Economics Unit 6 Key Terms

balance of payments

the difference in total value between payments into a country and out of a country over a period of time.

brain drain

the emigration of highly trained or highly educated people from a particular country.

consumer goods

the end result of production and what a consumer will see in retail stores.

corruption

the abuse of public office for private gain.

development

efforts to improve the well-being of a community by promoting economic growth.

disparity

inequality or great difference.

discretionary income

the amount of income that a household or individual has to invest, save, or spend after taxes and necessities are paid.

foreign aid

financial assistance provided by one nation to another.

foreign direct investment (FDI)

an investment made by a company or entity based in one country, into a company or entity based in another country.

foreign portfolio investment (FPI)

securities and other financial assets held by foreign investors.

highly developed nation

a sovereign state that has a highly developed economy and advanced technological infrastructure.

industrialization

the process in which a society transforms itself from primarily agricultural pursuits into an economy based on the manufacturing of goods and services.

infant mortality rate

the ratio of the number of deaths in the first year of life to the number of live births occurring in the same population during the same period.

internal investment

investment generated from within a country.

International Monetary Fund (IMF)

an international organization created for the purpose of standardizing global financial relations and exchange rates.

less developed country (LDC)

a country lacking infrastructure and industrial base that has a population with a low standard of living due to low incomes and abundant poverty.

life expectancy

the age until which a person is expected to live in a given country.

literacy rate

the percentage of people in a given country who have the ability to read and write.

multinational corporation

a corporation that has facilities and other assets in at least one country other than its home country.

newly industrialized country (NIC)

a country whose level of economic development ranks it somewhere between less developed and highly developed classifications.

rapid population growth

population growth that threatens to exceed a country's abilities to provide for its citizens.

subsistence agriculture

farming in which the farmers focus on growing enough food to feed themselves and their families.

World Bank

an international financial institution that provides loans to developing countries for economic development.

United Nations Development Program

an international organization that provides expert advice, training, and grant support to developing countries.