Unit 7 Vocabulary: 1-20 Flashcards
Absolute Advantage
A country has absolute advantage in international trade over others if it is the most efficient producer of that product. That means the country can achieve more output of that product from any given amount of resource inputs than any other produce; basically a country who can produce an item the best or the most (but not the cheapest)
Agglomeration
Grouping together of many companies from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources, basically similar companies locate close to each other
Break-of-Bulk Point
A location along a transport route where goods must be transferred from one mode of transport to another
Bulk Gaining
Products gain weight or size during manufacturing
Bulk Reducing
Products lose weight or size during manufacturing
Capital
The monetary assets that a business possesses.
Commodity Chain
Series of links connecting the many places of production and distribution, resulting in a commodity that is then exchanged on the world market
Comparative Advantage
Ability of a country (or place) to produce a good or offer a service at a lower opportunity cost; often times this means the country can produce items cheaper than other countries and the idea suggests countries should produce what they are best at
Compressed Modernity
Rapid economic and political change that transforms a country into a stable nation with a democratizing political institution, a growing economy, and an expanding web of nongovernmental institutions
Conglomerate Corporations
A company that is composed of many smaller companies that all specialize in one aspect of the company’s product development or sale
Cottage Industry
Manufacturing based in homes rather than factories; common before the Industrial Revolution
Debt-for-Nature Swap
When a portion of a developing nation’s foreign debt is forgiven in exchange for local investments in environmental conservation measures.
Deglomeration
The process of industrial deconcentrating, or moving out, in response to technological advances and/or increasing costs due to congestion and competition, basically this is companies moving away due to saturation
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
Dependency Theory
A theory that suggests the core countries depend on the periphery for labor and raw materials while the periphery depend on the core for goods. This dependency was created because of colonization and suggests the economic development of poorer areas is limited due to these arrangements.
Economies of Scale
Economic advantages that come with a larger scale of operations- basically, bigger companies can control their costs more than smaller companies can because they can produce more at less cost
Education level
The progression of years of formal educational instruction received and successfully completed, usually based on passing formal exams
Entrepot
A port, city, or other center to which goods are brought for import and export, a geographic location used like a warehouse in global trade
Export Processing Zones
Zones established by periphery and semi-periphery countries where they offer favorable tax and trade arrangements to attract foreign trade and investments
Fair Trade
The movement advocates the payment of a fair price as well as social and environmental standards in areas related to the production of a wide variety of goods, basically it is an economic practice to pay a fair price and wage to workers in LDCs and promote social and environmental sustainability
