36 terms

Economic Development Ch.9

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Agglomeration
grouping together of many firms from the same industry in a single area for collective or cooperative use of infrastructure and sharing of labor resources
Agglomeration Economies
Savings which arise from the concentration of industries in urban areas and their location close to linked activities
Asian Tigers
Collective name for South Korea, Taiwan, Hong Kong, and Singapore-nations that became economic powers in the 1970s and 1980s.
Basic/Non-Basic Industries
Industries that sell their products or services primarily to consumers outside the settlement
and
Industries that sell their product or services primarily to consumers inside the settlement
Brandt Line
a line that divides the North and the South. It shows the divide between the more developed regions and the less developed regions.
Comparative Advantage
A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor.
Dependance Theory
a body of social science theories, which are predicated on the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former.
Development
A process of improvement in the material conditions of people through diffusion of knowledge and technology.
Developing Country
A nation where the average income is much lower than in industrial nations, where the economy relies on a few export crops, and where farming is conducted by primitive methods. In many developing nations, rapid population growth threatens the supply of food. Developing nations have also been called underdeveloped nations. Most of them are in Africa, Asia, and Latin America.
Economic Indicators
A piece of economic data, usually of macroeconomic scale, that is used by investors to interpret current or future investment possibilities and judge the overall health of an economy.
Economic Development
Process whereby simple, low-income national economies are transformed into modern industrial economies
Fair Trade
Alternative to international trade that emphasizes small businesses and worker owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organizing, and comply with minimum environmental and safety standards.
FDI
Investment made by a foreign company in the economy of another country
GDI
Compares the level of development of woman with that of both sexes.
GDP/GNP
GDP:total value of all goods and services produced within a country during a given year.GNP:total value of all goods ad services produced by a country's economy in a given year. It includes all good and services produced by corporations and individuals of a country, whether or not they are located within the country
Globalization
the process in which countries are increasingly linked to each other through culture and trade
HDI
A tool developed by the United Nations to measure and rank countries' levels of social and economic development based on four criteria: Life expectancy at birth, mean years of schooling, expected years of schooling and gross national income per capita. The HDI makes it possible to track changes in development levels over time and to compare development levels in different countries.
Informal sector
..., the portion of an economy largely outside government control in which employees work without contracts or benefits
LDC
(DEVELOPING COUNTRY) A country that is at a relatively early stage in the process of economic development
Literacy Rate
The percentage of a country's people who can read and write
Market-orientation
the idea that companies can create a product and sell its features to an eager buying public is no longer concrete
MDC
(RELATIVELY DEVELOPED COUNTRY or DEVELOPING COUNTRY) A country that has progressed relatively far along a continuum of development
Millennium Development Goals
Eight international development goals that all members of the United Nations have agreed to achieve by 2015.
Neo-colonialism
the economic and political policies by which a great power indirectly maintains or extends its influence over other areas or people
Primary Sector
The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing and forestry
Productivity
The value of a particular product compared to the amount of labor needed to make it
Quaternary Sector
a way to describe a knowledge-based part of the economy which typically includes services such as information generation and sharing, information technology, consultation, education, research and development, financial planning, and other knowledge-based services.
Rostow's "Modernization Model"
A model that postulates that economic growth occurs in five basic stages, of varying length:
1. Traditional society
2. Preconditions for take-off
3. Take-off
4. Drive to maturity
5. Age of High mass consumption
Secondary Sector
The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials
Subsistence economy
an economy which is not based on money, in which buying and selling are absent or rudimentary though barter may occur, and which commonly provides a minimal standard of living
Structural adjustment program
Economic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such as raising taxes, reducing government spending, controlling inflation, selling publicly owned utilities to private corporations, and charging citizens more for services.
Sustainable development
The level of development that can be maintained in a country without depleting resources to the extent that future generations will be unable to achieve a comparable level of development
Tertiary Sector
The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment
Transnational Corporation
built factories in many countries
Trickle-down effects
An economic theory which states that investing money in companies and giving them tax breaks is the best way to stimulate the economy.
Value Added
The gross value of the product minus the costs of raw materials and energy
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