Human Geography: Trade and World Economy

Business Parks

• Designated areas of land developed for business offices and light industrial use.

• Areas primarily used for residential housing.

• Locations for agricultural activities and farming.

• Zones designated for recreational purposes.

Outsourcing

• The practice of having certain job functions done outside a company instead of having an in-house department or employee handle them.

• The process of hiring new employees to fill vacant positions within a company.

• The strategy of reducing costs by eliminating unnecessary job functions.

• The method of training employees to improve their skills and efficiency.

Complementarity

• The ability of two places to trade goods and services.

• The degree to which one place can supply something that another place demands.

• The relationship between supply and demand in a market.

• The process of cultural exchange between different regions.

Multiplier Effects

• The reduction of economic activity due to a recession.

• The expansion of economic activity caused by the growth or introduction of another economic activity.

• The stabilization of prices in a fluctuating market.

• The increase in unemployment rates during economic growth.

Brownfields

• Properties that may have hazardous substances, pollutants, or contaminants present.

• Properties that are always safe for development.

• Properties that are exclusively residential.

• Properties that have been abandoned for over a decade.

Offshoring

• The relocation of a business process from one country to another.

• The process of outsourcing work to a third party within the same country.

• The practice of moving a company's headquarters to a tax haven.

• The transfer of technology from one country to another.

Trading Blocs

• A group of countries that work together to promote trade with one another.

• A type of currency used in international trade.

• An organization that regulates global trade policies.

• A collection of tariffs imposed on imports.

Comparative Advantage

• The ability of a country to produce a good at a lower cost than another country can.

• The ability of a country to produce a good at a higher quality than another country can.

• The ability of a country to produce a good at the same cost as another country can.

• The ability of a country to produce a good at a faster rate than another country can.

Economies of Scale

• The cost advantage that arises with increased output of a product.

• The increase in production costs as output increases.

• The reduction in the average cost per unit as production decreases.

• The fixed costs that remain constant regardless of output.

Transnational Corporations

• Small local businesses that operate in a single country.

• Large companies that operate in several countries.

• Non-profit organizations focused on local communities.

• Government agencies managing international trade.