Changing Economies: Key Terms
Changing economies: key terms
Changing economies: key terms
Classification of different industries
Informal sector – Jobs that are not officially recognised or taxed by the government, often without contracts or legal protection.
Knowledge economy - another name for the quaternary sector.
Primary sector – Industries that extract natural resources, such as farming, fishing, or mining.
Quaternary sector – Industries based on knowledge and research, such as IT and scientific development.
Secondary sector – Industries involved in manufacturing and construction, turning raw materials into finished goods.
Tertiary sector – Industries that provide services, like education, healthcare, or retail.
Changing employment structures
De-industrialisation – The decline of manufacturing industries, often replaced by service-based jobs.
Employment structure – The proportion of people working in each sector of the economy (primary, secondary, etc.).
Global industrial shift - The movement of manufacturing from high cost locations such as the USA to lower cost locations such as China and India.
Industrialisation – The growth of manufacturing industries in a country or region.
Mechanisation - The use of machines to complete tasks rather than humans.
Post-industrial society – A society where most people work in services and knowledge-based jobs rather than factories.
Pre-industrial society - The time before a country industrialises.
Urbanisation – The growth of cities as people move from rural areas for work, especially during industrial growth.
Factors affecting industry location
Agglomeration – When businesses group together to share services, labour, and ideas.
Break-of-bulk point – A place where goods are transferred from one form of transport to another (e.g. ship to truck).
Capital – Money needed to start or expand a business, which can influence where it locates.
Inputs - Things that a business needs to operate such as machines or labour.
Labour supply – The availability of workers with the right skills near an industrial site.
Land availability – The amount and cost of land for development.
Market – The people or businesses who will buy the goods or services; industries often locate near markets.
Political policies - Decisions made by the government to try and encourage businesses to invest in areas such as tax exemptions.
Pull factor - Things which make an industry or business want to move to an area.
Push factor - Things which make an industry or business want to move from an area.
Raw materials – Natural resources used to make products; industries may locate near these to reduce transport costs.
Transport links – Roads, railways, ports, and airports that help move raw materials and products efficiently.
Globalisation
Cultural erosion – The gradual loss of traditional customs and identities as a result of global influences.
E-waste - Electronic waste such as computers and phones.
Global village – The idea that the world is becoming more interconnected, like a single community.
Globalisation – The process of increasing interconnectedness between countries through trade, travel, and technology.
Haulage - Transportation of goods by road or rail.
Interdependence – When countries rely on each other for goods, services, labour, or knowledge.
Shrinking world – The perception that the world is becoming smaller due to faster communication and transport.
Supply chain - The worldwide network that TNCs use when producing goods or services.
Trading bloc – A group of countries that trade freely with each other but impose tariffs on others.
Transnational corporation (TNC) – A large company that operates in multiple countries.
The Role and Impact of Transnational Corporations (TNCs)
Corporate social responsibility (CSR) – When businesses act in ways that benefit society and the environment.
Development gap – The difference in wealth and development levels between the richest and poorest regions.
Environmental degradation – Damage to the natural world, often caused by pollution or resource extraction.
Exploitation – Taking unfair advantage of workers or natural resources.
Fair trade – A movement that ensures producers in developing countries are paid fairly.
Foreign investment – Money put into a country by individuals or businesses from other countries.
Global branding – When a product is marketed in the same way across the world.
Multinational corporations (MNCs)- Companies which operate in other countries with a centralised management system.
Multiplier effect – When one economic activity leads to further jobs and growth in other sectors.
Outsourcing – Moving parts of a business, like call centres or factories, to other countries to reduce costs.
Research and development (R&D) - Discovering and creating new products, processes or services.
Supply chain – The entire process of producing and distributing a product, from raw materials to sale.
Transnational corporations (TNCs) - Companies which operate in other countries without a centralised management system.
Case Study: Dubai, UAE
Artificial island – Man-made land built in the sea, often for tourism or housing.
Diversification – Expanding an economy beyond one main industry.
Economic free zone – An area where businesses enjoy reduced taxes and relaxed laws to encourage investment.
Growth of Tourism as an Industry
Butler model – A model that shows how tourist destinations develop in stages, from discovery to decline or rejuvenation.
Carrying capacity (tourism) - The number of tourists that an area can cope with, without it harming the environment, local communities or the tourist experience.
Disposable income – Money left over after paying for essentials, which can be used for holidays.
Eco-tourism – Sustainable tourism that protects the environment and benefits local communities.
Grey tourism – Travel by older people, often retirees, who have time and money.
Mass tourism – Large numbers of people visiting the same destination.
Middle class – People with average income who can afford holidays.
Package holiday – A holiday that includes travel, accommodation, and sometimes meals, often sold as one deal.
Tourist hotspot – A popular place that attracts large numbers of visitors.
Benefits and Problems of Tourism
Acculturation - Changes which occur as a result of two or more cultural groups interacting. This can lead to the loss of cultural traditions in the tourist destination.
Carbon footprint – The amount of greenhouse gases caused by an individual or activity, including travel.
Cultural exchange – Sharing and learning between people from different backgrounds through travel.
Economic leakage – When money spent by tourists leaves the local area or country.
Environmental damage – Harm to nature from overuse, pollution, or poor planning.
Inflation – A rise in prices that can make life harder for locals in tourist areas.
Job creation – New employment opportunities brought about by increased tourism.
Sustainable Tourism
Community tourism – Travel that is managed by and benefits local people.
Eco-lodge – Environmentally friendly accommodation, often small-scale and locally run.
Eco-label – A certificate showing a business meets certain environmental standards.
Homestay – When tourists stay with local families, offering cultural exchange and income.
National park – A protected area managed for wildlife, conservation, and recreation.
Tourist tax – A charge paid by visitors, often used to fund local services or conservation.