Flashcards in Crash course- Industrialization and Economic Development Deck (18)
What are spatially-variable costs?
Costs that change depending on the factory's location
What is market-orientation?
When weight-gaining processes were built near the marketplace because the product was heavier to transport in its final form
What are spatially fixed costs?
Costs that remain the same no matter where they choose to locate
What is industrial capital?
Something included is labor considerations and consists of machinery and the money to purchase the tools and workers the factory needs
What is the substitution principle?
It applies when an industry will move to a place to access lower labor costs, even though transportation costs might increase as well
What are agglomeration economies?
They occur when the positive effects of agglomeration result in lower prices for customers
What are localization economies?
A category of agglomeration economies that occur when many firms in he same industry benefit from clustering close together (ex: these firms all get access to the same talented labor force)
What are urbanization economies?
Another category of agglomeration economies that occur when large populations in urban areas be benefit from clustering together because they get to share the infrastructural elements (ex: power lines and transport systems)
What is a high-tech corridor?
A place where technology and computer industries agglomerate
What is a technopole?
A region of high-tech agglomeration, formed by similar high-tech industries seeking to locate in a shared area so they can be idiot from shared resources
What is purchasing power parity (PPP)?
PPP is a measurement tool for calculating the exchange rates required for each currency to buy an equal amount of goods
What is the informal sector?
All business transactions that aren't reported to the government (street vendors, day laborers, drug traffickers, prostitution, etc)
What is comparative advantage?
When it's better at producing a particular good or offering some service than another country (ex: Japan trades high tech stuff for food)
What are non-governmental organizations?
NGOs are organizations run by charities and private organizations, rather than a government agency, that provide supplied, resources, and money to local businesses and causes that advance economic and human development
What are conglomerate corporations?
One massive cooperation owns and operates a collection of smaller companies that provide it with specific services in its production process
What are export-processing zones?
Regions that offer tax breaks and loosened labor restrictions in LDCs to attract export-driven production processes, such as factories producing goods for foreign markets
What are free trade zones?
When duties and tarrifs are waived by the govt