Unit 6 Flashcards
break-of-bulk
an area where the mode of transportation changes while distributing products (seaports, airports)
BRICS
Brazil, Russia, India, China, and South Africa - developing economies in stage four of rostow’s model
NICs
Newly Industrialized Countries - in stage three of rowstow’s model
bulk-gaining industry
an industry where the outputs weigh more than the inputs, making it harder to ship -> more cost effective to have the factory closer to the market (cars, bottled drinks, books, etc.)
bulk-reducing industry
an industry where the inputs weigh more than the outputs, making it easier to ship out -> more cost effective to have the factory closer to the inputs (pencils, paper, meat, nails, etc.)
comparative advantage
when a country/company/region can produce a good at a lower cost than another due to better climates, more land area, cheaper labor, etc.
complementarity
the ability of one place to supply goods to meet another place’s demands
cottage industry
a system used before industrialization where families would produce goods inside their homes
deindustrialization
the process where industrialization in a core country declines due to manufacturing being relocated to peripheral countries, results in job loss and cheaper goods
dependency theory
peripheral countries are reliant on core countries to export their goods to, and their development is held back because of it
footloose industry
an industry where the location has little effect on the success of the industry (ex: online games or companies)
fordism
the assembly line first used by Ford where each person had one task, increased production
post-fordism
similar to fordism, but with automation and robots instead of humans, allows for more flexibility of products
GDP
Gross Domestic Product, measure the total value of goods and services with a country during the year
GNP
Gross National Product, the total value of goods and services by citizens, domestic or abroad
GNI
Gross National Income, the value of all goods, services, and trade
most accurate economic indicator and used to calculate the HDI
Gender Inequality Index
the number that represents gender equality, based on reproductive health, empowerment, and labor-market participation
GINI coefficient
the economic inequality within a country
HDI
measures how developed a country is based on standard of living (GNI), long and healthy life (life expectancy at birth), and knowledge (expected + mean years of schooling)
Industrial Revolution
began in the mid 1700s in Great Britain, marked the beginning of industrialization
informal sector
illegal or “under the table” goods or services that are not documented by the government
formal sector
regulated and taxed goods + services that are included in a countries GDP and GNI
location theory
a theory predicting where a business should be located based on factors such as transportation and labor costs
neoliberalism
the belief that open markets and free trade will lead to overall economic development
primary sector
the initial harvesting of raw materials (farming, mining, forestry, etc.)
quaternary sector
under the tertiary sector, the quaternary sector is the creation and transfer of information
quinary sector
high level decision makers of a society or company
Rostow’s Model of Modernization
explains the five stages of development within a country. has been heavily criticized due to its focus of linear, even development without any consideration of other countries
secondary sector
creates goods from the raw materials (manufacturing, carpentry, etc.)
tertiary sectory
the sector focused on services such as the law, transportation, health, etc.
World Bank
a division under the UN that provides loans to countries to aid in economic development
Weber’s least-cost theory
there are three main cost factors that determine where a company should be located: transportation, labor, and agglomeration
agglometation
the clustering of one industry (Silicon Valley, Wall Street, Hollywood)
export processing zone
a region within a country that is designed to attract MN organizations to invest in these areas, focused on exports (ex: China)
special economic zone
a region w/ a different economic regulations, designed to bring in foreign business and investment, import based
