15 terms for unit 7 vocab Flashcards
Fair Trade
Commerce in which products are
made and traded according to standards that
protect workers and small businesses in
developing countries.
HDI
United Nations (UN) developed a metric to measure the level of
development of every country called the Human Development Index
Micro Finance
Provision of small loans and other financial services to individuals and small businesses in developing countries
Value Added
the gross value of a product minus the costs of raw
materials and energy.
PPP
Purchasing power parity (PPP)
Cost of living adjustment made to the GNI.
FDI
Investment made by a foreign company in the economy of another
country.
GDI
gender development index
GNI
the total income earned by a country’s people and businesses, even if it was earned outside the country
Just in time Delivery
Inputs needed in the assembly process arrive at the assembly plant
very close to when they are needed
Cottage Industry
Industry in which the production of goods and services is based in homes
Break- of- bulk point
the name given to an economic center, like a dockyard, where a manufactured product is assembled and then separated into various shipments ready to be transported to a wide range of markets.
Right-to-work-law
legislation
that requires a factory to prohibit workers from being forced to join a union.
Vertical Integration
a business strategy in which a company takes ownership ofall key stages of its supply chain
New International Division of Labor
refers to selective transfer of production
operations requiring highly skilled workers to factories located in
developed countries and those requiring little skill to factories located in
developing countries.
Outsourcing
contracting work
out to noncompany
employees or other companies
