unit 7

• Industrial Revolution


  the term used for the transformation from an agricultural society to an industrial society as a result of new technologies and facilitated by the availability of natural resources (resulting in factories, mass-produced goods, and assembly lines that replaced handmade goods)
• industrialization


  process that occurs when countries evolve from primarily agricultural producing basic, primary goods to one based on mechanized mass manufacturing of goods (craftsmen are replaced by assembly lines)
• primary sector


  economic activity that involves extracting (raw materials) or harvesting (food) products, e.g. gathering industries (renewable resources): agriculture, forestry, hunting and gathering, fishing, grazing, e.g. extractive industries (nonrenewable resources): mining, quarrying
• secondary sector


  economic activity that processes raw materials and transforms them into finished goods, e.g. manufacturing industries
• tertiary sector


  economic activity that provides services, e.g. health, legal, restaurants, stores
• quaternary sector


  economic activity that involves collecting, processing & manipulation of information & capital, e.g. finance, insurance, computer services
• quinary sector


  economic activity consisting of high-level decision making and advancement of human capacities, e.g. scientific research, higher education, government
• core


  countries where economic power (wealth, innovation, technology) is concentrated that control and benefit from the global market on which periphery and semi-periphery countries depend, e.g. U.S., Western European countries, Canada, Australia, Japan
• semi-periphery


  countries that are industrializing that exert more power in the world economy than the periphery, but are dominated to some degree by the core, e.g. newly industrialized countries such as Brazil, Russia, India, China, South Africa, Turkey
• periphery


  countries with low levels of economic productivity and a disproportionately small share of the world's wealth with weaker state institutions, lower standards of living and are often dependent on the core, e.g. Sub-Saharan African countries (except South Africa), parts of South America and Asia
• break of bulk point


  the transfer of transported cargo from one kind of carrier to another, e.g. port- from ship to truck
• Least Cost Theory


  Alfred Weber, theory that describes the optimal location of an industry in relation to costs of transport, labor, and relative advantages of agglomeration, an industry is located where it can minimize its costs, and therefore maximize its profits

  
• agglomeration


  the clustering of businesses that can benefit from close proximity because they share skilled-labor and customer base
• footloose industries


  industry in which the location is not impacted by the cost of transporting either raw materials or finished products
• LDC (less developed country)


  countries with low levels of industrialization, urbanization and low standards of living that are mainly focused on primary activities, predominantly agriculture
• NIC (newly industrialized country)


  less developed countries with growing industrial economies and a developing trade status in the global marketplace (BRICs: Brazil, Russia, India, China, South Africa)
• MDC (more developed country)


  countries with highly developed economies, high levels of industrialization, urbanization, advanced technological infrastructure and high standards of living
• post-industrial society


  a society in which the economy has transitioned from a manufacturing-based economy to a service-based economy
• GDP (gross domestic product)


  measurement of the total value of goods and services produced within the borders of a country during a specific time period, usually one year
• GNP (gross national product)

  measurement of the total value of goods and services produced within the borders of a country plus the net income from companies that are located outside the country and foreign investments during a specific time period, usually one year
• GNI per capita (gross national income per capita)

  measurement of the total value of goods and services produced within the borders of a country plus the net income from companies that are located outside the country and foreign investments, but minus dividend payments and indirect business taxes during a specific time period, usually one year, divided by the population
• Gini coefficient


  measurement of income distribution within a population
• fertility rate


  the average number of children a woman will have during her childbearing years (15-49)
• infant mortality rate


  number of deaths under one year of age per 1,000 live births during a given year
• access to health care


  refers to the ease with which an individual can obtain needed medical services
• literacy rate


  percent of population who can read and write
• gender inequality


  acknowledges that gender affects an individual's lived experiences; gender inequality is experienced across different cultures; tradition and culture pose obstacles to women's economic development, especially in less developed countries
• GII (gender inequality index)


  measurement that evaluates women's status in a country based on participation in economic, political, and labor-market participation, as well as reproductive health issues, indices of empowerment, and labor-market participation
• HDI (human development index)


  measurement used by the United Nations to calculate development in terms of human welfare (using both economic and social indicators)

  
• gender parity


  measurement of the relative access to education of males and females, e.g. ratio of females to males enrolled in a given stage of education (primary, secondary)
• objective of gender equality

  a society in which women and men enjoy the same opportunities, rights, and obligations in all spheres of life and is linked to sustainable development
• microloan


  low interest loans usually for smaller sums of money to provide extremely poor people the opportunity to open a small local business and is often targeted to women in less developed countries to lift them out of poverty and is helping to improve standards of living
• Rostow's Stages of Economic Growth


  theory that assumes all countries are capable of development along the same trajectory which encompasses five stages of linear development towards self-sustained economic growth and high levels of mass consumption
• Wallerstein's World Systems Theory (Core-Periphery Model)


  model that describes how economic power is distributed between dominant regions and less powerful regions and proposes that less developed countries are defined by their dependence on a developed core
• Dependency Theory


  theory that maintains that less developed countries are kept in a position of dependency due to the existing economic and political power structures sustained by more developed countries; the concentration of wealth in more developed countries makes it difficult for less developed countries to compete and improve their situation
• commodity dependence


  the extent to which a country is dependent on primary commodities for export; dependency on primary commodities can leave a country vulnerable to unpredictable price fluctuations and can significantly reduce national revenue
• neo-colonialism


  theory that proposes that countries which may be free from political colonial control, continue to remain economically dependent on rich, industrialized countries
• comparative advantage


  advantages to locations that combine lower operating costs (labor, taxes, relaxation of environmental regulations) resulting in trade/sale opportunities that produce goods/services for a lower price, e.g. oil producing nations have a comparative advantage when making products that require oil such as chemicals
• complementary advantage


  advantages created when producing goods that are consumed together, e.g. cars and gas, e.g. printer and ink cartridges
• neoliberal policies


  characterized by free market trade agreements, deregulation of financial markets, individualism, and the shift away from state welfare provision have created new organizations, spatial connections, and trade relationships that foster greater globalization