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hgap unit 7

Term	Definition
Industry	The production of goods or the provision of services for the satisfaction of human wants.
Raw materials	The basic materials from which a product is made.
Market	A place where goods or services are bought and sold.
Cottage industry	Small-scale industry carried on at home by family members using their own equipment.
Industrial revolution	A period of rapid industrial development characterized by the introduction of machinery and the mass production of goods.
Industrial belt	A region with a high concentration of industrial activity.
Deindustrialize	The decline in industrial activity in a region or country.
Rust belt	A region in the northeastern United States characterized by declining industry and urban decay.
Primary sector	The sector of the economy that extracts raw materials from the earth.
Secondary sector	The sector of the economy that processes raw materials into finished goods.
Tertiary sector	The sector of the economy that provides services rather than producing goods.
Quaternary sector	The sector of the economy that involves intellectual activities such as research and development.
Quinary sector	The sector of the economy that involves high-level decision making and management.
Multiplier effect	The phenomenon whereby an initial change in spending leads to a chain reaction of further changes in spending.
Least cost theory	A theory that explains the location of industries based on minimizing transportation and production costs.
Agglomeration economy	The benefits that firms gain by locating near each other in clusters or agglomerations.
Locational triangle	A conceptual model used to explain the location of industry based on three factors
Bulk reducing industries	Industries that produce goods that are smaller in volume and weight after processing.
Bulk gaining industries	Industries that produce goods that are larger in volume and weight after processing.
Labor-oriented industries	Industries that rely heavily on labor rather than capital for production.
Break of bulk	The location where goods are transferred from one mode of transportation to another.
Containerization	The process of transporting goods in standardized containers.
Intermodal	Relating to or involving two or more different modes of transportation.
Footloose	Industries that are not tied to a specific location and can easily relocate.
Front offices	The parts of a business that interact directly with customers.
Back offices	The parts of a business that handle administrative and support functions.
Gross national product	The total value of goods and services produced by a country's residents, regardless of where they are located.
Gross national income	The total income earned by a country's residents, including income from abroad.
Gross domestic product	The total value of goods and services produced within a country's borders in a given period of time.
Remittances	Money sent by migrants to their home country.
Per capita	Per person.
Purchasing power parity	A measure of the relative value of currencies based on the cost of a basket of goods and services.
Formal sector	The part of the economy that is regulated and taxed by the government.
Informal sector	The part of the economy that operates outside of government regulation and taxation.
Gini coefficient	A measure of income inequality within a population.
Life expectancy	The average number of years a person is expected to live.
Literacy rate	The percentage of people in a population who can read and write.
Gender gap	The difference in opportunities, status, and attitudes between men and women.
Gender inequality index	A measure of gender disparities in a country's health, education, and income.
Human development index	A composite index that measures a country's level of development based on health, education, and income indicators.
Nongovernmental organizations	Organizations that are not part of the government and work on humanitarian or social issues.
Microcredit	Small loans given to individuals, typically in developing countries, to help them start or expand a small business.
Stages of Economic Growth model	A theory that explains the process of economic development in stages, typically including traditional society, preconditions for takeoff, takeoff, drive to maturity, and age of high mass consumption.
World Systems Theory (Core-Periphery model)	A theory that divides the world into core, semi-peripheral, and peripheral regions, with the core benefiting from the exploitation of the periphery.
Dependency model	A theory that suggests that underdeveloped countries are dependent on developed countries for economic growth and development, often due to historical colonial relationships.
Non-governmental organization (NGO)	An organization that operates independently from government control and typically works on humanitarian, environmental, or social issues.
Commodities	Raw materials or primary agricultural products that can be bought and sold, such as coffee, oil, or wheat.
Commodity dependence	A situation where a country's economy heavily relies on the export of one or a few primary commodities.
Trade	The exchange of goods and services between countries or regions.
Barter	The exchange of goods or services for other goods or services without the use of money.
Comparative advantage	The ability of a country or region to produce goods or services at a lower opportunity cost than other countries or regions.
