German geographer who was a major theorists of industrial location. He devised a model of how to understand industrial locations in regard to several factors, including labor supply, markets, resource location, and transpiration.
grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources
the negative effects on one region that result from economic growth within another region
Big Mac index
provides a test of the extent to which market exchange rates result in goods costing the same in different countries
the ability to produce a good at a lower opportunity cost than another producer
A process of improvement in the material conditions of people through diffusion of knowledge and technology.
a model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones
export processing zones
zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment
products are made and traded according to standards that protect workers and small businesses in LDCs
gender empowerment index
compares the ability of women and men to participate in economic and political decision making
gender-related development index
Compares the level of development of women with that of both sexes.
The trend toward increased cultural and economic connectedness between people, businesses, and organizations throughout the world.
Gross Domestic Product
the dollar amount of all final goods and services produced within a country's borders in a year.
ford/fordist production method
manufacturing process broken down into differentiated components, with different groups of people performing different tasks to complete the product.
Industries that are able to shift the location of their facilities in order to take advantage of cheap labor.
Human development index
Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy
High tech corridor
An area along a limited-access highway that houses offices and other services associated with high-tech industries
the portion of an economy largely outside government control in which employees work without contracts or benefits
international monitary fund
a United Nations agency to promote trade by increasing the exchange stability of the major currencies
Theory based on the principles of John Maynard Keynes, stating that government spending should increase during business slumps and be curbed during booms.
Least cost theory
Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.
Less developed country
poorer countries that do not manufacture as many of their goods as more developed countries.
The tendency of an economic activity to locate close to its market; a reflection of large and variable distribution costs.
The tendency of an economic activity to locate near or at its source of raw material; this is experienced when material costs are highly variable spatially and/or represent a significant share of total costs.
Model of economic development that shows that all countries go through five stages of development
expansion of economic activity caused by the growth or introduction of another economic activity
a socio-economic and political division that exists between the wealthy developed countries, known collectively as "the North", and the poorer developing countries (least developed countries), or "the South."
pacific rim economic region
Far Eastern countries and markets bordering the Pacific Ocean, including Hong Kong, South Korea, Singapore, Taiwan, China, Malaysia, Indonesia, the Philippines, New Zealand, and Australia. Previously termed an economic miracle, Pacific Rim markets collapsed in the late 1990s.
To change from government or public ownership or control to private ownership or control.
purchasing power parity
a theory of exchange rates whereby a unit of any given currency should be able to buy the same quantity of goods in all countries
spatially variable costs
an input cost in manufacturing that changes significantly from place to place in its total amount and in its relative share of total costs
spatially fixed costs
An input cost in manufacturing that remains constant wherever production is located.
special economic zones
The specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business.
This is when structuralists have argued that LDCs are locked into a cycle of underdevelopment by the global economic system.
Stipulations that require the country receiving an international loan to make economic changes in order to use the loan
In industry, the tendency to substitute one factor of production for another in order to achieve optimum plant location.
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Centers or nodes of high-technology research and activity around which a high-technology corridor is sometimes established.
large corporations that are headquartered in one country but sell and produce goods and services in many countries
quarternary economic activity
economic activity that focuses on the acqusision, processing and sharing of infomation, such as eduction or research
Quinary economic activity
service sector industries that require a high level of specialized knowledge skill (scientific research, high-level management)
One of the most influential modernization theorists, charted the route from traditional society to 'the age of high mass consumption', The Stages of Economic Growth
a United Nations agency created to assist developing nations by loans guaranteed by member governments
Core countries have high levels of development, a capacity at innovation and a convergence of trade flows. Periphery countries usually have less development and are poorer countries.
A school of thought that explains low development as being a result of the LDCs economic dependency on the MDCs.
Statistics that provide information about the performance of the economy and its position in the business cycle.
a government policy that uses trade restrictions and subsidies to encourage domestic production of manufactured goods
The 1980s school of development emphasizing free-market approaches and participation in global trade.
The forces of concentration that reinforce growth at the core in expense of the periphery.
A shift in the relative share of national output and employment that is attributed to each business sector.
The communication of specific plans, designs, or educational programs necessary for the use of new technologies from one society or class to another. (p. 358)