Ch 10 Development Flashcards
Development
The process of improving the material condition of people through the growth and diffusion of technology and knowledge
Commodity chain
A series of links connecting the many places of production and distribution resulting in a commodity that is then exchange on market
Gross National product GNP
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
Gross domestic product GDP
The value of total output of goods and services produced in a country over one year
Gross national income GNI
What is produced within a country plus income received from investments outside the country minus the income payments to other countries
Purchasing power parity PPP
A measurement tool for calculating the exchange rates required for each currency to buy an equal amount of goods
Formal economy
Legal economy that government tax and monitor
Informal economy
Includes all business transactions that were not reported to the government
Primary sector
The production of raw Materials and natural resource extraction
Secondary sector
Refining of natural resources
Tertiary sector
Provision of services retailing banking law education healthcare and technology
Productivity
Value of a particular product compared to the amount of labor needed to make it
Neocolonialism
The major world powers continue to control the economies of the poor countries even though the four countries are now politically independent states
Dollarization
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
neoliberalism
Derives from the Neo classical economic idea that the government intervention into markets is inefficient an undesirable it should be resisted wherever possible
Special economic zone
Regions that offer a special tax breaks eased environmental restriction and other incentives to attract foreign business and investments
Export processing zones
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
Desertification
Humans destroying vegetation and eroding soil’s through the overuse of lands for livestock grazing or crop production
Ecotourism
Comprises tourist operations that aim to do as a little harm to the environment as possible
Globalization
Used to describe the increasing sense of interconnectedness and spatial interaction
Quota system
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Multinational corporations
MNC are business with headquarters in one country and production facilities and one or more countries
Outsourcing
The practice of an MNC to relocate a piece or all of its manufacturing operations to factories in another country
Substitution principle
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
The new international division of labor
This breaks up the manufacturing process by having various pieces of product made in various countries and then assembling the pieces in another country
Non-governmental organization
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
Microcredit program
They give loans to poor people particularly women to encourage development of small businesses
