Chapter 7 Flashcards
What is Fordism?
A production process that emphasizes mass production of standard goods with centralized decision-making and task specialization.
What characterizes post-Fordism?
Flexible production with workers trained in multiple tasks, localized decision-making, and customizable products.
Define just-in-time delivery.
A production and inventory control system where products and materials are delivered precisely when needed in the production process.
What are economies of scale?
As a company grows, it reduces the average cost to produce its product due to increased access to capital and larger production capacity.
What is agglomeration?
The clustering of different economic activities and industries in a particular geographic area.
What are growth poles?
Specific regions, cities, or economic sectors considered centers of economic growth and development.
What is one risk of using just-in-time delivery?
Miscommunication between supplier and manufacturer could result in delays, costing money and impacting customer satisfaction.
How does agglomeration help companies become more profitable?
It allows companies to utilize existing infrastructure, benefit from a larger workforce, resource pool, and customer base, leading to lower costs and higher profits.
Why does agglomeration occur?
Businesses cluster to reduce costs or increase sales; globalization may lead to deagglomeration as new markets emerge.
Provide an example of a growth pole.
Silicon Valley in California (technology).
Define sustainability.
The use of the Earth’s resources in a way that ensures their availability for the future.
What is resource depletion?
The exhaustion of natural resources due to unsustainable practices and excessive consumption.
Describe ecotourism.
A form of tourism that focuses on responsible travel to natural areas that conserve the environment and improve local well-being.
What are three unique aspects of ecotourism?
- Guided tours provide information about local culture and environment
- Activities promote conservation, such as wildlife watching
- Tours are often run by small-scale, low-impact operations.
What are the UN’s sustainable development goals?
- No poverty
- Zero hunger
- Good health and well-being
- Quality education
- Gender equality
- Clean water and sanitation
- Affordable and clean energy
- Decent work and economic growth
- Industry, innovation, and infrastructure
- Reduced inequalities
- Sustainable cities and communities
- Responsible consumption and production
- Climate action
- Life below water
- Life on land
- Peace, justice, and strong institutions
- Partnerships for the goals.
What would happen to the standard of living in a country striving to achieve the UN’s sustainable development goals?
The standard of living would increase, along with equality, economic opportunities, and opportunities for citizens.
What is one downside to having a globally connected economy?
Economic turmoil in one country can lead to a ripple effect across the world
Example: The 2008 collapse of the U.S. housing market caused a recession globally.
How does a globalized world impact workers?
Workers face competition from a global workforce, leading to increased productivity and job relocation to cheaper labor markets.
What role do government policies play in global trade?
Government policies can restrict or promote global trade, influencing the availability and prices of goods.
What influence do supranational organizations and multinational corporations have on the global economy?
They can exert power over the global economy and create large supply chains, trade agreements, or partnerships connecting countries.
What is a tariff?
A tax imposed by a government on imported goods and services to make them more expensive and promote domestic production.
Define economic restructuring.
A significant shift in production, employment, investment, trade patterns, or economic systems due to technological changes, globalization, consumer preferences, or government policies.
Provide an example of economic restructuring occurring in the world.
Jobs from the secondary sector are relocating from economically developed states to less economically developed states due to cheaper resources and labor.
What is happening with the location of online customer service jobs?
Online customer service jobs are moving to regions with less economic development and a workforce proficient in English.
What is the international division of labor?
It describes how countries utilize their comparative advantage to specialize in different economic activities, resources, and capabilities.
What is a special economic zone?
Regions within a country that provide economic incentives to attract foreign investment and promote economic growth.
What is a free-trade zone?
A region within a country where imported goods can be stored and processed without tariffs or trade barriers.
What are export processing zones?
Regions within a country’s borders that offer special economic regulations and incentives for the production of goods and services for export.
Explain the multiplier effect.
An original investment leads to a chain reaction of spending and increased economic activity.
What is the difference between offshoring and outsourcing?
Offshoring relocates a business process to a foreign country, while outsourcing contracts a service to an external provider.
