Geography Ch. 7

Agglomeration Diseconomies
The negative economic effects of urbanization and the local concentration of industry. EX. Cost’s of delays in traffic, increasing unit cost of solid waste disposal.
Agglomeration effects
associated w/ various kinds of economic linkages and interdependencies- the cost advantages that accrue to individual firms b/c of their location among functionally related activities.
Ancillary industries
maintenance and repair, recycling, security, and business services
Autarky
When a country has insignificant contributions to the flows of imports and exports that constitute the geography of trade.
backwash effects
the negative impacts on a region of the economic growth of some other region. These negative impacts take the form, for ex, of out-migration, outflows of investment capital, and the shrinkage of local tax bases.
carrying capacity
The maximum number of individuals of any species that can be supported by a particular ecosystem on a long-term basis with out harming the productivity of that place or another place.
conglomerate corporations
companies that have diversified into various economic activities usually through a process of mergers and acquisitions
creative destruction
1. the perpetual cycle of destroying the old and less efficient product or service and replacing it with the new, more efficient ones, 2. the withdrawal of investments from activities (and regions) that yield low rates of profit in order to reinvest in new activities (and places)
cumulative causation
a spiral buildup of advantages that occurs in specific geographic settings as a result of the development of external economies, agglomeration effects, and localization economies.
debt trap
syndrome of always having to borrow in order to fund development
deindustrialization
a relative decline (absolute decline in the most severe cases) in industrial employment in core regions as firms scale back their activities in response to lower levels of profitability.
dependency
1. high level of reliance by a country on foreign enterprises, investment, or technology, 2. This unequal relationship between the industrialized and developing worlds results from their economic interactions, ,
ecological footprint
the measure of the human pressures on the natural environment from the consumption of renewable resources and the production of pollution
Elasticity of demand
The degree to which levels of demand for a product or service change in response to changes in price
Export Processing Zones
small areas within which especially favorable investment and trading conditions are created by governments in order to attract export-oriented industries
External economies
Cost savings that result from circumstances beyond a firm’s own organization and methods of production. ie. existing labor markets, existing consumer markets
flexible production systems
involves flexibility both within firms, and between them. Within firms, new technologies now allow a great deal of flexibility. ie. a machine that can build multiple things by simply being reprogramed. Between firms the flexibility inherent in neo-fordism has been achieved through the externalization of certain functions.
Fordism
named after henry ford, the automobile manufacturer who pioneered the principles involved: mass production, based on assembly line techniques and “scientific measurements, together with mass consumption based on higher wages and sophisticated advertising techniques.
Foreign direct investment
Total overseas business investments made by private companies.
Geographical path dependence
The historical relationship between the present activities associated with place and the past experiences of that place
Gross domestic Product
the sum total of the value of all the goods and services produced in a nation
Gross national income
Calculates the monetary worth of what is produced within a country plus income received from investments outside the country, as a more accurate way of measuring a country’s wealth in the context of a global economy.
Growth poles
places of economic activity deliberately organized around one or more high-growth industries
import substitution
a process by which domestic producers provide goods or services that formerly were bought from foreign producers
inflation
increased supply of printed currency that leads to higher prices and international financial differentials
infrastructure (fixed social capital)
underlying framework of services and amenities needed to facilitate productive activity
initial advantage
critical importance of an early start in economic development; a special case of external economies
international division of labor
specialization, by countries, in particular products for export
just-in-time production
manufacturing process in which daily or hourly delivery schedules of materials allow for minimal or zero inventories
localization of economies
cost savings that accrue to particular industries as a result of clustering together at a specific location
logistics
movement and storage of goods and the management of the entire supply chain, from purchase of raw materials through sale of the final product and back again, for the replenishment of goods as they are sold
neo-fordism
economic principles in which the logic of mass production coupled with mass consumption is modified by the addition of more flexible production, distribution, and marketing systems
newly industrializing countries
countries formerly peripheral within the world system that have acquired a significant industrial sector, usually through foreign direct investment.
offshore financial centers
island or microstates that have become a specialized node in the geography of worldwide financial flows
OECD
Organization for Economic Cooperation and Development.The mission of the Organisation for Economic Co-operation and Development (OECD) is to promote policies that will improve the economic and social well-being of people around the world.
primary activities
economic activities that are concerned directly with natural resources of any kind
quaternary activities
economic activities that deal with the handling and processing of knowledge and information
secondary activities
economic activities that process, transform, fabricate, or assemble the raw materials derived from primary activities, or that reassemble, refinish, or package manufactured goods
spread effects
positive impacts on a region (or regions) of the economic growth of some other region
strategic alliances
commercial agreements between transnational corporations, usually involving shared technologies, marketing networks, market research, or product development
sustainable development
vision of development that seeks a balance among economic growth, environmental impacts, and social equity
terms of trade
ratio of prices at which exports and imports are exchanged
tertiary activities
economic activities involving the sale and exchange of goods and services
trading blocs
groups of countries with formalized systems of trading agreements
transnational corporations
companies with investments and activities that span international boundaries and with subsidiary companies, factories, offices, or facilities in several countries
vertical disintegration
evoulution from large, functionally integrated firms within a given industry toward networks of specialized firms, subcontractors, ans suppliers
world cities
a city in which a disproportionate port of the worlds most important business is conducted.