Industrialization and Economic Development Patterns and Processes Part 1 Flashcards
Industry
The process of using machines and large-scale processes to convert raw materials into manufactured goods.
Raw Materials
The basic substances such as minerals and crops needed to manufacture finished goods.
Market
A place where products are sold.
Cottage Industry
Small home-based businesses that made goods.
Industrial Revolution
A series of technological advances starting in the 18th century that resulted in more complex machinery driven by water or steam power that could make products faster and at lower costs than could cottage industries.
Industrial Belt
Industrialized regions that stretched across the midlatitudes of the Northern Hemisphere. It included the northeastern and midwestern United States, much of Europe, part of Russia, and Japan.
Deindustrialize
A process of decreasing reliance on manufacturing jobs.
Rust Belts
Regions that have large numbers of closed factories.
Primary Sector
Extracting natural resources from the earth. Includes farming, mining, fishing, and forestry.
Secondary Sector
Making products from natural resources. Includes manufacturing and building.
Tertiary Sector
Providing information and services to people. Includes retail sales, medicine, and housekeeping.
Quaternary Sector
Managing and processing information. Includes financial analysis, software development, and data science.
Quinary Sector
Creating information and making high-level decisions. Includes research and top managers in corporations or government.
Multiplier Effect
The potential of a job to produce additional jobs.
Least Cost Theory
A theory created by German economist Alfred Weber in order to explain the key decisions made by businesses about where to locate factories. Weber proposed that factory owners would locate their factories where they could minimize their total costs by balancing three factors: minimizing transportation costs, minimizing labor costs, and maximizing agglomeration economies.
Agglomeration Economies
The spatial grouping of several businesses to share costs, such as an access road to a public highway or development of a workforce with special skills.
Locational Triangle
The three points of the triangle are the market for a good and two resources needed to make the good.
Bulk-Reducing Industries
Also known as weight-losing, raw material-oriented, or raw-material-dependent industries. In these industries, raw materials lose bulk during processing.
Bulk-Gaining Industries
Also known as weight-gaining, market-oriented, or market-dependent industries. In these industries, products become bulkier as processing occurs.
Labor-Oriented Industry
Highly dependent on a workforce.
Break of Bulk
The procedure of transferring cargo from one mode of transportation to another.
Containerization
The system in which goods are loaded into a standardized shipping unit.
Intermodal
Can be carried on a truck, train, ship, or plane.
Footloose
Can pack up and leave for a new location quickly and easily.
Front Offices
Spaces designed to impress clients, such as offices on the expensive upper floors of a skyscraper in a large city.
Back Offices
Less expensive office spaces.
Gross National Product (GNP)
The dollar amount of all goods and services produced by a country’s citizens in one year. Similar and often used interchangeably with the GNI.
Gross National Income (GNI)
The dollar amount of all goods and services produced by a country’s citizens in one year. Similar and often used interchangeably with the GNP.
Gross Domestic Product (GDP)
The dollar amount of all final goods and services produced within a country in one year.
Remittances
The profits from a foreign-owned company leaving the country and going back to the home country to provide for the family there.
Per Capita
Amount of money output per person.
Purchasing Power Parity (PPP)
A measure of what similar goods cost in different countries.
Formal Sector
The portion of the economy that is monitored by government, so people in it follow regulations and pay taxes.
Informal Sector
Sometimes called the underground economy or the shadow economy, this is the portion of the economy that is not monitored by government.
Gini Coefficient
Sometimes called the Gini index, this is a measure of the distribution of income within a population. The values range between 0 and 1. The higher the number, the higher the degree of income inequality.
Life Expectancy
The number of years a person is expected to live.
Literacy Rate
The percentage of population that can read and write, usually at an 8th grade level or higher.
Gender Gap
Differences in the privileges afforded to males and females in a society.
Gender Inequality Index (GII)
A composite measure of several factors indicating gender disparity, including reproductive health, empowerment, and labor market participation.
Human Development Index (HDI)
Combines one economic measure (GNI per capita) with three social measures (life expectancy, expected years of schooling, and average years of schooling). The composite score for each country will range between 0 and 1, with the higher values representing greater levels of development.
Non-Governmental Organization (NGOs)
Programs enacted by governments and international non-profit agencies. These often empower women to find jobs outside the home.
Microcredit
Also known as microfinance, these programs provide loans often to women to start or expand a business.
