Unit 6

Front 1

Market Economy

Back 1

capitalist economy based on the division of labor in which the prices of goods and services are determined in a free enterprise system set by supply and demand.

Front 2

Planned Economy

Back 2

economic system in which a single agency makes all decisions about the production and allocation of goods and services

Front 3

Mixed Economy

Back 3

economic system that incorporates a mixture of private and government ownership or control, or a mixture of capitalism and socialism.

Front 4

Traditional Economy

Back 4

A system in which customs handed down from generation to generation determine how a society is organized to produce, distribute, and consume goods and services.

Front 5

Informal Economy

Back 5

economic activity that is neither taxed nor monitored by a government (not included in GNP as the formal economy is); examples are the black market, illegal drug trade, odd jobs or work done "under the table", and remittances (money migrants send back to family and friends in their home countries).

Front 6

Industrial Revolution

Back 6

A series of improvements in industrial technology that transformed the process of manufacturing goods.

Front 7

Cottage Industry

Back 7

Manufacturing based in homes rather than in a factory, commonly found prior to the Industrial Revolution.

Front 8

Outsource

Back 8

The physical separation of some economic activities from the main production facility, usually for the purpose of employing cheaper labor.

Front 9

Least Cost Theory

Back 9

Alfred Weber's theory of industrial location, explaining and predicting where industries will locate based on cost analysis of transportation, labor, and agglomeration factors.

Front 10

Agglomeration

Back 10

Clumping together of industries for mutual advantage.

Front 11

Bulk Gaining Industry

Back 11

An industry in which the final product weighs more or has a greater volume than the inputs.

Front 12

Single Market Industry

Back 12

manufacturers that produce goods for one type of market

Front 13

Bulk Reducing Industry

Back 13

An industry in which the final product weighs less or comprises a lower volume than the inputs

Front 14

Break of Bulk Point

Back 14

A location where transfer is possible from one mode of transportation to another. i.e. a steel mill near the port of Baltimore receives iron ore by ship from South AMerica and coal by train from Appalachia.

Front 15

Entrepot

Back 15

Big commercial center for importing and exporting commodities. A port where merchandise can be imported and re-exported without paying import duties.

Front 16

Footloose Industry

Back 16

Industry not bound by locational constraints and able to choose to locate wherever it wants.

Front 17

Fixed Costs

Back 17

Expenses that remain the same for a period of time; must be paid regardless of the quantity of a good or service produced/sold.

Front 18

Variable Costs

Back 18

a cost of enterprise and operation that varies either by output level or by location of the activity

Front 19

Factors of Production

Back 19

Land, labor, and capital; the three groups of resources that are used to make all goods and services.

Front 20

Capital

Back 20

wealth in the form of money or property owned by a person or business and human resources of economic value

Front 21

Greenhouse Effect

Back 21

Natural situation in which heat is retained in Earth's atmosphere by carbon dioxide, methane, water vapor, and other gases.

Front 22

Offshoring

Back 22

With reference to production, to outsource to a third party located outside of the country.

Front 23

Division of Labor

Back 23

Spatial distribution of labor globally in which industry often relocates from MDCs to LDCs due to low labor costs in LDCs.

Front 24

Vertical Integration

Back 24

ownership by the same firm of a number of companies that exist along a variety of points on a commodity chain.

Front 25

Horizontal Integration

Back 25

ownership by the same firm of a number of companies that exist at the same point on a commodity chain.

Front 26

Free Trade Agreement

Front 27

Maquiladoras

Back 27

special economic zone on Mexico's northern border with the United States

Front 28

Fordism/Fordist Model

Back 28

Principles for mass production based on assembly-line techniques, scientific management, mass consumption based on higher wages, and sophisticated advertising techniques.

Front 29

Just In Time Delivery

Back 29

An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.

Front 30

Global Industry

Back 30

?

Front 31

Specialized Economic Zones

Back 31

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

Front 32

Agglomeration

Back 32

A snowballing geographical process by which secondary and service industrial activities become clustered in cities and compact industrial regions in order to share infrastructure and markets.

Front 33

Deglomeration

Back 33

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

Front 34

Ecotourism

Back 34

tourism directed toward exotic, often threatened, natural environments, especially to support conservation efforts and observe wildlife.

Front 35

Development

Back 35

?

Front 36

Dependency Theory

Back 36

is the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former.

Front 37

Levels of Development

Back 37

The study of how countries develop financially

Front 38

Measures of Development

Back 38

the process of achieving an optimum level of health and well-being. It includes physical, biological, mental, emotional, social, educational, economic, and cultural components

Front 39

Technology Gap

Back 39

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

Front 40

Technology Transfer

Back 40

The diffusion to or acquisition by one culture or retention of the technology possessed by another, usually more developed, society.

Front 41

Purchasing Power Parity

Back 41

A monetary measurement which takes account of what money actually buys in each country

Front 42

Cultural Convergence

Back 42

The tendency for cultures to become more alike as they increasingly use technology and organizational structures in the modern world united by improved transportation and communication

Front 43

Third World

Back 43

The developing nations of Africa, Asia, and Latin American. Minority groups as a whole within a larger prevailing culture.

Front 44

Neocolonialism

Back 44

the economic control MDCs are sometimes believed to have over LDCs

Front 45

Core-Periphery Model

Back 45

A model of the spatial structure of an economic system in which underdeveloped or declining peripheral areas are defined with respect to their dependence on a dominating core region

Front 46

Stages of Growth Model

Back 46

Five stage economical model of development by a pioneering advocate. Stage 1=Traditional Society, Stage 2=Transitional Stage, Stage 3=Take off, Stage 4-Drive to Maturity, Stage 5=High Mass Consumption.

Front 47

World Systems Theory

Back 47

Immanuel Wallerstein's theoretical approach which analyzes societies in terms of their position within global systems.

Front 48

Human Development Index (HDI)

Back 48

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

Front 49

Gini Coefficient

Back 49

The Gini coefficient's main advantage is that it is a measure of inequality by means of a ratio analysis, rather than a variable unrepresentative of most of the population, such as per capita income or gross domestic product.|

Front 50

Gross Domestic Product (GDP)

Back 50

The total value of all goods and services produced within a country during a given year. The amount of food that is produced in the country.

Front 51

Gross National Product (GNP)

Back 51

A measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year.

Front 52

Gross National Income (GNI)

Back 52

Comprises the total value produced within a country together with its income received from other countries (notably interest and dividends), less similar payments made to other countries.

Front 53

Primary Economic Activity

Back 53

examples include agriculture, ranching, hunting, fishing, mining

Front 54

Secondary Economic Activity

Back 54

examples include toys, ships, processed foods, chemicals, buildings

Front 55

Tertiary Economic Activity

Back 55

examples include lawyers, doctors, teachers, nurses, salespeople

Front 56

Quaternary Economic Activity

Back 56

activities concerned with information and the exchange of money or goods

Front 57

Quiinary Economic Activity

Back 57

activities tied in with research or higher education