HGAP Unit 7 Vocabulary

Agglomeration-Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources.

Least Cost Theory (Alfred Weber)-Businesses seek locations that minimize transportation and labor costs.

Break-of-bulk point-A location where transfer is possible from one mode of transportation to another.

Colonialism-Attempt by one country to establish settlements and to impose its political, economic, and cultural principles in another territory.

Commodity Theory-the scarcer something is, the more desirable it becomes

Complementary advantage-when both parties have goods or services that the other party desires

Comparative advantage-the ability to produce a good at a lower opportunity cost than another producer

Core countries-industrialized former colonial states that dominate the world economic system

Debt crisis-The massive accumulation of loans taken out by third world countries and owed to northern banks and governments from the 1970s onward

Dependency theory-a model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones

Economies of scale-factors that cause a producer's average cost per unit to fall as output rises

Ecotourism-the practice and business of recreational travel based on concern for the environment

Export-processing zones-zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment

Fordist methods-Manufacturing process broken down into differentiated components, with different groups of people performing different tasks to complete the product.

Formal Economy-The legal economy that is taxed and monitored by a government and is included in a government's Gross National Product; as opposed to an informal economy

Fossil fuels-Coal, oil, natural gas, and other fuels that are ancient remains of plants and animals.

Free trade agreements-Goal is to increase trade among countries by reducing tariffs (NAFTA - no tariffs between US, Canada, and Mexico)

Gender empowerment-Compares the ability of women and men to participate in economic and political decision making.

Gender Inequality Index (GII)-A measure of the extent of each country's gender inequality

Global financial crisis-The economic crashes that happened internationally due to the globalization of the world's economy. Problems in some countries (Europe and the United States), caused financial problems in countries that trade with them.

Gross Domestic Product (GDP)-A measurement of the total goods and services produced within a country.

Gross National Income (GNI) per capita-the figure that results from dividing a country's GNI by the total population

Gross National Product (GNP)-The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.

Growth poles-economic activities that are deliberately organized around one or more high-growth industries.

High technology industries-Companies that support the growth and development of sophisticated technologies. It is a very new industry that has rapidly transformed many cities and countries.

Human Development Index-Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy

Imperialism-A policy of extending a country's power and influence through diplomacy or military force.

Income distribution-The way the national income is divided into "shares" ranging from the poor to the rich.

Industrialization-The development of industries for the machine production of goods.

Infant mortality rates-Annual number of deaths of infants(one and under) compared to the number of live births

informal economy-Economic activity that is neither taxed nor monitored by a government; and is not included in that government's Gross National Product; as opposed to a formal economy

international division of labor-The process where the assembing procedures for a product are spread out through different parts of the world

International Monetary Fund-a United Nations agency to promote trade by increasing the exchange stability of the major currencies

Just-in-time delivery-Shipment of parts and materials to arrive at a factory moments before they are needed

Labor-market participation-A statistic that determines what percentage of an age group or gender is currently working

Literacy rates-percentage of people who can read and write

Manufacturing-The process of making a raw material into a finished product; especially in large quantities.

Markets-Bring buyers and sellers together to exchange goods and services

MERCOSUR-Pact among Argentina, Brazil, Paraguay, and Uruguay to establish a free trade area

Microloans-Small-business loans often used to buy equipment or operate a business

Multiplier effects-the idea that every one dollar of government spending creates more than one dollar in economic activity

Neoliberal policies-economic policies that are predicated on a minimalist role for the state, assuming the desirability of free markets as the ideal condition not only for economic organization but also for political and social life

OPEC-Organization of Petroleum Exporting Countries

Outsourcing-A decision by a corporation to turn over much of the responsibility for production to independent suppliers.

Post-Fordist methods of production-flexible production that is no longer centralized in one manufacturing facility and takes advantage of outsourcing or just-in-time delivery and is reliant on advanced technology

Primary sector-The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.

Public transportation projects-a public project in development or under construction to provide a new transportation facility or to improve or maintain the existing system of state highways.

Quaternary sector-Service sector industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, administration, insurance, and legal services.

Quinary sector-Service sector industries that require a high level of specialized knowledge or technical skill. Examples include scientific research and high-level management.

Renewable energy-A resource that has a theoretically unlimited supply and is not depleted when used by humans.

Reproductive health-issues of safe sex, prevention and treatment of STIs, contraception, fertility and infertility, sexual health, pregnancy, and childbirth

Stages of Economic Growth-A theory developed by Walt Rostow in which five stages of economic organization are recognized: traditional society, preconditions for takeoff, takeoff, drive to maturity, and high mass consumption.

Secondary sector-The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

Semi-periphery countries-nations ranking in between core and periphery countries, with some attributes of the core countries but with less of a central role in the global economy

Service Sectors-Produces intangible goods, mroe percisely services instead of goods and is comprised of various service industries.

Small-scale finance-small loans that are given directly to individual instead of large businesses or governments

Special economic zones-specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment

Sustainable development-Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Tariffs-Taxes on imported goods

Tertiary sector-The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.

World System Theory (Immanuel Wallerstein)-One world connected by a network of economic exchange relationship// control flows from Core--->Semi-Periphery--->Periphery

least-cost theory (Weber)-(syn. Weberian analysis) The view that the optimum location of a manufacturing establishment is at the place where the costs of transport and labor and the advantages of agglomeration or deglomeration are most favorable.

World Trade Organization-Administers the rules governing trade between its 144 members. Helps producers, importers, and exporters conduct their business and ensure that trade flows smoothly.