Unit 7 Political Science Vocabulary Flashcards & Definitions

Least Cost Theory

Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration.

Gender Empowerment Measure (GEM)

Compares the ability of women and men to participate in economic and political decision making.

gender gap

Differences in the privileges afforded to males and females in a society.

Gender Inequality Index (GII)

An indicator constructed by the U.N. to measure the extent of each country's gender inequality in terms of reproductive health, empowerment, and the labor market.

Globalization

the process by which businesses or other organizations develop international influence or start operating on an international scale.

Informal economy

Economic activity that is neither taxed nor monitored by a government; and is not included in that government's Gross National Product; as opposed to a formal economy

Remittances

Money migrants send back to family and friends in their home countries, often in cash, forming an important part of the economy in many poorer countries

Micro loan/credit

small loans provided to individuals or small businesses, can be a useful tool for promoting economic development and improving standards of living, particularly for women.

Commodity dependence

An economy that relies on the export of primary commodities for a large share of its export earnings and hence economic growth.

Dependency Theory

a model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones

European Union

An international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members.

Free Trade Zone

A geographic area where goods may be imported, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty.

neoliberalism (policy)

economic policies that promote free market principles, such as deregulation, liberalization, and privatization.

OPEC (Organization of Petroleum Exporting Countries)

Focuses on the production of oil, or petroleum. Its mission is to coordinate and unify its members' petroleum policies in order to stabilize oil markets.

World Bank

A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion, and debt consolidation. Its formal name is the International Bank for Reconstruction and Development.

Mercosur

Pact among Argentina, Brazil, Paraguay, and Uruguay to establish a free trade area

Maquiladora

Factories built by US companies in Mexico near the US border to take advantage of much lower labor costs in Mexico.

Export Processing Zone

areas where governments create favorable investment and trading conditions to attract export-oriented industries

Globalization

refers to the processes by which goods, services, capital, people, information, and ideas flow across national borders

Growth pole

a specific area or sector that drives economic development in a region.

World Trade Organization (WTO)

International organization derived from the General Agreement on Tariffs and Trade (GATT) that promotes it free trade around the world.