Sharma List 7

Footloose industry

Manufacturing activities in which cost of transporting both raw materials and finished product is not important for determining the location of the firm. ex: Some examples of footloose industrys are corporate headquarters and regional offices, customer-service call centers, bill, claim, and records processing centers, research and development centers, software development centers, etc.

Aluminum industry -factors of production -location

Massive charges of electricity are required to extract aluminum from its processed raw material, aluminum oxide. Electrical power amounts for between 30% and 40% of the cost of producing the aluminum and is the major variable cost influencing plant location in the industry. ex: Aluminum is a bulk reducing industry, so the plants tend to be closer to the input.

1. Heartland 2. Rimland

1. Hypothesis proposed by Halford Mackinder that held that any political power based in the heart of Eurasia could gain enough strength to evntually dominate the world. ex: According to Mackinder, the great geographical pivot point of all human history was in northern and central Asia, the most populous landmass on earth, and he who rules the heartland, rules the world. 2. Nicholas Spykman's theory that the domination of the coastal fringes of Eurasia would provide the base for world conquest. ex: Spykman argued that the area surronding the heartland was most important for world political power.

Industry 1. receding 2. growing

1. The industry is diminishing in size and importance. ex: As countries develop, they move away from industry and become service countries. 2. The industry is increasing in size and importance. ex: As developing countries transition into becoming developed countries, they turn to industry so they can continue to grow.

1. Threshold 2. range

1. The minimum number of people necessary before a particular good or service can be provided in an area. ex: Threshold is partly based on the earnings of the local population. For example, a luxury car dealership will have somewhat larger population requirements than a regular car dealer, but will exist in an area only if the population's income will support the business. 2. The distance that interested consumers, on average, will travel to obtain a given good or service. ex: Range is not measured in terms of distance, but in travel time that a consumer needs to get to a service location. Decisions regarding access to a service are dependent on the amount of travel time and the necessity of the service. The convenience store is mainly for immediate consumption, the grocery store is for the week's consumptive needs, and the warehouse store is for the month's consumptive needs.

Variable costs

A corporate expense that varies with production output. Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, advertising, insurance and office supplies, which tend to remain the same regardless of production output. Fixed costs and variable costs comprise total cost. ex: Variable costs can include direct material costs or direct labor costs necessary to complete a certain project. For example, a company may have variable costs associated with the packaging of one of its products. As the company moves more of this product, the costs for packaging will increase. Conversely, when fewer of these products are sold the costs for packaging will consequently decrease.

Fixed costs

A cost that does not vary depending on production or sales levels, such as rent, property tax, insurance, or interest expense. ex: Some examples of fixed costs are rent, property taxes, insurance, etc.

Transnational corperation

A firm that conducts business in at least two separate countries; also known as multinational cooperations. ex: Transnationals take advantage of geographic differences in wages, labor laws, environmental regulations, taxes, and the distribution of natural resources by locating various aspects of their production in different countries. Nike has its headquarters in Portland, Oregon, but its factories are located in newly industrialized countries such as Indonesia, where production costs are much lower than in the USA. By taking advantage of Indonesia's low production costs and the relatively low costs of transporting products back into the USA, Nike can net a greater profit.

Ecotourism

A form of tourism, based on the enjoyment of scenic areas or natural wonders, that aims to provide an experience of nature and culture in an environmentally sustainable way. ex: Rainforest, marine reef, savannah grassland, and polar habitats have all become popular destinations for paying tourists. These were once the travel sites of hunters, fishermen, and adventures, but today there are well-established and accessible ecotourism resorts or cruise ships. Countries that once had little international tourist draw such as Ecuador, Honduras, Belize, Costa Rica, Tanzania, Botswana, and Chile have become valuable ecotourism destinations.

World cities

A group of cities that form an interconnected, internationally dominant system of global control of finance and commerce. ex: London, Tokyo, and New York all serve as global centers of economic activities.

