Geo Unit 1 Flashcards
Opportunity Cost
Loss of potential gain from choosing one alternative over another
Tertiary Sector
Jobs and activities give service to people
Opportunities creates jobs
Secondary Sector
Using raw materials to make goods of higher value
Mercantilism
Economies of Scale
As the scale of the company increases the average cost goes down. Get more capital.
As the capital increases the audience increases so production goes up. Unit cost per item goes down.
International Division of Labor
How company uses comparative advantage to specialize in different economies, resources and capabilities
Some companies dominate in global market.
Comparative Advantage
Ability of country/ individual/ organization to make good/service at a lower opportunity cost than another country/ individual/ organization.
Urban blight
Population leaves and house has no value/ abandoned
Special Economic Zones
Regions in a country that give different economic incentives. To attract foreign investment and economic growth.
- Tax breaks
- Less regulations
- access to different services and infrastructure
Free Trade zones
Region in country where imported goods can be stored + processed
- X tariffs\trade barriers
Globalization
Business/organizations go at a global scale
Sustainability
Meeting present needs without exploiting future needs
Export Processing Zones
Regions in a country borders that gives special economic regulations and incentives
- to promote production of goods + services
Multiplier effect
Original investment by a business leads to a chain of spending and economic activity
Fordism
System of production that focuses on mass production of standard goods
- Set # of labors + specific tasks
- Standardization, Centralization
Post Fordism
Production where workers are trained multiple tasks and make custom goods
