Growth and Diffusion of Industrialization

Vocabulary flashcards covering key concepts from Unit 7, Chapter 18 on industrialization.

Industry

Economic activity regarding the processing and production of raw materials and goods.

Raw materials

Fundamentally and minimally processed materials.

Industrialization

The development of industries in a region on a wide scale.

Industrial Revolution

When multiple regions and the global economy shifted to industrial based systems.

Cottage industries

An industry whose labor force is developed at homes and/or in family units.

Economic Sectors

The way a society organizes production, distribution, and consumption of goods and services.

Primary sector

The extraction of raw materials from the earth.

Secondary sector

The processing of raw materials.

Tertiary sector

Service based economy that doesn’t require a high amount of education.

Quaternary sector

The service based sector including IT, research and development, and education.

Quinary sector

Sector in the highest division of the economy that causes nation or global repercussions.

Postindustrial economy

Economies that shift away from raw materials towards more service based products.

Gross Domestic Product (GDP)

The total value of all final goods and services created by a country.

Dual economies

An economy that has two different sectors, determined by differences in technology, productivity, and wage rates.

Least-cost theory

A theory explaining why industrial locations are placed where they are.

Agglomeration

When similar industries or resources are physically in the same area.

Break-of-bulk points

A location where bulk products are split into smaller units so it is easier to transport.

Bulk-reducing industries

An industry where the finished product weighs less than the initial product.

Bulk-gaining industries

An industry where the finished product weighs more than the initial product.

Industrial parks

Areas designated for industrial development, located away from the suburbs and downtown area.

Human development

The improvement of the quality of life and life expectancy based on the physical and sustainable development of a place.

Gross National Product (GNP)

The total value of goods and services rendered by a country’s people and businesses over a set period.

Gross National Income (GNI)

The amount of money made by the people of a country, both inside and outside of the country’s borders.

Formal sector

The part of the economy that is under the control of the law and its limitations.

Informal sector

Economic activities that are not regulated or registered under the government.

Human Development Index (HDI)

A statistical measure that measures and compares social and economic development across nations.

Gender Development Index (GDI)

Measures gender development in the context of human development and focuses on health, education and living standards.

Gender Inequality Index (GII)

Measures the loss of human development due to gender inequality.

Women’s Empowerment

A movement that sought to give equal powers to women and men in health, education, and living standards.

Labor-market participation (LMP)

The percentage of the working-age population that is employed or seeking employment.

Microloans

Loans up to 50,000 dollars that support entrepreneurship.

Stages of Economic Growth

Rostow’s theory that certain factors such as the CBR, CDR, Healthcare, and the economy type change based on the industrialization and economic development of the country.

Dependency Theory

Wealthy nations benefit from the exploitation of poor nations.

Commodity dependence

When a country is dependent on too much of one industry.

Comparative advantage

The ability and possibility of one company to produce a good for a lower price than their competitors.

Complementarity

When seemingly opposite concepts cause a more complete understanding of a concept.

Neoliberalism

A philosophy that attempts to eliminate price controls, deregulate capital markets, and lowers trade barriers.

Deindustrialization

Where industrial activity decreases leading to job loss and economic recession.

Growth poles

Areas of concentrated economic activity that are designed to stimulate broader economic development.

Just-in-time delivery

An industry where goods are provided and delivered just when the consumer wants them.

Fordism

A system of mass production unique to developed countries.

Post-Fordism

A shift away from mass production towards individualized consumption.

Offshore outsourcing

Contracting with a foreign country to handle specific tasks or functions a country would normally source internally.

International division of labor

The specialization of countries in particular industries.

Multiplier effects

An initial change in spending or economic activity that leads to a large change in economic activity.

Special economic zones (SEZs)

Geographic areas that have different economic laws than the rest of the nation.

Export processing zones (EPZs)

A designated area that provides an incentive for businesses to produce a good to export.

Free trade zones (FTZs)

A regulated area where goods are treated as if they were from the US.

Ecotourism

Tourism focused on preserving and existing within the natural environment.