Technology transfer

A less expensive source of foreign aid where technical knowledge, training, and industrial equipment are provided to NIC governments to increase business efficiency and capacity. ex: The Nordic Folkecenter for Renewable Energy is a non-profit, independent, organization that provides research, development of technology, training and information for the manufacture, industrial innovation and implementation of renewable energy technologies and energy savings in Denmark and throughout the world. Over the years Folkecenter has exported know-how around the globe. Farm biogas digesters, windmills and solar systems as well as integrated systems have been installed. Projects in Europe, Asia, Africa, North- and South America are realised with know-how from Folkecenter, Thy, Denmark. The projects are completed in cooperation with local companies, NGO's or governmental authorities. This way renewable energy know-how is spread to several corners of the globe, to the benefits of the world society, and future generations.

Break-of-bulk point

A location where large shipments of goods are broken up and transferred from one mode of transportation to another. ex: Good places for this are ship ports, train stations, air ports, etc.

Industrial location theory/ Alfred Weber

A model of industrial location proposed by Alfred Weber, a German economist, geographer, sociologist and theoretician of culture, which assumes that industrialists choose a least-cost location for the development of new industry. ex: Weber based industries location on the following geographic factors: access to materials, supply of labor, proximity to shipping and markets, site to minimize production costs, natural factors (such as climate that may limit the geographical distribution of certain types of firms), and the firm's history and personal inclinations.

Purchasing power parity

A monetary measurement of development that takes into account the differences in prices between countries. By comparison, GNI per capita can make a First World country appear more prosperous than other states and can make larger Third World countries appear less prosperous, but it doesn't factor in the cost of living in each country. The purchasing power parity correction theory makes a basic good the same price in all countries. ex: For example, a loaf of bread in the USA costs $2.21, but in China it costs $1.63. However, the GNI per capita is about $4,270, but this does not represent that money's true value. China's GNI PPP (gross national income purchasing power parity) is $8,390, which reflects the estimated actual value of an individual's purchasing power, using the same ratio as the bread example.

Weight-gaining

A number of inputs that are combined to make a final product that gains bulk, volume, or weight in the production. ex: These factories tend to be located closer to consumers because the cost of transporting the finished product is more than the cost of transporting the inputs, like refrigerators.

Postindustrial

A period in the development of an economy or nation in which the relative importance of manufacturing lessens and that of services, information, and research grows. ex: The USA is a postindustrial country because it has moved from an industrial country with lots of major factories to a service country.

Neocolonialism

A policy where a major power uses its economic and political means to extend its influence for economicdomination over developing nations or areas that are greatly dependant on the trade with the powerful country. ex: The political science term "neo-colonialism" became popular usage in reference to the continued European economic and cultural control of African countries that had been decolonized in the aftermath of WWII

Major manufacturing regions

A region in which manufacturing activities have clustered together. ex: The primary manufactoring region in the USA has historically been the Great Lakes region, which includes Michigan, Illionois, Indiana, Ohio, New York, and Pennsylvania. Although deindustrialization has eroded the manufacturing core of the Rust Belt, it is still the home of much of the USA's remaining industrial base.

Entrepot

A seaport or warehouse where goods are stored until they are shipped. The goods do not face any import or export duties upon shipment from the port or warehouse. ex: The use of entrepôts dates back to the original long distance sea trade routes. The benefit of the entrepôt in the past was that it removed the need for ships to travel the whole distance of the shipping route. The ships would sell their goods to the entrepôt and the entrepôt would in turn sell them to another ship, removing the large risks associated with long distance travel in the past. For example, if a ship was carrying spices from China is could sell the spices to an entrepôt in India and the entrepôt could sell the spices to a ship heading to England.

Rostow, W. W. and the "Stages of Growth" model

A theorist who developed the Stages of Growth model. Rostow proposed that countries went through five stages of growth between agricultural and service-based economies. One of his assumptions was that each country had at least some form of comparative advantage that could be utilized in international trade and could fund the country's economic development over time. ex: The five stages of growth are: 1. Traditional Society: The economy is focused on primary production such as agriculture and fishing. The country's limited wealth is spent internally on things that do not promote economic development. Technical knowledge is low. 2. Preconditions for takeoff: 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. 3. Takeoff: 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 and business management. 4. Drive to maturity: Technical 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. 5. Age of mass consumption: An industrial trade economy develops where highly specialized production such as vehicles, energy, and consumer products dominate the economy. Technical knowledge and education levels are high. Agriculture is mechanized (no longer traditional) and employs a small labor force.

