Unit 7 (Orr)
Terms in this set (54)
Series of links connecting the many places of production and distribution and resulting in a commodity that is then exchanged on the world market.
Gross National Product - includes income earned by citizens and companies abroad, but does not include income earned by foreigners within the country.
The difference between GNP and gross domestic product (GDP) is that GNP includes the value of products made by a country's citizens and companies abroad, while GDP only accounts for products made within a country's borders. However, GNP excludes the value of products made by foreign companies within the reporting country.
Gross Domestic Product- is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time.
Gross National Income - measures the total economic growth of a country and takes into consideration income and taxes earned both internationally and domestically, while GNP only measures the income and taxes earned by domestic citizens. GNI is the value of the services and products a country produces within a calendar year combined with interest payments and dividends from outside countries in the same year. GNP is the market value of all the products and services that a country produces through the labor or property supplied by its citizens.
the legal economy that is taxed and monitored by a government and is included in a government's gross national product (GNP)
economic activity that is neither taxed nor monitored by a government; and is not included in that government's gross national product
Human Development Index, measure of quality of life using factors like life expectancy, literacy, access to clean water, income, etc.
Purchasing Power Parity: evens exchange rates between currencies, compares goods to other countries goods
A process of acculturation or cultural imperialism through which forms of industrial, political and economic organization are often imposed on other cultures under the guise of getting aid in the form of technological and industrial "progress," but it can still lead to good things, like bringing needed infrastructure
barriers of economic development
-Birthrates (50% of pop. are younger than 15 in periphery countries)
-nutrition and sanitation
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
Those U.S. firms that have factories just outside the United States/Mexican border in areas that have been specially designated by the Mexican government. In such areas, factories cheaply assemble goods for export back into the United States.
special economic zone (SEZ)
Specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment (spatially limiting capitalism as well)
North American Free Trade Agreement; allows open trade with US, Mexico, and Canada
non-governmental organizations (NGOs)
Relief and development organizations that represent religious or service groups operating aid projects in developing countries. Examples include the Red Cross, Doctors Without Borders, and World Vision.
the use of very small loans to small groups of individuals, often women, to stimulate economic development
The change from an agricultural to an industrial society and from home manufacturing to factory production, especially the one that took place in England from about 1750 to about 1850.
Theory developed by economist Harold Hotelling that suggests competitors, in trying to maximize sales, will seek to constrain each other's territory as much as possible which will therefore lead them to locate adjacent to one another in the middle of their collective customer base.
a logical attempt to explain the locational pattern of an economic activity and the manner in which its producing areas are interrelated. The agricultural location theory contained in the von Thunen model is a leading example
A process involving the clustering or concentrating of people or activities. The term often refers to manufacturing plants and businesses that benefit from close proximity because they share skilled-labor pools and technological and financial amenities.
the process of industrial deconcentration in response to technological advances and/or increasing costs due to congestion and competition.
price paid for moving capital, labor, or other inputs into the forest or moving agricultural goods, timber, or minerals out of the forest
The cost of labor is the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer.
unprocessed natural products used in production
The trend toward increased cultural and economic connectedness between people, businesses, and organizations throughout the world.
process by which companies move industrial jobs to other regions with cheaper labor, leaving the newly deindustrialized region to switch to a service economy and to work through a period of high unemployment
contracting out selected functions or activities of an organization to other organizations that can do the work more cost efficiently
With reference to production, to outsource to a third party located outside of the country.
A highly organized and specialized system for organizing industrial production and labor. Named after automobile producer Henry Ford, Fordist production features assembly-line production of standardized components for mass consumption.
World economic system characterized by a more flexible set of production practices in which goods are not mass produced; instead, production has been accelerated and dispersed around the globe by multinational companies that shift production, outsourcing it around the world and bringing places closer together in time and space than would have been imaginable at the beginning of the 20th century
Method of inventory management made possible by efficient transportation and communication systems, whereby companies keep on hand just what they need for near-term production, planning that what they need for longer-term production will arrive when needed.
global division of labor
phenomenon whereby corporations and others can draw from labor markets around the world, make possible by the compression of time and space through innovation in communication and transportation systems
places where two or more modes of transportation meet (including air, road, rail, barge, and ship
A location along a transport route where goods must be transferred from one carrier to another. In a port, the cargoes of oceangoing ships are unloaded and put on trains, trucks, or perhaps smaller riverboats for inland distribution.
the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.
friction of distance
The increase in time and cost that usually comes with increasing distance.
The diminishing in importance and eventual disappearance of a phenomenon with increasing distance from its origin.
Industries that are able to shift the location of their facilities in order to take advantage of cheap labor.
A logical attempt to explain the locational pattern of an economic activity and the manner in which its producing areas are interrelated.
Principle that maintains that the correct location of a production facility is where the net profit is the greatest. Therefore in industry, there is a tendency to substitute one factor of production (e.g., labor) for another (e.g., capital for automated equipment) in order to achieve optimum plant location.
Expenses that can change depending on the location of a business.
An economic theory that refers to how the price and demand on real estate changes as the distance towards the Central Business District (CBD) increases.
locus of equal transport costs around a resource site or around the market(Edgar Hoover)
goods and services organizations take in and use to create products or services
primary, secondary, tertiary, quaternary, quinary (Ex. primary- fishing; secondary- processing the flour into bread; tertiary- service realated; quaternary- research based; quinary- CEO or president)
industries where the raw materials are relatively small, but these are converted to produce a bulky finished product.
industries where the raw materials are relatively bulky, but the resulting product is relatively smaller.
Weber's Least Cost Theory
theory that described the optimal location of a manufacturing firm in relation to the cost of transportation, labor, and advantages through agglomeration
a structuralist theory of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones
Rostow's Modernization Model
Developed in the 1950s, this model exemplifies the liberal development ideology, as opposed to structuralist theory, Under the model, all countries develop in a five-stage process. The development cycle is initiated by investment in a takeoff industry that allows the country to grow a comparative advantage, which sparks greater economic gain that eventually diffuses throughout the country's economy. Drawbacks to this model include its not identifying cultural and historic differences in development trajectories because it is based on North American and western European development histories.
A general term for economic development models which assume that (1) all countries are capable of developing economically in the same way and (2) economic disparities between countries and regions are the result of short-term inefficiencies in local or regional market forces.
World Systems Theory
Wallersteins theory of the core, semi periphery, periphery, and external areas. The core benefited the most from the development of a capitalist world economy. Semi perihpery was the buffer between the core and periphery. Periphery are states that lack strong central gov'ts or are controlled by other states. External areas are states that maintained their own economic system and for the mosr part, remianed outside of the capitalist world economy
a general term for a model of economic development that treats economic disparities among countries or regions as the result of historically derived power relations within the global economic system
dealt with locational interdependence; the location of industries can't be understood without reference to the location of other industries of like kind; two similar vendors would locate next to each other in the middle of a market area to maximize proft
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