Last and Final Flashcards
Primary Production
Def, Ex
The extraction and production of raw materials.
Uses Nature
Ex:
Farming
Fishing
Mining
Forestry
Secondary Production
Def, Ex
Refers to the processing of raw materials into finished goods
Uses specialized equipment, skilled labor
Ex:
Manufacturing
Construction
Power Generation
Tertiary Production
Def, ex
Thesale and exchange of manufactoried products
Ex:
Healthcare
Education
Finance
Hospitality
Retail
Quaternary Production
Def, ex
Refers to the distribution and creation of knowledge and information.
Highly skilled and knowledge intensive industry
Ex:
Research and development
Information Technology
Management consulting
Quinary Production
Def
The highest level of economic activity that involves decision making and policy making
Highly educated and experienced people
Have significant impact on the direction of the economy.
EX:
High Level management
Policy Development
Government Administration
Commodity Chain
Def
The series of activities that are involved in production, distribution, and consumption of a product. This includes all the steps from the extraction of raw materials to the final sale.
A series of links connecting the production to distribution to consumption.
Break Bulk Point
Def, Ex, location, impact
The location where the transfer of goods from one mode of transportation to another take place typically in order to reach the final destination. Ex: Ship to truck, Train to warehouse.
This allows for more efficient movement of goods over long distances by enabling different modes of transportation.
They can be found where different modes of transport intersect.
GDP vs GDP per capita
Acronym, Def,
Gross Domestic Product + per capita
GDP is the measure of all goods and servicces produced in a country in one year.
GDP per capita measures a countries average income earned by individuals by dividing GDP by the countries population
HDI
Acronym, Def
Human Development Index
The measure of a countries status of life based on life expectancy, education, and income
GDI
Acronym, Def
Gender Development Index
The measure of gender based inequalities taking into account factors such as life expectancy, education, and income
MPI
Acronym, Def
Multidimensional poverty index
The measure of poverty that looks at multiple dimensions of well being, such as education, health, and living standard.
EPI
Acronym, Def
Environmental Performance Index
The measure of a countries environmental performance taking into account factors such as air, water quality, and biodiversity, and climate change.
GNI
Acronym, Def
Gross National Income
Measures the total amount of money earned by a nations people and business
Total income earned by a countries residence measuring from abroad too.
Trade Deficits
How, Impacts
Occurs when a country imports more good than it exports.
A country in a trade deficit can show that a country relies too heavily on foreign goods and that it isn’t producing enough.
Trade deficitis can put downward pressure on a countries currency as the country must use its own currency to pay for the imported goods.
Formal Economy
DEF, EX
Formal: The legal economy that is taxed and monitored by the government and is added to the countries GDP
EX:
- Employment in a large corporation or government agency
- The sale of goods and services through a registered business
- The payment of taxes
- The use of currency as a medium of exchange
- The production of goods in a factory using modern equipment and technology
Informal Economy
Def, Ex,
Economic activities that are not regulated by the government.
Ex:
- Street vending or selling goods on the black market
- Informal employment or self-employment without legal recognition or protection
- The exchange of goods and services through barter or other non-monetary forms of exchange
- The production of goods using traditional or informal methods, such as handicrafts or cottage industries
- The sale of goods and services through unregistered or informal channels
- Unregistered buisnesses
Microloans
Def
Small loads provided to individuals or businesses.
Rowstow’s Stages of development ??
Def, Ex
Traditional Society (ETHOPIA)
- Stage of economic development that focuses on primary production
- Subsistence agriculture
- Low levels of productivity and income
Preconditioned to takeoff (Haiti)
- Infrastructure and technical knowledge are invested on.
- Roads and buildings
- Investing in education
- Swift towards more specialized and productive forms of agriculture
Takeoff (Vietnam)
- Labor shifts from primary to factories
- Increase in urbanization
- Rapid and sustained economic growth
- Significant changes in society, people migrate from rural to urban
- Shift from agriculture to industrialization
Drive to Maturity (Thailand)
- Manufacture Sector continues to thrive
- Service sectors are now on the rise with advanced and specialized industries.
