Chapter 8: Geographies of Economic Development Flashcards
agglomeration diseconomies
the negative economic effects of urbanization and the local concentration of industry
agglomeration effects
interdependencies associated with various kinds of economic linkages, including the cost advantages that accrue to individual firms because of their location among functionally related activities.
ancillary industries
industries that manufacture parts and components to be used by larger industries.
autarky
an economic policy or situation in which a nation is independent of international trade and not reliant upon imported goods.
backward linkages
develop as new firms arrive to provide the growing
industry with components, supplies, specialized services, or facilities.
backwash effects
the negative impacts on a region (or regions) of the economic growth of some other region.
carrying capacity
the maximum number of users that can be sustained, over the long term, by a given set of natural resources.
conglomerate corporations
companies that have diversified into various economic activities, usually through a process of mergers and acquisitions.
creative destruction
the withdrawal of investments from activities (and regions) that yield low rates of profit in order to reinvest in new activities (and new places).
cumulative causation
a spiral buildup of advantages that occurs in specific geographic settings as a result of the development of external economies, agglomeration effects, and localization economies.
deindustrialization
relative decline in industrial employment in core regions.
dependency
high level of reliance by a country on foreign enterprises, investment, or technology.
ecological footprint
measure of the human pressures on the natural environment from the consumption of renewable resources and the production of pollution indicating how much space a population needs compared to what is available.
elasticity of demand
degree to which levels of demand for a product or service change in response to changes in price.
export-processing zones (EPZs)
small areas within which especially favor- able investment and trading conditions are created by governments in order to attract export-oriented industries.
external economies
regions of the world not yet absorbed into the modern world system.
flexible production systems
ability of manufacturers to shift quickly and efficiently from one level of output to another, or from one product configuration to another.
Fordism
principles for mass production based on assembly-line techniques, scientific management, mass consumption based on higher wages, and sophisticated advertising techniques.
foreign direct investment
total of overseas business investments made by private companies.
forward linkages
develop as new firms arrive to take the finished products of the growing industry and use them in their own processing, assembly, finishing, packaging, or distribution operations.
geographical path dependence
historical relationship between the present activities associated with a place and the past experiences of that place.
gross national income (GNI)
similar to GDP, but also includes the value of income from abroad.
growth poles
economic activities that are deliberately organized around one or more high-growth industries.
import substitution
process by which domestic producers provide goods or services that formerly were bought from foreign producers.
initial advantage
critical importance of an early start in economic development; a special case of external economies.
international division of labor
specialization, by countries, in particular products for export.
just-in-time production
manufacturing process in which daily or hourly
delivery schedules of materials allow for minimal or zero inventories.
localization economies
cost savings that accrue to particular industries as a result of clustering together at a specific location.
neo-Fordism
economic principles in which the logic of mass production coupled with mass consumption is modified by the addition of more flexible production, distribution, and marketing systems.
neoliberal policies
economic policies that are predicated on a minimalist role for the state, assuming the desirability of free markets as the ideal condition not only for economic organization but also for political and social life.
newly industrializing countries
countries formerly peripheral within the world system that have acquired a significant industrial sector, usually through foreign direct investment.
primary activities
economic activities that are concerned directly with natural resources of any kind.
producer services
services that enhance the productivity or efficiency of other firms’ activities or that enable them to maintain specialized roles.
purchasing power parity
measures how much of a common “market basket” of goods and services each currency can purchase locally, including goods and services that are not traded internationally.
quaternary activities
economic activities that deal with the handling and processing of knowledge and information.
secondary activities
economic activities that process, transform, fabricate, or assemble the raw materials derived from primary activities or that reassemble, refinish, or package manufactured goods.
spread effects
positive impacts on a region (or regions) of the economic growth of some other region.
strategic alliances
commercial agreements between transnational corporations, usually involving shared technologies, marketing networks, market research, or product development
sustainable development
vision of development that seeks a balance among economic growth, environmental impacts, and social equity.
terms of trade
ratio of prices at which exports and imports are exchanged.
tertiary activities
economic activities involving the sale and exchange of goods and services.
trading blocs
groups of countries with formalized systems of trading agreements.
transnational corporations
companies with investments and activities that span international boundaries and with subsidiary companies, factories, offices, or facilities in several countries.
vertical disintegration
evolution from large, functionally integrated firms within a given industry toward networks of specialized firms, subcontractors, and suppliers.
