36 terms

Economic Geography

the centralization of parts an industry for the mutual benefit of the industry as whole; where firms with related or similar products locate together in clusters or regions.
Asian tigers
a term used to describe the industrial economies of Asia that have been aggressive in terms of economic growth rates and their ability to compete for consumers.
Old Asian tigers
Japan, South Korea, Taiwan, Hong Kong, and Singapore.
Old Asian tigers
Manufacturing Redevelopment Period was from 1950s-1970s. Foreign and programs such as the Macarthur Plan were the source of development funding.
New Asian tigers
China, India, Indonesia, Malaysia, Thailand, Vietnam.
New Asian tigers
Foreign direct investment (FDI) were the main source of development funding. Manufacturing developmental period was from 1980s-1990s until the 1997 Asian Economic Crisis.
break-of-bulk point
A location where transfer is possible from one mode of transportation to another.
comparative advantage
means that a country has the ability or resources to produce a good or service at less cost and more efficiently that other states. As such these advantageous goods and services are selected for industrial production over other possible alternatives.
loss of the industrial activity in a region
dependency theory
suggests that more developed countries exploit less developed countries countries to remain at the top of international trade.
export processing zone
port locations where foreign firms are given special tax privileges to incentivize trade. Ex: China's special economic zones
first world
economies that free markets, a high level of productivity value per person and thus, a high quality of life.
foreign direct investment (FDI)
investment in the economies of LDCs by transnational corporations based in MDCs. However, all countries are not recipients of this investment. Brazil, China and Mexico were the LDCs that received most of the investment.
free-trade agreement
Trade between nations that is not hindered by tariffs or other obstacles. On January 1, 1989, a free trade agreement between Canada and the United States came into effect.
gross domestic product
the dollar amount of all final goods and services produced within a country's borders in a year.
Human Development Index (HDI)
designed by the United Nations to measure the level of development of states based on a number of social indicators in addition to economic production. A score from 0.00 to 1.00 is calculated for countries by combining GDP per capita, the adult literacy rate, average level of education, and total life expectancy.
Industrial Location Theory
developed by Alfred Weber, this theory suggested that a company building an industrial plant needs to take into consideration the source of raw materials and the market for the product.
Weight-gaining industry
an industry where the finished product weighs more than raw materials. the industrial production point will need to be located closer to the market to minimize transportation costs. Example: Potato Chips
Weight-reducing industry
an industry where the raw materials weighs more than the finished product. the industrial production point will need to be closer to the raw materials. Example: Automobiles
Millennium Developmental Goals
established by the United Nations; designed to erase poverty by the year 2015. These 8 goals seek to promote gender equality and empower women through provision of better women's healthcare, hunger eradication, basic universal education, and an end to abject poverty.
Newly Industrialized Country
are Third World states that have economies that have made a distinct shift away from agriculture and toward manufacturing as the focus of economic development and production. They are in a constant process of building infrastructure. They typically have rapid population growth and are usually on the border of stage two and stage two on the Demographic Transition Model. They also experience rural-to-urban migration as their economies industrialize, and as a result, urbanize.
Primary production
includes agriculture, mining, forestry, and fisheries. These activities and Jobs deal with the extraction of natural resources from the Earth.
Secondary production
includes the processing of the raw materials drawn from the primary sector. These activities and jobs also include the fabrication of components and the assembly of finished goods. In essence, it reflects on all forms of manufacturing.
Tertiary production
includes transportation, wholesaling, and retailing of finished goods to consumers. This can include all types of services such as finance and government.
Retail location theory
states that the market area of a city is defined by two factors: threshold and range.
the minimum number of people required to support a business.
the maximum distance that people will travel to gain access to a service.
Rostow's Stages of Growth
proposes that countries go through 5 stages of growth between agricultural and service-based economies.
Traditional economy
this is the first of Rostow's Stages. Here, the conomy is focused on primary product such as agriculutre and fishing. The country's limited wealth is spent internally on things that do not promote economic development. Technical knowledge is low.
Preconditions for takeoff
this is the second of Rostow's Stages. Here, the country's leadership begins to invest the country's wealth in infrastructure such as roads, ports, electrification, and school systems that promote economic development and trade relations with other nations. More technical knowledge is learned that stimulates the economy.
this is the third of Rostow's Stages. Here, the economy begins to shift focus onto a limited number of industrial exports. Much of the country still participates in traditional agriculture, but the labor force begins to shift to factory work. Technical experience is gained in industrial production
Drive to maturity
this is the fourth of Rostow's Stages. Here, the advancements diffuse throughout the country. Advancements in industrial production are seen in many sectors of the economy, which grows rapidly. Workers become increasingly skilled and educated, and fewer people are engaged in traditional activities like agriculture.
Age of mass consumption
this is the fifth of Rostow's stages. Here, an industrial economy develops where highly specialized production such as vehicles, energy, and consumer products dominate mechanized (no longer traditional) and employs a small labor force.
Criticism of Rostow's stages
1.) not all countries have had the capacity to utilize potential comparative advantages for International trade. 2) The colonial legacy and other barriers to development such as government corruption or capital flight, are not accounted for in Rostow's theory.
Third World
countries with mainly agricultural and resource-based economies that have low levels of per-person productivity and low quality of life. Found across Latin America, the Caribbean, Africa, and the several Asian countries.
Second World
describes the communist countries of which only two "hard line" communist states remain today: North Korea and Cuba. These states typically have planned economy. It can also describe NICs still controlled by communist parties but that have adapted free-market reforms to their economies.