Studied by 1 person
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
