Vocab Unit 7 Part 2

Question 1

model that assumes all countries would eventually modernize at different speeds through linear progression

Answer 1

Stages of Economic Growth Model

Question 2

dependency model that argues colonialism and neocolonialism are the causes of global inequities

Answer 2

World Systems Trade Theory/Core-Periphery Model

Question 3

countries do not exist in isolation but are part of a system where all countries are dependent on each other

Answer 3

Dependency model

Question 4

raw materials such as coffee, cocoa, and oil

Answer 4

Commodities

Question 5

when more than 60 percent of its exports are raw materials

Answer 5

Commodity dependence

Question 6

when one party desires a good or service and another party is willing to part with a desired good or service in exchange

Answer 6

Trade

Question 7

a system of exchange where money does not change hands

Answer 7

Barter

Question 8

the ability to produce a good or service at a lower cost than others

Answer 8

Comparative advantage

Question 9

When a country had the income, goods, or services that another country desires

Answer 9

Complementarity

Question 10

laws that reduce barriers to trade

Answer 10

Free trade

Question 11

a set of reforms that reduced government regulation and taxation

Answer 11

Neoliberalism

Question 12

groups of countries that agree on a certain set of trade rules

Answer 12

Trading blocs

Question 13

trading bloc that includes several South American countries

Answer 13

Mercosur

Question 14

global organization created to monitor the rules of international trade

Answer 14

World Trade Organization

Question 15

IFI created to aid countries caught in need of financial assistance

Answer 15

International Monetary Fund

Question 16

contracting work to noncompany employees or other companies

Answer 16

Outsourcing

Question 17

Companies will locate services or manufacturing in other countries if the cot of doing business is lower

Answer 17

Offshoring

Question 18

transferring a business from a country it was moved to back to its original country

Answer 18

Reshoring

Question 19

a changed system of employment in the various economic sectors around the world

Answer 19

New international division of labor

Question 20

actions that create new wealth for a region, includes manufactured goods and farm products

Answer 20

Basic economic activity

Question 21

does not create new money for a region but circulates money already in an area

Answer 21

Non-basic economic activity

Question 22

Businesses that operate in more than one country

Answer 22

Transnational corporations

Question 23

Businesses that operate in multiple countries

Answer 23

Multinational corporations

Question 24

special manufacturing zones that governments use to entice MNCs and TNCs

Answer 24

Export processing zones

Question 25

special manufacturing zones in China

Answer 25

Special economic zones

Question 26

name for special manufacturing zones in Mexico

Answer 26

Maquiladoras

Question 27

locations where a foreign company can store, warehouse, transfer, or process without additional taxes

Answer 27

Free-trade zones

Question 28

economy that no longer employs large numbers of people in factories but has people who provide services and process information

Answer 28

Postindustrial economy

Question 29

system in which an item is moved from worker to worker, with each repeatedly performing the same task

Answer 29

Assembly line

Question 30

system of mass production that changed manufacturing and became standard practice across industries

Answer 30

Fordism

Question 31

businesses maximize profit by substituting one factor of production for another

Answer 31

Substitution principle

Question 32

industrial adaptability where most work is automated, allowing a few workers to rotate to different workstations

Answer 32

Post-Fordist

Question 33

system in which the inputs in the assembly process arrive at the assembly location when they are needed

Answer 33

Just-in-time delivery

Question 34

the location decision for one factory is dependent upon the location of other related factories

Answer 34

Locational interdependence

Question 35

most businesses locate near other similar businesses for certain advantages, e.g. certain stores located close together can be more attractive to customers

Answer 35

Agglomeration economies

Question 36

a hub for information based industry and high tech manufacturing

Answer 36

Technopoles

Question 37

the concentration of high value economic development attracts even more economic development

Answer 37

Growth poles

Question 38

positive outcomes beyond the growth pole

Answer 38

Spin-off benefits

Question 39

negative effects on one region that result from economic growth in another

Answer 39

Backwash effects

Question 40

sites of abandoned factories

Answer 40

Brownfields

Question 41

regions hit hardest by deindustrialization

Answer 41

Rust Belts

Question 42

when office building congregate in a place where they can take advantage of agglomeration economies

Answer 42

Corporate parks