Unit 7 Vocab Quiz 1

Development

A process of improvement in the material conditions of people through diffusion of knowledge and technology

Fair Trade

Global movement aimed at ensuring that producers in developing countries receive fair wages and working conditions for their goods, particularly in agriculture

Free Trade

Economic policy that allows goods and services to be traded across borders with little to no government interference, such as tariffs or quotas.

Free Trade Blocs

regional associations of countries that reduce or eliminate tariffs, quotas, and other trade barriers among members to foster economic integration and increase regional competitiveness

GDI (Gender-related development Index)

A measure that assesses gender disparities in human development by comparing the HDI values of women and men. It aims to highlight inequalities between genders across three key dimensions: health, education, and standard of living.

GEM (Gender Empowerment Measure)

An index that measures the extent of women's participation in political and economic life, reflecting gender inequality.

HDI (Human Development Index)

A composite statistic used to measure and rank countries based on their levels of human development. It takes into account three key dimensions: life expectancy at birth, education level, and per capita income.

Non-governmental Organization (NGO)

Independent organizations that operate outside of government control, typically focused on addressing social, environmental, humanitarian, or developmental issues.

LDC (Less Developed Countries)

Nations that exhibit lower levels of industrialization, lower incomes, and higher poverty rates compared to more developed countries.

Literacy Rate

Percentage of people who can read and write in a specific language within a given population.

Millennium Development Goals

A set of eight international development targets established in 2000 by the United Nations, aimed at addressing global challenges like poverty, education, and gender equality by 2015.

MDC (More Developed Countries)

A nation that has achieved a high level of economic growth and advanced technological infrastructure, resulting in a high standard of living for its citizens.

Multiplier Effect

Refers to the phenomenon where an initial change in spending leads to a larger overall increase in economic activity. When government spending or investment increases, it stimulates demand for goods and services, which encourages businesses to produce more and hire additional workers. This process continues as the income generated circulates through the economy, leading to further increases in consumption and investment, ultimately amplifying the impact of the initial spending.

Structural Adjustment Programs

Refers to a set of economic policies imposed by international financial institutions, such as the International Monetary Fund (IMF), on developing countries in exchange for financial assistance.

Primary Economic Activity

Economic activities dealing with the harvesting of resources

Secondary Economic Activity

Economic activities dealing with the processing or manufacturing of resources into products that are capable of being used by the people

Tertiary Economic Activity

Economic activities where services are provided by people, involve the exchange of goods, and bring producers and consumers together.

Ancillary Activities

Economic activities that surround and support large-scale industries, such as shipping and food service.

Quaternary Economic Activity

Economic activities concerned with research, information gathering and administration

Quinary Economic Activity

The most advanced form of Quaternary activities consisting of high-level decision making for large corporations or high-level scientific research.

World Systems Theory

Theory developed by Immanuel Wallerstein that explains the emergence of a core, periphery, and semi-periphery in terms of economic and political connections first established at the beginning of exploration in the late 15th century and maintained through increased economic access up to the present.

Core-Periphery Model

A model of the spatial structure of development in which underdeveloped countries are defined by their dependence on a developed core region

Core

National or global regions where economic power in terms of wealth, innovation, and advanced technology is concentrated (i.e. USA, Western Europe, Japan)

Semi-periphery

Those newly industrialized countries with median standards of living; countries offer their citizens relatively diverse economic opportunities, but also have extreme gaps between rich and poor (i.e. Chile, Brazil, China, and Indonesia)

Periphery

Countries that usually have low levels of economic productivity, low per capita incomes, and generally low standards of living (i.e. Africa, South America, Asia).

Rostow’s Stages of Development

A model of economic development that describes a country’s progression, which occurs in five stages, transforming them from LDCs to MDCs.

Dependency Theory

Modern models that states that the relationship between powerful countries control the economic development of less powerful areas

Economic backwaters

Regions that fail to gain from national economic development

Export-processing zone (EPZ)

areas where governments create favorable investment and trading conditions to attract export-oriented industries

Foreign Investment

Overseas business investments made by private companies.

Gender Equity

A measure of opportunities given to women compared to men within a country.

Gross National Product

The total value of goods and services including income received from abroad, produced by the residents of a country within a specific time period, usually one year.

Industrialized Countries

Countries at the forefront of industrial production and innovation through the middle of the 20th century. Includes USA, Britain, France, Russia, Germany, and Japan.

International Monetary Fund

International organization of 183 countries, established in 1947 with the goal of promoting cooperation and exchange between nations, and to aid the growth of international trade.

MERCOSUR

South American trade bloc comprising of Argentina, Brazil, Paraguay, Uruguay, and Venezuela

Microloans

Provision of small loans and other financial services to individuals and small businesses in developing countries. The extension of very small loans (micro-loans) to impoverished borrowers who typically lack collateral, steady employment and a verifiable credit history; it is designed not only to support entrepreneurship and alleviate poverty, but also in many cases to empower women and uplift entire communities by extension

Neoliberal policies

Economic policies that are predicated on a minimalist role for the state, assuming the desirability of free markets as the ideal condition not only for economic organization but also for political and social life.

Net National Product

A measure of all goods and services produced by a country in a year, including production from foreign investments, MINUS loss or degradation of natural resources.

Productivity

The measure of goods and services produced within a given country.

Purchasing Power Parity

A monetary measurement of development that takes into account what money buys in different countries.

Regionalization

The process by which specific regions acquire characteristics that differentiate them from others within the same country. In economic geography, regionalization involves the development of dominant economic activities in particular regions.

Special Economic Zones (SEZ)

Specific area within a country in which tax and investment incentives are implemented to attract foreign (and domestic) businesses and investment

Tariffs

Tax or duty to be paid on imports and exports

Transnational Corporation

A firm that conducts business in at least two separate countries - Multinational corporations

World Cities

A group of cities that form an interconnected, internationally dominant system of global control of finance and commerce (i.e. New York, London, Tokyo, Hong Kong)

World Trade Organization (WTO)

Deals with global rules of trade between nations. Its main functions is to ensure that trade flows as smoothly, predictably, and freely as possible.

GDP (Gross Domestic Product)

The total monetary value of all goods and services produced within a country's borders in a specific time period, typically measured annually.