Chapter 20 Flashcards
comparative advantage
the relative cost advantage a country or organization has to produce certain goods or services for trade
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
deindustrialization
process by which a country or area reduces industrial activity, particularly in heavy industry and manufacturing
ecotourism
a form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment
export processing zones
an area within a country that is subject to more favorable regulations (usually including the elimination of tariffs) to encourage foreign investment and the manufacturing of goods for export
fordism
a highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production; named after Henry Ford
free trade zones
a relatively large geographical area within a country in which businesses pay few or no tariffs on goods to encourage or facilitate its role in international trade
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
international division of labor
a pattern of production and labor in which different countries are engaged in distinct aspects of production
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
multiplier effects
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
neoliberalism
beliefs that favor free-market capitalism in which trade has no constraints from government
offshore outsourcing
the condition or one or more aspects of production are moved to an organization in another country
post-fordism
system focused on small-scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market
special economic zones
an area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses
