Unit VI Flashcards
Development
The extent to which the human and natural resources of an area or country have been brought into full productive use.
Foreign Direct Investment
Investments made by a foreign company in the economy of another country
Gender Inequality Index
A measure of the extent of each’s country gender inequality.
Gini Coefficient- income disparity
The Gini coefficient’s main advantage is that it is a measure of inequality by means of a ratio analysis, rather than a variable unrepresentative of most of the population, such as per capita income or gross domestic product.|
Gross Domestic Product
Encompasses only goods and services produced within a country during a given year.
Gross National Product
A measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year.
Gross National Income
The monetary worth of what is produced within a country plus income received from investments outside the country.
Hans Rosling
mastermind behind gapminder, an optimist, who came up with graphs that help us understand how total fertility has gone down in places all over the world, predicts by 2050 we will have about nine billion people
Human Development Index
Indicator of level of development for each country, constructed by the United Nations, combining income, literacy, education, and life expectancy.
Less Developed Country
also known as a developing country, a country that is at a relatively early stage in the process of economic development
Measures of Development
the process of achieving an optimum level of health and well-being. It includes physical, biological, mental, emotional, social, educational, economic, and cultural components
More Developed Country
also known as a relatively developed country of a developed country, a country that has progressed relatively far along a continum of development
Neocolonialism
Refers to the economic control that MDCs are sometimes believed to have over LDCs. Through organizations such as the IMF, the MDCs are able to dictate precisely what LDCs economic policies are, or are able to use their economic subsidies to put LDCs industries out of business.
Newly Industrialized Country
Historically less-developed countries that has experienced significant economic growth- South Korea, Mexico, Brazil.
NGO
Organization not run by a government but by a charity or private organization that supplies resources and money to local businesses and causes advancing economic and human development.
Purchasing Power Parity
Monetary measurment which take account of what money actually buys in each country
Rostow, W.W.
Stage 1=Traditional Society, Stage 2=Transitional Stage, Stage 3=Take off, Stage 4-Drive to Maturity, Stage 5=High Mass Consumption
Structuralist Model
A general term for models of economic development that treat economic disparities among countries or regions as the result of historically derived power relations within the global economic system.
Third World
Are all the other countries, today often used to roughly describe the developing countries of Africa, Asia and Latin America.The term Third World includes as well capitalist (e.g., Venezuela) and communist (e.g., North Korea) countries, as very rich (e.g., Saudi Arabia) and very poor (e.g., Mali) countries.
World System Theory
theory originated by Immanuel Wallerstein and illuminated by his three- tier structure, proposing that social change in the developing world is inextricably linked to the economic activities of the developed world
Agglomeration
Phenomenon of economic activity congregating in or close to a single location, rather than being spread out uniformly over space.
Assembly line production/Fordism
Arrangement of tools, machines, and workers in which a product is assembled by having each perform a specific, successive operation on an incomplete unit as it passes by in a series of stages organized in a direct line.
Bid Rent Theory
Geographical economic theory that refers to how the price and demand on real estate changes as the distance towards the Central Business District (CBD) increases.
Break of Bulk Point
Point of location where transfer among transportation modes is possible.
Commodity Chain
series of links connecting the many places of production and distribution and resulting in a commodity that is then exchanged on the world market
Deglomeration
The process of industrial de-consentration in response to technological advances and/or increasing costs due to congestion and competition.
Deindustrialization
Process by which companies move industrial jobs to other regions with cheaper labor, leaving the other region to switch to a service economy and to work through a period of high unemployment.
Economic Sectors
The primary, secondary, tertiary, quaternary, and quinary sectors.
Entrepôt
A trading post where merchandise can be imported and exported without paying import duties.
Footloose industry
industry that is located in a wide variety of places without a significant change in its cost of transportation, land, labor, and capital.
Four Tigers
Four Asian Tigers refers to the economies of Taiwan, Singapore, Hong Kong, and South Korea, aka, Asia’s Four Little Dragons.
Growth poles
Economic development, or growth, is not uniform over an entire region, but instead takes place around a specific pole.
Industrial Location Theory
By Alfred Weber, an industry is located where the transportation costs of raw materials and final product is a minimum.
Industrial Regions (place, fuel source, characteristics)
East Asia, North America, Western Europe
Industrial Revolution
Revolution that transformed how goods are produced for a society and the way people obtain food, clothing, and shelter.
Just-In Time Delivery
Method of inventory management made possible by efficient transportation and communication system, whereby companies keep on hand what they need for near term production, planning that what they need for longer term production will arrive when needed.
Least-Cost Location
States that optimum location of a manufacturing firm is explained in terms of cost minimization.
Dependency Theory
States that LDCs tend to have a higher dependency ratio, the ratio of the number of people under 15 or over 64 to the number in the labor force.
Major Manufacturing Regions
East Asia and Southeast Asia
Maquiladora
Factories built by U.S. companies in Mexico near the U.S. border to take advantage of much cheaper labor costs in Mexico.
NAFTA
North American Free Trade Agreement; allows open trade with US, Mexico, and Canada.
Outsourcing
To turn over in part or in total to a third party.
Postindustrial
Relating to a society or economy marked by a lessened importance of manufacturing and an increase of services, information, and research.
Retail Location Theory (Hotelling)
A logical attempt to explain the locational pattern of an economic activity and the manner in which its producing area are interrelated.
Special Economic Zones (china)
Specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment.
Threshold/range
Threshold In central place theory, the size of the population required to make provision of services economically feasible.
Range (of goods and services) The maximum distance people are willing to travel to use a service.
Transnational corporation
A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located.
Weber, Alfred
formulated a theory of industrial location: an industry is located where the transportation costs of raw materials and final product is a minimum.
Weight gaining
An industry in which the final product weighs more or comprises a greater volume than the inputs
Weight losing
An industry in which the final product weighs less or comprises a lower volume than the input.
