Unit 7 - 2

Question 1

When one party desires a good/service that it doesn’t have or can’t produce and another party has the desired good/service with which it is willing to part.

Answer 1

Trade

Question 2

A system of exchange in which no money changes hands. (Goods/services exchanged instead).

Answer 2

Barter

Question 3

Ability to produce a good or service at a lower cost than others.

Answer 3

Comparative Advantage

Question 4

When a country has the income, goods, or services that another country desires(and vice versa). Without it, a trade imbalance is created that is heavily weighted in one direction.

Answer 4

Complimentary

Question 5

Laws that reduced barriers to trade.

Answer 5

Free Trade(Policies)

Question 6

A set of reforms that reduces gov. regulations and taxation. Support for free trade was a cornerstone of this. 1980s, President Ronald Reagan and UK Prime Minister Margaret Thatcher were leading advocates for this.

Answer 6

Neoliberal Policies

Question 7

2018→ US tariffs on Chinese goods so they would be more expensive for US consumers and consumers would buy more US made goods and China relax barriers on US imports. (China just decreased US good purchase and increased tariffs on US products).

Answer 7

Policies decreasing trade

Question 7

Groups of countries that agree to a common set of trade rules. Most within regions.

Ex. USMCA, OPEX, Mercosur

Answer 7

Trading Blocs

Question 8

Southern Common Market, which includes several South American countries. Trading Bloc.

Answer 8

Mercosur

Question 9

Global organization created in 1995 to monitor the rules of international trade by providing a forum for negotiating trade deals, settling disputes between its members, supporting the needs of developing countries, and helping companies follow similar international trade polices.

2020→ 164 member countries that accounted for 98% of global trade. An additional 20 applied for membership.

Answer 9

World Trade Organization(WTO)

Question 10

Best known IFI(International financial institutions), created in 1945 to help countries caught in need of financial aid. Recognizing how quickly a financial crisis can lead to social and political instability, the IMF promotes economic stability for countries dealing with financial struggles.

Assistance can be anything from new more manageable loans to assistance in overhauling the country’s economic system. 190 member countries and also works to promote monetary cooperation, facilitate international trade, increase employment, encourage sustainable growth, and reduce poverty.

Many projects involve multimillion/billion dollar deals to build big projects(hydroelectric dams, new transport systems). Successful = beneficial to many but risky when don’t work as planned. Can create bigger issues w/ bigger debt.

Answer 10

International Monetary Fund(IMF)

Question 11

To reduce costs, when you contract work to noncompany employees/other companies. Why contracted company less expensive? Specializes in work and does more efficiently or less benefits/pay to workers. Often outsource manufacturing work/administrative functions like handling payroll and paying taxes.

Answer 11

Outsourcing

Question 12

When some tertiary/quaternary sector companies move back offices to other countries. For costs, if risk is worth. Many software and manufacturing companies in US/Europe locate to India and China. High skill, low cost. Labor unions and gov officials—pressure some into reshoring because it benefits others by the Multiplier Effect.

Answer 12

Offshoring

Question 13

Created by globalization, changed system of employment in the various economic sectors throughout the world:

-Core: design and develop products for global market. Tertiary, quaternary, and quinary sector jobs ↑

-Semi-periphery: Manufacture goods that are marketed in core. Secondary ↑ and primary ↓

-Periphery: (Bangladesh, Angola, Papua New Guinea) big primary and export to semi-periphery and core for further processing and consumption.

Answer 13

New International Division of Labor

Question 14

Actions that creates new wealth for a region. Products normally sold beyond area of making so money outside area is used to purchase products. Outside money considered new money and makes area that produced goods wealthier and leads to additional growth(multiplier effect). Because of this, sometimes called city-forming activities.

Ex. most manufactured goods and commercial farm products.

Answer 14

Basic Economic Activity

Question 15

New money not generated for area but allows recirculation of existing money in area. Important to give goods/services like food/clothes. Limited multiplier effect and referred to as city-servicing activities.

Ex. Grocery stores.

Answer 15

Non-basic Economic Activity

Question 16

Businesses that operate in multiple countries. Can bring jobs and wealth so gov. competes to attract them.

Answer 16

Trans/multinational Corporation

Question 17

Special manufacturing zones that greater than 100 countries have attracted TNC/MNCs with. Often offer foreign corporations major tax savings, inexpensive labor, fewer environmental regulations, well serviced industrial sites, and proximity to transportation networks. Often near international airports, seaports or land borders.

Tax breaks = one incentive used. Typically no tax for any imported item into it if re-exported/used for products to export. Protects existing businesses that cater to local market.

Functions: originally occupied by manufacturing factories. But some were transshipment points(transfer containers) and sites for tertiary and quaternary economic sector activity.

Answer 17

Export Processing Zones(EPZs)

Question 18

Special manufacturing zones in China. Similar to maquiladoras and free trade zones. 1979, costal cities near major ports.

