Chapter 19 and 20 Vocab Quiz

Human Development

The processes involved in the improvement of people‘s freedoms, rights, capabilities, choices, and material conditions.

Gross Domestic Product (GDP)

The total value of the goods and services produced by a county’s citizens and companies within the country in a year

Gross National Product (GNP)

The total value of the goods and services produced by a country’s citizens and companies both domestically and internationally in a year

Gross National Income (GNI)

Per capita (per person), the total value of goods and services globally produced by a country in a year divided by the country’s population

Formal Sector

Includes businesses, enterprises, and other economic activities that have government supervision, monitoring, and protection, and are taxed

Informal Sector

Any part of a country’s economy that is outside of government monitoring or regulation and isn’t taxed

Human Development Index (HDI)

Used to determine overall levels of development of countries. It incorporates three key dimensions of human development: life expectancy at birth, access to education measured in expected and mean years of schooling, and standard of living measured by GNI per capita

Gender Development Index (GDI)

Calculates gender disparity in the three basic dimensions of human development: health, knowledge, and standard of living

Gender Inequality Index (GII)

Calculates inequality based on three categories: reproductive health, empowerment, and labor-market participation. Ranges from 0.0(equal)-1.0(unequal)

Women’s empowerment

Women’s options and access to participate fully in the social and economic spheres of a society

Labor-Market Participation (LMP)

Rate that measures an economy’s active labor force, calculated by taking the sum of all employed workers divided by the working age population

Microloans

Very small short-term loans with low interest intended to help people in need

Stages of Economic Growth

A theory developed by Walt Rostov in which fives stages of economic organization are recognized: traditional society, preconditions for takeoff, takeoff, drive to maturity, and high mass consumption

Dependency Theory

Describes the development challenges and limitations faced by poorer countries and the political and economic relationships poorer countries have with richer countries

Commodity Dependence

When more than 60% of a country’s exports and economic health are tied to one or two resources such as timber, oil, or plantation crops

Comparative Advantage

The relative cost advantages of producing certain goods and services for trade

Complementary

Mutually beneficial trade relationships when two countries have different comparative advantages

Neoliberalism

The belief that open markets and free trade across the globe will lead to economic development everywhere, lesson tensions between countries by fostering support for common values, and spread democracy/ human rights

Deindustrialization

The change that occurs with the decline in the percent of workers employed in the secondary sector and a reduction of a region’s industrial capacity or activity

Growth Poles

Economic activities that are deliberately organized around one or more high-growth industries

Just-in-time delivery

Materials are delivered when they are needed for short-term production, so that companies can avoid paying to store extra inventory at their facilities

Fordism

The manufacturing economy and system derived from assembly-line mass production and the mass consumption of standardized goods. Named after Henry Ford

Post-Fordism

The system of production that relies on the automation through the use of robots and computer systems and is centered on low-volume manufacturing and flexible systems that allow for quick responses to changes in the market

Offshore outsourcing

A company moving production to places outside of the country in which they are headquartered

International division of labor

The specialization, by countries, in particular products for export to more developed countries

Multiplier effects

Opportunities that can potentially develop from an economic change

Special Economic Zones (SEZs)

Specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment

Export processing zones (EPZs)

Zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment

Free Trade Zone (FTZ)

Large geographic areas with similar goals to SEZs and EPZs

Ectourism

A country or region that is threatened by industrial or other types of development attempting to gain revenue through tourism with minimal environmental impact