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Absolute Advantage
-When a country can produce something better/faster than others
-Example: making more coffee beans than another country with same resources
Access to Health Care
-Access = important sign of well-being
-Measured by reproductive, maternal, newborn, and child health
-Includes fertility, infant mortality, disease rates, doctors per capita
-Availability + affordability matter
Carbon-Neutrality
-Zero CO₂ emissions
-Achieved by cutting emissions + removing carbon
-Countries like France, New Zealand, Norway aim for 2050
Carbon Offsets
-Paying to remove/store carbon elsewhere
-Example: protecting forests that absorb CO₂ (reforestation)
-helping for carbon neutrality
Climate change
-Industrialization raised CO₂ → global temps rising
-Causes rising sea levels + coastal flooding
-More extreme weather: hurricanes, droughts, heat waves
Colonialism
-Country relies on commodities for >60% of exports
-Common in developing countries
-Commodity prices are unstable → causes underdevelopment
-Long term = growth failure
Complementarity
-When two regions trade because each has what the other lacks
Comparative advantage
-Countries specialize in what they produce best and trade
Core
wealthy, advanced industries (US, Japan, Germany) (Tertiary, Quaternary, Quinary sectors)
Semi-periphery
mix of industry + dependence (China, Brazil, Mexico) (Mix of Primary, Secondary, and Tertiary)
Periphery
poorer, raw material exporters (Africa, South Asia) (mostly primary)
Debt Bondage
-Labor exchanged for loan, often impossible to repay
-Families trapped for generations
-Common in South Asia
Dependency theory
-Poverty in periphery caused by exploitative core
-Trade profits flow to core, leaving periphery poor
-Solution = delink from core-> hard to do so though
Descent-based slavery
-Slavery passed down through generations
Economic restructuring
-Shift from manufacturing → service economy
Economic sectors; primary
Taking resources from nature
ex. Farming, fishing, mining, forestry
Economic sectors; secondary
Making things from raw materials
ex. Factories, construction, car manufacturing
Economic sectors; Tertiary
Services
ex. Teachers, doctors, retail, transportation
Economic sectors; Quaternary
Information + knowledge
ex. Scientists, IT, researchers, data analysts
Economic sectors; Quinary
High-level decision making
ex. CEOs, government leaders, top executives
Ecotourism
-Tourism in natural areas for conservation + jobs
Embargo/trade embargo
-Ban on trade with a country
Empowerment measures
-GEM (Gender Empowerment Measure) → women in parliament, decision-making, income
Export processing zones (EPZs)
-Special zones to encourage foreign investment
-Focused specifically on producing goods for export.
-Factories/manufacturing-heavy.
Forced labor
-Work done involuntarily under threat/coercion
-Found in agriculture, mining, textiles, construction
Forced and early marriage
-Marriage without consent, often girls
-Common in South Asia, Africa, parts of Latin America
Free trade agreements and zones
-Loosened trade regulations to encourage exchange
-ex. SEZ (broader category), EPZ (more specific)
SEZ (Special Economic Zone)
-Any area with special rules to attract investment (looser taxes, regulations).
-Can include different types of zones inside it.
Industrialization
-Raised living standards worldwide
-Also caused resource depletion + pollution
-Uses fossil fuels
Informal economy
-not taxed or recorded (ex. sewing clothes at home)-> women work with flexible time but not that stable income
-Informal hides true GDP, no taxes for schools/hospitals (they dont pay taxes even tho get incomes = no public investment)
formal economy
official, taxed economy
Infrastructure
-basic things a country builds to make life and the economy work (public systems)
-Social: education, gov services, healthcare
-Physical: roads, electricity, sanitation
-Example: toilets = both social + physical
Income distribution
-Shows inequality inside a country
-Per capita GDP hides disparities
Infant mortality rate
-Babies dying before age 1
-Indicator of health + healthcare access
International lending agencies
-IMF, World Bank → lend to countries
-Can create debt dependency
International Monetary Fund (IMF)
-Gives loans to stabilize economies
-Often requires structural reforms
Gender Empowerment Measure (GEM)
-Measures women in parliament, decision-making, income
-closer to 1 the better
Gender parity
-Measuring progress toward gender equality
-Uses data like education, incomes, workforce participation
Globalization
-Countries connected by trade, finance, culture
-Crises + tariffs show interdependence
Government initiative
Policies like SEZs, tariffs, loans to shape economy
Human trafficking
-process of moving, recruiting or coercing ppl
-often done by secondary company hired by the primary to not take responsibility of hiring child labor and being caught
-often leads to modern slavery
Labor-market participation
-% of men vs women in workforce
-Gender gap shows inequality
Literacy rate
-% of people who can read/write
Maternal Mortality Rate (MMR)
-% of mothers dying per 100k births
-US worse than peers → big racial gaps (black women worse)
Mass consumption
-Stage 5 in Rostow → people buy many goods
-Seen in developed countries
Mercantilism
-Historic system where colonies supplied resources to core
-said each country should export more than it imports to build wealth.