Special economic zones 1. China

A type of export processing zone, defined as port locations where foreign firms are given special tax privileges to incentivize trade. 1. China established the first special economic zones in 1980, in which foreign firms were allowed to build facilities in coastal port cities. ex: China's SEZs were such a success that by the late 1900s, all the coastal provinces in China and Vietnam had been opened to foreign manufacturing firms. Low-cost labor, land, and utilities provided by provincial governments were in large demand by transnational corporations seeking to maximize factory profits, which are shared in the Chinese and Vietnamese governments.

Trade (complimentary)

Also known as free trade, is a system in which goods, capital, and labor flow freely between nations, without barriers which could hinder the trade process. ex: A number of barriers to trade are struck down in a free trade agreement. Taxes, tariffs, and import quotas are all eliminated, as are subsidies, tax breaks, and other forms of support to domestic producers. Restrictions on the flow of currency are also lifted, as are regulations which could be considered a barrier to free trade. Free trade enables foreign companies to trade just as efficiently, easily, and effectively as domestic producers.

Industrial Parks

An area zoned and planned for the purpose of industrial development. ex: The Bluegrass Crossings Regional Business Centre is one of Kentucky's premier regional industrial parks. Bluegrass Crossings offers over 1000 acres of gently rolling land available to build companies on.

Physical Quality of Life Index

An attempt to measure the quality of life or well-being of a country. ex: A country's physical quality of life index is based off of the literacy rate, infant mortality rate, and the life expectancy in the country.

"just in time" delivery

An inventory control system that replenishes and delivers products to a retailer just as a current supply is depleted. ex: Small business owners turn to just-in-time inventory to save money and reduce waste, while still providing their customers with the products they want and need. Just-in-time inventory systems let small business owners produce products after they receive a request from customers, rather than having already assembled products on the shelves waiting for purchase.

Export processing zone

Areas where governments create favorable investment and trading conditions to attract export-oriented industries. ex: EPZs are created under specific circumstances-developing countries have abundant labor resources, while capital becomes mobile in the global economy. The combination of labor and capital in EPZs provides a chance for developing countries to absorb foreign direct investment (FDI) and be linked to the global economy with the minimum impact on the domestic economy, as the goods produced in EPZs are exported.

Multiplier effect

Companies from the same industry frequently cluster together in a relatively small area to draw from the same set of collective resources. ex: As the Silicon Valley became increasingly known for its high-tech firms, it attracted more and more computer experts which then encourages other high-tech firms to locate there.

Levels of development

Countries are catagorized in First, Second, Third, Fourth, and Fifth World countries by their level of economic development. ex: 1. First World: Industrialized and service based economies that have free markets, a high level of productivity value per person, and a high quality of life. (like the USA) 2. Second World: Describes the Communist countries of which only two remain: Cuba and North Korea. They have centerally placed economies. The term is also used to describe former Communist states that are still restructuring their economy to free-market systems like the former Soviet Union and Eastern European states. 3. Third World: Countries with mainly agricultural and resource based economies that have low levels of per-person productivity and a low quality of life. These underdeveloped states are found across Latin America, the Caribbean, Africa, and Asia. Examplesof the poorest Third World states are Haiti, Niger, Malawi, Madagascar, etc. 4. Fourth World: Third World states that have experienced some sort of economic crisis that has immobilized the national economy. Crises can include a crash in the country's banking system, devaluation of a country's currency, a failed government taxation system, or events that shut down the economy such as warfare and natural disaters. 5. Fifth World: Third World states that both lack a functioning economy and have no formal national government.

