Unit 7: Industrialization And Economic Development Patterns And Processes Chapter 20: Topic 7.7 Flashcards
Contracting work to non company employees or other companies. Contracted company might be less expensive because it specializes in work and does it more efficiently. Or because it does not pay its workers well.
Outsourcing
Tertiary and quaternary sector companies move their back offices to other countries.
Offshoring
A changed system of employment in the various economic sectors throughout the world
- Core = design and develop products for global markets. 3rd, 4th and 5th jobs increased
- Semiperiphery = Manufacture goods that are marketed in the core countries. 2nd sector jobs increase. 1st sector jobs decrease.
- Periphery = Bangladesh, Angola, and Papa New Guinea, large 1st sectors, export minerals and resources to core and semiperiphery for consumption and processing.
New International Division of Labor
Actions that create new wealth for a region. EX: Manufactured goods and commercial farming. Sold beyond factory. Money from outside the area is used to buy products. Outside money = new money which makes areas where the products are produced wealthier and leads to additional growth. City-forming activities.
VS.
Actions that DO NOT generate new money for the areas. EX: Grocery store. Allows for recirculation of existing money in the area. City-serving activities.
Basic vs. Non-Basic Economic Activity
Businesses that operate in multiple countries.
Transnational/Multinational Corporations
Special manufacturing zones. These offer foreign corporations tax savings, inexpensive labor, fewer environmental regulations, well-serviced industrial sites, and proximity to good transportation networks that allow for easy delivery of raw materials and shipping of finished products. Often near international airports, seaports, or land borders from where products can be exported easily.
Export Processing Zones (EPZ)
Original (in China) were situated in coastal cities near major ports, allowing for easy access to international markets. Used incentives to attract foreign trade and business. An area in which the business and trade laws are different from the rest of the country.
Special Economic Zones (SEZ)
Surge after the North American Free Trade Agreement (NAFTA) was signed. 2nd largest source of income in Mexico after petroleum. The term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the primarily foreign-owned factories assemble imported components and/or raw materials and then export finished goods.
Maquiladoras
Locations where a foreign company can store, warehouse, transfer, or process without additional taxation or duties if goods are exported. EX: Singapore, London, Amsterdam, and Hong Kong.
Free-trade Zones
One that no longer employs large numbers of people in factories but has people who provide services and process information.
Postindustrial economy
An item is moved from worker to worker, with each repeatedly performing the same task. Allowed companies to rapidly produce more standardized products with less-skilled workers than ever before.
Assembly Line
System of mass production, changed manufacturing and became standard practice practice across industries.
Fordism
Businesses maximize profit by substituting one factor of production for another. This also applies for the labor force since many workers have been replaced with machines to maximize profit.
Substitute Principle
World economic system characterized by a more flexible set of production practices in which goods are not mass produced. Modern industrial production has moved away from mass production in huge factories. Industrial adaptability was the basis of this.
Post-Fordist
Machinery saves a company money over the long term and allows business owners to increase output with improved efficiency. Machines can work 24 hours a day without breaks or vacations and they can produce consistent, high quality work.
Economies of scale
