Unit 7: Economic Geography Flashcards
agglomeration
grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources
ex: Silicon Valley
break-of-bulk point
a location where transfer is possible from one mode of transportation to another
ex: sea port or airport
climate change
a result of human activity that has profound implications for our environmental quality
ex: melting snow caps or deforestation
commodity dependence
when a country becomes so dependent on a commodity that it makes up a large share of the country’s exports; when the price of the commodity drops, the economy is severely affected
ex: Benin, Chad and Mali - cotton
comparative advantage
the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers
ex: China vs US - cost of labor
complementarity advantage
when two regions specifically satisfy each other’s needs through exchange of raw materials and or finished goods
ex: US and Mexico
core-periphery relationship
describes how economic, political, and cultural power is spatially distributed between dominant core regions, and more marginal or dependent semi peripheral and peripheral regions
ex: Brazil golden triangle
deindustrialization
a process by which companies move industrial jobs to other regions with cheaper labor
ex: Rust Belt
dependency theory
the notion that resources flow from a “periphery” of poor and underdeveloped states to a “core” of wealthy states, enriching the latter at the expense of the former
ex: loans compounded interest Africa
economic restructuring
the process in which economies move from a blue-collar industrial base, especially around heavy industry and factories, into more of a white-collar service sector ex: typical in most major American cities, which has produced a thinner middle class and more menial jobs
economies of scale
the savings in cost per unit due to increasing the level of production
ex: Fordism
ecotourism
a form of tourism, based on the enjoyment of scenic areas or natural wonders, that aims to provide an experience of nature or culture in an environmentally sustainable way
ex: Belize
employment opportunities
the act of employing or state of being employed in various specialties of the workforce
ex: Education and Training, Government and Public Administration, Hospitality and Tourism, Information Technology
equity in wages
sameness regarding job compensation based on gender or other discriminative factors
ex: wage gap for women
European Union
union of European countries based to promote development within the member states through economic cooperation
ex: France, Germany, Greece, Hungary
export-processing zones
areas that provide incentives for foreign companies to conduct their business in developing regions and provide benefits to the developing world in the form of foreign investments and improved employment opportunities
ex: Bangladesh, Pakistan and Sri Lanka
fordist methods
form of mass production in which each worker is assigned one specific task to perform repeatedly
ex: Third Italy
formal economy
the legal economy that is taxed and monitored by a government and is included in a governments gross national product; as opposed to an informal economy
ex: set hours, monthly wages, healthy working conditions, pay taxes
fossil fuels
an energy source formed from the residue of plants and animals buried millions of years ago
ex: coal, crude oil, and natural gas
free trade agreements
where there are no import tariffs or quotas on products from one country entering another
ex: NAFTA, EFTA
free-trade zones
special zones in which all trade barriers between two countries are eliminated
ex: Hong Kong, Singapore, Panama, Copenhagen, Stockholm
Gender Inequality Index
index that shows the loss in potential human development due to disparity between female and male achievements in three dimensions: reproductive health, empowerment and the labor market
ex: reflects the disadvantage of women
gender parity
a statistical measure that provides a numerical value of female-to-male or girl-to-boy ratio for indicators
ex: income/education ratios
geography of uneven development
development takes place at different rates in different regions
ex: UK and France
global Financial Crisis of 2007-2008
a global economic downturn that devastated world financial markets as well as the banking and real estate industries resulting in mortgage foreclosures worldwide, lost savings, jobs and homes
ex: subprime mortgage crisis
globalization
the process by which businesses or other organizations develop international influence or start operating on an international scale
ex: McDonalds, Coca-Cola
Gross Domestic Product
the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period
ex: Real, Nominal, Net
Gross National Income per capita
the dollar value of a country’s final income in a year, divided by its population
ex: highest Liechtenstein
Gross National Product
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
ex: GNP of the United States is $250 billion higher than its GDP
growth poles
the concentration of highly innovative and technically advanced industries that stimulate economic development in linked businesses and industries
ex: Paris
high technology industries
industries having high concentrations of workers in STEM (Science, Technology, Engineering, and Mathematics) occupations
ex: telecom and networking
Human Development Index
a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and have a decent standard of living
ex: developed by Mahbub ul Haq
income distribution
the equality with which income is dealt out among members of a society
ex: if the CEO earns $10,000,000 per year and average worker’s pay is $50,000, the wage ratio is 200:1
The Industrial Revolution
the process of change from an agrarian and handicraft economy to one dominated by industry and machine manufacturing
ex: telephone, the steam engine, the sewing machine
informal economy
the diversified set of economic activities, enterprises, jobs, and workers that are not regulated or protected by the state
ex: home renovations, car repairs
interdependence (in world economy)
a system by which many companies and nations are economically dependent upon each other
ex: results in globalization
international division of labor
the conception of economic production as intrinsically transnational and as intrinsically interdependent on labor power based in different places
ex: low-paid labor for more intensive jobs such as coffee bean picking
