10.3 Evolution of Manufacturing Beyond the Core
Manufacturing value-added (MVA) –
A measure of industrial output calculated by
taking the cost of the finished product and subtracting from it the cost of purchased
inputs necessary to produce it, such as fuel, electricity, and the cost of other parts or
Newly-industrializing economy (NIE) –
Economies in which rapid growth, improved
living standards, and reductions in poverty have been achieved in East Asia first by
Hong Kong, Singapore, South Korea, and Taiwan, and more recently Indonesia,
Malaysia, the Philippines, and Thailand.
Export-processing zone (EPZ) –
An industrial area that operates according to different
policies than the rest of the country in which it is located in order to attract and support
A manufacturing plant, often foreign-owned, that receives duty-free
imported materials, assembles or processes them, and then exports them. EPZ that
consists of a single factory.
Special economic zone (SEZ) –
Export-processing zones established in China as part
of a national policy to create a more open, market-oriented economy.
The organization of the world's states for this chapter section follows that of world-
systems theory, which was introduced in the previous chapter on the geography of
development. The previous section examined the core states, which produce about 70
percent of total global manufacturing output. In this section, the rest of the world's
states, where about 30 percent of global manufacturing output is produced, are
classified as semi-peripheral or peripheral states.
Identify what the manufacturing value-added (MVA) measures and explain how to
Taking the cost of the finished product and subtracting from it the
purchase inputs necessary to produce it such as fuel, electricity, and the cost of