Third World

Countries with mainly agricultural and resource-based economies that have low levels of per-person productivity and a low quality of life. ex: These underdeveloped states are found across Latin America, the Caribbean, Africa, and the Asian countries. Examples of the poorest Third World states are Haiti, Niger, Malawi, Tanzania, Madagascar, Nepal, and the former USSR countries Kyrgyzstan and Tajikistan.

Ozone depletion

Destruction of the stratospheric ozone layer which shields the earth from ultraviolet radiation harmful to life. This destruction of ozone is caused by the breakdown of certain chlorine and/or bromine containing compounds (chlorofluorocarbons or halons), which break down when they reach the stratosphere and then catalytically destroy ozone molecules. ex: The most important ozone depleting substances are, chlorofluorocarbon or CFC, bromofluorocarbon or halons, methyl chloroform, methyl bromide and hydrofluorocarbons. Chlorofluorocarbons are mainly found in industrial solvents and spray aerosols, perfumes, deodorants, insecticides, and they are also used in foam products, refrigerators, air conditioners and freezers. Halons are primarily used in fire extinguishers, while methyl bromide is a pesticide. Methyl chloroform on the other hand, is used as a solvent in various industrial processes.

Economies of scale

Factors that cause the average cost of producing something to fall as the volume of its output increases. ex: For example, it might cost $3,000 to produce 100 copies of a magazine but only $4,000 to produce 1,000 copies. The average cost in this case has fallen from $30 to $4 a copy because the main elements of cost in producing a magazine (editorial and design) are unrelated to the number of magazines produced. Economies of scale were the main drivers of corporate gigantism in the 20th century. They were fundamental to Henry Ford's revolutionary assembly line, and they continue to be the spur to many mergers and acquisitions today.

Agglomeration economies

Grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources. ex: The firms enjoy the advantages of shared skilled-labor pool, specialized suppliers, and service providers and can share (or steal) technical knowledge on production or marketing. Normally, when one firm finds cost-minimizing advantage of a location, other firms will move to that location to achieve the same savings. Also, when a location is known for a particular product, such as Detroit for automakers, related supplier and competing firms will attempt to locate there as well.

Labor-intensive

Industries that require a great deal of labor relative to capital. ex: Agriculture, construction, and coal-mining industries are examples of labor intensive industries because they take a lot of effort and work, but are not always high paying.

Weight-losing

Involves a large amount of inputs that are reduced to a final product that weighs less or has less volume or bulk than the inputs. ex: These factories tend to be located near the inputs that lose the most bulk in the manufacturing process, like trees or metal ore.

Human Development Index

Measure used by the United Nations that calculates development not in terms of money or productivity but in terms of human welfare. It evaluates human welfare based life expectancy, education, adult literacy rate, and income. ex: Most developed countries have an HDI of over 7.0 while most developing countries have an HDI of less than that.

Assembly line production/ Fordism

Named after Henry Ford, Fordism is a form of mass production in which each worker is assigned one specific task to perform repeatedly on an assembly line. ex: Fordism refers to the system of mass production and consumption characteristic of highly developed economies during the 1940s-1960s. Under Fordism, mass consumption combined with mass production to produce sustained economic growth and widespread material advancement.

Deglomeration

Occurs when a location is overloaded with similar firms and services. If local resources or the labor pool are fully utilized or over-utilized, some firms may seek alternate locations to expand to or move all operations completely. ex: The early 1980s Japanese automobile firms looked to open factories in the United States to reduce transportation costs of moving cars across the Pacific. The first company, Honda, looked at Detroit but found the labor force and land there too expensive so they went to rural Marysville, Ohio.&

Foreign direct investment

Overseas business investments made by private companies. ex: Investors put money in foreign countries to start a new business or build a new factory in a NIC (newly industrialized country). As the business grows or the factory operates over time, investors are paid back plus a portion of the profits, or if the business fails, they could get nothing back- the accepted risk of investing. When there is high demand for cheaply made products in the world, factory investment in NICs can have high returns on investment of 10 to 15% within a few years of factories opening.

