Final - Definitions Flashcards
reduction of state controls on domestic economic activities
Deregulation
transfer of state-owned companies to private-sector ownership
Privatization
an inward-oriented development strategy that replaces imports with domestic production (i.e. local manufacturing of previously imported goods)
Import-Substituting Industrialization (ISI)
an outward-oriented development strategy that emphasizes the production and export of domestically manufactured goods
Export-Oriented Substitution (EOI)
small, administratively unique areas with infrastructure and favourable investment, production and trading conditions created (by governments) in order to attract export-oriented industries (that are foreign-owned)
Export Processing Zones (EPZ)
zones established by China in 1979 to encourage foreign investment and export-oriented manufacturing in southern coastal provinces
Special Economic Zones (SEZs)
zones established in 1965 in northern Mexico (along the Mexican-American border) with foreign-owned factories assembling imported components which are exported to the US as finished products
Maquiladora Program
the practice of price setting by TNCs for goods and services provided by/to subsidiaries in order to transfer taxable profits to lower tax assessing countries, thereby minimizing corporate taxes and maximizing profit
Transfer pricing
(local) entrepreneurs become aware of the viability of the local manufacturing of an imported products and/or the local adaptation of and an imported technology
Demonstration effect
the decline in domestic production due to the use of third country labour and materials to serve foreign markets
Truncation (Hollowing Out)
a manufacturing system in which parts are delivered from suppliers at the time required by the manufacturer
Just-In-Time Principle
an arrangement by a manufacturing firm to obtain its parts from other firms (mainly suppliers)
outsourcing
the products or services of an urban/regional economy that are consumed externally (exported), thereby earning income for the city/region
Basic Sector
the products or services of an urban/regional economy that are consumed internally by the resident population, thereby retaining income within the city/region
Non-basic sector
the addition of non-basic employment that accompanies growth of basic sector employment; the expansion of the basic sector from the re-circulation of money, wages, and income
multiplier effect
a difference between a firm’s sales revenue for a given product and the cost of the materials to produce that product (e.g. a product’s value created during the manufacturing process, excluding raw material costs)
Value-Added
products which, due to the manufacturing process, are more valuable than the raw materials used to produce them
High Value Added
industries characterized by high capital/labour ratios and higher wages (e.g. the product has a high value-to-weight ratio)
High-Value Added Industries
industries characterized by low capital/labour ratios and low wages
Low-Value Added Industries
a concentration of firms and institutions rely on an active set of relationships (e.g. commitment to innovate research and capital necessary to develop and market a product) among themselves for individual efficiency and competitiveness
Industry Cluster
an area of R&D established in collaboration with, and in close proximity to, a university and/or public-sector agency (in order to capitalize on academic R&D)
Science Park
a planned development, within a concentrated area, for technologically innovative, industrial-related production (e.g. technology-based production centers)
Technopole
services supplied to individual consumers (e.g. retailing)
Consumer Services (Personal Services)
services supplied to other firms and governments (e.g. financial services) that enhance their productivity and efficiency and/or enable them to maintain specialized roles
Producer Services (Business Services)
services supplied (equally) to all residents of a defined territory (e.g. education and health)
Public Services
services supplied to develop and sustain economic activities and/or to facilitate interaction (e.g. roads, telephones, electricity)
Infrastructure Services
settlements providing certain goods and services (to consumers)
central places
record-keeping and analytical functions that don’t require direct or frequent customer contact (with clients or business associates)
Back-Office Functions
