Key Concepts of Industrialization and Economic Development (Topics 7.1-7.8)

Definitions for Topics 7.1-7.8 Term Definition the process in which the interaction of social and economic factors causes the Industrialization development of industries on a wide scale refers to the level of wealth, comfort, material goods, and necessities available Standards of living to a certain socioeconomic class or geographic area radical change in manufacturing methods that began in England in the mid-18th Industrial Revolution century and was marked by the shift from small-scale hand-crafted production to power-driven mass production possible negative effects of growth poles; the loss of highly educated young Backwash effects people from distant communities positive effects from an economic growth pole; the additional business for a Spin-off benefits farmer when a new tech company opens nearby hierarchical organization by which a society or community is divided into Class structures classes; generally based on family of birth, wealth, income, educational attainment, occupation, and social networks the push to create an empire by exercising force or influence to control other Imperialism nations or peoples increasing gap in economic conditions between core and peripheral regions as a Uneven development result of the globalization of the economy any metals, wood or other plant products, animal products, or other substances Raw materials that are used to make intermediate or finished goods Agglomeration the tendency of enterprises in the same industry to cluster in the same area economic sector associated with removing or harvesting products from the Primary economic sector earth; agriculture, fishing, forestry, mining, extracting liquid or gas economic sector associated with the production of goods from raw materials; Secondary economic sector includes manufacturing, processing, and construction economic sector that includes a host of activities that involve the transport, Tertiary economic sector storage, marketing, and selling of goods or services; also called the service sector economic sector that is a subset of tertiary sector activities that require Quaternary economic sector workers to process and handle information and environmental technology economic sector that is a subset of the quaternary sector; involves the very top Quinary economic sector leaders in government, science, universities, nonprofits, health care, culture, and media location where the mode of transportation changes; it is more economical to Break-of-bulk point break raw materials into smaller units before shipping them farther; ports industrial location theory proposed by Alfred Weber suggesting that Least cost theory businesses locate their facilities in a particular place because that location minimizes the costs of production industry in which the finished goods cost more to transport than the raw Bulk-gaining industry materials industry in which the raw materials cost more to transport than the finished Bulk-reducing industry goods that affect the well-being of individuals and communities; examples Social measures of development things include access to healthcare, fertility rates, literacy rates Economic measures of indicators that affect the economy of a community; examples include GDP, development unemployment, inequality of wealth total value of the goods and services produced by all people and companies Gross Domestic Product (GDP) the within the country in a year the total value of the goods and services produced by a country's citizens and Gross National Product (GNP) companies both domestically and internationally in a year Gross National Income (GNI) per the total value of goods and services globally produced by a country's citizens capita in a year, divided by the country's population businesses, enterprises, and other economic activities that have government Formal sector of the economy supervision, monitoring, and protection, and are also taxed any part of a country's economy that is outside of government monitoring or regulation how a country's GDP is distributed amongst its population; if everyone in a Income distribution society earned the exact same amount, the income distribution would be perfectly equal a measurement that calculates inequality based on three categories: Gender Inequality Index (GII) reproductive health, empowerment, and labor-market participation a measure that determines the overall development of a country by Human Development Index incorporating three key dimensions of human development: life expectancy at (HDI) birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI per capita 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 a model that suggests that all countries can be categorized on a spectrum from Rostow's Stages of Economic traditional to modern, and that to become modern, countries need to pass Development through distinct stages of economic growth in succession theory describing the spatial and functional relationships between countries in Wallerstein's World System the world economy; categorizes countries as part of a hierarchy consisting of Theory the core, periphery, and semi-periphery theory that describes the development challenges and limitations faced by Dependency theory poorer countries, and the political and economic relationships poorer countries have with richer countries Commodity dependence/ an aspect of dependency theory that occurs when more than 60 percent of a commodity theory country's exports and economic health are tied to one or two resources process by which a country or area reduces industrial activity, particularly in Deindustrialization heavy industry and manufacturing Complementary the mutual trade relationship that exists between two places based on the advantages/Complementarity supply of raw materials and the demand for finished products or services the relative cost advantage a country or organization has to produce certain Comparative advantages goods or services for trade beliefs that favor free-market capitalism in which trade has no constraints from Neoliberal policies government the specific understanding of two or more countries that have agreed to reduce Free trade agreements trade barriers Global financial crises a period of extreme stress in financial systems worldwide South American trade bloc intended to expand trade, improve transportation, Mercosur and reduce tariffs among members Tariffs a tax or duty to be paid on a particular import or export a factory in Mexico run by a foreign company and exporting its products to the Maquiladoras country of that company. process of moving from one sector of the economy to another (from being a Economic restructuring mostly primary sector economy to being a mostly secondary sector economy, for instance) Manufacturing zones area in which manufacturing is allowed to occur area within a country that is subject to different and more beneficial economic Special economic zones (SEZ) regulations than other areas; companies doing business in a SEZ receive tax incentives and are subject to lower or no tariffs Trading blocs groups of countries that agree to a common set of trade rules large geographic areas of a country that provide tariff- and tax-free areas for warehousing, storage, manufacturing, and transport of goods; often situated Free trade zones (FTZ) near international airports, seaports, or land borders to enable quicker turnaround of ships, planes, etc. engaged in international trade area within a country where manufacturing of exports is done without tariffs to Export-processing zones (EPZ) attract multinational organizations to invest in labor-intensive assembly and manufacturing a highly organized and specialized system for industrial production that focuses Fordist production/ Fordism on efficiency and productivity in mass production; named after Henry Ford the economic effect in which a change creates a larger change, such as when a Multiplier effect new manufacturing plant grows the economy by giving rise to more related jobs and services Informal sector of the economy Just-in-time delivery Growth poles Economies of scale Front office Back office Mass consumption Ecotourism UN's Sustainable Development Goals (SDGs) Small-scale finance Newly industrialized countries (NIC) Outsourcing Climate change a system in which goods are delivered as needed so that companies keep in inventory only what is needed for near-term production a place of economic activity clustered around one or more high-growth industries that stimulate economic gain by capitalizing on some special asset cost reductions that occur when production rises Main offices for executives; the public face of the company; often very expensive locations in top floors of city buildings Main offices for average employees; much cheaper office spaces than the front offices; those who do jobs like payroll, customer service, billing, etc. lots of things being purchased; tied to mass production that was made possible beginning in the Industrial Revolution a form of tourism based on the enjoyment of natural areas that minimizes the impact to the environment 17 goals adopted by all United Nations states to reduce disparities in economic security, food security, gender equality, safety, sustainability, etc. between developed and developing countries means by which a business owner obtains money to start a new small business or purchase an existing small business a country whose level of development is somewhere between "developed" and "developing;" often selected as industrial production/manufacturing locations; often referred to as "semiperiphery" contracting work out to noncompany employees or other companies; can be domestic or international a change in global or regional climate patterns, in particular a change apparent from the mid to late 20th century onwards and attributed largely to the increased levels of atmospheric carbon dioxide produced by the use of fossil fuels.