unit 7

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 in inputs

cottage industry

manufacturing based in homes rather than in a factory, commonly found prior to the Industrial Revolution

Industrial Revolution

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

just-in-time delivery

type of delivery when needed parts for production are scheduled to arrive "just-in-time" for production. Important for Single Market Manufacturers to be close to market.

Labor-intensive industry

An industry for which labor costs comprise a high percentage of total expenses.

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 factors

Location factors related to the costs of factors of production inside the plant, such as land, labor, and capital

situation factors

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

basic industries

industries that sell their products or services primarily to consumers outside of their settlement

business services

services that primarily meet the needs of other businesses

central place

-Central Place:Market center where goods and services are exchanged. In cities and towns. Area that is service\=market area or hinterland

clustered rural settlement

A rural settlement in which the houses and farm buildings of each family are situated close to each other and fields surround the settlement

consumer services

Businesses that provide services primarily to individual consumers, including retail services and personal services.

dispersed rural settlement

A rural settlement pattern characterized by isolated farms rather than clustered villages.

economic base

A community's collection of basic industries.

gravity model

A model that holds that the potential use of a service at a particular location is directly related to the number of people in a location and inversely related to the distance people must travel to reach the service.

market area

The area surrounding a central place, from which people are attracted to use the place's goods and services.

nonbasic industries

industries that sell their products primarily to consumers in the community

primate city

The largest settlement in a country, if it has more than twice as many people as the second-ranking settlement.

public services

Services offered by the government to provide security and protection for citizens and businesses

range

the maximum distance people are willing to travel to use the service

rank-size rule

A pattern of settlements in a country, such that the nth largest settlement is 1/n the population of the largest settlement.

service

Activities performed by people, firms or government agencies to satisfy economic wants.

threshold

In central place theory, the size of the population required to make provision of services economically feasible.

adolescent fertility rate

The number of births to women aged 15-19 years old per 1,000 women in the same age group.

developed country

a modern, industrialized country in which people are generally better educated and healthier and live longer than people in developing countries do

developing country

A country that has low industrial production and little modern technology.

development

A process of improvement in the material conditions of people through diffusion of knowledge and technology

fair trade

Alternative to international trade that emphasizes small businesses and worker owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organizing, and comply with minimum environmental and safety standards.

foreign direct investment

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

gender inequality index

a measure that captures the loss in achievements due to gender disparities in the dimensions of reproductive health, empowerment and labor force participation; 0 (perfect equality) to 1 (total inequality)

gross domestic product

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

gross national income

The monetary worth of what is produced within a country plus income received from investments outside the country

human development index

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

inequality-adjusted HDI

An index that accounts for the impact of inequality on the human development of people in a country

literacy rate

Percentage of people who can read and write

maternal mortality rate

Number of deaths per thousand of women giving birth.

primary sector

The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.

productivity

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

secondary sector

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

structural adjustment program

Economic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such as raising taxes, reducing government spending, controlling inflation, selling publicly owned utilities to private corporations, and charging citizens more for services.

tertiary sector

The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.

value added

The gross value of the product minus the costs of raw materials and energy.

core-periphery model

A model of the spatial structure of development in which underdeveloped countries are defined by their dependence on a developed core region.

dependency theory

A model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones

gender empowerment measure

Compares the ability of women and men to participate in economic and political decision making.

international monetary fund

An international organization of 183 countries, established in 1947 with the goal of promoting cooperation and exchange between nations, and to aid the growth of international trade.

less developed country

Also known as a developing country, a country that is at a relatively early stage in the process of economic developement.

more developed country

(MDC) also known as a relatively developed country, a country that has progressed relatively far along a continuum of development.

nolan's stages of growth model

stages of growth model is a theoretical model for the growth of information technology (IT) in a business or similar organization. It was developed by Richard L. Nolan during the 1970s

purchasing power parity

A measure of how many units of currency are needed in one country to buy the amount of goods and services that one unit of currency will buy in another country

Rostow's development model

Model created in the 1950's that gives an idea of where a country is in their stage of development. The model of economic development describes a country's progression which occurs in five stages transforming them from least-developed to most-developed countries. There are five stages in this model, including: 1. "The traditional society," 2. "The preconditions for takeoff," 3. "The takeoff," 4. "The drive to maturity," 5. "The age of mass consumption."

transnational corporation

A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located.

Wallerstein's World Systems Theory

drawing on conflict view, described unequal economic and political relationships in which certain industrialized nations and their global corporations dominate core of the world's economic system

World Bank

A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion, and debt consolidation. Its formal name is the International Bank for Reconstruction and Development.

