APhug unit 6

agglomeration economies

refers to benefits or advantages (savings, cost reductions, etc.) resulting from the spatial clustering of activities and/or people


A location where transfer is possible from one mode of transportation to another.

bulk-gaining idustry

An industry whose products increase in size or weight during manufacturing.

bulk-reducing industry

An industry whose products decrease in size or weight during manufacturing.

carrier efficiency

An organization that provides communications and networking services. A communications and networking "service provider."the ratio of output to input of a given carrier

comparative advantage

The ability of a country to produce a good at a lower cost than another country can., Is a situation in which a country specializes in the production of a good or service at which it is relatively more efficient.

complimentary trade

when 2 regions specifically satisfy each other's needs through exchange of raw materials and or finished goods

core region

regions that dominate trade, control the most advanced technologies, and have high levels of productivity within diversified economics

cottage industry

An industry in which the production of goods and services is based in homes, as opposed to factories.

cumulative causation

A process through which tendencies for economic growth are self-reinforcing; an expression of the multiplier effect, it tends to favor major cities and core regions over less-advantaged peripheral regions, a spiral buildup of advantages that occurs in specific geographic settings as a result of the development of external economies, agglomeration effects, and localization economies.

cultural convergence

The contact and interaction of one culture with another, The tendency for cultures to become more alike as they increasingly share technology and organizational structures in a modern world united by improved transportation and communication.


The process of industrial deconcentration in response to technological advances and/or increasing costs due to congestion and competition.


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

developed country

a modern, industrialized country in which people are generally better educated and healthier and live longer than people in developing countries do

developing country

A country that has low industrial production and little modern technology, with respect to a country, making progress in technology, production, and socioeconomic welfare

distance decay

The diminishing in importance and eventual disappearance of a phenomenon with increasing distance from its origin.

economic sector

types of employment and industries , primary (raw materials, mining), secondary (making goods, clothing), tertiary (services, banking), quaternary (research, education)

economies of scale

Characterizes a production process in which an increase in the scale of the firm causes a decrease in the long run average cost of each unit. Importance is that it renders competition in the market., Factors that cause a producer's average cost per unit to fall as output rises


A form of tourism, based on the enjoyment of scenic areas or natural wonders, that aims to provide an experience of nature or culture in an environmentally sustainable way.


Big commercial center for importing and exporting commodities., A trading post where merchandise can be imported and exported without paying import duties

export processing zone (EPZ)

Zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment.

fixed costs

Costs required to produce a product or service that are not dependent on the quantity of services provided (e.g., rent for office space), Costs that do not vary with the quantity of output produced

footloose industry

industry in which the cost of transporting both raw materials and finished product is not important for the location of firms, Industry that locate in a wide variety of places without a significant change in its cost of transportation, land, labor, and capital


system of standardized mass production attributed to Henry Ford, Mass production and mass consumption

foreign direct investment

Investment made by a foreign company in the economy of another country

friction of distance

The increase in time and cost that usually comes with increasing distance, A measure of how much absolute distance affects the interaction between two places.


A set of processes that are increasing interactions, deepening relationships, and heightening interdependence without regard to country borders.

gross domestic product (GDP)

The sum total of the value of all the goods and services produced in a nation

gross national product (GNP)

The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.

growth pole

urban center with certain attributes that in augmented by a measure of investement support, will stimulate regional economic development in its hinterland

high-tech corridors

areas along or near major transportation arteries that are devoted to the research, development, and sale of high-technology products. These areas develop because of the networking and synergistic advantages of concentrating high-technology enterprises in close proximity to one another. "Silicon Valley" is a prime example of a high-technology corridor in the United States.

human development index (HDI)

Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy

international division of labor

The process where the assembing procedures for a product are spread out through different parts of the world, the specialization in producing goods for the world market that divides regions into zones of industrial or agricultural production or high- or low-skilled labor

just in time production

Process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line

labor intensive

Type of industry in which labor cost is a high percentage of expense., A business firm that uses a great deal of human labor relative to real capital

least cost location

A site chosen for industrial development where total costs are theoretically at their lowest, as opposed to location at the point of maximum revenue

manufacturing export zones

A feature of economic development in peripheral countries whereby the host country establishes areas with favorable tax, regulatory, and trade arrangements in order to attract foreign manufacturing operations. The goods manufactured in these export zones are primarily destined for the global market.


The term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the primarily foreign-owned factories assemble imported components and/or raw materials and then export finished goods.

market orientation

The tendency of an economic activity to locate close to its market; a reflection of large and variable distribution costs.

multinational corporation (MNC)

An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management

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.


The entrenchment of the colonial order, such as trade and investment, under a new guise.


Contracting with an outside company to provide a service or product instead of providing it from within the organization.

peripheral region

The least powerful regions and therefore are often marginalized or under the control of both semi-peripheral regions and core regions.


a society based on information, services, and high technology, rather than raw material and manufacturing

purchasing power parity (PPP)

A monetary measurement of development that takes into account what money buys in different countries

resource orientation

tendency for an industry or other type of economic activity to locate close to its resources

semi-peripheral region

The intermediary regions in terms of the hierarchy of power between core regions and peripheral regions.

specialized economic zones (SEZ)

specific area within a country that has tax incentives & less stringent environmental regulations are implemented to attract foreign business and investment

substitution principle

In industry, the tendency to substitute one factor of production for another in order to achieve optimum plant location.

technology gap

The contrast between the technology available in developed core regions and that present in peripheral areas of underdevelopment.

technology transfer

The diffusion to or acquisition by one culture or region of the technology possessed by another, usually more developed, society., The communication of specific plans, designs, or educational programs necessary for the use of new technologies from one society or class to another.


Centers or nodes of high-technology research and activity around which a high-technology corridor is sometimes established.

time-space compression

a term associated with the work of David Harvey that refers to the social and psychological effects of living in a world in which time-space convergence has rapidly reached a high level of intensity

time-space convergence

a term coined by Donald Janelle that refers to the greatly accelerated movement of goods, information, and ideas during the twentieth century made possible by technological innovation in transportation and communications.

transnational corporation (TNC)

A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located.


present or existing everywhere

value added

The gross value of the product minus the costs of raw materials and energy

variable costs

Costs that vary with the quantity of output produced, Costs that change in direct proportion with a change in volume within the relevant range of activity

world cities

A group of cities that form an interconnected, internationally, dominant system of global control of finance and commerce.

rostow's modernization model

Developed in the 1950s, this model exemplifies the liberal development ideology, as opposed to structuralist theory, Under the model, all countries develop in a five-stage process. The development cycle is initiated by investment in a takeoff industry that allows the country to grow a comparative advantage, which sparks greater economic gain that eventually diffuses throughout the country's economy. Drawbacks to this model include its not identifying cultural and historic differences in development trajectories because it is based on North American and western European development histories.

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., A model that says all countires will never all be at the same level of development.

dependency theory

A model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones

liberal model

A general term for economic development models which assume that (1) all countries are capable of developing economically in the same way and (2) economic disparities between countries and regions are the result of short-term inefficiencies in local or regional market forces.

Asian tigers

Collective name for South Korea, Taiwan, Hong Kong, and Singapore-nations that became economic powers in the 1970s and 1980s.


Brazil, Russia, India, China, slower and steadier growth with sizable domestic economy, predicted to dominate world economy by 2050, directed toward middle class

Pacific Rim

Region including Japan, South Korea, Singapore, Hong Kong, Taiwan; typified by rapid growth rates, expanding exports, and industrialization; either Chinese or strongly influenced by Confucian values; considerable reliance on government planning and direction, limitations on dissent and instability.