U7 terms

Question 1

Agglomeration

Answer 1

the tendency of enterprises in the same industry to cluster in the same area

Question 2

Break-of-Bulk point

Answer 2

location where it is more economical to break raw materials into smaller units before shipping them further

Question 3

bulk reducing industry

Answer 3

industry in which the raw materials cost more to transport than the finished goods

Question 4

bulk gaining industry

Answer 4

industry in which the finished goods cost more to transport than the raw materials

Question 5

dual economies

Answer 5

economies with two distinct distributions of economic activity across the economic sectors

Question 6

Gross Domestic Product (GDP)

Answer 6

the total value of the goods and services produced by a country’s citizens and companies within the country in a year

Question 7

Industrial Revolution

Answer 7

the radical change in manufacturing methods that began in Great Britain in the mid-18th century and was marked by the shift from small-scale, hand-crafted, muscle-powered production to power-driven mass production

Question 8

Least-Cost theory

Answer 8

industrial location theory proposed by Alfred Weber suggesting that businesses locate their facilities in a particular place because that location minimizes the costs of production

Question 9

Primary sector

Answer 9

economic sector associated with the removing or harvesting productions form the earth; includes agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas

Question 10

quaternary sector

Answer 10

economic sector that is a subset of tertiary sector activities that required workers to process and handle information and environmental technology

Question 11

quinary sector

Answer 11

economic sector that is a subset of the quaternary sector; involves the very top leaders in government, science, universities, nonprofits, health care, culture, and media

Question 12

raw materials

Answer 12

any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods

Question 13

secondary sector

Answer 13

economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction

Question 14

tertiary sector

Answer 14

economic sector that includes a host of activities that involve the transport, storage, marketing, and selling of goods or services; also called the service sector

Question 15

commodity dependence

Answer 15

an aspect of dependency theory that occurs when more than 60 percent of a country’s exports and economic health are tied to one or two resources

Question 16

dependency theory

Answer 16

a theory that describes the development challenges and limitations faced by poorer countries and the political and economic relationships poorer countries have with richer countries

Question 17

formal sector

Answer 17

businesses, enterprises, and other economic activities that have government supervision, monitoring, and protection, and are also taxed

Question 18

gender development index (GDI)

Answer 18

a measure that calculates gender disparity in the three basic dimensions of human development: health, knowledge, and standard of living

Question 19

gender inequality index(GII)

Answer 19

a measure that calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation

Question 20

Gross national income (GNI)

Answer 20

the total value of goods and services globally produced by a country in a year divided by the country’s population

Question 21

Gross national product (GNP)

Answer 21

the total value of the goods and services produced by a country’s citizens and companies both domestically and internationally in a year

Question 22

Human Development Index

Answer 22

a measure that determines the overall development of a country by incorporating three key dimensions of human development: life expectancy at birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI per capita

Question 23

Informal sector

Answer 23

any part of a country’s economy that is outside of government monitoring or regulation; sometimes called the informal economy

Question 24

Labor-market participation (LMP)

Answer 24

rate that measures an economy’s active labor force, calculated by taking the sum of all employed workers divided by the working age population

Question 25

microloan

Answer 25

a very small short-term loan with low interest intended to help people in need

Question 26

Export Processing Zone (EPZ)

Answer 26

an area within a country that is subject to more favorable regulations (usually including the elimination of tariffs) to encourage foreign investment and the manufacturing of goods for export

Question 27

Fordism

Answer 27

a highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production; named after Henry Ford

Question 28

Free Trade Zone (FTZ)

Answer 28

a relatively large geographical area within a country in which businesses pay few or no tariffs on goods to encourage or facilitate its role in international trade

Question 29

Just-in-time delivery

Answer 29

a system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production

Question 30

multiplier effect

Answer 30

the economic effect in which a change creates a larger change, such as when a new manufacturing plant grows the economy by giving rise to more related jobs and services

Question 31

neoliberalism

Answer 31

beliefs that favor free-market capitalism in which trade has no constraints from government

Question 32

offshore outsourcing

Answer 32

the condition when one or more aspects of production moves to an organization in another country

Question 33

post-fordism

Answer 33

system focused on small-scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market

Question 34

special economic zone (SEZ)

Answer 34

an area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses