Unit 7 Flashcards
Industry
any economic activity using machinery on a large scale to process raw materials into products
Raw Materials
any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods
Industrialization
the process in which the interaction of social and economic factors causes the development of industries on a wide scale
Industrialization Revolution
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
Cottage Industries
preindustrial form of manufacture in which members of families spread out through rural areas worked in their homes to make goods
Economic Sectors
collections of industries engaged in similar economic activities based on the creation of raw materials, the production of goods, the provision of services, or other activities
Primary Sector
economic sector associated with removing or harvesting products from the earth; includes agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas
Secondary Sector
economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction
Tertiary Sector
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
Quaternary Sector
economic sector that is a subset of tertiary sector activities that require workers to process and handle information and environmental technology
Quinary Sector
economic sector that is a subset of the quaternary sector; involves the top leaders in government, science, universities, nonprofits, health care, culture, and media
Postindustrial Economy
an economic pattern marked by predominant tertiary sector employment-with a good share of quaternary and quinary jobs
Gross Domestic Product(GDP)
the total value of all goods and services produced by a country’s economy in a year
Dual Economies
economies with two distinct distributions of economic activity across the economic sectors
Least-Cost Theory
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
Break of Bulk Points
location where it is more economical to break raw materials into smaller units before shipping them further
Bulk Reducing Industries
industry in which the raw materials cost more to transport than the finished goods
Bulk Gaining Industries
industry in which the finished goods cost more to transport than the raw materials
Industrial Parks
a collection of manufacturing facilities in a particular area that is typically found in suburbs and is located close to highways to facilitate movement of raw materials and finished products
Human Development Index (HDI)
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
Gender Development Index (GDI)
a measure that calculates gender disparity in the three basic dimensions of human development: health, knowledge, and standard of living
Gender Inequality Index(GII)
a measure that calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation
Women’s Empowerment
women’s options and access to participate fully in the social and economic spheres of a society
Labor Market Participation (LMP)
a rate that measures an economy’s active labor force, calculated by taking the sum of all employed workers and dividing that number by the working-age population; also known as labor-force participation (LFP) rate
Microloans
a very small short-term loan with low interest intended to help people in need
Stages of Economic Growth
a model that suggests that all countries can be categorized on a spectrum from traditional to modern and that to become modern, countries need to pass through distinct stages of economic growth in succession
Dependency Theory
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
Commodity Dependence
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
Comparative Advantage Complementarity
the mutual trade relationship that exists between two places based on the supply of raw material and the demand for finished products or services
Neoliberalism
beliefs that favor free-market capitalism in which trade has no constraints from government
Deindustrialization
process by which a country or area reduces industrial activity, particularly in heavy industry and manufacturing
Growth Poles
a place of economic activity clustered around one or more high-growth industries that stimulate economic gain by capitalizing on some special asset
Just in Time Delivery
a system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production
Fordism
a highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production; named after Henry Ford
Post Fordism
system focused on small-scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market
Offshore Outsourcing
the process by which services or one or more aspects of production are moved to an organization in another country
International Division of Labor
a pattern of production and labor in which different countries are engaged in distinct aspects of production
Multiplier Effects
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
Special Economic Zones(SEZ)
an area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses
Export Processing Zones
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
Free Trade Zones(FTZ)
a relatively large geographic area within a country in which businesses pay few or no tariffs on goods to encourage or facilitate its role in international trade
Ecotourism
a form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment
