Unit 7 Vocab Lists: Industrial and Economic Development
1. Agglomeration
Definition: Clustering of industries for shared benefits like infrastructure, labor, or markets.
Example: Silicon Valley’s tech companies.
2. Assembly Line Production / Fordism / Fordist Production
Definition: Mass production with workers doing specific, repetitive tasks.
Example: Ford car factories in the early 20th century.
3. Basic Industries
Definition: Industries that export goods and bring money into a region.
Example: Steel production in Pittsburgh.
4. Break-of-Bulk Point
Definition: A location where goods are transferred between transport modes.
Example: Port of Los Angeles (ship to truck/train).
5. Bulk-Gaining Industry
Definition: Industry where the final product weighs more than inputs.
Example: Bottling soft drinks.
6. Bulk-Losing Industry
Definition: Industry where the final product weighs less than inputs.
Example: Copper smelting.
7. Commodity Dependence
Definition: When a country relies heavily on one export commodity.
Example: Angola’s dependence on oil exports.
8. Comparative Advantage
Definition: The ability to produce goods at a lower opportunity cost.
Example: India’s advantage in software services.
9. Core
Definition: Developed countries with strong economies and high standards of living.
Example: United States, Germany.
10. Deindustrialization
Definition: Decline of industrial activity in a region.
Example: Rust Belt cities like Detroit.
11. Dependency Theory
Definition: Theory that poorer countries are exploited by richer ones.
Example: Former colonies depending on exports to Europe.
12. Development
Definition: Progress in economy, tech, and quality of life.
Example: South Korea’s transformation since the 1950s.
13. Economic Sectors
Definition: Divisions of the economy (Primary, Secondary, Tertiary, etc.).
Example: Agriculture (Primary), Manufacturing (Secondary).
14. Economies of Scale
Definition: Cost advantages from increased production.
Example: Walmart’s bulk purchasing power.
15. Ecotourism
Definition: Sustainable tourism focused on natural environments.
Example: Costa Rica’s rainforest tours.
16. European Union (EU)
Definition: Political and economic union of European countries.
Example: Free trade between France and Germany.
17. Export Processing Zone (EPZ)
Definition: Areas with incentives for foreign firms to export goods.
Example: Shenzhen, China.
18. Fair Trade
Definition: Trade that ensures fair wages and practices for producers.
Example: Fair Trade certified coffee.
19. Foreign Direct Investment (FDI)
Definition: Investment from a company in one country into operations in another.
Example: Toyota building a factory in the U.S.
20. Formal Economy
Definition: Legal, taxed, and regulated economic activities.
Example: A registered clothing manufacturer.
21. Free Trade Agreement
Definition: Pact to reduce trade barriers between countries.
Example: USMCA (formerly NAFTA).
22. Free Trade Zone
Definition: Area where goods can be traded with fewer restrictions or tariffs.
Example: Panama’s Colón Free Trade Zone.
23. Greenhouse Effect
Definition: Warming of Earth due to trapped gases.
Example: CO₂ emissions from factories.
24. Gender Inequality Index (GII)
Definition: Measures gender disparities in health, education, and labor.
Example: Norway has a low GII.
25. Gender-Related Development Index
Definition: Measures equality in human development between genders.
Example: Sweden scores high on GDI.
26. Gross Domestic Product (GDP)
Definition: Total value of goods/services produced within a country.
Example: U.S. GDP is over $20 trillion.
27. Gross National Income (GNI)
Definition: GDP plus income from abroad.
Example: GNI includes money Filipinos send home.
28. Gross National Product (GNP)
Definition: Total value of goods/services produced by a country's citizens.
Example: U.S. companies’ production overseas counts in GNP.
29. Growth Poles
Definition: Concentrated areas of economic development.
Example: Bangalore, India for tech.
30. Human Development Index (HDI)
Definition: Composite index of life expectancy, education, and income.
Example: Norway ranks very high.
31. Industrialization
Definition: Shift from agriculture to manufacturing.
Example: 19th-century Britain.
32. Industrial Revolution
Definition: Period of major industrial change, starting in Britain (late 1700s).
Example: Introduction of the steam engine.
33. Informal Economy
Definition: Unregulated economic activities.
Example: Street vendors without licenses.
34. Infrastructure
Definition: Basic systems for a functioning economy.
