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Primary Sector
Extracting raw materials directly. (ex. farming, mining, fishing)
Secondary Sector
Making/processing raw materials into finished goods. (ex. factories, construction)
Tertiary Sector
Services that sell or distribute products. (ex. retail, baking, waiter)
Quaternary Sector
Knowledge-based services processing information technology and research. (ex. IT, finance, scientists)
Quinary Sector
High-level decision-making (ex. CEOs, government leaders)
Industrial Revolution
18th-century shift from hand made products to machinery and factory creations.
Weber’s Least Cost Theory
Theory that industries locate to minimize costs: transportation, labor, and agglomeration.
Agglomeration
The clustering of similar industries to share labor, infrastructure, and suppliers.
Growth Pole
A dynamic industry that stimulates economic growth in linked businesses nearby.
Break of Bulk Point
Location where cargo is transferred from one transportation mode to another.
Just-in-Time Delivery (JIT)
Inventory system where parts arrive right when needed reducing storage costs.
Gross Domestic Product (GDP)
Total value of goods/services produced within a country in a year.
Gross National Income
Total value of goods/services produced by a country’s citizens, including overseas, in a year.
Human Development Index (HDI)
Measures development using education, life expectancy and income.
Gender Inequality Index
Measures inequality based on reproductive health, empowerment, and labor.
Commodity Dependence
When a country relies on one or two natural resources for >60% of its exports.
Rostow’s Theory (Stages of Growth)
A 5-stage model proposing all countries follow a path from a traditional society to high-mass consumption.
Newly Industrialized Countries
Countries experiencing rapid economic growth and industrialization.
Formal Economy
Taxed and monitored economic activities. (ex. official jobs)
Informal Economy
Untaxed, unregulated activities. (ex. street vending, casual labor)
Microlending
Small loans to individuals, often women, to start small businesses.
International Monetary Fund (IMF)
International organization that provides loans to countries for financial stability.
World Trade Organization (WTO)
Handles rules of trade between nations.
Mercosur
A South American trade bloc reducing tariffs and fostering economic integration.
Tariff
A tax placed on imported goods, used to make foreign products more expensive and encourage buying local.
Special Economic Zones (SEZs)
Specific areas in a country where laws, taxes, and regulations are different (usually lower) to attract foreign companies.
International Division of Labor
The modern global system where different countries specialize in different parts of a production process, typically with LDCs doing manual labor and MDCs doing research/management.
Export Processing Zone (EPZ)
A type of SEX focused specifically on manufacturing goods for export to other countries