- More focus on innovation
High Mass Consumption (US, Canada)
- Education levels are high
- Economy becomes even more industrialized and trade based.
- Economic growth continues to grow but at a slower and sustainable pace.
- Developed and diverse economy
- Greater level of social and economic equality
Wallersteins World Systems Theory
Def
Explains how global economy is divided
WST claims that rich core capitalist societies succeed by exploiting poorer peripheral ones
- Core
- Semi Periphery
- Periphery
Dependency Theory ??
Def
LDCs (less developed countries) are dependent on MDC (more developed countries)
Neoliberal policies
Def
Economic strategies that emphasize the reduction of government interventions in the economy, promoting free market space
Deregulation
Def, Ex
Removing regulations on business such as laws that control prices and stuff
Liberlization
Def
Opening up markets to foreign competitions by reducing tariffs, quotas and other trade barriers
Tariffs
Def
Taxes imposed on one country on goods or services imported from another country
Privitization
The process of selling ownership of a public service, enterprise, agency, or property from government to the private sector
Austerity
Reducing government spendings often in an effort to reduce budget deficits and other trade barriers.
Free trade
Allowing other businesses in different countries to be able to trade without government interference
Monetary Policy ??
refers to the actions undertaken by a central bank, such as the Federal Reserve in the United States, to control the money supply and interest rates in the economy. These actions are used to influence economic activity, inflation, and employment levels.
Neoliberal groups
EU: A regional group that promotes economic, and political integration amoung its member states. It does this through insitutions such as the European parliament and the European commissions.
WTO: An international organization that promotes free trade and liberlization.
Merocusor: The southern common block aims to promote free trade and fluid movement of goods amoung its member countries
Supernational Organization
An international organization that operates on above the level of national states.
EU: European Union: A regional group that promotes economic, and political integration amoung its member states. It does this through insitutions such as the European parliament and the
AU: African Union: A regional organization that promotes cooperation and integration among its member states, which are located in Africa. The AU has its own institutions, such as the African Union Commission and the African Court of Justice, and it works to promote peace, security, and development on the continent.
WTO: World Trade Organization: An international organization that promotes and the of international trade. The WTO sets rules and standards for international trade, and its member states agree to abide by these rules as part of their membership.
Comparative advantage. ???
refers to the ability of a country or region to produce a particular good or service at a lower opportunity cost than other countries or regions. The idea of comparative advantage is central to international trade theory and helps explain why countries engage in trade with one another.
Complementary advantage
WHen two regions can satisfy each other through trade. This occurs when each country has a comparative advantage.
Webber’s Least Cost Theory
Firms will choose production methods that minimize their cost
Agglomeration
Economic activities congregated in a single location. THis can lead to increased efficiency as firms can take advantage of the benefits of being located near other firms
EX: Silicon Valley firms are able to take benefits as they are located to other firms
Growth Poles
Centers of economic activities that are targeted for development in order to stimulate economic growth. By focusing efforts on a certain area, its possible to create a a virtuous circle of economic growth that spreads to the surrounding areas.
EX: Songdo International Business district in South Korea, Created as a growth pole to stimulate economic growth.
Just in time delivery
A method that minimizes inventory and waste by delivering goods and materials just in time for it to be used. The goal is to reduce cost and increase efficiency by eliminating the need to hold large inventory
Post Fordist Production
The way goods are produced. Moving away from mass production and towards more flexible, customized production methods . This often relies on automated technology such as automation and computerization
Economies of scale
Refers to the cost advantages a company can receive by increasing its scale of production. This allows firms to produce goods at lower cost thus gives them the competitive advantage.
oursourcing
The practice of hiring outside companies to perform services or create good, usually cheaper than creating it in house
Outshoring
Moving business’s operations to other locations for cheaper or more efficient manufacturing. Takes advantage of lower cost and labor rates
Special Economic Zones (SEZ)
Zones in a country that have different laws than the rest of the country. These cones are set up with the aim of attracting foreign direct investments,
