AP HUG Unit 7 Vocab

Agglomeration

Clumping together of industries for mutual advantage.

Break-of-bulk point

A location where transfer is possible from one mode of transportation to another.

Bulk-Gaining Industry

An industry in which the final product weighs more or comprises a greater volume than the inputs.

Bulk-Reducing Industry

An industry in which the final product weighs less or comprises a lower volume than the inputs.

Industrial Revolution

Social and economic changes in agriculture, commerce, and manufacturing resulting from technological innovation and specialization

World Trade Organization

-Negotiating, implementing, and monitoring international trade procedures and mediating trade disputes among member countries

Deindustrialization

Decline of primary and secondary industry with rise the service sectors of the industrial economy

Four Asian Tigers

South Korea, Taiwan, Singapore, Hong Kong

Fair trade

Established to protect workers and products in LDC's

Ecotourism

tourism to exotic or threatened ecosystems to observe wildlife or to help preserve nature

Dependency Theory

Countries will never reach economic prosperity due to connections with external dominant powers

Deglomeration

The dispersal of an industry that formerly existed in an established agglomeration

Cottage Industry

An industry in which the production of goods and services is based in homes, as opposed to factories.

Offshore

When outsourced work is located outside the country

Outsourced

with reference to production, to turn over in part or in total to a third party

Fordist

Form of mass production in which each worker is assigned one specific task to perform repeatedly.

Post-fordist

a more flexible set of production practices in which goods are not mass produced

Foreign Direct Investment

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

Friction of Distance

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

Global Division of Labor

corporations drawing from labor around the globe for different components of production

IMF

(International Monetary Fund) Lending massive amounts of money to peripheral/semi-periphery countries with restriction strings attached

Neo-colonialism

control by a powerful country of its former colonies (or other less developed countries) by economic pressures

Just in time delivery

method of inventory management made possible by efficient transportation and communication systems, whereby companies keep on hand just what they need for near-term production will arrive when needed

Microfinance

program that provides small loans to poor people, especially women, to encourage development of small businesses

Newly industrial countries

Countries whose economies have not reached first world status

Non-governmental organization

A private sector organization that does not primarily aim to make a profit. Instead, they operate for the benefit of others in society.

Post-Industrial

The rapid growth of quaternary and quinary sectors

Primary Sector

the part of the economy that draws raw materials from the natural environment

Quinary Sectors

a sub-category of the tertiary sector, encompasses the highest officials and CEO’s

Quaternary Sector

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

Purchasing power parity

A monetary measurement of development that takes into account what money buys in different countries.

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.

Secondary sector

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

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

Structuralist Theory

A general term for a model of economic development that treats economic disparities among countries or regions as the result of historically derived power relations within the global economic system

Structural adjustment loans

Economic policies which create conditions encouraging international trade, such as raising taxes, reducing government spending, controlling inflation, selling publicly own utilities to private corporations, and charging citizens for services.

Tertiary sector

Services related to transportation and communication

World Bank

International financial institution that provides loans to developing countries for capital program's

Commodity Chain

series of links connecting the many places of production and distribution and resulting in a commodity that is on world market

GNP

Gross National Product - the sum of all goods and services produced in a nation in a year

GDP

Gross Domestic Product- the total market value of all final goods and services produced annually in an economy

GNI

Gross National Income - income generated from the resources owned by inhabitants and businesses of a given country

Formal Economy

Legal economy that is taxed and monitored by the government

Informal economy

A segment of the economy that is not regulated or taxed by the state

Modernization Model

model of economic development maintains that all countries go through five stages of development

Maquiladora

Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico.

Least cost theory

Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.

Locational interdependence

Theory that industries choose locations based on where their competitors are located.

Zone of profitability

The region where income is greater than cost

Location Theory

Predicting where business will or should be located

colonialism

the practice where a powerful country establishes control over a foreign territory, often through settlement, resource extraction, and cultural imposition, leading to significant changes in the colonized society.

comparative advantage

the ability of a country or region to produce a good or service at a lower opportunity cost than another, leading to specialization and trade that benefits all participants

complimentarity

the actual or potential relationship between two places, typically economic, where one place's strengths or resources meet the needs or demands of another, leading to potential or actual interaction and trade.

economic development

how countries progress economically, often through industrialization and the flow of goods and services

economic restructing

significant, often global, shifts in how economies operate, including changes in industries, labor markets, and economic policies, often driven by globalization, technological advancements, and the international division of labor.

ecotourism

sustainable travel approach which minimizes negative environmental impacts

free trade zones

countries can trade without taxation (tarriffs)

income distribution

how the nation's total income is distributed among its population

Growth Poles

economic activities that are deliberately organized around one or more high-growth industries.

sustainable development

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

social development

the improvement of people's lives and well-being through changes in social structures, policies, and practices, often focusing on areas like education, healthcare, and equality.

environmental degradation

the deterioration of the natural environment through the depletion of resources, destruction of ecosystems, and the extinction of wildlife, often caused by human activities.

climate change

a significant change in the Earth's climate, including changes in weather patterns, the oceans, ice and snow, and ecosystems around the world.

equity

the fair and just distribution of resources, opportunities, and outcomes among individuals and groups, aiming to eliminate discrimination and systemic barriers, and ensure everyone has what they need to thrive.

gender inequality index

measures the gender gap in the level of achievement in three dimensions: reproductive health, empowerment, and the labor market

interdependence

the mutual reliance between different entities, such as countries or organizations, where actions or events in one affect the others