World Trade Organization

Administers the rules governing trade between its 144 members. Helps producers, importers, and exporters conduct their business and ensure that trade flows smoothly.

agglomeration effects

cost advantages that accrue to individual firms because of their location among functionally related activities.

backwash effects

the negative impacts on a region of the economic growth of some other region.

commodity chains

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

creative destruction

The creation of new products and new production methods destroys the market positions of firms committed to existing products and old ways of doing business

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

developmentalism

the idea that every country and region will eventually make economic progress toward a high level mass of consumption if they only compete to the best of their ability within the world economy

export-processing zones

areas where governments create favorable investment and trading conditions to attract export-oriented industries

fixed cost

Costs that do not vary with the quantity of output produced

footloose firm

a firm with manufacturing activities for which the cost of transporting activities or product is not important in determining location of production; an industry or firm showing neither market nor material orientation

Fordism

A system of assembly-line manufacturing and mass production named after Henry Ford, founder of the Ford Motor Company and developer of the Model T car. (783)

import substitution

a government policy that uses trade restrictions and subsidies to encourage domestic production of manufactured goods

localization economies

cost savings that accrue to particular industries as a result of clustering together at a specific location

locational interdependence theory

Theory developed by economist Harold Hotelling that suggests competitors, in trying to maximize sales, will seek to constrain each other's territory as much as possible which will therefore lead them to locate adjacent to one another in the middle of their collective customer base.

maquiladora

The term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the primarily foreign-owned factories assemble imported components and/or raw materials and then export finished goods.

Millenium Development Goals

The Millennium Development Goals( MDGs) are recently developed mandates by the United Nations designed to erase poverty by the year 2015. These eight development goals seek to promote gender equality and empower women through provisions of better women's healthcare, hunger eradication, basic education and an end to abject poverty.

neocolonialism

A new form of global power relationships that involves not direct political control but economic exploitation by multinational corporations

Neo-Fordism

economic principles in which the logic of mass production coupled with mass consumption is modified by the addition of more flexible production, distribution, and marketing systems

offshoring

Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.

outsourcing

A decision by a corporation to turn over much of the responsibility for production to independent suppliers.

quaternary economic activities

Any economic activity pertaining to the collection, processing, and manipuation of information, capital, and culture - finance, government, insurance, legal services, etc.

quinary economic activities

service sector industries that require a high level of specialized knowledge skill (scientific research, high-level management)

sector

a part of an area of activity, especially of business, industry, or trade

primary production

Primary products are goods that are available from cultivating raw materials without a manufacturing process. Significant primary product industries include, agriculture, fishing, mining, and forestry.

secondary production

the ​manufacturing of ​goods rather than ​producing ​raw ​materials.

tertiary production

The segment of the economy that provides services to its consumers. This includes a wide range of businesses including financial institutions, schools, transports and restaurants.

services

service is an intangible commodity. Service provision is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownership of the thing purchased.

quaternary production

The quaternary sector of the economy is a way to describe a knowledge-based part of the economy - which typically includes services such as information technology, information-generation and -sharing, media, and research and development.

quinary production

Some consider there to be a branch of the quaternary sector called the quinary sector, which includes the highest levels of decision making in a society or economy.

commodity chains

a linked system of processes that gather resources, convert them into goods, package them for distribution, disperse them, and sell them on the market

mining

This economic activity stimulated railroad construction, founded communities, created mining laws and lead to statehood; it often lead to environmental disaster

resource-dependent country

A country that depends on a specific resource to keep the economy alive and growing.

nonrenewable products

products that once they are extracted they can not be replaced

renewable products

Renewable products can be grown or naturally replenished . grow faster than humans can deplete them.

alternative energy

Any source of energy other than fossil fuels that is used for constructive purposes.

sustainable use

The use of a resource in ways that maintain the resource at a certain quality for a certain period of time

ecosystem

A biological community of interacting organisms and their physical environment.

value-added processing

the more complex and technology-driven the manufacturing is, the higher value applied to the finished product

durable goods

goods that last for a relatively long time, such as refrigerators, cars, and DVD players

non-durable goods

A nondurable good is an item consumed in one or a few uses, such as food products and fuel.

low-benefit services

Low salary, not a lot of benefits.

high-benefit services

pay tends to be salaried and includes benefits such as health, dental, vision, sick days, etc.

service firms

deliver a service rather than a tangible product