Development
A process of improvement in the conditions of people through diffusion of knowledge and technology.In order to be considered a country further along the _________ continuum, it must have three factors under control; economic (ex: GDP per capita), social (ex: literacy rate, Gender Development Index, Gender Inequality Index), and demographic (ex: overall life expectancy).
Animate Power
Power is supplied by animals and people.Is mostly used for subsistence and at a small scale.Ex: Animals plowing fields.
Inanimate Power
Power is supplied and generated by machines.Is mostly used at a large scale for commercial sale of products.Ex: Tractors used for plowing large amounts of a field at a time.
Break-of-bulk point
A location where transfer is possible from one mode of transportation to another.These areas are important because it helps explain why some areas became industrialized before others. Industrialization often occurred at these locations.Ex: sea port or airport.
Bulk-gaining industry
An industry in which the input, or raw material, weighs less than the final product.In this industry the factory is best located near the market so transportation costs are lower than if it were near the source of input, or raw material.Ex: Soft drink bottling refrigerator production.
Bulk-reducing industry
An industry in which the input, or raw material, weighs more than the finished, or final, product.In this industry the factory is best located near the factory so transportation costs are lower than if it were located near the market where the finished product is sold.Ex: Copper
Comparative advantage
the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors.Using this strategy industries are able to export more of their product abroad.Ex: Saudi Arabia and producing massive amounts of oil at cheaper prices than other countries.
Cottage Industry
Manufacturing based in homes rather than in a factory, commonly found before the Industrial Revolution.Does not require lots of capital to start a this type of industry, but backing from the government isn't as common as with large-scale production industries.Ex: looms before the Industrial Revolution, or currently; crafts or items that are unique and handmade.
Dependency Theory
The notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the core at the expense of the periphery.Additionally, most LDCs (as well as NICs) are dependent on foreign owned factories, foreign direct investment, and technology from MDCs to provide employment opportunities and infrastructure.One problem that may occur is when LDCs become stuck in a continuous cycle of dependency on MDC loans to pay for additional economic development needs. Money made by LDCs from the sale of manufactured goods may go straight to paying off loans from MDCs as well as manufactured products from similarly developed countries.Ex: Some countries in Africa have payed off land loans, but still has to pay for the billions of dollars in interest. This means that it almost has no money to invest into its own infrastructure.
Footloose industry
Industry in which the cost of transporting both raw materials and finished product is not important for the location of firms.Ex: Diamonds, computer chips, mobile manufacturing
Fordist production
Form of mass production in which each worker is assigned one specific task to perform repeatedly.Typically used during the 1940s to the 1960s.Caused an increase in availability of jobs and companies to pay employees cheaply, resulting in urbanization (movement of people from rural to urban areas.Ex: automobile production
Post Fordist production
Adoption by companies of flexible work rules, such as the allocation of workers to teams that perform a variety of tasks.This requires workers to have specialized experience instead of an assembly line type job.Ex: niche markets
Four Asian Dragons
South Korea, Singapore, Taiwan, and Hong Kong.Each rely on each other for trade which results in rapid and exponential growth of development and industrialization. (1960s to 1990s)
Free Trade Agreement
An agreement between member countries to remove duties and trade barriers on products traded among them.
Growth poles
Economic activities that are deliberately organized around one or more high-growth industries.___________ stimulate the economy by having technically advanced industries.Ex: Silicon Valley, California
Impacts of China's industrialization on China and the global economy
Air pollution, water pollution, bacterial food-born diseases.
Industrialization
The development of industries for the machine production of goods.____________ can be seen in stage 2 of the Demographic Transition Model when the death rate begins to go down.
Industrial Location Theory
An industry is located where the transportation of raw materials and the final product is lowest.This can be achieved by determining whether it is bulk-gaining or reducing and choosing if it wants to locate near a growth pole and achieve agglomeration.
Industry
A sector that produces goods or related services within an economy.Ex: Microsoft
Informal Market
Any market that the state doesn't regulate.This can result in black markets, corruption, and lack of infrastructure improvements due to the lack of taxes.Ex: Street food in Cambodia.
International Monetary Fund
An international organization of 189 countries, established in 1947 with the goal of promoting cooperation and exchange between nations, and to aid the growth of international trade.
Multiplier Effect
An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.
Outsourcing
A decision by a corporation to turn over much of the responsibility for production to independent suppliers.
Post-Industrial Society
A society in which the economic emphasis is on providing services and information instead of manufacturing.
Self-sufficiency approach
Approach to improving economic development by building a country's independence from foreign economies and fostering its ability to provide for its own people. This usually can include evenly distributing money between each industry.
Containerization
A type of storage that is meant to be used between different modes of transportation, which reduces the costs of moving the goods between different types of storage.
Special Economic Zones
specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment. The investment can be seen through jobs and the purchase of non-essential products in those countries.Only applied to Developing Countries.
Supranational Trade Organization
An international or union in which the power and influence of member states transcend national boundaries.
Technopole
Region of many high-tech businesses, also known as a high-tech corridor.Ex: Silicon Valley in California, Research Triangle in North Carolina, and Hsinchupark in China
World Trade Organization
Administers the rules governing trade between its 144 members. Helps producers, importers, and exporters conduct their business and ensure that trade flows smoothly.
Agglomeration
Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources.
Wallenstein's World Systems Theory
Countries which exhibit core characteristics have consistently higher levels of education, higher salaries, and more technology
developing country
A country that is at a relatively early stage in the process of economic development
Rostow's Stages of Development
Traditional; Pre conditions for take off; take off to self-sustained growth; the drive to maturity; age of mass-consumption.
Tarrif
A tax on imported goods
Human Development Index (HDI)
Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy
GII (Gender Inequality Index)
A measure of the extent of each country's gender inequality
Formal Economy
The legal economy that is taxed and monitored by a government and is included in a government's Gross National Product; as opposed to an informal economy