International Monetary Fund (IMF)
an organization of 190 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world
ex: fiscal or foreign exchange reserve targets
just-in-time delivery
an inventory management strategy that helps facilitate speedier order fulfillment with particular applications in raw materials orders and manufacturing, beginning when a customer placed an order, and inventory stock is only delivered as-needed
ex: the seating interior of cars
labor-market participation
the proportion of the working-age population that is either working or actively looking for work
ex: labor force/population
least cost theory
the location of a processing plant will in an area that ensures. the lowest cost of moving raw materials to the processing plant and moving the finished
ex: google industry because they are located in a place with agglomeration, causing a lot of customers to emerge
literacy rates
the percentage of population aged 15 years and over who can both read and write with understanding a short simple statement on his/her everyday life
ex: younger generations are more likely to be literate than older generations
mass consumption
the use or purchase of goods or services by a large number of people
ex: McDonald’s, the Gap, Apple
Mercosur
promote a common space that generates business and investment opportunities through the competitive integration of national economies into the international market
ex: Argentina, Brazil, Paraguay, Uruguay, and Venezuela
microloans/microlending
a form of financing that provides small amounts of money to typically very poor fledgling entrepreneurs to encourage self-sufficiency and to end poverty – particularly in developing countries
ex: SBA Microloan Program
multiplier effects
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
ex: if consumers save 20% of new income and spend the rest then their MPC would be 0.8 {1 - 0.2}. The multiplier would be 1 ÷ (1 - 0.8) = 5. So, every new dollar creates extra spending of $5
natural resource depletion
the part of the harvest, logging, catch and so forth above the sustainable level of the resource stock
ex: deforestation, soil degradation, and overfishing
neoliberalism
a political approach that favors free-market capitalism, deregulation, and reduction in government spending
ex: economic liberalization, including privatization, deregulation
Newly Industrialized Countries (NICs)
a term used by political scientists and economists to describe a country whose level of economic development ranks it somewhere between developing and highly developed classifications
ex: India, Singapore, Taiwan
OPEC
an organization founded in 1960 of nations that export large amounts of petroleum: formed to establish oil-exporting policies and set prices
ex: Algeria, Angola, Equatorial Guinea
outsourcing
obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source
ex: human resource management, facilities management, supply chain management
post-fordist methods
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
ex: Taylorist ideas of labour specialization
primary sector
activities based directly on natural resources
ex: farming, logging, hunting, fishing, and mining
public transportation projects
a public project in development or under construction to provide a new transportation facility or to improve or maintain the existing system of state highways
ex: La Línea Tunnel
quaternary sector
economic activity that is associated with either the intellectual or knowledge-based economy
ex: computing, ICT, consultancy
quinary sector
sector of industry suggested by some economists as comprising health, education, culture, research, police, fire service, and other government industries not intended to make a profit
ex: teacher, policeman, fireman
raw materials
materials or substances used in the primary production or manufacturing of goods
ex: lumber
renewable energy
energy from a source that is not depleted when used
ex: solar or wind energy
reproductive health
a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity, in all matters relating to the reproductive system and to its functions and processes
ex: endometriosis, pcos
Rostow’s Stages of Economic Growth
five steps through which all countries must pass to become developed: 1) traditional society, 2) preconditions to take-off, 3) take-off, 4) drive to maturity and 5) age of high mass consumption
ex: Britain, USA, Germany, Japan, and Canada
secondary sector
the sector of the economy concerned with or relating to primary industry
ex: Construction sector, manufacturing and utilities
small local businesses
a privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regular-sized business
ex: Catering Services, Website Design, Business Consulting
special economic zones
a designated area in a country that is subject to unique economic regulations that differ from other areas in the same country
ex: free trade zones, export-processing zones, industrial parks
standard of living
the degree of wealth and material comfort available to a person or community
ex: Class disparity. Poverty rate, Quality and affordability of housing
tariffs
a tax imposed by one country on the goods and services imported from another country
ex: 2002 steel tariff
tertiary sector
a wide range of activities from commerce to administration, transport, financial and real estate activities, business and personal services, education, health and social work
ex: Telecommunication, Hospitality industry/tourism, Mass media
UN Sustainable Development Goals
the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including poverty, inequality, climate change, environmental degradation, peace and justice. Learn more and take action
ex: No Poverty, Zero Hunger, Good Health and Well-being
Wallerstein’s World System Theory
an approach to world history and social change that suggests there is a world economic system in which some countries benefit while others are exploited
ex: emphasizes the social structure of global inequality
women’s empowerment
promoting women’s sense of self-worth, their ability to determine their own choices, and their right to influence social change for themselves and others
ex: feminism
World Trade Organization
the only global international organization dealing with the rules of trade between nations
ex: lowered trade barriers and increased trade among member countries