Industrialization

Process of industrial development in which countries evolve economically, from producing basic, primary goods to using modern factories for mass-producing goods. At the highest levels of development, national economies are geared mainly toward the delivery of services and exchange of information. ex: The Industrial Revolution was marked by the rapid economic and social changes in manufacturing that resulted after the introduction of the factory system to the textile industry in England at the end of the 18th century.

Energy resources

Resources that are both renewable and nonrenewable that are used to generate energy. ex: Nonrenewable energy resources include petroleum, coal, natural gas, and fossil fuels. Renewable energy resources include solar power, wind energy, water power, etc.

Infrastructure

Roads, ports, power plants, water systems, and railways that facilitate the construction and operation of factories. ex: The Roman Empire helped shape infrastructure as it is today. Roman influences in modern society can also be seen in infrastructure systems. Roman roads used three levels of substructure beneath the paving stones, and a prescribed angle for the uplift of the center of the road, allowing rainwater to drain off. They used numbered signposts every Roman mile, which indicated such things as the distance to the next town and which construction battalion had built the road. They also had extensive networks of underground lead pipe, supplying clean water. They utilized the concepts of parks, public libraries, and plazas.

Outsourcing

Sending industrial process out for external production. It applies not only to traditional industrial functions, but also to the contracting of service industry functions to companies to overseas locations, where operating costs remain relatively low. ex: It is common in auto parts, and car companies rely on several other companies to provide vehicle components such as brakes, electronics, glass, and specialized plastics.

Deindustrialization

Shifting away from manufacturing as the main source of economic production. ex: The United States and Canada have deindustrialized and have become service-based economies. In these economies roughly 80% of their value is drawn from services and only 17% from manufacturing and resources, and 3% from agriculture.

Resource orientation

Tendency for an industry or other type of economic activity to locate close to its resources. ex: If the inputs (resources) weigh more than the finished product, it is weight-losing, and the factories are resource oriented to reduce the cost of manufacturing. If the outputs (finished product) weigh more then the inputs, it is weight-gaining, and the factories become market oriented to reduce the cost of transportation to the markets.

Four Tigers

The Four Tigers or the Asian Tigers are the prosperous economies of four Pacific Rim regions: Hong Kong, Singapore, Taiwan and South Korea. ex: Since the 1960's their economies have rapidly developed by selling high value goods to developed nations. They did this in part by purchasing American Treasuries ensuring a lower value to their local curriency making their exports seem cheaper, and by putting in place tariffs to prevent incoming goods. Education was another important aspect of their growth to ensure that the workforces were well educated and ultimately more productive.

NAFTA

The North American Free Trade Agreement between the United States, Canada, and Mexico was signed on January 1, 1994, and created the world's largest free trade area, which now links 450 million people producing $17 trillion worth of goods and services. ex: NAFTA removed many of the obstacles that prevented free trade and made it possible for Mexico's system of maquiladoras to produce and assemble goods for export back into the USA at low cost.

International division of labor

The allocation of various parts of the production process to different places in the world. ex: The USA produces cotton that they then send to American owned factories in developing countries where the cotton can be made into shirts for a cheaper cost and then shipped back to the USA to be sold.

Greenhouse effect

The anticipated increase in Earth's temperature, caused by carbon dioxide trapping some of the radiation emitted by the surface. ex: Most of the CO2 that people put into the atmosphere comes from burning fossil fuels. Cars, trucks, trains, and planes all burn fossil fuels. Many electric power plants do, as well. Another way humans release CO2 into the atmosphere is by cutting down forests, because trees contain large amounts of carbon. As the level of these gases rises, so does the temperature of the Earth. The rise in Earth's average temperature contributed to by human activity is known as global warming.

Time-space compression

The apparent compression of geographic space by faster means of transport and communication. ex: When it took 5 months to import something from China to the USA, the item was a rare commodity. Silk may have been a luxury item, but it wasn't part of the culture. Today it takes days to get a product from China to the USA, so China's products are a part of our everyday culture.

Carrier efficiency

The ratio of output to input for a given carrier. ex: If an amp uses 10 watts to produce a 5 watt carrier, there is 50% efficiency.

