative advantage

The ability of a country to produce a good (or provide a service) better or at a lower cost than another country can.

unbalanced trade

when a country or region buys more (or sells more) than it's trading partner

trade deficit

situation in which a country imports more than it exports

trade war

economic conflict that occurs when one or more nations put up trade barriers to punish another nation for trade barriers it erected against them

investment capital

money one invests in a business in order to later earn profits if the business succeeds; money that is needed to start or improve a company

labor

people who can be employed devote to a task for which they are paid

Neoliberalism

A strategy for economic development that calls for free markets, balanced budgets, privatization, free trade, and minimal government intervention in the economy.

trade barriers

government-imposed regulations that increase the cost and restrict the number of imported goods

tariff

A tax on imported goods

free trade agreement

member countries agree to remove duties and trade barriers on products traded among them

NAFTA

North American Free Trade Agreement- a treaty between Canada, US and Mexico agreeing to trade freely without tariffs

USMCA

United States - Mexico - Canada Agreement: the current trade treaty between the North American countries. It replaced NAFTA in 2020

supranational organization

voluntary association of three or more states (countries) to promote shared goals

Mercosur

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

European Union (EU)

a free trade zone encompassing 27 European countries

OPEC

An organization of countries formed in 1961 to agree on a common policy for the production and sale of petroleum. (Organization of Petroleum Exporting Countries)

World Trade Organization (WTO)

a permanent global institution to promote international trade and to settle international trade disputes

Financial Crisis of 2008

a significant economic downturn that began with the housing mortgage market and ultimately led to high unemployment

Mortgage Crisis

the period beginning in late 2007 when thousands of homeowners defaulted on mortgage loans when they experienced a combination of higher mortgage interest rates and falling home prices

foreclosure

The seizure of property from borrowers who are unable to repay their loans (in particular when a family doesn't pay a mortgage they can lose their home)

outsourcing

Hiring workers in other countries to do a set of jobs. Usually this is because the workers will do the job for lower wages in the semi-periphery or periphery

call center

a center equipped to handle a large volume of telephone calls (especially for taking orders or serving customers)

economic restructuring

the decline in urban areas from manufacturing jobs to more service oriented jobs

MITI-V nations

Malaysia, India, Thailand, Indonesia and Vietnam: top textile manufacturing countries in the semi-periphery

labor-intensive products

consumer goods that require a large amount of hours by workers to produce them (clothing, electronics for example)

Special Economic Zones

specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment

Export processing zone

Region of a less-developed country that offer tax breaks and loosened labor restrictions to attract export-driven production processes, such as factories producing goods for foreign markets;

international division of labor

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

Post-Fordist Production

Factories use more automation (robots and computer systems) than human labor in the assembly line

multiplier effect

An effect in economics in which an increase in spending produces direct and indirect positive effects in the local economy (like a new factory opening up_

economies of scale

businesses or industries where the cost of production (per unit) can be greatly lowered by increasing the output of the factory

Just-in-time delivery

Shipment of parts and materials to arrive at a factory moments before they are needed

supply chain

the connected chain of all of the business entities, both internal and external to the company, that bring goods to market

growth poles

economic activities that are deliberately organized around one or more high-growth industries. (ex: Silicon Valley)

ASEAN (Association of Southeast Asian Nations)

An international organization linking together the 10 most important countries of Southeast Asia

Silicon Valley

a region in California south of San Francisco that is noted for its concentration of high-technology industries