Unit 7 Vocab

Break-of-Bulk Point

A location where goods are transferred from one mode of transportation to another, reducing transportation costs.

Comparative Advantage

The ability of a country or company to produce a good or service at a lower opportunity cost than others.

Complementarity

When two regions, through trade, can specifically satisfy each other's demands.

Ecotourism

Responsible travel to natural areas that conserves the environment and benefits local communities.

Economic Sectors

Categories of economic activity based on the type of work: primary, secondary, tertiary, quaternary, and quinary.

Primary Sector

Economic activities involving the extraction of natural resources.

Secondary Sector

Economic activities focused on manufacturing and processing raw materials into finished goods.

Tertiary Sector

Economic activities that provide services rather than goods.

Quaternary Sector

Economic activities related to knowledge, information, and research.

Quinary Sector

Economic activities involving high-level decision-making and advanced services.

Export Processing Zones (EPZs)

Areas within developing countries offering incentives for foreign companies to manufacture and export goods.

Free Trade Zones (FTZs)

Designated areas where goods can be imported, handled, and exported without customs regulations.

Gender Inequality Index (GII)

A measure by the UN that reflects gender disparities in reproductive health, empowerment, and economic status.

Gross Domestic Product (GDP)

The total value of all goods and services produced within a country’s borders in a given year.

Gross National Income (GNI)

The total income earned by a country’s residents, including income from abroad.

Gross National Product (GNP)

The total value of goods and services produced by a country’s citizens, including income from abroad.

Human Development Index (HDI)

A composite index measuring a country’s average achievements in health, education, and income.

Least Cost Theory

A theory developed by Alfred Weber that explains the location of industries based on minimizing transportation, labor, and agglomeration costs.

Microloans

Small loans given to individuals or small businesses who typically lack access to conventional banking services.

NAFTA/USMCA

Trade agreements that establish a trilateral trade bloc between the United States, Canada, and Mexico.

Outsourcing

The practice of hiring external firms or individuals to perform tasks that were traditionally handled internally.

Rostow’s Stages of Economic Growth

A model of economic development that outlines five stages a country passes through as it modernizes and industrializes.

Special Economic Zones (SEZs)

Designated areas in countries with economic regulations that differ from the rest of the country.

Wallerstein’s World System Theory

A theory that divides the world into a three-tier structure: core, semi-periphery, and periphery.

Core

Economically dominant countries with high levels of industrialization and infrastructure.

Periphery

Less developed countries with low levels of industrialization and weak economies.

Semi-Periphery

Countries that are industrializing and have aspects of both core and periphery.

Weber’s Model

A model that predicts the optimal location of manufacturing plants based on minimizing costs.