What are core countries?
Economically developed countries with an abundance of wealth.
Core countries typically have advanced infrastructure and high standards of living.
What are semi-periphery countries?
Countries that are starting to become more industrialized but still lack an abundance of wealth.
Semi-periphery countries often act as a buffer between core and periphery countries.
What are periphery countries?
Poor countries that are dependent on other nations for a stabilized economy.
Periphery countries often provide raw materials and labor to core countries.
How does Wallerstein’s world systems theory model explain global trade?
Core countries purchase consumption goods from semi-periphery and periphery countries.
Periphery countries provide cheap labor and raw materials.
What conclusion did Wallerstein reach regarding periphery countries?
Periphery countries will become dependent on a few core countries.
This dependency often leads to exploitation of resources and labor.
What is globalization?
The process of increasing the amount of interactions between different countries and people around the world.
Globalization can have both positive impacts (like economic growth) and negative impacts (like cultural homogenization).
What is the complementarity index?
A measure used in economics and trade to assess the compatibility between the products and services that two countries produce and trade with each other.
It compares the export patterns of one country with the import patterns of another.
What does a complementarity index of 98 indicate?
The two countries should trade since their exports and imports almost perfectly match.
A high score indicates a strong trade relationship.
What does it mean when a country has a comparative advantage?
The country can produce a good or service at a lower opportunity cost compared to another.
It implies greater efficiency in production.
Define neoliberalism.
An economic and political ideology that emphasizes individual freedom, free markets, and free trade.
Neoliberalism often advocates for reducing government intervention in the economy.
What is NAFTA/USMCA?
A trade agreement that promoted free trade between the United States, Canada, and Mexico, now evolved into the USMCA.
The USMCA includes provisions for improved labor standards.
What is Mercosur?
A South American trade bloc that seeks to create a common space for generating business and investment opportunities.
Mercosur promotes free trade among its member countries.
What is the European Union?
A political/economic union of states that promotes peace and a unified economic system.
The EU facilitates economic cooperation and has its own currency, the Euro.
What is the World Trade Organization (WTO)?
A worldwide organization that oversees global trade between nations.
The WTO aims to reduce obstacles to international trade and promote economic development.
What are the three main goals of the International Monetary Fund (IMF)?
- Furthering international monetary cooperation
- Encouraging the expansion of trade and economic growth
- Discouraging policies that would harm prosperity
The IMF provides financial assistance and advice to member countries.
What is OPEC?
A coordinated group of countries that seek to unify their petroleum policies to secure fair and stable prices for petroleum.
OPEC plays a significant role in regulating oil production and prices.
Who provides microfinancing?
Non-governmental organizations and community-based organizations
Microfinancing is crucial for supporting entrepreneurship in developing regions.
How do microloans support women in developing countries?
Microloans allow individuals to establish small businesses and gain financial independence
These loans provide necessary supplies and opportunities for women.
Which countries traditionally have less gender inequality?
More economically developed countries
Less economically developed countries tend to have higher gender inequality.
What is the traditional society stage in Rostow’s model of development?
Society relies on subsistence agriculture; productivity is low; majority in the primary sector
This stage reflects a lack of technological advancement.
What happens during the preconditions for takeoff stage in Rostow’s model?
Society sees demand for raw materials, creating political and economic change
This stage marks the beginning of a shift from primary to secondary economic sectors.
What is characterized by the drive to maturity stage in Rostow’s model?
Specialization, global trade, and a diverse economy with more jobs in the tertiary sector
Society becomes more independent while still influenced by outside countries.
What is the age of mass consumption in Rostow’s model?
Society produces products beyond basic needs; most jobs are in the tertiary sector
Outside influence on the economy decreases during this stage.
What are two criticisms of Rostow’s model?
- It fails to consider external political and social factors
- It fails to consider environmental constraints
These criticisms highlight the model’s limitations in real-world applications.
What similarities exist between Rostow’s stages of economic growth model and the demographic transition model?
