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Unit 07 Vocabulary

Definitions for Topics 7.1-7.8

Industrialization the process in which the interaction of social and economic factors causes the development of industries on a wide scale
Standards of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area
Industrial Revolution radical change in manufacturing methods that began in England in the mid-18th century and was marked by the shift from small-scale hand-crafted production to power-driven mass production
Backwash effects possible negative effects of growth poles; the loss of highly educated young people from distant communities
Spin-off benefits positive effects from an economic growth pole; the additional business for a farmer when a new tech company opens nearby
Class structures hierarchical organization by which a society or community is divided into classes; generally based on family of birth, wealth, income, educational attainment, occupation, and social networks
Imperialism the push to create an empire by exercising force or influence to control other nations or peoples
Uneven development increasing gap in economic conditions between core and peripheral regions as a result of the globalization of the economy
Raw materials any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods
Agglomeration the tendency of enterprises in the same industry to cluster in the same area
Primary economic sector economic sector associated with removing or harvesting products from the earth; agriculture, fishing, forestry, mining, extracting liquid or gas
Secondary economic sector economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction
Tertiary economic 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 economic sector economic sector that is a subset of tertiary sector activities that require workers to process and handle information and environmental technology
Quinary economic 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
Break-of-bulk point location where the mode of transportation changes; it is more economical to break raw materials into smaller units before shipping them farther; ports
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
Bulk-gaining industry industry in which the finished goods cost more to transport than the raw materials
Bulk-reducing industry industry in which the raw materials cost more to transport than the finished goods
Social measures of development things that affect the well-being of individuals and communities; examples include access to healthcare, fertility rates, literacy rates
Economic measures of development indicators that affect the economy of a community; examples include GDP, unemployment, inequality of wealth
Gross Domestic Product (GDP) the total value of the goods and services produced by all people and companies within the country in a year
Gross National Product (GNP) the total value of the goods and services produced by a country's citizens and companies both domestically and internationally in a year
Gross National Income (GNI) per capita the total value of goods and services globally produced by a country's citizens in a year, divided by the country's population
Formal sector of the economy businesses, enterprises, and other economic activities that have government supervision, monitoring, and protection, and are also taxed
Informal sector of the economy any part of a country's economy that is outside of government monitoring or regulation
Income distribution how a country's GDP is distributed amongst its population; if everyone in a society earned the exact same amount, the income distribution would be perfectly equal
Gender Inequality Index (GII) a measurement that calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation
Human Development Index (HDI) 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
Labor market participation (LMP) rate that measures an economy's active labor force, calculated by taking the sum of all employed workers divided by the working age population
Microloans a very small short-term loan with low interest intended to help people in need
Rostow's Stages of Economic Development a model that suggests that all countries can be categorized on a spectrum from traditional to modern, and that to become modern, countries need to pass through distinct stages of economic growth in succession
Wallerstein's World System 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
Dependency theory theory that describes the development challenges and limitations faced by poorer countries, and the political and economic relationships poorer countries have with richer countries
Commodity dependence/ commodity theory an aspect of dependency theory that occurs when more than 60 percent of a country's exports and economic health are tied to one or two resources
Deindustrialization process by which a country or area reduces industrial activity, particularly in heavy industry and manufacturing
Complementary advantages/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
Comparative advantages the relative cost advantage a country or organization has to produce certain goods or services for trade
Neoliberal policies beliefs that favor free-market capitalism in which trade has no constraints from government
Free trade agreements the specific understanding of two or more countries that have agreed to reduce trade barriers
Global financial crises a period of extreme stress in financial systems worldwide
Mercosur South American trade bloc intended to expand trade, improve transportation, and reduce tariffs among members
Tariffs a tax or duty to be paid on a particular import or export
Maquiladoras a factory in Mexico run by a foreign company and exporting its products to the country of that company.
Economic restructuring process of moving from one sector of the economy to another (from being a mostly primary sector economy to being a mostly secondary sector economy, for instance)
Manufacturing zones area in which manufacturing is allowed to occur
Special economic zones (SEZ) area within a country that is subject to different and more beneficial economic regulations than other areas; companies doing business in a SEZ receive tax incentives and are subject to lower or no tariffs
Trading blocs groups of countries that agree to a common set of trade rules
Free trade zones (FTZ) large geographic areas of a country that provide tariff- and tax-free areas for warehousing, storage, manufacturing, and transport of goods; often situated near international airports, seaports, or land borders to enable quicker turnaround of ships, planes, etc. engaged in international trade
Export-processing zones (EPZ) area within a country where manufacturing of exports is done without tariffs to attract multinational organizations to invest in labor-intensive assembly and manufacturing
Fordist production/ Fordism a highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production; named after Henry Ford
Multiplier effect the economic effect in which a change creates a larger change, such as when a new manufacturing plant grows the economy by giving rise to more related jobs and services
Just-in-time delivery a system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production
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
Economies of scale cost reductions that occur when production rises
Front office Main offices for executives; the public face of the company; often very expensive locations in top floors of city buildings
Back office Main offices for average employees; much cheaper office spaces than the front offices; those who do jobs like payroll, customer service, billing, etc.
Mass consumption lots of things being purchased; tied to mass production that was made possible beginning in the Industrial Revolution
Ecotourism a form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment
UN's Sustainable Development Goals (SDGs) 17 goals adopted by all United Nations states to reduce disparities in economic security, food security, gender equality, safety, sustainability, etc. between developed and developing countries
Small-scale finance means by which a business owner obtains money to start a new small business or purchase an existing small business
Newly industrialized countries (NIC) a country whose level of development is somewhere between "developed" and "developing;" often selected as industrial production/manufacturing locations; often referred to as "semiperiphery"
Outsourcing contracting work out to noncompany employees or other companies; can be domestic or international
Climate change a change in global or regional climate patterns, in particular a change apparent from the mid to late 20th century onwards and attributed largely to the increased levels of atmospheric carbon dioxide produced by the use of fossil fuels.
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