EO6 - Chapters 15,16,17 Flashcards
Industrial Revolution
In the mid-1700s when technology drastically improved, causing increase in manufacturing.
Imperialism
A policy of extending a country’s political and economic power.
Assembly line
System where a product is moved from person to person with each person repeating a task.
Fordism
System of mass production.
Substitution principle
Businesses want to profit by substituting one factor of production for another.
Post-Fordism
Factories moving away from mass labor/production to including less humans and more machines.
Primary sector
Includes extracting natural resources. (e.g. fishing, farming, mining)
Secondary sector
Includes processing natural resources. (e.g. building, manufacturing)
Tertiary sector
Includes providing services. (e.g. marketing, banking, design)
Quaternary sector
Knowledge based sector. Includes research and development (e.g. business, consulting, financial services, education)
Quinary sector
Highest levels of decision making. Includes the top officials in government and business. (e.g. president, senior advisors)
Multiplier effect
The potential for a job to create more jobs.
Agglomeration economies
Spatially grouping businesses in order to share costs.
Isotropic plain
Area where human and physical geographic features are uniform.
Least cost theory
An influential theory that explains key decisions made by businesses about the location of a factory.
Locational triangle
Model that shows Weber’s theory by strategically placing the factory based on two raw material sources and the market to minimize transportation costs.
Bulk-reducing industry, Weight-losing industry, Raw material-oriented industry, Raw material-dependent industry
Products that are heavy and expensive to move from their source to the processing plant, but shrink as they reach their final product.
Bulk-gaining industry, Weight-gaining industry, Market-oriented industry,
Market-dependent industry
Products that are at their heaviest when they are finished.
Energy-oriented industry, Energy-dependent industry
Companies building plants near places with A LOT of energy.
Labor-oriented industry, Labor-dependent industry
Industries where labor takes up a lot of total expenses so they locate near training facilities.
Locational interdependence
Deciding the location of a factory depends on the location of other factories’ locations.
Just-in-time delivery
In-puts needed in assembly lines arrive at the plant close to when they are needed.
Footloose
Businesses that are flexible and can pack up and leave for a new location fast and easy due to minimal demands on location.
Front offices
A high-class, high-profile office for top executives usually located on the upper floors in downtown.
Back offices
Cheaper offices that house the rest of the employees.
Offshoring
Moving back offices to another country to reduce the cost of doing business.
Outsourcing
Contracting work out of the office to non-company employees of other companies in order to save money and have the work done more efficiently.
Barter
System of exchange without the use of money.
Complementarity
When both parties have goods/services that they desire from each other.
Trading blocs
Groups of countries that trade based on agreed upon rules.
NICs
Newly Industrialized Countries
Transnational corporations
Businesses that operate in more than one country.
New international division of labor
System of employment in the world’s various economic sectors. (Core countries, middle income countries, least developed countries)
Export Processing Zone (EPZ)
Physical places in countries that have special regulations benefitting foreign businesses.
Maquiladoras
EPZs in Mexico.
Postindustrial
Economies in mostly wealthy countries that don’t employ a large amount of people in factories. Most people are providing services or processing information.
Brownfields
Sites of abandoned factories in a post-industrial landscape.
Rust Belt
Area in the Northeast of the US around the Great Lakes. Was hit the hardest by deindustrialization.
Corporate park, Business park
Business offices that are gathered together.
Technopoles
Hub for information-based industry and high-tech manufacturing.
Growth poles, Growth centers
Area with many highly innovative and technologically advanced industries that bring economic development.
Spin-off benefits
Positive outcomes in addition to the main outcome. (Bonuses)
Backwash effects
Downsides of growth poles.
Per capita
Per person.
Gross national product (GNP) per capita
Country’s final output of goods and services in a year, divided by its population. Reflects average income of a citizen.
Gross domestic product (GDP) per capita
GDP of a nation divided by the population. Reflects the country’s economic output per person.
Gross national income (GNI) per capita
Country’s final income in a year divided by its population. Reflects the average income of a citizen before taxes.
Purchasing power parity (PPP)
What an amount of money will buy.
Gini coefficient, Gini index
System of measuring the distribution of income within a population.
Gender gap
Privilege difference between male and females.
Gender inequality index (GII)
Index for measuring gender differences.
Human development index (HDI)
A measure that combines one economic and several social aspects to measure development.
W. W. Rostow
American economist.
Stages of economic growth model
Stages in the modernization model. Show a shift from traditional to modern forms of society.
Modernization model
Model that focuses on the transition from traditional to modern forms of society.
Immanuel Wallerstein
Historian
World systems theory
A dependency model created by Immanuel Wallerstein showing a different view on Rostow’s economic development.
Dependency model
Countries are part of a system where they are in an intertwined system and are all dependent on one another.
Core-periphery model
A.K.A World Systems Theory as it is divided into 3 parts: core, semiperiphery, periphery.
Core
Made up of economically advantaged areas of the world.
Semiperiphery
Made up of middle-income countries, or emerging economies. Provides the core with manufacturing and services that the core no longer provides itself.
Periphery
Made up of LDC’s. Get exploited from core and semiperiphery for low wages, raw materials, and agricultural production. Jobs mostly in primary sector.
Sustainable development
Economic development that pleases people’s needs now, without hurting people’s quality of life in the future.
NGOs
Non-governmental organizations. Organizations not part of the local/state federal government. Often help solve issues in poverty, hunger, education, equality, etc.
Microcredit, Microfinance
Programs that provide a loan for starting or expanding a business to people who are traditionally denied loans.
