unit 7 vocab

Development

The process of improving conditions of people through diffusion of knowledge and technology.

Developed Country (MDC)

A very highly developed country that has progressed along the development continuum.

Developing Country (LDC)

A country that has made some progress toward development, though less than the developed countries.

Human Development Index (HDI)

An indicator constructed by the UN to measure the level of development for a country through a combination of income, education, and life expectancy.

Inequality-adjusted Human Development Index (IHDI)

A modification of the HDI to account for inequality.

Literacy Rate

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

Purchasing Power Parity (PPP)

The amount of money needed in one country to purchase the same goods and services in another country.

Gross National Income (GNI)

The total income earned by a country’s resident in a year, including money from abroad.

Gross Domestic Product (GDP)

The value of the output of goods and services produced in a country in a year.

Gross National Product (GNP)

Gross domestic product but includes the profits of a country’s people and excludes profits of foreigners within the country.

Productivity

The value of a particular product compared to the labor needed to make it.

Wallerstein’s World-Systems Theory

In an increasingly unified world economy, developed countries occupy an inner core area whereas developing countries occupy peripheral locations.

Gender Development Index (GDI)

An indicator constructed by the UN to measure the extent of each country's gender inequality in terms of income, education, and life expectancy.

Gender Inequality Index (GII)

Measures the gender gap in the level of achievement in three dimensions; reproductive health, empowerment, labor market, and the amount of education.

Maternal Mortality Rate (MIMR)

The number of women who die giving birth per 100,000 births.

Total Fertility Rate (TFR)

Measures the number of births in a society; the average number of children a woman will have during her childbearing years.

Adolescent Fertility Rate (AFR)

The number of births per 1,000 women ages 15-19.

Industrial Revolution

A series of improvements in industrial technology that transformed the process of manufacturing goods.

Site

Industrial location factors related to the costs of factors of production inside a plant (labor, capital, and land).

Situation

Location factors relating to the transportation of materials into and from a factory.

Primary Sector

Includes activities that directly extract materials from Earth through agriculture, and sometimes by mining, fishing, and forestry.

Secondary Sector

Includes manufacturers that process, transform, and assemble raw materials into useful products.

Tertiary Sector

Involves the provision of goods and services to people in exchange for payment.

Quaternary Sector

Involves processing information and services.

Quinary Sector

Involves activities characterized by decision makers, such as executives or those who serve in government roles.

Service Sector

The part of the economy that provides services rather than goods.

Weber Least Cost Theory/Theory of Industrial Location

All major corporations make their decisions about where to house their production based on the least possible combination of costs.

Break-of-Bulk Point

A place where goods are transferred from one mode of transportation to another for distribution elsewhere.

Bulk-Reducing Industry

An industry that makes something that loses volume or weight during production.

Bulk-Gaining Industry

An industry that makes something that gains volume or weight during production.

Containerization

Facilitated transfer of packages between transportation lines.

Single-Market Manufacturer

A specialized manufacturer with only one or two customers.

Core Countries

The countries with the highest levels of economic power.

Periphery Countries

Countries that are either intermediate in level of economic development or situated close to both core and periphery regions.

Semi Periphery

Countries that are in between rich (core) and poor (periphery) nations.

Neoliberal Trade Policies

Favor free market economies and privatization over government control.

Fair Trade

A movement and certification system that aims to ensure fair prices and working conditions for producers in developing countries.

Industrialization

The process by which economic activities evolved from producing basic, primary goods to using factories for mass-producing goods.

Demographic Transition

Process of change in a society's population from high crude birth and death rates to a condition of low crude birth and death rates.

Territoriality

The connection of people, their culture, and their economic systems to the land.

Transnational Corporation

Company that trades, researches, and operates worldwide.

Self-Sufficiency Path Model

Countries encourage domestic production of goods and discourage foreign ownership of businesses.

Rostow's International Trade Model/Stages of Economic Growth

A five stage model of development in which each country is in one of the 5 stages.

Foreign Direct Investment (FDD)

Investment made by a foreign company in the economy of another country.

Formal Economy

Economic activities that are officially recognized, regulated, and taxed by government authorities.

Informal Economy

Economic activities that occur outside government regulation and taxation.

