Unit 7 Vocab Flashcards
Cottage Industry
Manufacturing based in homes, commonly found in preindustrial revolution.
deindustrialization
decline in industrial activity in a a region or economy
ecotourism
tourism directed toward exotic, often threatened, natural environments, especially to support conservation efforts and observe wildlife.
equity
the values of shares given by the company
export processing zones (EPZs)
areas within developing countries that offer incentives and a barrier free environment to promote economic growth by attracting foreign investment for export oriented production.
footloose industry
an industry that can be placed and located at any location without effect from factors such as resources or transport.
growth pole
an urban area, where due to pull factors, like a company moves in, other businesses start to rise because of economic growth
agglomeration
the tendency of businesses in the same industry to cluster in the same area
break of bulk point
location where it is more economical to break raw materials into smaller units before shipping them further
commodity dependence
an economy that relies on the export of primary commodities for a large share of its export earnings and hence economic growth
bulk gaining industry
an industry where the product gains volume or weight than the material it’s made of. it is sold closer to where the market for the product that it is selling is at. examples include cars, packaged food
bulk reducing industry
an industry in which the final product weighs less and is located closer to the inputs. examples include mining, smelting, refining
comparative advantage
the ability to produce a good at a more efficient rate than another producer or country
complementarity
the relationship between 2 countries where they both have an industry that benefits them both
fordist production
form of mass production in which each worker is assigned 1 specific task to perform repeatedly
formal economy
refers to all economic activities operating within the official legal framework that are paying taxes in al generated incomes
gender inequality index (GII)
an indicator constructed by the UN to measure the extent of each country’s gender inequality in terms of reproductive health, empowerment, and the labor market.
gender parity
a policy by which women have to make up either a certain number of the candidates in an election or a certain number of those elected
gross domestic product (GDP)
a measurement of the total goods and services produced within a country.
gross national income (GNI)
the value of the output of goods and services produced in a country in a year, including money that leaves and enters the country.
gross national product (GNP)
the total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually 1 year.
human development index (HDI)
indicator of level of development for each country, constructed by the UN, combining income, literacy, education, and life expectancy
industrialization
the process in which the interaction of social and economic factors causes the development of manufacturing and businesses on a wide scale.
informal economy
economic activity that is neither taxed nor monitored by a government; and is not included in that government’s gross national product; as opposed to a formal economy
interdependence
a relationship between countries in which they rely on one another for resources, goods, or services
international division of labor
the process where the assembling procedures for a product are spread out through different parts of the world
just in time delivery
shipment of parts and materials to arrive at a factory moments before they are needed
labor intensive industry
an industry for which labor costs comprise a high percentage of total expenses
least cost theory
model developed by alfred weber according to which the location of manufacturing establishments is determined by the minimization of 3 critical expenses: labor, transportation, and agglomeration
mass consumption
a large number of people purchasing large quantities of goods
micro loan
a very small short term loan often associated with entrepreneurs in developing countries
multiplier effect
the economic effect in which a change creates a larger change, such as when a new manufacturing plant grows the economy by giving rise to more related jobs and services
neoliberal
a strategy for economic development that calls for free markets, balanced budgets, privatization, free trade, and minimal government intervention in the economy
outsourcing
when jobs, industry, or parts of the commodity are sent to other countries to save money, such as how many things are produced in china
per capita
for each person; in relation to people taken individually
post fordist production
system focused on small-scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market
primary sector
the portion of the economy concerned with the direct extraction of materials from earths surface, generally through agriculture, although sometimes by mining, fishing, and forestry
quaternary sector
service sector industries concerned with the collection, processing, and manipulation of information, and capital. examples include finance, administration, insurance, and legal services
quinary sector
economic sector that involves the very top leaders and decision makers in government, business, etc.
raw materials
the basic material from which a product is made.
renewable energy
a resource that has a theoretically unlimited supple and is not depleted when used by humans.
secondary sector
the portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
social measures of development
access to health care, education, general determinants like security, freedom, and opportunities.
special economic zones
an area within a country that offers more favorable economic regulations such as tax benefits or no tariffs to attract foreign businesses
standard of living
quality of like based on ownership of necessities and luxuries that make life easier
tariffs
taxes on imports or exports
tertiary sector
economic sector that includes a host of activities that involve the transport, storage, marketing, and selling of goods or services; also called the service sector
trading blocs (common markets)
organizations of nations that remove barriers to trade among their members and that establish uniform barriers to trade with nonmember nations
UN’s sustainable development goals
the blueprint to achieve a better and more sustainable future for all. they address the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace and justice
vertical integration
the combination in one company of two or more stages of production normally operated by separate companies