Example: Roads, water systems, internet.
35. International Division of Labor
Definition: Transfer of low-skill jobs to developing countries.
Example: Garment manufacturing in Bangladesh.
36. International Monetary Fund (IMF)
Definition: Organization that lends to struggling countries.
Example: IMF loans to Argentina.
37. Just-in-Time Delivery
Definition: Production system where inputs arrive as needed.
Example: Toyota’s supply chain.
38. Labor Union
Definition: Organization advocating for workers' rights.
Example: United Auto Workers.
39. Labor-Intensive
Definition: Industries needing large amounts of human labor.
Example: Textile production.
40. Least-Cost Theory
Definition: Weber’s theory that factories locate to minimize costs.
Example: Steel mills near coal/iron sources.
41. Literacy Rate
Definition: Percentage of people who can read and write.
Example: U.S. has ~99% literacy.
42. Maquiladora
Definition: U.S.-owned factories in Mexico near the border.
Example: Electronics assembly in Tijuana.
43. Mass Consumption
Definition: Widespread purchasing of consumer goods.
Example: Post-WWII U.S. economy.
44. Mercosur
Definition: South American trade bloc.
Example: Includes Brazil and Argentina.
45. Measures of Development
Definition: Metrics like HDI, GDP, literacy to assess development.
Example: UN uses HDI.
46. Microloans
Definition: Small loans to help individuals in developing countries.
Example: Grameen Bank in Bangladesh.
47. Multiplier Effect
Definition: Economic growth leads to more jobs and spending.
Example: Factory attracts stores, homes, services.
48. NAFTA (Now USMCA)
Definition: Trade agreement between U.S., Canada, and Mexico.
Example: Reduced tariffs on auto parts.
49. Natural Resource Depletion
Definition: Overuse of resources like oil or forests.
Example: Deforestation in the Amazon.
50. Neocolonialism
Definition: Continued economic domination of developing countries.
Example: African nations relying on Western loans.
51. Neoliberal Policies
Definition: Policies promoting free markets and privatization.
Example: Structural adjustment programs by the IMF.
52. Nonbasic Industries
Definition: Industries serving local needs.
Example: Local restaurants.
53. Offshoring
Definition: Moving business processes abroad.
Example: Apple producing iPhones in China.
54. OPEC
Definition: Group of oil-exporting nations that influence prices.
Example: Saudi Arabia is a member.
55. Outsourcing
Definition: Contracting work to third parties, often abroad.
Example: Call centers in the Philippines.
56. Per Capita
Definition: Per person measure.
Example: GDP per capita shows average income.
57. Periphery
Definition: Less developed countries with weak economies.
Example: Sub-Saharan Africa.
58. Postindustrial
Definition: Economy dominated by services, not industry.
Example: U.K. today.
59. Purchasing Power Parity (PPP)
Definition: Adjusts income to reflect cost of living.
Example: $1 goes further in India than in the U.S.
60. Remittances
Definition: Money sent home by migrants.
Example: Filipinos sending money from the U.S. to the Philippines.
61. Renewable Energy
Definition: Sources that replenish naturally.
Example: Wind power.
62. Right-to-Work State
Definition: States where workers can't be forced to join unions.
Example: Texas.
63. Special Economic Zones (SEZs)
Definition: Zones with different economic rules to attract investment.
Example: Shenzhen, China.
64. Semi-Periphery
Definition: Countries in between core and periphery.
Example: Brazil, India.
65. Standard of Living
Definition: Level of wealth, comfort, and access to goods/services.
Example: High in Norway, low in Haiti.
66. Sustainable Development
Definition: Development meeting present needs without harming future generations.
Example: Solar energy investment.
67. Tariff
Definition: Tax on imports.
Example: U.S. tariffs on Chinese steel.
68. Transnational Corporation
Definition: Company operating in multiple countries.
Example: McDonald’s.
69. Vertical Integration
Definition: Controlling all stages of production.
Example: Amazon owning its warehouses and delivery.
70. World Systems Theory
Definition: Wallerstein's idea of a world economy with core, semi-periphery, and periphery.
Example: U.S. (core), India (semi), Ethiopia (periphery).
71. World Trade Organization (WTO)
Definition: International group that promotes and regulates global trade.
Example: Resolves disputes between countries over trade.