Untitled Flashcards Set

Gross National Product (GNP)

The total value of all the goods and services made by a country’s residents and businesses in a specific time period, regardless of the location.

Gross National Income (GNI)

The total income of a country’s residents and businesses, including investment income, regardless of where earned, plus money received from abroad.

Gross Domestic Product (GDP)

The total value of all goods and services produced within a country over a specified period.

GDP per capita

Countries' total GDP divided by the population.

Gender Inequality Index (GII)

A measure of gender inequality combining data on reproductive health, empowerment, and labor-market participation.

Human Development Index (HDI)

A measure of human achievement, including life expectancy, education levels, and GNI per capita.

Commodity Dependence

Occurs when commodities account for over 60% of a country’s total exports, linked to underdevelopment.

Least Cost Theory

Theory stating that industries should locate near raw materials if they are bulk-reducing, or near markets if they are bulk-gaining.

World-Systems Theory

A theory dividing the global economy into core, periphery, and semi-periphery sectors.

Modernization Theory

A theory that explains the stages through which societies transition from traditional to modern economies.

Primary Sector

Economic sector focused on raw materials and physical labor, such as mining and agriculture.

Secondary Sector

Economic sector focused on manufacturing and industrial activities.

Tertiary Sector

Economic sector focused on services, including retail and banking.

Quaternary Sector

Economic sector focused on knowledge-based activities like IT, education, and R&D.

Quinary Sector

Economic sector involving the highest levels of decision-making in society or economy.

Informal Sector

Economic activities not officially recognized or regulated, often providing no job security.

Formal Sector

Economic activities that are officially recognized, regulated, and taxed by the government.

Break-of-Bulk Point

A location where goods shift from one mode of transportation to another, critical for trade.

Neoliberalism

An economic philosophy advocating for free markets and minimal government intervention in the economy.

Comparative Advantage

Economic principle explaining how countries gain by specializing in goods they produce most efficiently.

Deindustrialization

The decline of industrial activity in a region, often shifting towards services.

Outsourcing

When companies hire external firms or workers to perform functions typically done in-house.

Special Economic Zones (SEZs)

Areas within a country with different laws to attract foreign investment.

Free Trade Zones (FTZs)

Designated areas where goods can be imported and exported without customs duties.

Multiplier Effect

The increase in economic activity that results from an initial investment.

Agglomeration

The clustering of similar or related industries or businesses in a particular area.

Growth Pole

A region or industry that attracts economic development, generating growth for surrounding areas.