Growth poles

The concentration of highly innovative and technically advanced industries that stimulate economic development in linked businesses and industries. ex: The best-known attempt at creating growth poles took place in the Mezzogiorno (south) of Italy, with industrial complexes planned at Taranto and Bari. Such artificially created growth poles, as in France, have not stimulated regional development as much as was hoped.

Agglomeration

The concentration of human activities in a cluster or around a central place. ex: The "Denver Metro Area" is an agglomeration of Denver and its surrounding suburban towns.

Air pollution

The concentration of trace substances at a greater level than occurs in average air that can damage property and adversely affect the health of people, other animals, and plants. ex: Most air pollution is generated from factories and power plants, as well as from motor vehicles. Factories and power plants produce sulfur dioxides and solid particulates, primarily from burning coal. Burning petroleum in motor vehicles produces carbon monoxide, hydrocarbons, and nitrogen oxides.

Topocide

The deliberate killing of a place through industrial expansion and change, so that its earlier landscape and character are destroyed. ex: Topocide can be the result of deliberate industrial expansion. When industries form, then the people's center of life revolve around that industry. New jobs are formed and the environmental and cultural landscape is forever changed. For example, the Industrial Revolution changed small agricultural towns in Europe into bustling factory cities that people moved to to find work.

Technology gap

The difference in technologies used and/or developed in two countries where one is more advanced than the other. This can be used as an indicator of development. ex: Farmers in developed countries use tractors and machines to plow and harvest their fields, but most farmers in developing countries do not have access or money for advanced technology so they still farm by hand and/or mule.

Gross national product (GNP)

The dollar value of all goods and services produced in a country, plus the dollar value of exports minus imports in the same year. It also measures economic volume. ex: The GNP provides a broad vision of productivity because it assumes that development can be measured simply in monetary terms and that any productivity is good productivity. It is stated in U.S. dollar terms and does not account for the money value of all the goods produced by subsistence economies, so it automatically produces lower values for productivity in the developing world. To solve this, econimists developed a new measure called the Purchasing Power Pairity, which accounts for what money actually buys within different countries. A formula to remember it is: Goods+Services+(Exports-Imports)

Economic sectors

The economy can be divided into sectors which are catagorized by the types of products or services they create. ex: 1. Primary production: includes agriculture, mining, energy, forestry, and fisheries. These activities and jobs deal with the extraction of natural resources from the earth. 2. Secondary production: includes the processing of the raw materials drawn from the primary sector and reflects all forms of manufacturing. 3. Tertiary production: includes the transportation,wholesaling, and retailing of finished goods to consumers. 4. Quaternary production: includes wholesaling, finance, banking, insurance, real estate, advertising, and marketing. These are collectively called "business services." 5. Quinary production: Known as "consumer services," these include retailing, tourism, entertainment, communications, government, and semi-public services, such as health, education, and utilities.

Resource crisis

The eventual depletion of the fossil fuels on which energy-dependant economies rely heavily. ex: At the current rate of consumption, there is about 250-350 years of fossil fuels left on Earth. Most of it is coal. There is about 25-40 years left of oil, although it is hard to make an accurate prediction with oil becuase the rate of consumption can change drastically as developing nations grow.

Bid rent theory

The geographical economic theory that refers to how the price and demand for real estate changes as the distance from the Central Business District (CBD) decreases. ex: It states that different land users will compete with one another for land close to the city center. This is based upon the idea that retail establishments wish to maximize their profitability, so they are much more willing to pay more for land close to the CBD and less for land further away from this area.

Manufacturing exports

The goods made in one country and transmitted to other countries. ex: The USA produces cotton that they then send to American owned factories in developing countries where the cotton can be made into shirts for a cheaper cost and then shipped back to the USA to be sold.

