aphg unit 7.1-7.8

Agglomeration

The spatial grouping of people or activities for mutual benefit.

Comparative Advantage

The principle that an area produces the items for which it has the greatest ratio of advantage or the least ratio of disadvantage in comparison to other areas, assuming free trade exists.

Core-Periphery Model

A model of the spatial structure of an economic system in which underdeveloped or declining peripheral areas are defined with respect to their dependence on a dominating developed core region.

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.

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

Development

The process of growth, expansion, or realization of potential; bringing regional resources into full productive use.

Ecotourism

A form of tourism, based on the enjoyment of scenic areas or natural wonders, that aims to provide an experience of nature or culture in an environmentally sustainable way.

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.

Globalization

A reference to the increasing interconnection of all parts o the world as the full range of social, cultural, political, and economic processes becomes international in scale and effect.

Gross Domestic Product

The total value of goods and services produced within the borders of a country during a specified time period, usually a calendar year.

Gross National Income

the total value of goods and services produced by a country per year plus net income earned abroad by its nations; formerly called "gross national product."

Human Development Index (HDI)

Is a composite statistic of life expectancy, education, and income indices used to rank countries into four tiers of human development.

Industrial Revolution

The term applied to the rapid economic and social changes in agriculture and manufacturing that followed the introduction of the factory system to the textile industry of England in the last quarter of the 18th century.

Infrastructure

The basic structure of services, installations, and facilities needed to support industrial, agricultural, and other economic development; included are transport and communications, along with water, power, and other public utilities.

Informal Economy

That part of a national economy that involves productive labor not subject to formal systems of control or payment; essentially money that is not regulated or taxed by the government.

Just in Time Production

Seeks to reduce inventories for the production process by purchasing inputs for arrival just in time to use and producing output just in time to sell.

Least cost Theory

The view that the optimum location of a manufacturing establishment is at the place where the costs of transport and labor and advantages of agglomeration or deglomeration are most favorable.

Measures of Development

Life expectancy at birth, adjusted GDP per capita, and knowledge (School, literacy) etc. Rates that dictate the developmental status of a country.

Neocolonialism

A disparaging reference to economic and political policies by which major developed countries are seen to retain or extend influence over the economies of less developed countries and peoples.

Offshoring

The relocation of business processes and services to a lower-cost foreign location.

Outsourcing

Producing abroad parts or products for domestic use or sale.

Quaternary Activities

Those parts of the economy concerned with research, with the gathering and dissemination of information, and with administration of the other economic activity levels.

Quinary Activities

A sometimes separately recognized subsection of tertiary activity management functions involving highest level decision making in all types of large organizations.

Secondary Activities

Those parts of the economy involved in the processing of raw materials derived from primary activities in altering or combing materials to produce commodities of enhanced utility and value.

Tertiary Activities

Those parts of the economy that fulfill the exchange function, that provide market availability of commodities, and that bring together consumers and providers of services.

World Systems Theory

Theory originated by Immanuel Wallerstein and illuminated by his three-tier structure, proposing that social change in the developing world in inextricably linked to the economic activities of the developed world.

Colonialism/Imperialism

Attempt by one country to establish settlements and to impose its political, economic, and cultural principles in another territory.

Factors of Production

Land, labor, and capital; the three groups of resources that are used to make all goods and services

Standard of Living

A measure of quality of life based on the amounts and kinds of goods and services a person can buy.

Life Expectancy

A figure indicating how long, on average, a person may be expected to live

Infant Morality Rate

the number of deaths per year of infants less than one year old for every 1000 live births.

Fertility Rate

the average number of children a woman of childbearing years would have in her lifetime, if she had children at the current rate for her country

Literacy Rate

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

Gender Inequality Index

A United Nations index, introduced in 2010, which measures a country's loss of achievement due to gender inequality, based on reproductive health, employment, and general empowerment.

Microfinance

provision of small loans and other financial services to individuals and small businesses in developing countries

Microloans

A very small, often short-term loan made to an impoverished entrepreneur, as in an underdeveloped country

NAFTA

A trade agreement between Canada, the United States and Mexico that encourages free trade between these North American countries.

European Union (EU)

Europe's trading bloc free trade amount the members of the union. As well as a single European currency the euro and a central bank.

Recession

A slowdown in economic activity over a period of time. During one of these periods all of the following things decline: Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation. Meanwhile bankruptcies and the unemployment rate rise.

International Division of Labor

A division of work between rich and poor countries under which low-waged workers in the global South do assembly, manufacturing, and office work on contract to companies based in the global North.

Export Processing Zones

Areas where government create favorable investments ad trading conditions to attract export-orientated industries.