Both illustrate transitions in agriculture, economic development, mobility within society, and standard of living
These models provide frameworks for understanding societal changes.
What does dependency theory suggest?
Economically developing countries are dependent on economically developed countries for growth
This theory critiques the global economic system and its impact on development.
What does it mean to have commodity dependence?
More than 60% of a country’s total exports are commodities
An example is Venezuela, where crude petroleum and refined petroleum make up over 65% of exports.
What could happen if a country becomes dependent on one or two commodities?
The local economy could crash or become unstable due to market fluctuations
This dependency can lead to stagnation in other economic sectors.
What is Gross Domestic Product (GDP)?
The total value of all goods and services produced within a country’s borders over a specific period of time
GDP is often used as an economic indicator of a country’s economic health.
What does Gross National Product (GNP) measure?
The total economic output produced by a country’s residents and businesses, regardless of their location
GNP includes income earned by residents from investments abroad.
Define Gross National Income (GNI).
The total amount of income generated by a country’s residents and businesses, both domestically and abroad, in a given year
GNI is used to assess the economic performance of a country.
What is GNI per capita?
Measures the standard of living of a population by giving an estimate of the average income earned by each individual in a society
GNI per capita is often used to compare living standards between countries.
What does the Gender Inequality Index (GI) measure?
A composite index that measures gender-based inequalities in health, education, and economic participation
A lower GI score indicates less gender inequality.
What is the Human Development Index (HDI)?
An index that is used to measure the social and economic development of a country by analyzing a country’s life expectancy, expected years of schooling, and gross national income per capita
HDI is often used to rank countries and assess their development levels.
How is the maternal mortality ratio defined?
The number of maternal deaths per 100,000 live births that occur due to pregnancy or childbirth-related complications
This ratio is a significant indicator of maternal health and healthcare quality.
What does the adolescent fertility rate measure?
The number of live births per 1,000 women aged 15-19 years old in a given year
This rate is often used to assess reproductive health and education among young women.
Which HDI score reflects more economic and social development, .98 or .30?
.98
A score of .98 indicates a more developed society, with 1.0 being the highest possible score.
Which country has less gender inequality, Country A with a GII of .3, or Country B with a GII of .8?
Country A
A lower GII score indicates less gender inequality.
Women disproportionately make up a higher percentage of _______.
The informal economy
The informal economy includes unregulated sectors where many women work.
In less economically developed countries, women tend to work in which sectors?
The primary and secondary sectors
These sectors include agriculture and manufacturing.
In more economically developed countries, women tend to work in which sectors?
The tertiary, quaternary, and quinary sectors
These sectors involve services, knowledge-based industries, and high-level decision-making.
What is a microloan?
A small loan provided to individuals who are typically excluded from traditional financial services
Microloans are designed to help low-income individuals start or expand small businesses.
What is the purpose of microloans?
To finance small businesses, such as street vendors or subsistence farmers, in economically developing regions to create jobs and allow financial independence
Microloans aim to empower entrepreneurs and stimulate economic development.
Define microfinancing.
A category of financial services that are for individuals and small businesses who lack access to traditional banking services
Microfinancing often includes access to savings accounts, insurance, or money transfer services.
What is a value-added product?
A product that has been processed in a way that increases its overall value.
The final product is worth more than the original raw materials used to make it.
What happens to a country’s workforce as the country develops economically?
Preindustrial countries have the majority of their workforce in the primary sector. As countries develop, more jobs open in the secondary sector, and eventually, they become postindustrial economies with a focus on the tertiary sector.
This may lead to deindustrialization, where jobs in the secondary sector are replaced with those in the tertiary sector.
What is a multinational corporation?
A company that has business operations in at least one country other than the country in which it is based.
Define ‘deindustrialization.’
The decline of industrial production and manufacturing in an economy or region.
What is a break-of-bulk point?
A location where goods are transferred from one mode of transportation to another.
Most common examples are ports or airports.
Complete the table on types of countries: Core country.
Countries with the most advanced economies and the highest standard of living.
Complete the table on types of countries: Semi-periphery country.