-Protectionism, which restricts imports to protect local industries, was also part of it
Microlending/microloans
-Small loans to the poor (esp. women)
-Ex. Muhammad Yunus, Grameen Bank, Bangladesh
-Help women start small businesses
-Limits: some fall deeper in debt (bc they are supposed to pay off debt by getting loans and starting business but if the business doesnt work well they js got more debt to pay off-> or some may use the loan for short term survival not for business, making them fall into more debts)
-can get interdependent to the places that give loans
Modern slavery
-modern form of slavery where people are forced into labor without getting paid
-developing ocuntries like south asia, sub saharan africa, middle east, north korea and conflict zones high in modern slavery
bonded labor
-Work to repay a loan, often impossible to finish
domestic servitude
-Household labor with no freedom to leave
sexual exploitation
-forced commercial sex acts
forced marriage
-marriage without consent, no freedom to leave
forced labor
-work under threat or coercion, no pay
Per Capita
-Value ÷ population (ex. GDP per capita)
-Fairer comparison between countries bc having more ppl will give advantage in average income
point source pollution
single source (factory pipe, smokestack) leading to pollution
Nonpoint source pollution
diffused causes of pollution (farm runoff, city streets)
Protectionism
-Limiting trade with tariffs/quotas to protect domestic economy
Public life
-Women’s access increases with development
-Measured by parliament seats, civic roles
Purchasing Power Parity (PPP)
-Compares basket of goods across countries
-Ex. Shoes $60 in Switzerland, $20 in Australia → Australians more purchasing power
-Simplifies complex economies
Renewable energy
-Wind, water, solar
-sustainable
-using it creates jobs, reduces fuel imports, sustainable
Reproductive health
-Measured by fertility, maternal mortality, adolescent births
Resource Depletion
-Using resources faster than they can renew
-Includes fossil fuels, aquifers, forests, overfishing
Rostow’s Stages of Economic Growth
-5 stages: traditional → preconditions → take-off → maturity → mass consumption (all by countries)
-Criticism: ignores global interconnectedness
-national level
-international trade: may help countries grow economically
-funded internally
-forward over time
Sustainable development report
-Annual report tracking UN SDG progress
-Denmark highest (85), Central African Republic lowest (39)
Sustainable Development Goals (SDGs)
-17 goals (2015–2030)
-No Poverty – End poverty everywhere.
-Zero Hunger – End hunger, improve food.
-Good Health – Healthy lives for all.
-Quality Education – Education for everyone.
-Gender Equality – Equal rights for women & men.
-Clean Water & Sanitation – Safe water and toilets
-Affordable Clean Energy – Renewable, cheap energy.
-Decent Work & Growth – Jobs and strong economy.
-Industry, Innovation & Infrastructure – Build modern roads, tech, industry.
-Reduced Inequalities – Fairness for all people.
-Sustainable Cities – Safe, green, affordable cities.
-Responsible Consumption – Use resources wisely.
-Climate Action – Fight climate change.
-Life Below Water – Protect oceans.
-Life on Land – Protect forests, animals, land.
-Peace, Justice & Institutions – Fair laws, no corruption.
-Partnerships for Goals – Countries working together.
-Aim: end poverty, protect environment, equity
-Holistic → beyond just economics
Tariff
-Tax on imports
-lowering it encourages trade
Transnational Corporation (TNC)
-A company that operates in more than one country.
-Example: Nestlé, Walmart
-TNCs try to keep a competitive advantage through constant innovation and upgrading (to be better than competitors)
Wage disparity
-Women earn 20–32% less than men globally
-Western Europe = smallest gap
-Middle East/N. Africa = largest gap
Wallerstein’s World System Theory
-Core, semi-periphery, periphery system
-Core exploits others, periphery supplies raw materials
-Shows global interconnectedness + inequality
-international level
-can move backward or can stay
World Bank
-International lending agency
-Gives loans for development projects
Pearl River Delta.