Break-of-bulk point

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

Industrialization

the process of countries moving from a system of agricultural-based goods production to one based on mechanized mass manufacturing

Primary Sector

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

core

countries where economic power is concentrated that control and benefit from the global market upon which other counties depend

semi-periphery

Those newly industrialized countries with median standards of living, such as Chile, Brazil, India, China, and Indonesia

periphery

Countries that usually have low levels of economic productivity, low per capita incomes, and generally low standards of living. The world economic periphery includes Africa (except for South Africa), parts of South America, and Asia.

influences on the location of manufacturing

labor (availability/cost), land (availability/cost), resources (availability/cost), markets to facilitate trade, access to transportation (for movement of goods)

Less Developed Country

countries with low levels of industrialization, urbanization and low standards of living that are mainly focused on primary activities, predominantly agriculture

newly industrialized country

less developed country that has shown significant growth in the measures of development

More Developed Country

countries with highly developed economies, high levels of industrialization, urbanization, advanced technological infrastructure and high standards of living

post industrial society

a society in which the economic emphasis is on providing services and information rather than manufacturing

Gini Coefficient

a measure of income inequality between countries using a 100-point scale, in which 1 represents complete equality and 100 represents the highest possible inequality (percent of income inequality)

Access to health care

ease with which people can obtain needed medical services

gender inequality

acknowledges that gender affects an individuals' lived experiences; found across cultures

gender parity

measurement of relative access to education of males and females

Rostow's Stages of Development

theory that assumes all countries are capacle of development along the same trajectory; five stages of linear development

Traditional Society

stage in which the dominant activity in a society is the subsistence farming and the social structure is rigid and unchanging and resistant to technology

Transitional stage

pre-conditions for take-off; progressive leadership moves the country toward greater flexibility, openness, and diversification

take-off stage

Stage of the modernization theory which a country starts to produce goods for trade with others and for profit

Drive to Maturity Stage

technology diffuses, industrial specialization occurs, international trade expands, population growth slows

High Mass Consumption Stage

service sector increases; widespread production of goods and services and mass consumption

shipping container

A container that is sufficiently strong to be used in commerce to pack, store and ship commodities. May be a primary, intermediate or tertiary package

Intermodal containers

-can switch between ship, rail or truck while staying in the same container

-Economical (lower cost) means of transportation

intermodal connections

places where two or more modes of transportation meet (including air, road, rail, barge, and ship)

commodity dependence

economic dependence on exports of agricultural and mineral raw materials; can leave a country vulnerable to unpredictable price fluctuations

complementary advantage

advantages created when producing two goods that are consumed together (cars and gas, or printers and ink)

neoliberal policies

characterized by free market trade agreements, deregulation of financial markets, individualism, and the shift away from state welfare provisions

Free Trade Agreement

an agreement between member countries to remove duties and trade barriers on products traded among them.

World Trade Organization (WTO)

International organization derived from the General Agreement on Tariffs and Trade (GATT) that promotes free trade around the world.

Mercosur

The largest latin american trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay

OPEC (Organization of Petroleum Exporting Countries)

union of countries that produce oil; coordinates and unifies policies of member countries to ensure stabilization of oil markets

Tariffs

Taxes on imported goods

Global Financial Crisis

The economic crashes that happened internationally due to the globalization of the world's economy. Problems in some countries (Europe and the United States), caused financial problems in countries that trade with them.

debt crisis

An economic crisis in which government debt has risen so high that the government is unable to borrow any more money due to people losing faith in the government's ability to repay. Leads to either massive spending cuts or large tax increases, either of which will likely plunge the economy into a recession.

international lending agencies

specialize in the provision of loans, grants, and financial expertise to developed countries that focuses on development

International Monetary Fund (IMF)

an institution established in 1944 that provides loans and facilitates international monetary exchange

Microlending

the practice of loaning small amounts of money to people who intend to start a small business in less developed countries, particularly women

nongovernmental organizations (NGOs)

International organizations that operate outside of the formal political arena but that are nevertheless influential in spearheading international initiatives on social, economic, and environmental issues.

economic restructuring

contemporary transformations in the basic structure of work that are permanently altering the workplace, including the changing composition of the workplace, deindustrialization, the use of enhanced technology, and the development of a global economy

Manufacturing Zones

a feature of economic development in semi-peripheral/peripheral countries whereby the host country establishes areas with favorable tax, regulatory, and trade arrangements in order to attract foreign manufacturing operations

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 (more free market oriented)

Free Trade Zone (FTZ)

a duty-free and tax-exempt industrial park created to attract foreign corporations and create industrial jobs

Post-Fordist Production

Adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks; work is no longer centralized and is reliant on just-in-time delivery and advanced technology

multiplier effect

An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.

economies of scale

a proportionate saving in costs gained by an increased level of production.

emergence of service sectors

a shift from manufacturing based economies to a service based economy as a country develops

high-technology industries

industry that researches, developed, and produces computers and other kinds of electronic equipment

High-technology corridors

areas alone or near major transportation arteries that are devoted to research, development, and sale of high technology products

Growth Poles

idea that economic development, or growth, is not uniform over an entire region, but instead takes place around a specific pole (i.e. is concentrated)

problems stemming from industrialization

natural resource depletion, mass consumption, pollution, climate change

Sustainable Development Goals

a set of 17 goals set by the UN that comprise an international agenda for reducing poverty and economic inequality and improving lives