8. Reducing disparities

Question 1

Foreign direct investment

Answer 1

overseas investments in physical capital by transnational corporations.

Question 2

Non-governmental organisations

Answer 2

national or international private organisations, which are distinct from governmental or intergovernmental agencies.

Question 3

Resource nationalisation

Answer 3

when a country decides to take part, or all, of one or a number of natural resources under state ownership.

Question 4

Terms of trade

Answer 4

the price of a country’s exports relative to the price of its imports, and the changes that take place over time.

Question 5

Primary product dependent

Answer 5

countries that rely on one or a small range of primary products for most of their exports.

Question 6

Trade deficit

Answer 6

when the value of a country’s exports is less than the value of its imports.

Question 7

Fair trade

Answer 7

when producers of food, and some non-food products, in developing countries receive a fair deal when they are selling their products.

Question 8

International aid

Answer 8

the giving of resources (money, food, goods, technology etc.) by one country or organisation to another poorer country. The objective is to improve the economy and quality of life in the poorer country.

Question 9

Appropriate technology

Answer 9

aid supplied by a donor country whereby the level of technology and the skills required to service it are properly suited to the conditions in the receiving country.

Question 10

Microcredit

Answer 10

tiny loans and financial services to help the poor, mostly women, start businesses and escape poverty.

Question 11

Social business

Answer 11

forms of business that seek to profit from investments that generate social improvements and serve a broader human development purpose.