Unit 7 Flashcards
Agglomeration
The tendency of enterprises in the same industry to cluster in the same area
Break-of-Bulk Point
Location where it is more economical to break raw materials into smaller units before shipping them further
Bulk-Gaining Industry
Industry in which the finished good cost more to transport than the raw materials
Bulk-Reducing Industry
Industry in which the finished good cost less to transport than the raw materials
Dual Economies
Economies with two distinct distributions of economic activity across the economic sectors
Gross Domestic Product (GDP)
The total value of the goods and servces produced by a country’s citizens and companies within the country in a year
Industrial 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 production to power driven mass production
Least-Cost Theory
industry is situated within the area where the costs of transporting raw materials and the final output are minimal
Primary Sector
The sector of industry that gathers raw materials (logging, mining)
Quaternary Sector
The scientific sector of industry
Quinary Sector
The head sector of industry (CEO)
Raw Materials
the input goods or inventory that a company needs to manufacture its products
Secondary Sector
The sector of industry that processes materials into final products and ships it to be sold
Tertiary Sector
The financial and business sector of industry
Commodity Dependence
when commodities are a dominant export in an economy
Dependency Theory
How resources flow from core to periphery for manufacturing and back to core for selling
Formal Sector
The sector watched and regulated by government
Gender Development Index (GDI)
measures gender inequalities in achievement in three basic dimensions of human development: Health, Education, Economy
Gender Inequality Index (GII)
provides insights into gender disparities in health, empowerment and the labour market
Gross National Income (GNI)
the sum of a country’s GDP plus net income from foreign countries
Gross National Product (GNP)
the total value of all finished goods and services produced by a country’s citizens in a year
Human Development Index (HDI)
a summary measure of average achievement in key dimensions of human development, health, standard of living, and per Capita income
Informal Sector
The sector unwatched, regulated, and untaxed by the government
Labor-Market Participation (LMP)
The number of people in a country’s labor force
Microloan
A small loan with little interest given out to small businesses and non-profit orgs
Export Processing Zone (EPZ)
provide incentives for foreign companies to conduct their business in developing regions
Fordism
specialized and organized mass production at a single site
Free Trade Zone (FTZ)
an area where goods may be imported, stored, and exported and not subject to customs duty
Just-in-Time Delivery
an inventory and supply chain management approach which aims to increase efficiency by reducing inventory
Multiplier Effect
Once an industry moves in, the increase of economy and people in an area
Neoliberalism
belief in sustained economic growth as the means to achieve human progress
Offshore Outsourcing
When a company goes to a factory or manufacturing in a foreign country for cheaper production
Post-Fordism
modern industrial production has moved away from mass production in huge factories
Special Economic Zone (SEZ)
designated areas within a country that have special economic regulations that are more favorable than the regulations that apply in the rest of the country