Dependency theory

The idea that most LDCs (including all NICs) are highly dependent on foreign-owned factories, foreign direct investment, and technology from MDCs to provide employment opportunities and infrastructure. ex: The main problem arises when Third World countries get stuck in a continuous cycle of dependency on First World loans to pay for additional economic development needs. In 1950, economist Raul Prebisch created the Prebisch thesis to explain the effects of the dependency of Third World economies on First World loans and investments to pay for the building of new industries and infrastructure. He said that money made by LDCs from the sale of manufactured goods and natural resources is then used to pay off loans and investments and to buy manufactured products from the First World such as vehicles, heavy equipment, and consumer goods. In the end, LDCs are left with little money to show for their productivity, while MDCs grow richer, forcing LDCs to remain dependent on loans from LDCs.

Warehouse location

The location a company chooses must provide easy access to inputs, an adequate labor supply, close proximity to shipping and markets, a site that minimizes production costs, natural factors, and that coincidences with the firm's history and personal inclinations. ex: Choosing the location can also beeffected by industrial parks, shared services, zoning, transportation, and taxes.

Transportation

The means of moving goods or people from one place to another. ex: Goods can be transported by train, plane, boat, or truck.

Taxes

The money paid to government by its citizens that is used to run the government, the country, a state, a county, or a municipality. ex: Taxes are primarily used to finance programs that help defend, educate, financially support, care for, transport, and/or perform other similar functions for individuals living within the country.

Agricultural Labor Force

The number of people working in agriculture in a country. This can be used as an indicator of development. ex: The agriculural labor force is under 1% of the population in the United States because it is a developed service country, but in Uganda, it is 86% of the population because it is a developing country where most of the people are subsistence farmers.

Calorie consumption

The percentage of daily nutrition someone recieves as opposed to the daily requirement that is healthy to recieve. It is an important indicator of development. ex: People in MDCs generally consume more than 130% of their daily requirements, but most people in LDCs, like Sub-Saharan Africa, barely get enough to sustain themselves.

Development

The process of economic growth, expansion, or realization of regional resource potential. ex: The UN created the Human Development Index (HDI) to measure the level of development of every country. The highest possible HDI is 1.0 and the lowest is 0. It takes into account a decent standard of living, a long and healthy life, and access to knowledge.

Refrigeration

The process of keeping an item below room temperature by storing the item in a system or substance designed to cool or freeze. ex: Refrigeration made it possible to transport perishable goods, such as dairy products, to markets all over the country instead of just to local markets.

Zoning

The process of planning for land use by a government to allocate certain kinds of structures in certain areas. ex: Zoning may include regulation of the kinds of activities which will be acceptable on particular lots (such as open space, residential, agricultural, commercial or industrial), the densities at which those activities can be performed (from low-density housing such as single family homes to high-density such as high-rise apartment buildings), the height of buildings, the amount of space structures may occupy, the location of a building on the lot (setbacks), the proportions of the types of space on a lot, such as how much landscaped space, impervious surface, traffic lanes, and whether or not parking is provided. In Germany, zoning usually includes building design, very specific greenspace and compensation regulations.

Shared Service

The provision of a service by one part of an organization or group where that service had previously been found in more than one part of the organization or group. The funding and resourcing of the service is shared and the providing department effectively becomes an internal service provider. ex: Traditionally the development of a shared-service organization (SSO) or shared-service centre (SSC) within an organization is an attempt to reduce costs (often attempted through economies of scale) of standardized processes (through centralization).

Industrial Revolution

The rapid economic and social changes in manufacturing that resulted after the introduction of the factory system to the textile industry in England at the end of the 18th century. ex: The Industrial Revolution stimulated tremendous population growth in cities such as Manchester and Chicago, which became centers for processing, manufacturing, shipping, and finance. Chicago, which became a central hub for railroads carrying wheat, beef, timber, and other commodities, grew from a small village in 1840, to a city of 1 million in 1900. By 1930 Chicago had over 3 million inhabitants, qualifying it as one of the world's fastest-growing industrial centers.

Canadian industrial heartland

The sizable manufacturing sector, centred in Central Canada, with the automobile industry especially important. ex: The Canadian industrial heartland consists of four cities, linked by the St. Lawrence River. Quebec, Montreal, Ottowa and Toronto are its main components. Using waterways, the political power and wealth of Canada helps support this important economical base in Canada.