Income Distribution

The way in which a nation's total income is divided among its population.

Microloans/Microfinance

The provision of small loans and other financial services to individuals and small businesses.

Dependency Theory

The idea that resources flow from poor and underdeveloped states to the wealthy states.

Commodity Dependence

An economy's reliance on exporting primary goods for revenue.

Economic Complementarity

When the industry of one product is associated with the industry of another, similar product.

Comparative Advantages

The ability of a company to carry out an economic activity more efficiently than another activity.

European Union (EU)

A political and economic union of 27 European countries.

World Trade Organization (WTO)

Promotes international trade by reducing barriers to trade.

North American Free Trade Agreement (NAFTA)

A controversial trade pact signed in 1992 eliminating trade barriers between the U.S., Canada, and Mexico.

Mercosur

A South American trade bloc promoting free trade and economic cooperation.

Organization of the Petroleum Exporting Countries (OPEC)

An intergovernmental organization coordinating policies to stabilize oil markets.

Tariffs

Taxes imposed on imported goods to protect domestic industries.

Microlending

Providing small loans to individuals in developing countries to start or expand businesses.

International Monetary Funds (IMF)

Gives loans to developing countries with balance of payments problems.

Fordist or Mass Production

Used to describe factories that assigned each worker one task to perform repeatedly.

Post-Fordist Production

A flexible system of production characterized by small-batch manufacturing.

Outsourcing

A product we get from a different country which we process it in some way.

Special Manufacturing Zones

Designated areas where businesses receive incentives to encourage manufacturing.

Export Processing Zones

Areas where goods can be manufactured for export with reduced customs regulations.

Special Economic Zones

Regions with economic laws that are more liberal to attract foreign investment.

Economies of Scale

As a company grows it can reduce the average cost to produce its product.

Agglomeration

Sharing of services with other companies that are available at major markets.

Deglomeration

The movement of activity away from concentrated areas.

Sustainable Development

Development that meets present needs without compromising future generations.

Ecotourism

Tourism based in natural environments that helps to protect the environment.

Medical Tourism

Traveling to another country for medical treatment, often for cost reasons.

Cottage Industry

Small-scale, home-based manufacturing often involving family labor.

Labor-Intensive Industry

Industries that require a large amount of labor to produce their goods or services.

Supply

The total amount of a good or service available for purchase in the market.

Demand

The desire and ability of consumers to purchase a good or service.

Fossil Fuel

Energy sources like coal, oil, and natural gas derived from ancient organic matter.

Nonrenewable Energy

Energy resources that cannot be replenished naturally on a human timescale.

Renewable

Energy from sources that are naturally replenished, such as solar and wind.

Fission

The process of splitting a heavy atomic nucleus into two lighter nuclei, releasing energy.

Fusion

A nuclear reaction where two light atoms combine to form a heavier atom.

Biomass

Organic material from plants and animals used for energy.

Geothermal Energy

Energy from heat stored beneath the Earth's surface.

Passive Solar Energy System

Solar energy systems that use building design to collect and store solar heat naturally.

Active Solar Energy System

Solar energy systems that use mechanical devices to capture and distribute solar power.

Air Pollution

The presence of harmful substances in the air.

Acid Deposition

The settling of acidic components from the atmosphere to the ground.

Acid Precipitation

Rain, snow, or fog that has a pH lower than normal due to air pollution.

Photochemical Smog

Air pollution formed when sunlight reacts with pollutants.

Greenhouse Effect

Trapping of heat in Earth's atmosphere by gases, causing global warming.

Point-Source Pollution

Pollution that comes from a single, identifiable source.

Nonpoint-Source Pollution

Pollution from multiple, diffuse sources.

Sanitary Landfill

A controlled site where waste is isolated from the environment.

Recycling

Converting waste materials into new usable products.

Remanufacturing

Rebuilding products to original specs using reused or new parts.

Maquiladoras

Factories in Mexico that import materials duty-free and export finished products.

Right-to-Work Law

Laws that prohibit requiring union membership for employment.

Globalization

The growing interconnectedness of the world through trade, culture, and technology.

Wealth Inequality

The uneven distribution of wealth among individuals or groups.

Structural Adjustment Program

Economic policies imposed by international institutions to reform developing economies.