Unit 7 vocab

Question 1

Agglomeration

Answer 1

The tendency of enterprises in the same industry to cluster in the same area

Question 2

Break-of-bulk point

Answer 2

location where it is more economical to break raw materials into smaller units before shipping them further

Question 3

Bulk-gaining industry

Answer 3

industry in which the finished goods cost more to transport than the raw materials

Question 4

Bulk-reducing industry

Answer 4

iqndustry in which the raw materials cost more to transport than the finished goods

Question 5

Commodity dependance

Answer 5

an 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

Question 6

comparative advantage

Answer 6

the relative cost advantage a country or organization has to produce certain goods or services for trade

Question 7

Complementarity

Answer 7

the mutual trade relationship that exists between two places based on the supply of raw materials and the demand for finished products or services

Question 8

Cottage Indutry

Answer 8

preindustrial form of manufacture in which members of families spread out through rural areas worked in their homes to make goods

Question 9

Deindustrialization

Answer 9

process by which a country or area reduces industrial activity, particularly in heavy industry and manufacturing

Question 10

Dependency theory

Answer 10

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 (

Question 11

Dual economies

Answer 11

economies with two distinct distributions of economic activity across the economic sectors

Question 12

Economic sectors

Answer 12

collections of industries engaged in similar economic activities based on the creation of raw materials, the production of goods, the provision of services, or other activities

Question 13

ecotourism

Answer 13

a form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment

Question 14

Export processing zone (EPZ)

Answer 14

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

Question 15

Fordism

Answer 15

a highly organized and specialized system for industrial production that focuses on efficiency and productivity in mass production; named after Henry Ford

Question 16

Formal sector

Answer 16

businesses, enterprises, and other economic activities that have government supervision, monitoring, and protection, and are also taxed

Question 17

Free trade zone (FTZ)

Answer 17

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

Question 18

Gender development Index (GDI)

Answer 18

a measure that calculates gender disparity in the three basic dimensions of human development: health, knowledge, and standard of living

Question 19

Gender Inequality Index (GII)

Answer 19

a measure that calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation

Question 20

Gross Domestic Product (GDP)

Answer 20

the total value of the goods and services produced by a country’s citizens and companies within the country in a year

Question 21

Gross National Income (GNI)

Answer 21

the total value of goods and services globally produced by a country in a year divided by the country’s population

Question 22

Gross National Product (GNP)

Answer 22

the total value of the goods and services produced by a country’s citizens and companies both domestically and internationally in a year

Question 23

Growth pole

Answer 23

a place of economic activity clustered around one or more high-growth industries that stimulate economic gain by capitalizing on some special asset

Question 24

Human Development

Answer 24

the processes involved in the improvement of people’s freedoms, rights, capabilities, choices, and material conditions

Question 25

Human Development Index (HDI)

Answer 25

a 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 per capita

Question 26

Industrial park

Answer 26

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

Question 27

Industrial Revolution

Answer 27

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-powered production to power-driven mass production

Question 28

Industrialization

Answer 28

the process in which the interaction of social and economic factors causes the development of industries on a wide scale

Question 29

Industry

Answer 29

any economic activity using machinery on a large scale to process raw materials into products

Question 30

Informal Sector

Answer 30

any part of a country’s economy that is outside of government monitoring or regulation; sometimes called the informal economy

Question 31

International Division of Labor

Answer 31

a pattern of production and labor in which different countries are engaged in distinct aspects of production

Question 32

Just-in-time delivery

Answer 32

a system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production

Question 33

Labor-market participation (LMP)

Answer 33

rate that measures an economy’s active labor force, calculated by taking the sum of all employed workers divided by the working age population

Question 34

Least-cost theory

Answer 34

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

Question 35

Microloan

Answer 35

a very small short-term loan with low interest intended to help people in need

Question 36

Multiplier effect

Answer 36

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

Question 37

Neoliberalism

Answer 37

beliefs that favor free-market capitalism in which trade has no constraints from government

Question 38

Offshore outsourcing

Answer 38

the condition when one or more aspects of production moves to an organization in another country

Question 39

Post-Fordism

Answer 39

system focused on small-scale batch production for a specialized market and flexibility that allows for a quick response to changes in the market

Question 40

Postindustrial economy

Answer 40

an economic pattern marked by predominant tertiary sector employment—with a good share of quaternary and quinary jobs

Question 41

Primary Sector

Answer 41

economic sector associated with removing or harvesting products from the earth; includes agriculture, fishing, forestry, mining or quarrying, and extracting liquids or gas

Question 42

Quaternary sector

Answer 42

economic sector that is a subset of tertiary sector activities that requires workers to process and handle information and environmental technology

Question 43

Quinary sector

Answer 43

economic sector that is a subset of the quaternary sector; involves the very top leaders in government, science, universities, nonprofits, health care, culture, and media

Question 44

Raw materials

Answer 44

any metals, wood or other plant products, animal products, or other substances that are used to make intermediate or finished goods

Question 45

Secondary sector

Answer 45

economic sector associated with the production of goods from raw materials; includes manufacturing, processing, and construction

Question 46

Special Economic zone (SEZ)

Answer 46

an area within a country that offers more favorable economic regulations (such as tax benefits or no tariffs) to attract foreign businesses

Question 47

Stages of Economic Growth

Answer 47

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

Question 48

Tertiary Sector

Answer 48

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

Question 49

Women's empowerment

Answer 49

women’s options and access to participate fully in the social and economic spheres of a society