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Agglomeration

Grouping together many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources.

Backwash effect

The negative effects on one region that result from economic growth within another region.

Break-bulk point

A location where large shipments of goods are broken up into smaller containers for delivery to local markets.

Brick-and-mortar business

Traditional businesses with actual stores in which trade or retail occurs; it does not exist solely on the Internet.

Bulk gaining industries

Industries whose products weigh more after assembly than they did previously in their constituent parts.

Bulk reducing industries

Industries whose final products weigh less than their constituent parts, and whose processing facilities tend to be located close to sources of raw materials.

Conglomerate corporation

A firm that is comprised of many smaller firms that serve several different functions.

Core

National or global regions where economic power, in terms of wealth, innovation, and advanced technology, is concentrated.

Core-periphery model

A model of the spatial structure of development in which underdeveloped countries are defined by their dependence on a developed core region.

Cottage industry

An industry in which the production of goods and services is based in homes, as opposed to factories.

Deindustrialization

Loss of industrial activity in a region.

Development

The process of economic growth, expansion, or realization of regional resource potential.

E-commerce

Web-based economic activities.

Export-processing zone

Areas where governments create favorable investment and trading conditions to attract export-oriented industries.

Fordism

System of standardized mass production attributed to Henry Ford.

Globalization

The idea that the world is becoming increasingly interconnected on a global scale such that smaller scales of political and economic life are becoming obsolete.

Gross Domestic Product

The total value of goods and services produced within the borders of a country during a specific time period, usually one year.

Gross National Product

The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.

Human Development Index (HDI)

Measure used by the United Nations that calculates development not in terms of money or productivity but in terms of human welfare. Evaluates human welfare based on three parameters: life expectancy, education, and income.

Industrial Revolution

The rapid economic and social changes in manufacturing that resulted after the introduction of the factory system to the textile industry in England at the end of the 18th century.

Industrialization

Process of industrial development in which countries evolve economically, from producing basic, primary goods to using modern factories for mass producing goods.

Least-cost theory

A concept developed by Alfred Weber to describe the optimal location of a manufacturing establishment in relation to the costs of transport and labor, and the relative advantages of agglomeration of deglomeration.

Net National Product

A measure of all goods and services produced by a country in a year, including production from its investments abroad, minus the loss of degradation of natural resource capital as a result of productivity.

Offshore financial center

Areas that have been specially designed to promote business transactions, and thus have become centers for banking and finance.

Outsourcing

Sending industrial processes out for external production.

Periphery

Countries that usually have low levels of economic productivity, low per capita incomes, and generally low standards of living.

Primary economic activities

Economic activities in which natural resources are made available for use or further processing, including mining, agriculture, forestry, and fishing.

Productivity

A measure of the goods and services produced within a particular country.

Purchasing Power Parity

A monetary measurement of development that takes into account what money buys in different countries.

Quaternary economic activities

Economic activities concerned with research, information gathering, and administration.

Quinary economic activities

The most advanced form of quaternary activities consisting of high-level decision making for large corporations or high-level scientific research.

Rostow's stages of development

A model of economic development that describes a country's progression which occurs in five stages transforming them from least developed to most developed countries.

Rust Belt

The manufacturing region in the United States that is currently debilitated because many manufacturing firms have relocated to countries offering cheaper labor and relaxed environmental regulations.

Secondary economic activities

Economic activities concerned with the processing of raw materials such as manufacturing, construction, and power generation.

Specialty goods

Goods that are not mass-produced but rather assembled individually or in small quantities.

Sustainable development

The idea that people living today should be able to meet their needs without prohibiting the ability of future generations to do the same.

Tertiary economic activities

Activities that provide the market exchange of goods and that brings together consumers and providers of services such as retail, transportation, government, personal, and professional services.

World cities

A group of cities that form an interconnected, internationally dominant system of global control of finance and commerce.

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