Chapter 7: Economic Development Concepts

These flashcards cover key vocabulary and concepts related to measures of development and economic theories, which are essential for the upcoming vocabulary quiz and exams.

Five Measures of Development

Indicators used to assess the economic and social progress of a country.

Primary Sector

The economic sector that involves the extraction and harvesting of natural resources.

Secondary Sector

The economic sector that involves manufacturing and processing of raw materials.

Tertiary Sector

The economic sector that provides services to consumers and businesses.

Quaternary Sector

The economic sector that involves knowledge-based services like research and development.

Quinary Sector

The economic sector that focuses on high-level decision making and services.

Weber's Least Cost Theory

A location theory that seeks to minimize costs associated with transportation and labor.

Bulk-gaining Industry

An industry where the final product weighs more or has a greater volume than the raw materials.

Bulk-reducing Industry

An industry where the final product weighs less or has a smaller volume than the raw materials.

Break of Bulk Point

A location where transfer is possible from one mode of transportation to another.

Gender Inequality Index (GII)

A measure of gender disparities in countries.

Gross National Income (GNI)

The total income received by a country's residents, including wages, salaries, and investments.

Gross Domestic Product (GDP)

The total market value of all final goods and services produced within a country in a specific period.

Human Development Index (HDI)

A composite index that measures average achievement in three basic aspects of human development: health, education, and standard of living.

Dependency Theory

A theory suggesting that resources flow from a periphery of poor states to a core of wealthy states.

Commodity Dependence

An economic condition where a country relies heavily on a few commodities for its income.

Comparative Advantage

The ability of a country to produce a particular good at a lower opportunity cost than another country.

Complementarity

The potential for different countries or regions to benefit from trade due to their differing resources.

Free Trade Zones (FTZs)

Designated areas where goods may be landed, handled, manufactured, or reconfigured without the intervention of customs authorities.

Special Economic Zones (SEZs)

Regions in which business and trade laws are different from the rest of the country to encourage economic activity.

Export Processing Zones (EPZs)

Areas in a country that are designed to attract foreign investment and exports.

Maquiladoras

Factories located in Mexico, near the US border, that produce goods for export.

Rostow's 5 Stages of Growth

A model outlining the five stages a country goes through in its economic development.

Wallerstein's World Systems Theory

A theory that views the world as a complex economic system stratified by the global capitalist economy.