Ubiquitous

The state of being everywhere at any given time. ex: Phones allow people to talk on the phone, skype, or text people all over the world without having to leave their own country.

Substitution principle

The substitution of a product, service or process to another that is more efficient or beneficial. ex: Farm tools have evolved over the years in developing countries from using our hands to animals to machines to produce a much greater yield.

Cultural convergence

The tendency for cultures to become more alike as they increasingly share technology and organizational structures through improved transportation and communication and as a factor of globalization. ex: Japan was able to adopt the sport of baseball from the United States through technology and fast travel.

Market orientation

The tendency of an economic activity to locate close to its market as a reflection of large and variable distribution costs. ex: Bread, milk, and other perishable products tend to be manufactured in many individual plants that serve their local regions.

Gross domestic product (GDP)

The total value of goods and services produced within the borders of a country during a specific time period. ex: GDP is calculated without adjusting for international trade, therefore measuring only the domestic economy. A formula to rember it is: Goods+Services

Cumulative causation

The unfolding of events connected with a change in the economy. ex: For example, the location of a new factory may be the basis of more investment, more jobs both in that factory and in ancillary and service industries in the area, and have a better infrastructure which would, in turn, attract more industry.

Measures of development

The use of economic indicators to help understand the variable levels of development and measure the degrees of uneven development between states to see the country -level economic differences created by gaps in development, technology gaps, and the poor standards of living created by the effects of colonialism, war, and disasters. ex: Some of the measures used include GDP, GNI, and HDI.

Energy consumption

The use of energy as a source of heat or power or as a raw material input to a manufacturing process. This can be used as an indicator of development. ex: MDCs use a lot more energy than LDCs becuase they rely on it in their daily lives. MDCs standard of living is higher so almost every building has electricity and air conditioning, while most places in LDCs do not have that luxury.

Least-cost location

Theory determined by Alfred Weber that suggests that firms locate their production facilities in the place that minimizes transportation costs, agglomeration costs, and labor costs. ex: Paper mills transform heavy timber into lightweight paper, making the cost to transport raw materials much greater than the transport of the finished product, so the paper mills are generally closer to the input source. While tire manufactors are generally closer to the markets because it is expensive to ship them long distances.

World Systems Theory

Theory developed by Immanual Wallerstein that explains the emergence of core, periphery, and semi-periphery in terms of economic and political connections first established at the beginning of exploration in the late 15th century and maintained through increased economic access up until the present. ex: European countries became more and more developed while other countries experienced little to no penetrationof the benefits of economic competition. Eventually, the pattern between core, periphery, and semi-periphery countries emerged as the network between the highly industrialized European countries continued to dominate global economic activity. Peripheral countries had little access to technologies that would facilitate development, and semi-peripheral countries, through exploitation by developed countries, were allowed partial entrance into the system. These areas have some dominance over periperal states but are, in turn, dominated by the core.

Maquiladora

U.S. firms that have factories just outside the United States/Mexican border in areas that have been specially designated by the Mexican government where factories cheaply assemble goods for export back into the U.S. ex: Maquiladoras are home to dozens of USA firms, such as General Motors, which are able to compete better on the global market because labor costs are lower.

Comparative advantage

When a country has the ability or resources to produce a good or service at less cost and more efficiently than other states. ex: High-tech markets in software development and computing services began to open up in India due to certain comparative advantages it has over other NICs such as the ability of most of the highly educated workers in the population to speak English. American tech firms like Dell Computer have opened several customer service and technical assisstance phone centers in India.

Acid rain

When sulfur oxides and nitrogen oxides, emitted by burning fossil fuels, enters the atmosphere, it causes tiny droplets of sulfuric acid to form and return to Earth as rain, snow, or fog. The acid percipitation damages lakes, plants, and animals such as fish and insects. ex: Acid rain usually falls in areas downwind of the location where the pollution is emitted. Like in the USA, the major generates of acid are in Ohio and other industrial states along the Great Lakes, but the severest effects effects of acid rain are found further east.