Vocab
Human Development Index
measures the status of life in any given place based off of life expectancy, education levels, and income per capita.
Stage 1
Traditional Society
Primary Job Sector
involves the extraction and harvesting of natural resources.
Free Trade, Fair Trade, and Trading Blocs
Free Trade - an economic policy that allows goods and services to be traded across borders with little to no government interference, such as tariffs or quotas.
Fair Trade - a concept used in developing countries to help create sustainability.
Trading Blocs - A group of neighboring countries that promote trade with each other and erect barriers to limit trade with other blocs.
Infrastructure
the fundamental facilities and systems that support the functioning of a society, including transportation, communication, water supply, and energy systems.
UN Sustainable Development Goals
a set of 17 goals adopted by the United Nations in 2015 to end poverty, protect the planet, and ensure peace and prosperity for all.
Stage 2
Preconditions to Take-off
Secondary Job Sector
the part of the economy that transforms raw materials into finished goods and products.
International Division of Labor
transfer of some types of jobs, especially those requiring low-paid, less skilled workers, from more developed to less developed countries.
Footloose Industries
one which is not tied to any particular location or country and can relocate to another place without effect from factors of production such as resources, land, labour, and capital.
Maquiladora Plants
A maquiladora is a low-cost factory in Mexico that is owned by a foreign corporation. Facilities are usually located near the U.S.-Mexico border. These plants assemble products and export them back to the United States and other countries.
Stage 5
High Mass Consumption
Quinary Job Sector
the highest level of economic activity, which involves the decision-making and policy-making that drives the other sectors of the economy.
Special Economic Zones
designated areas within a country that operate under different economic regulations than the rest of the country, aiming to attract foreign investment and stimulate economic growth.
Formal and Informal Economies
Informal Economy. Economic activity that is neither tazed nor monitored by a government; and is not included in that governments Gross NAtional Product; as opposed to a formal economy.
Formal Economy. Gross National Product. The total value of all goods and services produced by a country's economy in a given year.
Stimulus and Austerity
stimulus strategy - governments should spend more money than they collect and stimulate the economy by putting people to work building infrastructure.
austerity strategy - government should sharply reduce taxes and government programs so people will revive the economy by spending tax savings.
Stage 3
Take-off
Tertiary Job Sector
the segment of the economy that provides services rather than goods.
Cumulative Causation
Describes the continued growth due to the positive aspects of agglomeration.
Agglomeration
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.
Wallerstein's World Systems Model
divides countries of the world into three groups based on political power, social standing, and economic and technological development.
Stage 4
Drive to Maturity
Quaternary Job Sector
involve knowledge-based activities that focus on the management and processing of information, education, research and development, financial services, and consulting.
Ancillary Industries
Economic activities that surround and support large-scale industries such as shipping and food service.
Containerization
Containerization is a logistics and transportation technique that involves the use of standardized shipping containers to transport goods by various modes of transportation, such as ships, trains, and trucks.