Unit 7 Notecard Flashcards
Special economic zones
An area within a country where trade laws differ and entice foreign cooperations
Ex: lower taxes, china
Free trade zones
Duty free areas for storage/distribution
Ex. Seaports international airports
Maquiladoras
Low cost factory’s in Mexico run by a foreign company and exporting its products to the country of that company
Ex. BMW
New international division of labor
Global division of labor associated with the growth of transnational cooperation and the deindustrialization of the advanced economies
Post-Fordist methods of production
Low volume technology relain manufacturing in an assembly line
Ex. Tototashi Japan
Multiplier effect
The economic effect on which a change creates a larger change
Ex. When a new manufacturing plant grows the economy by giving rise to more related jobs and services
Economies of scale
Cost reductions that occur when production rises, cost per unit goes down
Ex: Costco selling in bulk for cheaper
Agglomeration
The tendency of enterprises in the same industry to cluster together
Ex. Silicon Valley
Just-in-time delevery
A system in which goods are delivered as needed so that companies keep inventory to what is needed for short term production
Ex. The restaurant industry prepared, cooking and selling their own goods
Growth poles
A place of economic activity clustered around 1 or more high-growth industries that stimulate economic gain by capitalizing on some special asset
Ex.free economic zones
Sustainable development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
Ex. Green spaces, crop rotation, solar power
Ecotourism
A form of tourism based of the enjoyment of natural areas that minimize the impact to the environment
Ex. Camping, hiking, snorkling
Uns sustainable development goals
17 sustainability goals the UN set in 2015 set for 2030 creating the aim for peace and prosperity to for both the people and the planet
Ex. No poverty, zero hunger, quality education, climate action
Break-of-bulk point
Location where it is more economical to break raw materials into smaller units before shipping them
Ex. Docks where’s boats transfer to ships and vis versi
Industrial revulution
A change in the manufacturing methods that began in Greta britian in the mid-18th century that caused the market to switch from small-scale, hand-crafted, muscle-powered production to large scale, power-driven mass production
Ex. The invention of the steam engine
Gender inequality index
A measure that calculates gender disparity in the 3 basic dimensions of human development
Industrialization
The process in which the interaction of social and economic factors causes the development of industries on a wide scale
Ex. A rise in textile factories in Britain
Raw materials
Any materials that are used to make intermediate or finished goods
Ex. Wood, metals, animal products, plant products
Primary sector
Economic sector associated with the extraction of products from the earth
Ex. Agriculture, fishing, forestry , mining
Secondary sector
An economic sector associated with the production of goods from raw materials to usable products
Ex. Manufacturing, processing, construction, factories
Tertiary sector
Economic sector that includes a host of activities that involve the transport, storage or marketing of goods air services
Ex. Healthcare, education, real estate, retail
Quaternary sector
Economic sector that is a subset of the tertiary sector activities that requires
Workers to process and handle information and environmental technology
Ex. Programmers, mass media, technology developers
Quinary leaders
Economic sector that is a subset of the quaternary sector; involves the very top leaders in government, science, universities, nonprofits, healthcare, culture, and media
Ex. President, local and federal governments, military personel
Core
A country or region that has wealth, higher quality of life, higher education levels, more advanced technology’s, many resources, strong military’s, and powerful allies
Ex. Japan, Germany
Semi-periphery
Classsification of a country or region that has qualities of both core and peripheral areas and is often in the process of industrializing
Ex. China, India, Brazil, mexico
Periphery
Classification of a country or region that has less wealth, lower education levels, less sophisticated technology’s, and also tends to have an unstable government and poor health care system
Ex. Bangladesh, Malawi, Paula new quinea
Gross national income
The total value of goods and services services globally produced by a country in a year divided by a country’s population
Ex. Considers health of a countries economy
Renewable energy
Energy form a source that is not depleted when used
Ex. Wind power, solar power, biofuels
Gross domestic product
The total value of goods and services produced by a country’s citizens and companies within the country in a year
Ex. Puts a country’s overall well being in perspective
Gross national product
The total value of goods and services produced by a country’s citizens and companies both domestically and internationally in a year
Ex. Retail, real estate, food services
Formal sector
Businesses and enterprises, and other economic activities that have government supervision, monitoring, and protection and are also taxed
Ex. Government, healthcare, banking, manufacturing, education
Informal sector
Any part of a country’s economy that is outside of government monetering or regulation ; sometimes called the informal economy
Ex. Domestic workers, home-based workers, street vendors, waste pickers
Least cost theory
Industrial location theory processed by Alfred Weber suggesting that businesses locate their facilities in a particular place because that location minimizes the cost of production
Ex. Google
Human development index
A measure that determines the overall development of a country by incorporating 3 key dimensions of human development: life expectancy at birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI per capita
Ex. Two companies with drastically different incomes
Microloans/ microlending
A very small short-term loan with low interest intended to help people in need
Ex. Used for things like working capital, inventory supplies, fixtures, machinery and equipment, and to start off their buisness
OPEC
an intergovernmental organization controlling most of the worlds oil supply
Ex. Iran, Iraq, Saudi Arabia, venezuela started it
International Monetary Fund
An international organization that promotes global economic growth and financial stability, encourages international trade, and reduces poverty
Ex. People, planet, prosperity, peace, and partnership
Mercosur
The common market of the south that enables smaller economies to join together and increase their global economic leverage
Ex. Brazil, Columbia, Venezuela, Ecuador, Peru, Paraguay, Argentina, Uruguay, chile
World trade organization
An intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade
Ex . Helps other countries trade capacity and solve trade problems
Comparative advantage
The relative cost advantage a country of organization has to produce certain goods or services for trade
Ex. Portugal and england
Complementarity advantage
The mutual trade relationship between 2 places based on. The supply of raw materials and the demand for finished products or services
Ex, trade between oil producing countries and countries that lack those natural resources
Deindustrialization
Process by which a country or area reduces industrial activity, particularly in heavy industry and manufacturing
Ex. The rust belt
Commodity dependence
An aspect of dependency theory that occurs when more than 60% of a countries exports and economic health are tied to one or two commodities
Ex. Venezuela being dependent on oil revenues
Wallerstiens world system theory
Theory describing the spatial and functional relationships between countries in the world economy; categories countries as a part of a hierarchy consisting of the core, periphery, and semi-periphery
Rustle’s stages of economic growth
A model that suggests that al countries can be categorized on a spectrum from traditional to modern and that to become modern, countries need to pass through distinct stages of economic growth succession
Ex. Singapore
Outsourcing
The process of hiring an outside party for cheaper labor
Ex. Cleaning, advertisement, website development
