Summer Course - Industry & Development Flashcards
Development
A process of improvement in the material conditions of people through diffusion of knowledge and technology.
In order to be in the last part of the demographic transition model a country needs to develop.
Gross Domestic Product
The total value of goods and services produced within the borders of a country during a specific time period, usually one year.
Gross National Product
The total value of goods ad services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.
Like “gross domestic product,” only the incomes that people earn abroad are also considered.
Human Development Index
Measure used by the United Nations that calculates development not in terms of money or productivity but in terms of human welfare. The HDI evaluates human welfare and costs of living.
Measure of Development
The process of achieving an optimum level of health and well-being. It includes physical, biological, mental, emotional, social, educational, economic, and cultural components.
Rostows “Stages of Growth” Model
Five stages a country goes through in developing their economy through international trade. Rostows “Stages of Growth” model shows how long and how much a country can develop its trade.
World System Model
Theorized that the modern network of countries engaged in trade and competition emerged when European nations began exploring the rest of the world. Immanuel Wallerstein developed a model to explain a three-level hierarchy in the world: core, periphery, and semi-periphery.
Agglomeration
The term often refers to manufacturing plants and businesses that benefit from close proximity because they share skilled-labor pools and technological and financial amenities. This process involves the clustering or concentrating of people or activities.
Fordism
The manufacturing economy and system derived from assembly-line mass production and the mass consumption of standardized goods. This type of work was named after Henry Ford.
Break-of-Bulk Point
A location where goods are transferred from one type of carrier to another. For example from barge to railroad.
Deindustrialization
Process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment.
A synonym is outsourcing, since both deal with the moving of jobs.
Industrial Location Theory
Alfred Weber, the selection of optimal factory locations has much to do with the minimization of land, labor, resource, and transportation costs, variable-cost framework that affects location of factory sites.
This made back in the 1900s where there were only a couple of markets.
Industrial Revolution
A period of rapid growth in the use of machines in manufacturing and production that began in the mid-1700s. Began in England with the invention of the steam engine.
Infrastructure
The basic physical systems of transportation, communication, sewage water, and electric.
Infrastructure is what we call interstates and roads.
International Division of Labor
A division of work between rich and poor countries under which low-waged workers in the global South do assembly, manufacturing, and office work on contract to companies based in the global North. The process where the assembling procedures for a product are spread out through different parts of the world.
Maquiladora
A foreign-owned assembly company located in the United States-Mexico border region in order to take advantage of cheaper labor, favorable tax breaks, and lax environmental regulations. This company was located near the border due to export processing zones.
Outsourcing
Sending industrial processes out for external production. The term outsourcing increasingly applies not only to traditional industrial functions, but also to the contracting of service industry functions to companies to overseas locations, where operating costs remain relatively low. A decision by a corporation to turn over much of the responsibility for production to independent suppliers is an example of outsourcing.
Postindustrial
People moving into the service sector, quaternary and quinary sectors of the economy. Information is created, processed, and stored in the postindustrial era.
Transnational Corporation
A company that conducts research, operates factories and sells products in many countries, not just where its headquarters or shareholders are located. Apple is a real-life example of a transnational corporation company.
Bulk-gaining Industry
An industry in which the final product weighs more or comprises a greater volume than the inputs. Coca-cola is an example of bulk-gaining product.
Bulk-reducing Industry
An industry in which the final product weighs less or comprises a lower volume than the inputs. Copper factories have to be close to the mine because of bulk-reducing industry.
Industrial Regions
A region with extremely dense industry. It is usually heavily urbanized. Western Europe, Eastern Europe, North America, East Asia are the industrial regions of the world.
Cottage Industry
Weaving, sewing, carving, and other small-scale industries that can be done in the home. The laborers, frequently women, are usually independent. Most manufacturing was done this way before the industrial revolution. An industry in which the production of goods and services is based in homes, as opposed to factories.
Just-in-time Delivery
Method of inventory management made possible by efficient transportation and communication systems, whereby companies keep on hand just what they need for near-term production, planning that what they need for longer-term production will arrive when needed. Shipment of parts and materials to arrive at a factory moments before they are needed usually by mail companies.
