Studied by 11 people
postindustrial economy
a time in which an economy no longer relies on heavy industry and manufacturing, but instead on the offering of services
assembly line
the product being assembled passes consecutively from operation to operation until completed
fordism
highly specialized and organized mass production at a single site
substitution principle
the tendency to substitute one factor of production for another in order to achieve optimum plant location
maquiladores
export-processing cities that exist in northern Mexico, close to the border with the United States
multinational corporations (MNCs)
A company that conducts different areas of its business in different countries
transnational corporations (TNCs)
A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located
non-basic economic activity
involves services within the community; upper sectors
basic economic activity
does not interact with consumers; primary sector/secondary sector
service sector
tertiary sector
locational interdependence
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
high technology industry
Companies that support the growth and development of sophisticated technologies
technopoles
an area planned for high technology (usually by government through incentives, near universities where R&D occurs) where agglomeration built on a synergy among technological companies occurs.
spin-off benefits (spread effects)
Positive outcomes in addition to the main outcome
backwash effects
The negative effects on one region that result from economic growth within another region
corporate parks (business parks)
Office buildings and other commercial spaces that congregate together
ecological footprint
impact of a person or community on the environment
reshoring
the relocation of production back to the country where the company is headquartered or where their product is sold from an outsourced overseas manufacturer
offshoring
the practice of moving a business's operational processes or services to another country, often to take advantage of lower costs or labor rates there
International Monetary Fund (IMF)
An international organization that provides financial assistance to member countries
trading bloc
A group of neighboring countries that promote trade with each other and erect barriers to limit trade with other blocs
neoliberalism
Derives from the idea that government intervention into markets is inefficient and undesirable, and should be resisted wherever possible
free trade
allow for goods from foreign countries to be imported without a tariff, that is, without being taxed for the sake of being foreign goods
barter
the form of trade in which a good or service is traded for another good or service, as agreed upon by the people doing the trading
trade
any transaction or exchange of goods and services
non-governmental organization (NGO)
an organization that is not part of the local or state or federal government
commodity
goods, products
gender gap
A difference between men and women in their opportunities, rights, benefits, behavior, or attitudes
Gini Coefficient
a statistical measure that quantifies the extent of income or wealth inequality within a country. It ranges from 0 to 1, where 0 represents perfect equality and 1 represents extreme inequality.
purchasing power parity (PPP)
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
per capita
per person
remmittances
money earned in emigrants´ new country mailed back home
front offices
the income-generating part of an organization that is involved in product sales and marketing
back offices
the main administrative office of a business or other organization
footloose industry
one which is not tied to any particular location or country and can relocate to another place without effect from factors of production such as resources, land, labour, and capital
intermodal connections
places where 2 or more modes of transportation meet
containerization
The loading and shipping of containers on to ships
labor-oriented industry (labor-dependent industry)
An industry for which labor costs comprise a high percentage of total expenses
sun belt
the name used to describe much of the South and West of the United States. Beginning in the second half of the twentieth century, cities in these regions experienced dramatic population growth as many Americans migrated away from the Northeast and the Midwest
rust belt
the geographic region from New York through the Midwest that was once dominated by manufacturing
industrial belt
A region in which manufacturing activities have clustered together
raw materials (natural resources)
agricultural products that are harvested, extracted, or obtained from the environment
cottage industry
An industry in which the production of goods and services is based in homes, as opposed to factories
market
The area surrounding a central place, from which people are attracted to use the place's goods and services
industry
economic activity concerned with the processing of raw materials and manufacture of goods in factories; not secondary
Industrial Revolution
A series of improvements in industrial technology that transformed the process of manufacturing goods.
industrialization
The development of industries for the machine production of goods.
colonialism
Attempt to establish settlements in a region for the sake of sending back resources to the native land
imperialism
Attempt to establish economic control over a region for the sake of sending back resources to the native land
primary sector
the part of the economy that draws raw materials from the natural environment
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
quaternary sector
Jobs that deal with the handling and processing of knowledge and information.
quinary sector
jobs that consist of high-level decision making for large corporations or high-level scientific research.
Break-of-bulk point
A location along a transport route where goods must be transferred from one carrier to another. (IE. car to a boat)
Weber's Least Cost Theory/Location Triangle
Model which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.
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-gaining industry
Industry that makes something that gain volume or weight during production
Bulk-reducing industry
Industry where the final product weighs less than the inputs
core
The most developed countries of the world in which industries locate themselves
semi-periphery
The newly industrialized countries where the industries locate themselves
periphery
The poorest countries of the world where the industries locate themselves
gross domestic product
all goods & services produced within a country no matter the citizenship
gross national product
all goods & services produced by domestic residents within a country
gross national income per capita
GNP + investments abroad Divided by the number of people in the country
economic sectoral structure
the balance of various economic sectors in order to maximize profits
formal economy
the legal economy that governments tax and monitor (included in GDP)
informal economy
transfers of money, goods, or services that are not reported to the government
income distribution
The division of income among social classes in a country (Higher the disparity the more the development)
fertility rate
the average number of children a woman has, often utilized to measure development
infant mortality rate
The percentage of children who die before their first birthday, often utilized to measure development
fossil fuels
the amount of fuel or gas that a country utilizes, often utilized to measure development
renewable energy
energy from a source that is not depleted when used, such as wind or solar power, often utilized to measure developemtn
literacy rate
The percentage of a country's people who can read and write, often utilized to measure development
Gender Inequality Index
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.
reproductive health
Sexual health, autonomy, reproductive freedom/decision-making
empowerment measures
the act of providing women the right of choice and self-interest
labor-market participation
A statistic that determines what percentage of an age group or gender is currently working, utilized to gauge women's rights
Human Development Index
Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy
microloan
a very small, short-term loan often associated with entrepreneurs in developing countries
Rostow's Stages of Growth
model that theories that economic modernization of countries occurs in five basic stages: Traditional society, Preconditions for take-off , Take-off, Drive to maturity, Age of High mass consumption
Wallerstein's World Systems Theory
Sees the world economy as a flexible core, periphery and semi-periphery
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
commodity dependence
economic dependence on exports of agricultural and mineral raw materials
complementarity
when two regions through an exchange of commodities can specifically satisfy each others demands
comparative advantage
The ability of a country to produce a good at a lower cost than another country can.
neoliberal economic policies
seek to eliminate trade barriers across international boundaries and promote trade
free trade agreements
Pacts between countries that make it easier to trade goods across national boundaries by reducing tariffs
European Union
An international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members.
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.
Mercosur
An organization that promotes trade and economic cooperation among the southern and eastern countries of South America
Organization of Petroleum Exporting Countries
An economic organization consisting primarily of Arab nations that controls the price of oil and the amount of oil its members produce and sell to other nations.
government initiative
government plans, at various scales (central, regional, local, provincial, etc.), to help promote economic development.
tariff
A tax on imported goods
global financial crisis
The economic crashes that happened internationally due to the globalization of the world's economy.
international lending agencies
agencies such as the International Monetary Fund, that acts as a bank for the world and provides countries loans
microlending
the practice of loaning small amounts of money to people who intend to start a small business in less developed countries, usually from more developed countries
outsourcing
Hiring workers in other countries to do a set of jobs
Deindustrialization
The decline of manufacturing and factory work and outsourcing it to another country
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Flashcard (187)