Industrial and Economic Development Flashcards

Vocabulary flashcards based on lecture notes for Unit 7, covering industrial revolution, economic sectors, trade theories, and development measures.

Industrial Revolution

The radical change in manufacturing methods that began in Great Britain in the mid-18th century and was marked by the shift from small-scale, hand-crafted, muscle-powered production to power-driven mass production

Dependency Theory

A theory that describes the development challenges and limitations faced by poorer countries and the political and economic relationships poorer countries have with richer countries

Primary Sector

Economic sector associated with removing or harvesting products from the earth; includes agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas

Secondary Sector

Economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction

Tertiary Sector

Economic sector that includes a host of activities that involve the transport, storage, marketing, and selling of goods or services; also called the service sector

Quaternary Sector

Economic sector that is a subset of tertiary sector activities that require workers to process and handle information and environmental technology

Quinary Sector

Economic sector that is a subset of the quaternary sector; involves the very top leaders in government, science, universities, nonprofits, health care, culture, and media

Weber's Model (Least Cost Theory)

Industrial location theory proposed by Alfred Weber suggesting that businesses locate their facilities in a particular place because that location minimizes the costs of production

Break of Bulk Points

Location where it is more economical to break raw materials into smaller units before shipping them further. Examples: Ports or airports

Bulk-gaining industries

Industry in which the finished goods cost more to transport than the raw materials. Example: beverage production

bulk reducing industries

Industry in which the raw materials cost more to transport than the finished goods

GDP (Gross Domestic Product)

The total value of the goods and services produced by a country’s citizens and companies within the country in a year

GNP (Gross National Product)

The total value of the goods and services produced by a country’s citizens and companies both domestically and internationally

GNI (Gross National Income)

The total value of goods and services globally produced by a country in a year divided by the country’s population

HDI (Human Development Index)

A measure that determines the overall development of a country by incorporating three key dimensions of human development: life expectancy at birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI per capita

GINI coefficient

A measure of statistical dispersion intended to represent the income inequality or the wealth inequality within a nation or a social group

GII (Gender Inequality Index)

A measurement that calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation

GEM (Gender Empowerment Measure)

An index designed to measure gender equality based on opportunities for women.

GPI (Gender Parity Index)

A socioeconomic index usually designed to measure the relative access to education of males and females.

Microloans

A very small short-term loan with low interest intended to help people in need

Informal Economy

Any part of a country’s economy that is outside of government monitoring or regulation

Rostow's five stages

The five steps through which all countries must pass to become developed: 1) traditional society, 2) preconditions to take-off, 3) take-off, 4) drive to maturity and 5) age of high mass consumption

Wallerstein's World Systems Theory

Theory describing the spatial and functional relationships between countries in the world economy; categorizes countries as part of a hierarchy consisting of the core, periphery, and semi-periphery

Neoliberalism

Beliefs that favor free-market capitalism in which trade has no constraints from government

Free trade

A trade policy that does not restrict imports or exports

Comparative advantage

The relative cost advantage a country or organization has to produce certain goods or services for trade

Complementarity

The mutual trade relationship that exists between two places based on the supply of raw materials and the demand for finished products or services

Opportunity Cost

The loss of value or benefit that would be incurred (the cost) by engaging in that activity, relative to engaging in an alternative activity offering a higher return in value or benefit

Import substitution

The idea that blocking imports of manufactured goods can help an economy by increasing the demand for domestically produced goods.

Tariff

A tax or duty to be paid on a particular import or export

Quotas

Limit on the number of X allowed into the country each year

Subsidies

A direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut

IMF (International Monetary Fund)

Serves to stabilize the international monetary system and acts as a monitor of the world's currencies. Provides loans.

World Bank

Works with developing countries to reduce poverty and increase shared prosperity. Funds projects for development.

Structural adjustment program

Consist of loans provided by the International Monetary Fund and the World Bank to countries that experience economic crises. Their purpose is to adjust the country's economic structure, improve international competitiveness, and restore its balance of payments.

Austerity measures

A set of political-economic policies that claims to aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both

Special Economic Zones (SEZs)

An area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses

Disaggregation of production

The assembly of the final product is in different places

Agglomeration

The tendency of enterprises in the same industry to cluster in the same area

Export processing zones

An area within a country that is subject to more favorable regulations (usually including the elimination of tariffs) to encourage foreign investment and the manufacturing of goods for export

Free trade zones

A relatively large geographical area within a country in which businesses pay few or no tariffs on goods to encourage or facilitate its role in international trade

Maquiladoras

A low-cost factory in Mexico that is owned by a foreign corporation

Outsourcing/Off-shoring

The condition or one or more aspects of production are moved to an organization in another country

Post-Fordism

System focused on small-scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market

Economies of scale

Cost reductions that occur when production rises

Growth poles

A place of economic activity clustered around one or more high-growth industries that stimulate economic gain by capitalizing on some special asset