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agglomeration economies

Economy in which like things are put together to their benefit all businesses. But bringing all people to one area increases congestion.

basic industries

Industries that sell their products or services primarily to consumers outside the settlement.

brandt line

divides the more developed north from the less developed south

comparative advantage

the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.

dependency theory

A structuralist theory that offers a critique of the modernization model of development. Based on the idea that certain types of political and economic relations (especially colonialism) between countries and regions of the world have created arrangements that both control and limit the extent to which regions can develop.

developing country

any of the world's poor, or "have-not," nations

economic indicators

measure economic performance

economic development

The improvement of living standards by economic growth.

Gender Empowerment Index

compares the ability of women and men to participate in economic and political decision making

gross domestic product

The value of the total output of goods and services produced in a country in a given time period

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

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

import substitution

government policy of encouraging local manufacturers to produce goods that would replace imports


less developed country or nation with a low level of material well being

literacy rate

the percentage of people who can read and write

market orientation

The tendency of an economic activity to locate close to its market; a reflection of large and variable distribution costs.


control by a powerful country of its former colonies (or other less developed countries) by economic pressures

primary sector

The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry. User-contributed


(economics) the ratio of the quantity and quality of units produced to the labor per unit of time

quaternary sector

Service sector industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, administration, insurance, and legal services.

raw material orientation

The location of the manufacturing plant in relation to the source of raw materials. While most industries would prefer to locate near their markers in order to save the recurring costs of transportation, some industries - especially those that involve a loss of weight, bulk, or perishability in the process of manufacturing - might prefer to locate near their source of raw materials since their material index is much greater than 1.0.

regional multiplier

The stimulation of economic growth by growth itself. As secondary industries develop they create a demand for raw materials and goods. Thus, machinery is made from steel and this stimulates steel manufacturing while the development of the steel industry requires more machinery. As manufacturing industry prospers, more jobs arise in service industries.

modernization model

model of economic development maintains that all countries go through five stages of development

secondary sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

structural adjustment

refers to the set of adjustments or so-called reforms that are required by international banks as a condition for future loans and for refinancing on payments due on existing loans

subsistence economy

a type of economy in which human groups live off the land with little or no surplus

tertiary sector

The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.

trickle down effects

incresed wealth for upper class means benifit for the lower class

value added

the gross value of the product minus the costs of raw materials and energy.

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