Ch 10 Development

Question 1

Development

Answer 1

The process of improving the material condition of people through the growth and diffusion of technology and knowledge

Question 2

Commodity chain

Answer 2

A series of links connecting the many places of production and distribution resulting in a commodity that is then exchange on market

Question 3

Gross National product GNP

Answer 3

A measure of the total value of officially recorded the goods and services produced by citizens and corporations of country in a given year including the inside and outside of the country’s territory

Question 4

Gross domestic product GDP

Answer 4

The value of total output of goods and services produced in a country over one year

Question 5

Gross national income GNI

Answer 5

What is produced within a country plus income received from investments outside the country minus the income payments to other countries

Question 6

Purchasing power parity PPP

Answer 6

A measurement tool for calculating the exchange rates required for each currency to buy an equal amount of goods

Question 7

Formal economy

Answer 7

Legal economy that government tax and monitor

Question 8

Informal economy

Answer 8

Includes all business transactions that were not reported to the government

Question 9

Primary sector

Answer 9

The production of raw Materials and natural resource extraction

Question 10

Secondary sector

Answer 10

Refining of natural resources

Question 11

Tertiary sector

Answer 11

Provision of services retailing banking law education healthcare and technology

Question 12

Productivity

Answer 12

Value of a particular product compared to the amount of labor needed to make it

Question 13

Neocolonialism

Answer 13

The major world powers continue to control the economies of the poor countries even though the four countries are now politically independent states

Question 14

Dollarization

Answer 14

Tying their currency into a wealthy countries currency by tying the value of their own currency. Or by completely adopting the wealthy countries currency as their own

Question 15

neoliberalism

Answer 15

Derives from the Neo classical economic idea that the government intervention into markets is inefficient an undesirable it should be resisted wherever possible

Question 16

Special economic zone

Answer 16

Regions that offer a special tax breaks eased environmental restriction and other incentives to attract foreign business and investments

Question 17

Export processing zones

Answer 17

Regions the offer tax break and loosen labor restrictions in LDCs to attract export the driven production processes such as factories producing goods for foreign markets

Question 18

Desertification

Answer 18

Humans destroying vegetation and eroding soil’s through the overuse of lands for livestock grazing or crop production

Question 19

Ecotourism

Answer 19

Comprises tourist operations that aim to do as a little harm to the environment as possible

Question 20

Globalization

Answer 20

Used to describe the increasing sense of interconnectedness and spatial interaction

Question 21

Quota system

Answer 21

.

Question 22

Multinational corporations

Answer 22

MNC are business with headquarters in one country and production facilities and one or more countries

Question 23

Outsourcing

Answer 23

The practice of an MNC to relocate a piece or all of its manufacturing operations to factories in another country

Question 24

Substitution principle

Answer 24

Companies might choose to take on higher transportation cost of moving the induction location farther from their market because they will end up saving money in the long run by hiring less expensive labor

Question 25

The new international division of labor

Answer 25

This breaks up the manufacturing process by having various pieces of product made in various countries and then assembling the pieces in another country

Question 26

Non-governmental organization

Answer 26

NGOs are organizations run by charities and private organizations rather than a country agency that provides supplies resources and money to locate business and cause that advance economic and human development

Question 27

Microcredit program

Answer 27

They give loans to poor people particularly women to encourage development of small businesses