Economic Sectors and Measures
This sector involves the processing of raw materials into finished goods, such as manufacturing or construction.
Secondary Sector
In Rostow's Stages of Growth, this 3rd stage is characterized by rapid industrialization and the emergence of a few leading industries.
Take-off
This term describes the ability of one country to produce a good more efficiently than another, forming the basis for international trade.
Comparative Advantage
This term describes the clustering of similar businesses in the same area to share labor pools and infrastructure.
Agglomeration
This composite index measures development by combining GNI per capita, life expectancy, and mean years of schooling.
HDI (Human Development Index)
While GDP measures internal production, this metric includes the value of goods and services produced by a country's citizens abroad.
GNI (Gross National Income)
Alfred Weber’s Least Cost Theory posits that a "weight-gaining" industry (like soda bottling) should be located near this.
The Market (Market-Oriented)
These are specific areas within a country where tax and investment regulations are different from the rest of the country to attract FDI.
SEZs (Special Economic Zones)
The shift from "Fordist" production to this "Post-Fordist" system emphasizes flexible manufacturing and just-in-time delivery.
Post-Fordist (or Flexible Production)
This concept suggests that as a country develops, its environmental impact increases before eventually decreasing as it becomes more service-based.
Environmental Kuznets Curve
This specific economic sector includes top-level decision-making by government officials and high-ranking corporate executives.
Quinary Sector
According to Wallerstein’s World Systems Theory, these countries are dominated by core nations and provide raw materials and cheap labor.
Periphery
This economic policy, often associated with the IMF, advocates for privatization, deregulation, and the reduction of government spending.
Neoliberalism (or Structural Adjustment Programs)
This phenomenon occurs when a region's industrial activity is reduced, often leading to the "Rust Belt" effect seen in the U.S. Midwest.
Deindustrialization
These small-scale, low-interest loans are often provided to women in LDCs to help start small businesses and alleviate poverty.
Microfinance (or Microcredit)
This measure accounts for the "hidden" inequality within a country by adjusting the Human Development Index based on disparities between citizens.
IHDI (Inequality-adjusted Human Development Index)
This theory argues that LDCs remain poor because of their integration into the global economy, which benefits MDCs at their expense.
Dependency Theory
This concept explains why two regions trade: one has a surplus of a commodity that the other region has a demand for.
Complementarity
These are the "Four Asian Tigers" that experienced rapid industrialization between the 1960s and 1990s.
South Korea, Taiwan, Hong Kong, and Singapore
These are the 17 global goals established by the UN in 2015 to be achieved by 2030, replacing the Millennium Development Goals.
Sustainable Development Goals (SDGs)
This coefficient is a statistical measure of income inequality, where a score of 0 represents perfect equality and 1 represents total inequality.
GINI Coefficient
In Weber's model, this "point" is reached when the savings from cheap labor exceed the added costs of transporting goods further.
The Substitution Principle
This strategy, common in Latin America mid-century, involves replacing foreign imports with domestic production to reduce dependency.
Import Substitution Industrialization (ISI)
This term describes a company's decision to move certain operations (like accounting or IT) to a third-party provider, often in another country.
Outsourcing (or Business Process Outsourcing)
This index specifically measures the reproductive health, empowerment, and labor market participation of women.
GII (Gender Inequality Index)