7.3-7.6 Flashcards
The dollar amount of all goods and services produces by a country’s citizens in one year. Only money generated by citizens of a country.
Ex. US citizens working in Korea
Gross national product(GNP)/ Gross national income(GNI)
The dollar amount of all final goods and services produced within a country in one year. Based on geography not citizens
Ex. money earned in the US by a Mexican citizen
Gross domestic product(GDP)
When migrant workers send much of their earnings back to family members in their home countries
Remittance
The amount per person
Per capita
A measure of what similar goods cost in different countries
Purchasing power parity(PPP)
The portion of the economy that is monitored by the government
Ex. GDP,GNP,GNI
Formal sector
The portion of the economy that is not monitored by the government.
Informal economy(underground/ shadow economy)
A value that ranges between 0 and 1. The higher the number, the higher the degree of economic inequality. 0 means no inequality-everyone income is the same.1 means total inequality-one person has all the income and everyone else has none
Gin coefficient(Gin index)
The number of years a person is expected to live
Life expectancy
The percentage of the population that can read and write
Literacy rate
Differences in the privileges afforded to males and females in a society
Gender gap
A composite measure of several factors indicating gender disparity
Ex. reproductive health,empowerment,labor market participation
Gender Inequality Index(GII)
A combination of one economic measure(GNI per capita) with three social measures(life expectancy, expected years of schooling, average years of schooling)
Human development index(HDI)
Programs enacted by governments and international non-profit agencies
Non-government organizations(NGO)
Programs that provide loans often to women to start or expand a business
Microcredit(microfinance)
In 1960, an american economist Walt Rostow made a theory that focuses on the shift from traditional to modern forms of society. He assumes that all countries want to modernize, and will at different speeds.
Stages of economic growth model
In 1910, Immanuel Walterstein proposed an alternate model to Rostows
World system theory/Core-periphery model
A model where countries do not exist in isolation but are a part of an intertwined world system in which all countries are dependent on each other
Dependency model
Raw materials such as coffee, cocoa, and oil
Commodities
When more that 60% of a countries exports are raw materials
Commodity dependence
When one party desires a good or service that it does not have or cannot produce and another party has the desired good or service which it is willing to part
Trade
A system of exchange in which no money changes hands
Barter
The ability to produce a good or service at a lower cost than others
Comparative advantage
When a country has the income,goods,or services that another country desires
Complementarity
Policies or laws that reduced barriers to trade
Free trade
A set of reforms that reduces government regulations and taxation
Neoliberalism
Groups of countries that agree to a common set of trade rules
Ex. USMCA,OPEC,Mercosure(Southern common markets)
Trading bloc
A trade group that included several several south american countries
Mercosure(Southern common market)
A global organization that includes 164 member countries, and accounts for 98% of global trades. It monitors international trade by negotiating trade deals, and supporting developing countries.
World trade organization(WTO)
Created in 1945 to aid countries caught in need of financial assistance
International monetary fund(IMF)
