Studied by 17 peopleweber’s least cost theory model
agglomeration - clustering of different activities in an area to benefit themselves
minimizing transportation costs
minimizing labor costs (cost of production)
explains key decisions made by businesses
bulk reducing goods
good that as production happens, gets lighter and easier to transport
closer to resources
bulk gaining goods
as production happens, gets harder to transport because of the increasing weight
closer to market
core countries
most advanced economies
highest standard of living
semi-periphery countries
emerging economies'
still industrializing
periphery countries
rely on exports of raw goods to more economically developed countries
multinational corporation
exploiting or benefitting from an economic labor force
business in at least one other country than its home country
ex. google, apple
formal economy
recognized by law
ex. teachers, doctors, police
informal activities
not regulated or protected by the government
ex. unregistered small business, street vendors
squatter settlements have more of this due to less govt support
gross domestic product GDP
total value of all goods and services produced within a country’s borders
economy growth inside boundaries
gross national product Gnp
total economic output produced by a country’s residents and businesses
includes citizens in a different country
gross national income GNI
total income generated by a country’s rewidents and businesses
both domestically and abroad
gender inequality index GII
measures gender-based inequalities in health, education, and economic participation
higher values indicate higher inequalities, the lower the less inequality
human development index HDI
used to measure economic and social development of a country'
determined using life expectancy, expected years of schooling, and gross national income per capita GNI
higher value, more developed
lower value, less developed
more developed countries, use more ____ ____
fossil fuels
microloans
goes to people who are excluded from economic society, especially in LDCs
goal is to help them and society financially
gender parity
economic development generally increases the amount of gender equality in a society
traditional society
early stages of DTM
primary sector: focused on agriculture, raw resources, extraction
preconditions for takeoff
more investment in infrastructure and education
economy shifts since foreign states start to become more interested, influenced by low wage labor
diffuses tech more widely
still a lot of primary, but more secondary
take off
rapid economic growth
big boost in economy
jobs move out of agricultural/primary, and transitions to more industrial socities (secondary)
more job opportunities and urbanization
initiates self-sustaining growht
drive to maturity
more specialization
involvement in global trade
shifting to tertiary sector
sees more economic growth than population growth
high mass consumption
sees more quinary and quaternary
more tertiary jobs
manufacturing happens in other states
high mass consumption, spends money on nonessential goods
rostows stages of economic growth criticisms
doesnt factor in colonialism
assumes everybody will reach the highest level
wallerstein’s world system theory
interdependency
core countries benefit more from global trade by taking advantage of raw materials
shows impact of colonization
highlights how infrastructure in colonized states was set up for the core/colonizing states
criticisms:
doesn’t take in microloans, microfinancing, that helps LDCs grow econimcally
dependency theory
suggests that semi periphery and periphery are dependent on their economic growth with core countries
core countries are more economically advanced that reap more benefits off global trade
still benefit to LDCs, but MDCs get more of the benefit
commodity dependence
over 60% of exports are made off of a certain commodity/good
big issue for the country, leads to economic struggle
demonstrates how a diversified portfolio is better
globalization
the process by which countries, economies, cultures, businesses, and people become interconnected and dependent on each other
neo liberal policy
focus is to try and get freedom from the government, free markets, and free trade
tries to reduce government regulation and promote free market
ex. European Union
free trade
reduces amount of restrictions and barriers
stimulates economic growth
tariff
opposite of free trade
happens because a state is afraid they will lose domestic jobs
tax or duty imposed by a government on goods and services that come inside a country
trade facilitates _______ _____
economic growth
comparative advantage
an economic concept
when a country, individual, or organization produces a good or service at a lower cost than another country, individual, or organization
focuses on specialization, a country will do what they are best at, produce those products, and the ones you aren’t best at, trade with a country that is
economic restructuring
significant shift in production, employment, investment, trade patterns, or underlying ecoomic systems
primary and secondary jobs are put in the hands of semiperiphery and periphery countries, while core focuses on tertiary
offshoring
process of relocating a busines, process, or service to a foreign country
outsourcing
when a business contracts to a service, job, or an external provider
reduces their costs and increase their efficiency
free trade zone
export processing zone
international divison of labor
focusing on how countries use comparative advantage to specializw in diff economic activities, resources, and capabilities
multiplier effect
when an original investment by an individual, business, government, or organization leads to a chain reaction of spending and inceased economic activity
fordism
a system of production that emphasizes mass production of standard goods
post-fordism
a system of production that emphasizes more flexible production methods where workers are trained in multiple tasks
economies of scale
as a company grows, reduction of the cost to produce a product
just-ion-time delivery
materials are delivered to the manufacturing plant precisely when they are needed
growth poles
specific regions, cities, or areas that are considered centers of economic growth and devlopment
a result of agglomeration
deindustrialization
reduction of primary and secondary sector
UN sustainable development goals 2016-2030
leads to higher standard of living
degradation
decline in quality
ecotourism
focuses on responsible travel to natural areas that conserve the environemtn
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