Unit 7 - Industrial and Economic Development Flashcards
industrial revolution
A series of improvements in industrial technology that transformed the process of manufacturing goods
industrialization
the process of developing machine production of goods; the development of industries in a country or region on a wide scale.
colonialism
the practice of one nation establishing and maintaining control over another territory, often involving settlement, resource extraction, and the imposition of political, economic, and cultural systems.
imperialism
the policy of one country extending its power and influence over another, often through colonization, military force, or other means
industrial production
the manufacturing of goods, mining of raw materials, and the generation of electricity and other utilities
development
A process of improvement in the material conditions of people through diffusion of knowledge and technology
primary economic sector
The portion of the economy concerned with the direct extraction of materials from Earth’s surface, generally through agriculture, although sometimes by mining, fishing, and forestry.
secondary economic sector
The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
tertiary economic sector
The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.
quaternary economic sector
a knowledge-based part of the economy - which typically includes services such as information technology, information-generation and -sharing, media, and research and development.
quinary economic sector
a branch of the quaternary sector called the quinary sector, which includes the highest levels of decision making in a society or economy.
containerization
the process of using standardized containers to transport goods efficiently by land, sea, or air.
break-of-bulk point
a location where transfer is possible from one mode of transportation to another
core
core holds the main economic power
semi-periphery
one that is in a transitional stage between the core and periphery
periphery
less developed, often characterized by lower standards of living, reliance on raw resource extraction, and limited industrialization or technological advancements
complementarity
the actual or potential relationship between two places, often involving economic exchange, where one place supplies something that another place needs
comparative advantage
The ability of a country to produce a good at a lower cost than another country can.
neoliberal policies
a set of economic principles that promote free markets, deregulation, and reduction of government intervention in the economy
free trade agreements
a treaty between two or more countries that reduces or eliminates trade barriers like tariffs and quotas, allowing goods and services to move more freely across borders
tariffs
a tax imposed by a government on imported goods and services
global financial crises
a severe worldwide economic downturn that began in 2007-2008, marked by the collapse of financial institutions.
microlending
the practice of providing small loans, or microloans, to individuals and small businesses, often in developing countries, who lack access to traditional financial services. These loans are intended to support economic development and empower individuals, particularly women, through entrepreneurship and small business growth.
deindustrialization
Process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment
outsourcing
A decision by a corporation to turn over much of the responsibility for production to independent suppliers.
special economic zones
a designated area within a country where business and trade laws differ from the rest of the country, often with more relaxed regulations and incentives to attract foreign investment
free trade zones
special zones in which all trade barriers between two countries are eliminated
export processing zones
designated areas within a country that offer favorable conditions for foreign and domestic companies to manufacture and export goods
international division of labor
the global allocation of different tasks and responsibilities among countries, where countries specialize in specific industries or sectors based on their comparative advantages
post fordist methods of production
a shift from the mass production model pioneered by Henry Ford towards flexible, specialized, and customized production systems. It’s characterized by a move away from standardized, large-scale manufacturing to smaller, more adaptable units that cater to niche markets
multiplier effects
describes how an initial change in spending or investment can lead to a larger overall increase in economic activity
economies of scale
the cost advantages that businesses experience when they increase their production volume
agglomeration
the clustering or concentration of businesses and industries in a specific area, leading to benefits like reduced costs and increased efficiency due to proximity
just in time delivery
type of delivery when needed parts for production are scheduled to arrive “just-in-time” for production. Important for Single Market Manufacturers to be close to market.
service sectors
encompasses economic activities that provide services to businesses or consumers, rather than producing tangible goods
high tech industries
businesses that utilize advanced research and technology to produce high-value products, such as medicines, electronics, and other innovative goods
growth poles
a specific geographic location that attracts industries, investment, and workers, leading to economic development and growth
sustainability
The use of a resource in ways that maintain the resource at a certain quality for a certain period of time
pollution
the introduction of harmful substances or contaminants into the natural environment, leading to adverse effects on ecosystems, human health, and the planet’s resources
climate change
significant long-term shifts in global temperature and weather patterns, primarily driven by human activities, particularly the burning of fossil fuels, which release greenhouse gases
ecotourism
a type of tourism that prioritizes environmental conservation and the well-being of local communities while providing an experience of nature and culture in a sustainable way
weber’s least cost theory
proposes that the optimal location for a production facility is where the combined transportation costs of raw materials and finished goods are minimized
rostow’s stages of economic growth
Model created in the 1950’s that gives an idea of where a country is in their stage of development. The model of economic development describes a country’s progression which occurs in five stages transforming them from least-developed to most-developed countries. There are five stages in this model, including: 1. “The traditional society,” 2. “The preconditions for takeoff,” 3. “The takeoff,” 4. “The drive to maturity,” 5. “The age of mass consumption.”
wallerstein’s world system theory
drawing on conflict view, described unequal economic and political relationships in which certain industrialized nations and their global corporations dominate core of the world’s economic system, (core, semi-periphery, and periphery countries)
dependency theory
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
commodity dependence
Administers the rules governing trade between its 144 members. Helps producers, importers, and exporters conduct their business and ensure that trade flows smoothly.
EU
a political and economic union of 27 European countries that aims to promote integration, cooperation, and free movement of people, goods, services, and capital
world trade organization (WTO)
Administers the rules governing trade between its 144 members. Helps producers, importers, and exporters conduct their business and ensure that trade flows smoothly.
mercosur
a South American trade bloc established to promote free movement of goods, capital, services, and people among its member states, aiming to foster economic integration and competitiveness on the global stage
OPEC
an intergovernmental organization founded in 1960 that coordinates and unifies the petroleum policies of its member countries
international monetary fund (IMF)
An international organization of 183 countries, established in 1947 with the goal of promoting cooperation and exchange between nations, and to aid the growth of international trade.
UN (Sustainable Development Goals)
represent a universal call to action to end poverty, protect the planet, and ensure that by 2030, all people enjoy peace and prosperity
gross domestic product (GDP)
The sum total of the value of all the goods and services produced in a nation
gross national income (GNI) per capita
The monetary worth of what is produced within a country plus income received from investments outside the country
formal structures of an economy
the legally regulated and government-monitored portion of an economy
informal structures of an economy
economic activities that are not officially tracked or taxed by the government, often operating outside formal legal and regulatory frameworks
income distribution
how a country’s total income is divided among its population, highlighting the inequality and disparities in economic well-being
standard of living
the level of wealth, comfort, and material goods available to people in a specific geographic area or socioeconomic class
gender inequality index (GII)
a measure that captures the loss in achievements due to gender disparities in the dimensions of reproductive health, empowerment and labor force participation; 0 (perfect equality) to 1 (total inequality)
reproductive health
the physical, mental, and social well-being of individuals related to their reproductive systems and reproductive choices
indices of empowerment
an index that measures the extent of women’s participation in political and economic life, reflecting gender inequality
human development index (HDI)
Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy
sustainable development goals
a universal set of 17 interconnected goals established by the United Nations in 2015 to address global challenges such as poverty, inequality, climate change, environmental degradation, peace, and justice
