Industrialization and Economic Development Patterns and Processes Part 2

Question 1

Stages of Economic Growth Model

Answer 1

A modernization theory that focuses on the shift from traditional to modern forms of society.

Question 2

World Systems Theory/Core-Periphery Model

Answer 2

A dependency model that attempts to explain the inequalities that exist between different countries and regions. This model includes both political and economic elements that have significant geographic impacts.

Question 3

Dependency Model

Answer 3

Countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other. Dependency theory argues that colonialism and neocolonialism are the cause of global inequities.

Question 4

Commodities

Answer 4

Raw material such as coffee, cocoa, and oil that have not undergone any processing.

Question 5

Commodity Dependence

Answer 5

More than 60 percent of its exports are raw materials.

Question 6

Trade

Answer 6

Occurs when one party desires a good or service that it does not have or cannot produce and another party has the desired good or service with which it is willing to part.

Question 7

Barter

Answer 7

A system of exchange in which no money changes hands.

Question 8

Comparative Advantage

Answer 8

The ability to produce a good or service at a lower cost than others.

Question 9

Complementarity

Answer 9

When a country has the income, goods, or services that another country desires.

Question 10

Free Trade

Answer 10

Policies or laws that reduced barriers to trade.

Question 11

Neoliberalism

Answer 11

A set of reforms that reduced government regulations and taxation.

Question 12

Trading Blocs

Answer 12

Groups of countries that agree to a common a set of trade rules.

Question 13

Mercosur

Answer 13

Also known as “Southern Common Market”, this is a trading bloc that includes several South American countries.

Question 14

World Trade Organization (WTO)

Answer 14

A global organization created in 1995 to monitor the rules of international trade by providing a forum for negotiating trade deals, settling disputes between its members, supporting the needs of developing countries, and helping companies follow similar international trade policies.

Question 15

International Monetary Fund (IMF)

Answer 15

An international financial institution created in 1945 to aid countries caught in need of financial assistance. The assistance can take several forms from new, more manageable loans to assistance in overhauling the country’s economic system. The IMF also works to promote monetary cooperation, facilitate international trade, increase employment, encourage sustainable growth, and reduce poverty.

Question 16

Outsourcing

Answer 16

Contracting work to noncompany employees or other companies.

Question 17

Offshoring

Answer 17

Moving back offices to other countries.

Question 18

Reshoring

Answer 18

The practice of transferring a business operation that was moved overseas back to the country from which it was originally relocated.

Question 19

New International Division of Labor

Answer 19

A changed system of employment in the various economic sectors throughout the world.

Question 20

Basic Economic Activity

Answer 20

Actions that create new wealth for a region.

Question 21

Non-Basic Economic Activity

Answer 21

Activities that do not generate new money for the area, instead allowing for recirculation of the existing money in the area.

Question 22

Transnational Corporations (TNCs)

Answer 22

Businesses that operate in multiple countries.

Question 23

Multinational Corporations (MNCs)

Answer 23

Businesses that operate in multiple countries.

Question 24

Export Processing Zones (EPZs)

Answer 24

Special manufacturing zones that attract TNCs and MNCs. They offer foreign corporations major tax savings, inexpensive labor, fewer environmental regulations, well-serviced industrial sites, and proximity to good transportation networks that allow for easy delivery of raw material and shipping of finished products.

Question 25

Special Economic Zones (SEZs)

Answer 25

What special manufacturing zones are called in China. The original SEZs were situated in coastal cities near major ports, allowing easy access to international markets.

Question 26

Maquiladoras

Answer 26

What special manufacturing zones are called in Mexico. These are now the second-largest source of income in Mexico after petroleum.

Question 27

Free-Trade Zones (FTZs)

Answer 27

Locations where a foreign company can store, warehouse, transfer, or process without additional taxation or duties if goods are exported.

Question 28

Postindustrial Economy

Answer 28

An economy that no longer employs large numbers of people in factories but has people who provide services and process information.

Question 29

Assembly Line

Answer 29

An item is moved from worker to worker, with each repeatedly performing the same task.

Question 30

Fordism

Answer 30

The system of mass production involving the assembly line. This system changed manufacturing and became standard practice across industries.

Question 31

Substitution Principle

Answer 31

Businesses maximize profit by substituting one factor of production for another.

Question 32

Post-Fordist

Answer 32

The industrial adaptability involving the substitution principle and mechanization/automation.

Question 33

Just-In-Time Delivery

Answer 33

A system in which the inputs in the assembly process arrive at the assembly location when they are needed.

Question 34

Locational Interdependence

Answer 34

The location decision for one factory is dependent upon the location of other related factories.

Question 35

Agglomeration Economies

Answer 35

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.

Question 36

Technopoles

Answer 36

A hub for information-based industry and high-tech manufacturing.

Question 37

Growth Poles (Growth Centers)

Answer 37

The concentration of high-value economic development in the growth pole attracts even more economic development. Technopoles often act as growth poles.

Question 38

Spin-Off Benefits (Spread Effects)

Answer 38

Positive economic outcomes beyond the growth pole.

Question 39

Backwash Effects

Answer 39

Negative effects on one region that result from economic growth in another region.

Question 40

Brownfields

Answer 40

Sites of abandoned factories, typically represented by the image of deteriorating buildings surrounded by weeds, marked by broken or boarded-up windows and rusting metal. In reality, old buildings are usually torn down, so brownfields are often empty.

Question 41

Rust Belts

Answer 41

The region of the United States hit hardest by deindustrialization: the Northeast and lands around the Great Lakes.

Question 42

Corporate Parks (Business Parks)

Answer 42

Office buildings congregate in places where they can take advantage of agglomeration economies.

Question 43

Sustainability

Answer 43

Using the earth’s resources without doing permanent damage to the environment.

Question 44

Sustainable Development

Answer 44

The goal is to address problems caused by depletion of natural resources, mass consumption of goods, pollution of air and water, and the impact of climate change.

Question 45

Ecological Footprint

Answer 45

Impact on the environment.

Question 46

Ecotourism

Answer 46

Travel to a region by people who are interested in its distinctive and unusual ecosystem.

Question 47

Sustainable Development Goals

Answer 47

The 17 new goals created after the Millennium Development Goals (MDGs) intended to finish the job that the MDGs had begun, but with more awareness of environmental challenges and ways to overcome them.