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APHUG Unit 7
| Term | Definition |
|---|---|
| raw materials | any metals, wood, or other plant products, animal product, or other substances that are used to make intermediate or finished goods. |
| industrialization | the process in which the interaction of social and economic factors causes the development of industries on a wide scale |
| industrial revolution | the radical change in manufacturing methods that began in Great Britain in the mid 18th century and was marked by the shift from small scale, hand-crafted, muscle-powdered, production to power-driven mass production |
| cottage industries | preindustrial form of manufacture in which members of families spread out through rural areas worked in their homes to make goods |
| primary sector | economic sector associated with removing or harvesting products from the earth; includes agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas |
| secondary sector | economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction |
| tertiary sector | economic sector that includes a host of activities that involve the transport, storage, marketing, and selling of goods or services; also called the service sector |
| quaternary sector | economic sector that is a subset of tertiary sector activities that required workers to process and handle information and environmental technology |
| quinary sector | economic sector that is a subset of the quaternary sector; involves the very top leaders in government science, universities, nonprofits, healthcare, culture, and media |
| post-industrial economies | an economic pattern marked by predominant tertiary sector employment- with a good share of quaternary and quinary jobs |
| gross domestic product (GDP) | the total value of the goods and services produced by a country's citizens and companies within the country in a year |
| least cost theory | industrial location theory proposed by alfred weber suggesting that businesses locate their facilities in a particular place because that location minimizes the costs of production |
| agglomeration | the tendency of enterprises in the same industry to cluster in the same area |
| break of bulk points | location where it is more economical to break raw materials into smaller units before shipping them further |
| bulk reducing industries | industry in which the raw materials cost more to transport than the finished goods |
| bulk gaining industries | industry in which the raw materials cost more to transport than the finished goods |
| industrial parks | a collection of manufacturing facilities in a particular area that is typically found in suburbs and is located close to highways to facilitate movement of raw materials and finished products |
| human development | the process involves in the improvement of people's freedoms, rights, capabilities, choices, and material conditions |
| gross national product (GNP) | the total value of the goods and services produced by a country's citizens and companies both domestically and internationally in a year |
| gross national income (GNI) | the total value of goods and services globally produced by a country in a year |
| formal sector | businesses, enterprises, and other economic activities that have government supervision, monitoring and protection, and are also taxed |
| human development index (HDI) | measure that determines the overall development of a country by incorporating three key dimensions of human development; life expectancy at birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI |
| gender inequality index (GII) | a measure that calculates inequality based on three categories; reproductive health, empowerment, and labor-market participation |
| women empowerment | women's options and access to participate fully in the social and economic spheres of a society |
| labor market participation (LMP) | rate that measures an economy's active labor force, calculated by taking the sum of all employed workers divided by the working age population |
| microloans | a very small short-term loan with low interest intended to help people in need |
| rostow stages of economic growth | a model that suggests that all countries can be categorized on a spectrum from traditional to modern and that to become modern, countries need to pass through distinct stages of economic growth in succession |
| dependency theory | a theory that describes the development challenges and limitations faced by poorer countries and the political and economic relationships poorer countries have with richer countries |
| commodity dependence | aspect of dependency theory that occurs when more than 60 percent of a country's exports and economic health are tied to one or two resources |
| comparative advantage | the relative cost advantage a country or organization has to produce certain goods or services for trade |
| complementarity | the mutual trade relationship that exists between two places based on the supply of raw materials and the demand for finished products or services |
| neoliberalism | beliefs that favor free-market capitalism in which trade has no constraints from government |
| deindustrialization | process by which a country or area reduces industrial activity, particularly in heavy industry and manufacturing |
| growth poles | a place of economic activity clustered around one or more high-growth industries that simulate economic gain by capitalizing on some special asset |
| just in time delivery | a system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production |
| fordism | a highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production; named after henry ford |
| post-fordism | a system focused on small scale bath production for a specialized market and flexibility that allows for a quick response to changes in the market |
| outsourcing | the condition when one or more aspects of production moves to an organization in another country |
| international division of labor | a pattern of production and labor in which different countries are engaged in distinct aspects of production |
| multiplier effect | the economic effect in which a change creates a larger change, such as when a new manufacturing plant grows the economy by giving rise to more related jobs and services |
| special economic zones (SEZ's) | an area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses |
| export processing zones (EPZ's) | an area within a country that is subject to more favorable regulations (usually including the elimination of tariffs) to encourage foreign investment and the manufacturing of goods for export |
| free trade zones (FTZ's) | a relatively large geographical area within a country in which businesses pay few or no tariffs on goods to encourage or facilitate its role in international trade |
| ecotourism | a form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment |
| informal sector | any part of a country's economy that is outside of government monitoring or regulation; sometimes called the informal economy |
Created by:
alice.schuh
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