-highly urbanized manufacturing hub in south china
-creation of SEZs encouraged other foreign investments expanding job spots
-resulted in massive urbanization and largest internal migration and transformed china into global economic giant
Fair Trade
-Farmers/workers get fair prices for goods (coffee, cocoa, bananas).
-Companies agree to pay above market prices to reduce exploitation (making the primary sector countries depend on core)
-Promotes: better wages, safer conditions, no child labor, environmental care and help developing countries
“Men’s Work” vs. “Women’s Work” case study
-Gender roles change with time + place.
-men get better job chances and incomes
-Ex: U.S. clerical jobs → once “men’s,” now “women’s.”
-Factories: WWII U.S. women did “men’s work,” then returned home after.
-In developing countries: garment/electronics factories = mostly women (¾ of workers).
Clean Air Act of 1972 case study
-Federal law to reduce air pollution.
-Set standards for emissions from factories + vehicles.
-Banned lead in gasoline + paint.
-Required industries to use scrubbers/filters
-Result = cleaner air, less smog, better public health.
Healthcare in the US
-Strengths → advanced technology, best hospitals, and skilled doctors.
-Weaknesses → expensive, unequal access, high maternal mortality vs other rich countries.
-Insurance-based system → not everyone covered.
-Inequality → Black women ~2× more likely to die in childbirth than white women.
-Compared to other developed countries, U.S. healthcare is high quality but less fair.
HDI (Human Development Index)
-Average human development (health with life expectancy, education with mean and expected yrs of schooling, income with GNI per captia).
-closer to 1 the better
-baseline measure
IHDI (Inequality-Adjusted HDI)
-Deducts HDI for inequality in health, education, income
-closer to 1 the better
PHDI (Planetary Pressures–Adjusted HDI)
-Deducts HDI for environmental pressures (too much CO₂ emission, too much resource use).
-closer to 1 the better (sustainable development)
GDI (Gender Development Index)
-Ratio of female HDI to male HDI.
-stand alone measure
-closer to 1 the better
GII (Gender Inequality Index)
-Measures Gender gaps in health, empowerment, labor market.
-stand alone measure
-closer to 0 the better
-Measures inequality via reproductive health, empowerment, labor force
-Doesn’t show local gov’t roles, unpaid labor, job quality
GSNI (Gender Social Norms Index)
-Social biases/stereotypes about gender roles. (measure with surveys)
-stand alone measure
-closer to 0 the better
GNP (Gross National Product)
-Value of goods & services produced by a country’s residents/businesses worldwide
-Measure with money
-who-> the ethnicity of the person is where its achievement is counted towards
-Excludes production by foreigners inside country
GDP (Gross Domestic Product)
-Value of goods & services produced inside a country
-Measure with money
-the where-> the place where the goods produced is the where its achievement is counted towards
-doesn’t show overseas income
GNI (Gross National Income)
-Total income of residents & businesses, incl. foreign investment & aid
-Measure with money
-Focuses on income, not total production
-Measures income flow, more accurate for developing countries with aid/FDI
FDI
-Foreign Direct Investment
-attract due to things like SEZs
Per Capita GDP
-GDP ÷ population
-Accounts for population differences (Brazil vs. NZ) and make it more fair
-Still hides inequality
Income Distribution
-Spread of GDP across population
-Shows inequality inside country
-Per capita GDP alone hides disparities
Health Care Access
-Availability & affordability of health services
-Uses fertility, infant mortality, disease rates, doctors per capita
-Hard to measure well-being fully (cultural differences)
Fossil Fuels
-Industrialization relied on coal, oil, gas
-Boosted early economies (resources often colonial)
-Environmental costs, dependency issues
Renewable Energy
-Wind, water, solar industries
-Creates jobs, reduces fuel imports, sustainable = improvements in economics
-Requires investment; slower growth at start
GDP (gross domestic product)
-the total monetary value of all final goods and services produced within a country's borders over a specific period
-measured by money
-show country’s wealth
self sufficiency (approaches to development)
spreading investment evenly across all regions by using tariffs, limits on imported goods making hard to diversify
international trade (approaches to development)
Specialize in what you produce efficiently and export it by relying heavily on global markets
absolute advantage
producing more at lower cost (U.S. produces more wheat than Mexico); what a country can do the best
comparative advantage
producing at lower opportunity cost. Even if one country is better at everything, trade benefits both if they focus on comparative advantage
FDI
foreign direct investment; company in one country invests in another (encourage by SEZ)
microfiannce (approaches to development)
Financial services for poor or small businesses without banks - Includes loans, savings, insurance, payments