Glossary
Agglomeration
The clustering of economic activities or businesses in a particular area for mutual benefit, such as shared infrastructure or labor pools.
Example:
The concentration of financial institutions in New York City's Wall Street is a classic example of agglomeration, benefiting from proximity to markets and specialized talent.
Command Economy
An economic system where the government makes all major decisions regarding production, distribution, and resource allocation.
Example:
Historically, the Soviet Union functioned as a command economy, with central planners determining everything from agricultural output to factory production quotas.
Deindustrialization
The decline of a region's industrial base, often due to a shift towards a service-based economy or relocation of manufacturing.
Example:
Many cities in the 'Rust Belt' of the United States experienced significant deindustrialization as steel mills and auto factories closed down.
Economy
A system of how people make, sell, and buy goods and services, focusing on the allocation of resources.
Example:
A country's economy encompasses everything from local farmers selling produce at a market to large corporations trading on the global stock exchange.
Global Trade
The exchange of goods and services across international borders, leading to increased interdependence and economic development.
Example:
The widespread availability of electronics from Asia in European markets is a direct result of extensive global trade networks.
Growth Pole
A specific area or industry that acts as a magnet for economic development, stimulating growth in surrounding regions.
Example:
The establishment of a major university or a new high-tech research park can serve as a growth pole, attracting related businesses and skilled workers to the area.
Industrialization
The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.
Example:
The rise of textile factories in 18th-century Britain marked the beginning of widespread industrialization, fundamentally changing society and work.
Just-In-Time Delivery (JIT)
An inventory management strategy where materials and components are delivered precisely when they are needed for production, minimizing storage costs and waste.
Example:
A car assembly plant using Just-In-Time Delivery receives specific parts for each vehicle model only hours before they are installed on the production line.
Maquiladoras
Factories, often foreign-owned, located in developing countries (especially along borders) that import raw materials and export finished goods, typically for assembly.
Example:
Many electronics components are assembled in maquiladoras along the U.S.-Mexico border before being shipped to consumers in North America.
Market Economy
An economic system where decisions about production and prices are driven by supply and demand, with minimal government intervention.
Example:
The United States operates largely as a market economy, where consumer choices and business competition dictate what goods are produced and at what cost.
Mixed Economy
An economic system that combines elements of both market and command economies, allowing for both private enterprise and government regulation.
Example:
Most modern nations, like Canada, have a mixed economy, where private businesses thrive but the government also provides public services and regulates industries.
Neocolonialism
The continuing economic and political influence exerted by powerful countries over former colonies or less developed nations, even after formal independence.
Example:
A powerful nation providing substantial loans to a developing country, which then must adopt specific economic policies dictated by the lender, can be seen as a form of neocolonialism.
Post-Fordist Production
A flexible production system characterized by customized goods, smaller batch sizes, and a focus on consumer demand rather than mass standardization.
Example:
A clothing company that uses 3D printing to create unique, personalized designs for individual customers exemplifies Post-Fordist Production.
Railroads
A mode of transportation that significantly increased the movement of goods, people, and ideas, fueling economic growth and connectivity.
Example:
The construction of transcontinental railroads in the 19th century dramatically reduced travel times and opened up new markets across vast distances.
Raw Materials
Basic materials from which a product is made, essential inputs for industrial production.
Example:
Oil, timber, and iron ore are crucial raw materials that fuel various manufacturing industries worldwide.
Sun Belt
A region in the United States, primarily across the southern and southwestern states, known for its warm climate and rapid population and economic growth since the 1970s.
Example:
The booming technology and aerospace industries in cities like Austin, Texas, contribute to the economic expansion of the Sun Belt.
Sustainable Development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Example:
Investing in renewable energy sources like solar and wind power is a key strategy for achieving sustainable development.
Traditional Economy
An economic system based on customs, traditions, and historical practices, often involving subsistence farming and bartering.
Example:
In some remote Amazonian tribes, economic decisions are guided by ancestral practices and communal sharing, characteristic of a traditional economy.
Transnational Corporations (TNCs)
Large businesses that operate and have assets in multiple countries, playing a significant role in the global economy.
Example:
Coca-Cola is a prime example of a Transnational Corporation, with bottling plants and distribution networks spanning nearly every country in the world.
Uneven Development
The increasing gap in economic conditions between core and peripheral regions as a result of the globalization of the economy.
Example:
The stark contrast in wealth and infrastructure between wealthy urban centers and impoverished rural areas within a country often highlights uneven development.
Women in the Workforce
The increasing participation of women in paid employment outside the home, often driven by economic shifts like industrialization.
Example:
During World War II, many women entered factories to support the war effort, significantly increasing the presence of women in the workforce.