Complementarity	The degree to which two regions can satisfy each other's demands through trade by specializing in the production of different goods or services.
Free trade	The exchange of goods and services between countries without tariffs, quotas, or other restrictions.
Neoliberalism	A political and economic ideology that advocates for free-market capitalism, deregulation, and reduced government intervention in the economy.
Trading blocs	Groups of countries that form agreements to promote trade and economic cooperation among themselves, often by reducing trade barriers within the bloc.
Mercosur	The Southern Common Market, a trading bloc in South America that aims to promote economic integration among its member countries.
World Trade Organization (WTO)	An international organization that regulates international trade and resolves disputes between member countries.
International Monetary Fund (IMF)	An international financial institution that provides loans and financial assistance to countries experiencing economic difficulties.
Outsourcing	The practice of contracting work to an external third-party provider, often in another country, to reduce costs or access specialized skills.
Offshoring	The relocation of business activities or services to a foreign country, typically to take advantage of lower labor costs.
Reshoring	The reversal of offshoring, where businesses bring back previously outsourced activities or services to their home country.
New international division of labor	The global distribution of labor, where different stages of production are located in different countries to take advantage of comparative advantages and cost efficiencies.
Basic economic activity	Economic activities that produce goods or services primarily for local consumption.
Non-basic economic activity	Economic activities that produce goods or services primarily for export or outside the local economy.
Transnational corporations (TNCs)	Companies that operate in multiple countries and may have production facilities, offices, and subsidiaries around the world.
Multinational corporations (MNCs)	Companies that operate in multiple countries but may not have the same level of integration across borders as TNCs.
Export processing zones (EPZs)	Special economic zones where companies are given tax incentives and other benefits to encourage export-oriented production.
Special economic zones (SEZs)	Designated areas within a country that have special economic regulations and incentives to attract foreign investment and promote economic development.
Maquiladoras	Manufacturing plants, typically located in Mexico, that operate under preferential tariff arrangements, often assembling goods for export to the United States.
Free-trade zones (FTZs)	Areas within a country where goods can be imported, stored, and re-exported without being subject to customs duties.
Postindustrial economy	An economy characterized by a shift away from manufacturing and towards services, information technology, and knowledge-based industries.
Assembly line	A production process where a product is assembled sequentially along a line of workers, each performing a specific task.
Fordism	A system of mass production pioneered by Henry Ford, characterized by standardized products, assembly line production, and high wages for workers.
Substitution principle	The practice of replacing labor with capital or technology to increase efficiency and reduce costs.
Post-Fordist	A system of production characterized by flexible production methods, decentralized decision-making, and just-in-time delivery.
Just-in-time delivery	A production strategy where materials and components are delivered to the production line exactly when they are needed, minimizing inventory costs.
Locational interdependence	The idea that the location of one firm is influenced by the locations of other firms in the same industry.
Agglomeration economies	The benefits that firms gain from locating near each other in clusters or agglomerations.
Technopoles	Centers of high-technology manufacturing and information-based industry.
Growth poles (growth centers)	Regions or cities that serve as centers of economic growth and development, attracting investment and stimulating development in surrounding areas.
Spin-off benefits (spread effects)	Positive economic effects that result from the growth of an industry or activity, such as increased employment and investment in related sectors.
Backwash effects	Negative economic effects that result from the growth of an industry or activity, such as resource depletion and environmental degradation.
Brownfields	Abandoned or underutilized industrial or commercial sites that may be contaminated with hazardous substances.
Corporate parks (business parks)	Planned developments containing a cluster of office buildings, research facilities, and other amenities designed to attract businesses.
Sustainability	Meeting the needs of the present without compromising the ability of future generations to meet their own needs.
Sustainable development	Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Ecological footprint	The amount of land and resources required to sustainably support a particular lifestyle or level of consumption.
Ecotourism	Tourism that promotes the conservation of natural environments and the well-being of local communities.
Sustainable Development Goals	A set of 17 global goals adopted by the United Nations to address poverty, inequality, environmental degradation, and other development challenges by 2030.

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