Globalisation and Economic Development

These flashcards cover key concepts from the lecture on globalisation and economic development, focusing on definitions, differences, and indicators regarding economic growth and development.

What is economic growth?

Economic growth refers to the increase in real GDP over time.

What is the difference between economic growth and economic development?

Economic growth is a quantitative increase in output, while economic development is a qualitative process of structural change for growth to occur.

What is HDI?

The Human Development Index (HDI) is used to measure economic development based on life expectancy, educational attainment, and per capita GDP.

What are the two main sources of economic growth?

1. Increased use of factors of production through better technology and management. 2. Increased productivity of existing resources.

What is capital widening?

Capital widening occurs when the capital stock keeps pace with growth in the labor force.

What is capital deepening?

Capital deepening occurs when the capital stock grows faster than the labor force.

What does the Gini Coefficient measure?

The Gini Coefficient measures income inequality within a population.

What is the significant impact of globalization on income distribution?

Globalization has increased income inequality, with wealth concentrated in developed countries.

What are developing economies often characterized by?

Developing economies (LDCs) have low living standards, underdeveloped industrial bases, and low HDI.

What is a common feature of LDCs due to colonial legacy?

Economic dualism, where an urban elite exists alongside a less formal rural economy.

What issues do the low per capita incomes in LDCs create?

They reduce standards of living, savings ability, and increase the extent of poverty.

What has been a recent trend in the convergence of international economies?

The adoption of market economic systems with limited government intervention.

What are the main components of the Human Development Index (HDI)?

Life expectancy at birth, educational attainment, and GNI per capita.

How has economic development impacted environmental sustainability?

Economic development has led to negative environmental externalities due to rapid industrialization.

What is cost-pull inflation?

Cost-pull inflation occurs when production costs increase, leading to higher prices.

What strategies are TNCs developing to minimize environmental impact?

Strategies include researching alternative fuel sources and adopting environmentally sustainable practices.

What role does the UN play in global environmental policy agreements?

The UN coordinates efforts like the Montreal and Kyoto protocols to manage international climate agreements.

What is a characteristic of advanced economies?

Advanced economies are characterized by a highly developed economic system and advanced technological infrastructure.

What historical trend has exacerbated global inequality?

The increase in income disparities between the richest and poorest countries has grown from 30 to 74 times.