7.7

• outsourcing - contracting work to non company employees or other companies in order to reduce costs
• offshoring - the process of moving a business's operations to a country with lower labour costs
• Globalization


  • Has created a new international division of labor
  • Changed system of employment in the various economic sectors throughout the world
• Core countries


  People design and develop products for the global market
• Core countries


  • Tertiary, quaternary, and quinary jobs have increased
• Semiperiphery countries


  People often manufacture goods that are marketed in core countries
• Semiperiphery countries


  • Employment in the secondary sector has increased
  • Employment in the primary sector has declined
• Periphery countries


  Have large primary sectors and export minerals and resources to core and semiperiphery countries for further processing and consumption
• basic economic activity - actions that create new wealth for a region
• non basic economic activity - does not generate new money for the area
• transnational/multinational corporations (TNCS) (MNCS) - a company that has operations in more than one country
• export-processing zones (EPZs) - special economic zones where foreign investors can set up factories and receive tax breaks
• special economic zones (SEZS) - areas where foreign investors can set up businesses with minimal government interference
• special economic zones (SEZS) - areas where foreign investors can set up businesses with minimal government interference

  -also known as maquiladoras in mexico and free-trade zones in singapore
• postindustrial economy - economy that is based on services and knowledge, rather than on manufacturing
• assembly line - a series of operations performed by a person or a machine to produce a product in a continuous manner
• substitution principle - businesses maximize profit by substituting one factor of production for another, has been applied to the labour force
• post-fordist system - replacing workers with machines
• just in time delivery - when the supplier delivers the product just before it is needed
• locational interdependence - when a business is dependent on the location of other factories
• technopole - a region with a high concentration of technology-based industries and a high proportion of people employed in these industries
• spin-off benefits/spread effects - positive economic outcomes beyond the growth pole
• backwash effects - negative effects on one region that result from economic growth in another region
• brownfields - sites of abandoned factories, mines, and other industrial buildings that have been left to decay
• rust belt - the region of the united states hit hardest by deindustrialization (the northeast and lands around the great lakes)
• corporate/business parks - a place where office buildings can take adva of agglomeration economies