Unit 5: Political/Economic Changes and Development Vocab

Special Economic Zones (SEZs)

areas in China (particularly along China's east coast) designated by the government as regions where private businesses could attract foreign direct investment

Multinaitonal Corporations (MNCs)

businesses with a large presence in countries in different regions of the world

Privatization

converting government-owned industries to businesses run with free-market forces that are owned and operated by private investors

Nationalization

government-owned industries run without free-market forces

Economic Globalization

includes economic networks that are growing more interconnected, a worldwide market with actors unconstrained by political borders, and a reduction in state control over economies

Direct Foreign Investment

money invested in private businesses by individuals or a corporation outside of the country that can pose a challenge to a government's foundational economic and political ideas and principles

Rentier States

countries that obtain a sizable percentage of total government revenue from the export of oil and gas or from leasing the resource to foreign countries and have been able to raise standards of living and fund governmental programs based on their huge reserves

Maquiladora Zones

areas of Mexico's manufacturing industry mostly located in northern Mexico; factories established to assemble parts imported from the United States for assembly in Mexico made more possible due to NAFTA

Economic Diversification

when a country is able to obtain economic balance between agriculture, manufacturing and service without over dependence on one commodity or economic sector

Resource Curse

countries that rely too heavily on the export of commodities face negative economic, political and environmental consequences

International Organizations

organizations joined by member states with a common interest such as the International Monetary Fund (IMF,) the World Bank and the United Nations

Tariffs

taxes imposed by a government against imported goods

Environmental Degradation

environmental problems created by industrialization and other forms of economic development

Supranational Organizations

Organizations in which member states grant the governing organization sovereignty over policies typically related to trade such as the Economic Community of West African States (ECOWAS), the European Union (EU), and the World Trade Organization (WTO)

Demographic Changes

the growth (or decrease) and movement of a population in a country

Subsidies

government funding made to support domestic industries against foreign competition or to shape economic behaviors

Gender Equity

civil rights ideal for women to be protected with equal treatment and to secure equal power as men in governing a country

Austerity Measures

governmental budget cuts and / or tax increases intended to decrease budget deficits and national debt; often required for IMF emergency loans

Trade Liberalization

affects the growth of domestic and foreign business, the amount of direct foreign investment, foreign exchange rates, population movement, and often the quality of the environment

Industrialization

movement from agricultural economic production to industrial manufacturing