Countries that have emerging economies that are industrializing.
Complete the table on types of countries: Periphery country.
Countries that still rely heavily on the exportation of raw resources to more economically developed countries.
These countries have the lowest standard of living.
What three factors does Weber’s least cost theory use when determining where to locate production?
1) Transportation costs 2) Labor costs 3) Agglomeration.
Explain the difference between a bulk-gaining product and a bulk-reducing product.
Bulk-reducing products become lighter after production and are located near heavier raw resources. Bulk-gaining products become heavier and are located closer to the market.
Bulk-gaining products have their production located ______, while bulk-reducing products have their production located ______.
Bulk-gaining: closer to the market. Bulk-reducing: closer to resources.
How does Weber’s least cost theory describe the location of industries and resources?
Industries locate production based on transportation costs of raw materials and final goods, considering labor costs and economic benefits of agglomeration.
Identify three things that Weber’s model does not take into consideration.
1) Government policies 2) Cultural preferences 3) Environmental concerns.
What is the difference between the formal economy and the informal economy?
The formal economy consists of recognized economic activities overseen by the government, while the informal economy includes unregulated activities.
Identify two things that people who work in the informal economy lack.
1) Healthcare 2) Paid sick leave.
What are two examples of jobs in the informal economy?
1) Domestic work 2) Illegal businesses.
Where did the Industrial Revolution begin?
England, in the late 1700s.
Identify three factors that led to the Industrial Revolution.
- New larger workforce
- Access to resources
- Access to new capital
- New inventions and technologies
Briefly describe one way in which the steam engine transformed society.
The steam engine allowed factories to operate with large assembly lines and facilitated the movement of people and goods over large areas.
What two inventions dramatically increased the production of textiles?
The spinning jenny and the power loom.
Define a cottage industry.
A small-scale business, usually operated out of a person’s home, in which individuals typically use traditional techniques and tools to produce custom goods by hand.
How did the Industrial Revolution impact social classes and population growth?
The Industrial Revolution allowed for the emergence of the middle class and increased the population growth of society as economic development occurred.
How did the Industrial Revolution impact the population distribution of countries?
Birth rates remained high while deaths dropped, creating a population boom, which enabled cities to expand and the middle class to emerge.
Describe how the enclosure movement impacts urban areas.
Farmers started to migrate to urban areas in search of economic opportunities as communal land was privatized, forcing people to look for work elsewhere.
What did industrialized countries hope to acquire through colonialism and imperialism?
- Raw resources
- Labor
- New markets
Identify three positives to the Industrial Revolution.
- Increased standard of living
- New middle class
- Greater food surplus
Identify three negatives to the Industrial Revolution.
- Unequal economic development
- Increased child labor
- Resource exploitation
What is the primary economic sector?
Jobs and activities that involve extracting natural resources from the earth.
What is the secondary economic sector?
Jobs and activities that take raw resources to produce or manufacture products of greater value.
What is the tertiary economic sector?
Jobs and activities that provide a service for other individuals.
What is the quaternary economic sector?
Jobs and activities that revolve around acquiring, processing, and sharing information.
What is the quinary economic sector?
Jobs and activities that revolve around making decisions.
Fill in the blank: Jobs in the primary sector include _______.
Farming, coal mining, logging.
Fill in the blank: Jobs in the secondary sector include _______.
Processing wheat into flour, manufacturing, textile industry.
Fill in the blank: Jobs in the tertiary sector include _______.
Lawyers, doctors, Uber drivers, salespeople.
Fill in the blank: Jobs in the quaternary sector include _______.
Teachers, researchers, journalists.
Fill in the blank: Jobs in the quinary sector include _______.
CEOs of businesses, government officials.
Where are primary sector jobs typically located?
Near natural resources.
Where are secondary sector jobs typically located?
Located near raw materials or close to the market.
Where are tertiary sector jobs typically located?
Located where services are required, generally urban areas.
How does improved communication/technology affect the quaternary and quinary sectors?
These services can be located anywhere.