Answer 18

Special Economic Zone(SEZs)

Question 19

Special manufacturing zones in Mexico. Similar to special economic zones and free trade zones. Second largest income source after petroleum. Surge after NAFTA 1994. Initially all in single district in North Mexico, near border to lower transport costs. Recently, lower number of them from competition. Still, 3,000 factories and 1 million workers.

Answer 19

Maquiladoras

Question 20

Special manufacturing zones in major seaport cities. Similar to special economic zones and maquiladoras. Locations where companies store, warehouse, transfer, and process without additional tax or duties if exported. Singapore, London, Amsterdam, and Hong Kong. Larger scale: free trade regions, like the EU.

Answer 20

Free-trade Zones

Question 21

Many wealthier core countries have this. No longer employs big number of people in factories but has people who provide services and process information.

Answer 21

Postindustrial Economy

Question 22

Where item is moved from worker to worker who repeats same task. Henry Ford, early 20th century to advance productivity.

Grew with automation, late 20th century. But also, unemployment rose.

Answer 22

Assembly Line

Question 23

System of mass production where low skill became standard practice.

Answer 23

Fordism

Question 24

Where profits are maximized by substituting one factor of production for another.

Answer 24

Substitute Principle

Question 25

Following automation, workers being trained to do more than one job so they can switch between stations and minimize risk of injuries is the basis of the system.

Answer 25

Post-Fordist

Question 26

Mechanization = expensive upfront but saves money in long run and makes this.

Answer 26

Economies of Scale

Question 27

System used by auto assembly plants where inputs in assembly process arrive at location when needed. Lowers storage cost but runs the risk of running low in inputs. Only works where factory owner is confident in suppliers, communications and transportation systems, and ability to accurately predict production needs.

Answer 27

Just-in-Time Delivery

Question 28

When location for one factory depends on the location of related factories. Use same services and keep eye on competition.

Answer 28

Locational Interdependence

Question 29

Hub for information-based industry and high-tech manufacturing. Because of economic stimulus, often acts as growth poles.

Answer 29

Technopole

Question 30

High value economic development attracts more economic development and keeps growing.

Answer 30

Growth Poles(Growth Centers)

Question 31

Growth poles often have them. Positive economic outcomes beyond growth pole.

Answer 31

Spin-off Benefits(Spread Effects)

Question 32

Negatives for growth poles, potential negative effects in a different region.

Ex. Loss of highly educated young people(regional brain drain) leading to depopulation, loss of tax revenue, and closure of services.

Answer 32

Backwash Effects

Question 33

Where office buildings on a post-industrial landscape congregate to take advantage of agglomeration economies. Some nig corporations—create some where they’re the only tenant.

Ex. Samsung

Answer 33

Corporate Parks(Business Parks)

Question 34

Using the earth’s resources without doing permanent damage to environment.

Answer 34

Sustainability

Question 35

Address problems caused by depletion of natural resources, mass consumption of goods, air/water pollution, and climate change.

-Household→ thermostats, less energy used to heat/cool homes

-Locals→ city and town gov. run composting programs and malls minimize unneeded lighting.

-Country→ gov. funded research for less energy using products and industries recycle waste.

-Global→ states work together to protect ocean habitats for marine life.

Answer 35

Sustainable Development

Question 36

Impact on the environment. One measure = how much land is needed to provide one person with resources and handle their garbage. US = 20 acres.

Answer 36

Ecological Footprint

Question 37

-Natural events, uncontrollable. Ex. Volcanic eruptions

-Mix of natural and human. Ex. dust storms. Could be either naturally dry or human removal of deep rooted vegetation holding soil in place.

-Completely human. Ex. Coal, wood, or oil burning. Waste/chemicals in water.

Answer 37

Causes of pollution

Question 38

More frequent and destructive wildfires, hurricanes, floods, and droughts. Future predicted consequences:

-Disease once only near equator spreads

-Ocean levels rise when glaciers melt and will threaten safety and homes of 40% of global pop. near coasts.

-Refugee crises more common as people move for food, water, and safety. Core able to reduce more emissions because of money but also, industrial work is moving to semi-periphery and periphery.

Answer 38

Climate Change

Question 39

Travel to a region by people interested in its distinctive and unusual ecosystem. Ex. of sustainable development. Promotes protection of the areas but risks = damage to the area if too many people visit.

Answer 39

Ecotourism

Question 40

2000 UN identify most challenging barriers to development and 8 steps to overcoming them. Helped countries with low human development improve lives of citizens. The focus = almost 1 billion people out of poverty, lowered hunger, and increase in number of girls in schools. Most successful anti-poverty program in history.

Answer 40

Millennium Development Goals

Question 41

New set of goals replacing MDGs 2015. 17 goals and goal was t finish the job in 15 years with environmental challenges in mind this time. Targets all countries, core included. With COVID, sometimes gains made in first 4 years were nullified when funds went to battle the pandemic. All goals address major issues and are interconnected. Success/failure of one depends on success/failure of others. Each broken down into more focused goals.

Answer 41

Sustainable Development Goals(SDGs)