Vocab Unit 7 Part 2 Flashcards
model that assumes all countries would eventually modernize at different speeds through linear progression
Stages of Economic Growth Model
dependency model that argues colonialism and neocolonialism are the causes of global inequities
World Systems Trade Theory/Core-Periphery Model
countries do not exist in isolation but are part of a system where all countries are dependent on each other
Dependency model
raw materials such as coffee, cocoa, and oil
Commodities
when more than 60 percent of its exports are raw materials
Commodity dependence
when one party desires a good or service and another party is willing to part with a desired good or service in exchange
Trade
a system of exchange where money does not change hands
Barter
the ability to produce a good or service at a lower cost than others
Comparative advantage
When a country had the income, goods, or services that another country desires
Complementarity
laws that reduce barriers to trade
Free trade
a set of reforms that reduced government regulation and taxation
Neoliberalism
groups of countries that agree on a certain set of trade rules
Trading blocs
trading bloc that includes several South American countries
Mercosur
global organization created to monitor the rules of international trade
World Trade Organization
IFI created to aid countries caught in need of financial assistance
International Monetary Fund
contracting work to noncompany employees or other companies
Outsourcing
Companies will locate services or manufacturing in other countries if the cot of doing business is lower
Offshoring
transferring a business from a country it was moved to back to its original country
Reshoring
a changed system of employment in the various economic sectors around the world
New international division of labor
actions that create new wealth for a region, includes manufactured goods and farm products
Basic economic activity
does not create new money for a region but circulates money already in an area
Non-basic economic activity
Businesses that operate in more than one country
Transnational corporations
Businesses that operate in multiple countries
Multinational corporations
special manufacturing zones that governments use to entice MNCs and TNCs
Export processing zones
special manufacturing zones in China
Special economic zones
name for special manufacturing zones in Mexico
Maquiladoras
locations where a foreign company can store, warehouse, transfer, or process without additional taxes
Free-trade zones
economy that no longer employs large numbers of people in factories but has people who provide services and process information
Postindustrial economy
system in which an item is moved from worker to worker, with each repeatedly performing the same task
Assembly line
system of mass production that changed manufacturing and became standard practice across industries
Fordism
businesses maximize profit by substituting one factor of production for another
Substitution principle
industrial adaptability where most work is automated, allowing a few workers to rotate to different workstations
Post-Fordist
system in which the inputs in the assembly process arrive at the assembly location when they are needed
Just-in-time delivery
the location decision for one factory is dependent upon the location of other related factories
Locational interdependence
most businesses locate near other similar businesses for certain advantages, e.g. certain stores located close together can be more attractive to customers
Agglomeration economies
a hub for information based industry and high tech manufacturing
Technopoles
the concentration of high value economic development attracts even more economic development
Growth poles
positive outcomes beyond the growth pole
Spin-off benefits
negative effects on one region that result from economic growth in another
Backwash effects
sites of abandoned factories
Brownfields
regions hit hardest by deindustrialization
Rust Belts
when office building congregate in a place where they can take advantage of agglomeration economies
Corporate parks
