7.7 : Changes as a Result of the World Economy (Pgs. 496-504) Flashcards
Outsourcing
Contracting work to non-company employees or other companies.
Offshoring
Tertiary and quaternary sector companies move their back offices to other countries.
New International Division of Labor
A changed system of employment in the various economic sectors throughout the world.
^ Basic vs. Non-Basic Economic Activity
Basic: actions that create new wealth for a region
Non-basic: Does not generate new money for the area. Allows for recirculation of the existing money in the area.
Transnational/Multinational Corporations
Businesses that operate in multiple countries.
Export Processing Zones (EPZ)
Special manufacturing zones.
Special Economic Zones (SEZ)
Allow easy access to international markets.
Maquiladoras
Minimize transportation costs into the U.S.
Free-trade Zones
Locations where a foreign company can store, warehouse, transfer, or process without additional taxation or duties if goods are exported.
Postindustrial Economy
A country that no longer employs large numbers of people in factories but has people who provide services and process information.
Assembly Line
Where an item is moved from worker to worker, with each repeatedly performing the same task.
Fordism
The system of mass production. Changed manufacturing and became standard practice across industries.
Substitute Principle
In which businesses maximize profit by substituting one factor of production for another.
Post-Fordist
The remaining workers are often trained to do more than one job, so they can rotate among a few different workstations during a day, reducing the risk of injuries.
Economies of scale
Allows owners to increase output with improved efficiency.
