unit 7

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 2 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 families in a particular place because that location minimizes the cost of production

Question 9

Primary Sector

Answer 9

all those activities the end purpose of which consists in exploiting natural resources

Question 10

Quaternary Sector

Answer 10

the industry based on human knowledge which involves technology, information, financial planning, research, and development.

Question 11

Quinary Sector

Answer 11

an important extension of the tertiary sector.

Question 12

Raw Materials

Answer 12

materials or substances used in the primary production or manufacturing of goods

Question 13

Secondary Sector

Answer 13

processing, manufacturing, and construction companies

Question 14

Tertiary Sector

Answer 14

the sector of the economy that concerns services

Question 15

Commodity Dependence

Answer 15

when more than 60 per cent of its total merchandise exports are composed of commodities

Question 16

Dependency Theory

Answer 16

how poor countries depend on rich countries

Question 17

Formal Sector

Answer 17

jobs that the government regulates and offers benefits such as social security, health insurance, and retirement plans

Question 18

Gender Development Index (GDI)

Answer 18

measures gender inequalities in the achievement of key dimensions of human development: a long and healthy life, a good education, and a decent standard of living.

Question 19

Gender Inequality Index (GII)

Answer 19

The Gender Inequality Index is a composite measure reflecting inequality in achievements between The GII is a composite measure, reflecting inequality in achievements between women and men in three dimensions: reproductive health, empowerment and the labour market.

Question 20

Gross National Income (GNI)

Answer 20

the total amount of money earned by a nation’s people and businesses

Question 21

Gross National Product (GNP)

Answer 21

the total value of goods produced and services provided by a country during one year, equal to the gross domestic product plus the net income from foreign investments.

Question 22

Human Development Index (HDI)

Answer 22

a summary composite measure of a country’s average achievements in three basic aspects of human development: health, knowledge and standard of living.

Question 23

Informal Sector

Answer 23

units engaged in the production of goods or services with the primary objective of generating employment and incomes to the persons concerned.

Question 24

Labor-Market Participation (LMP)

Answer 24

the number of people in the labor force as a percentage of the civilian non institutional population

Question 25

Microloan

Answer 25

a small sum of money lent at low interest to a new business.

Question 26

Export Processing Zone (EPZ)

Answer 26

a Customs area where one is allowed to import plant, machinery, equipment and material for the manufacture of export goods under security, without payment of duty.

Question 27

Fordism

Answer 27

the system of mass production that was pioneered in the early 20th century by the Ford Motor Company

Question 28

Free Trade Zone (FTZ)

Answer 28

any location where goods can be shipped, handled, manufactured, reconfigured and re-exported without the involvement of customs agencies

Question 29

Just-in-Time Delivery

Answer 29

Just in time delivery means the process of creating goods in a ready state, or completing their production, so that a minimal inventory can satisfy demand and a delivery can take place with immediate effect in order that consumers receive what they want precisely when they want

Question 30

Multiplier Effect

Answer 30

a phenomenon whereby a given change in a particular input, such as government spending, causes a larger change in an output, such as gross domestic product

Question 31

Neoliberalism

Answer 31

a political approach that favors free-market capitalism, deregulation, and reduction in government spending.

Question 32

Offshore Outsourcing

Answer 32

when an organization recruits a third party supplier to conduct operations from an outside country

Question 33

Post-Fordism

Answer 33

the idea that modern industrial production has moved away from mass production in huge factories, as pioneered by Henry Ford, towards specialized markets based on small flexible manufacturing units.

Question 34

Special Economic Zone (SEZ)

Answer 34

an area in a country that is designed to generate positive economic growth