Ch 9- Development Flashcards
LDC
Less developed country
A country that is at a relatively early stage in the process of economic development
HDI
(human development index)
Indicator of level of development for each country, constructed by the UN combining income, literacy rate, education, and life expectancy
Literacy Rate
The percentage of people in a country who can read and write
MDC
More developed country
A country that has progressed relatively far along a continuum of development
Primary sector
The portion if the economy concerned with the direct extraction of minerals from the earths surface,generally through agriculture,mining,fishing, and foresting.
Prductivity
The value of a particular product compared to the amount of labor needed to make it
Secondary sector
The portion of the economy concerned with manufacturing useful products through processing, transforming and assembling raw materials
Tertiary sector
The portion of the economy concerned with transportation, communications, and utilities sometimes extended to the provision of all goods and services to people in exchange for money
Value added
The gross value of the product minus the cost if raw materials and energy
Agglomeration economics
Economy in which the like things are put together to benefit all businesses
Basic (non-basic) economics
Industries that sell their products primarily to consumers outside the settlement (inside the community)
Brandt line
A line which divides the developed north with the less developed south
Comparative advantage
The ability to produce a good at a lower opportunity cost that other producer
Dependency theory
As developing countries make economic advancement, they’re dependent on the core countries intertwined with the global economy; most will never achieve first world status. The MDCs exploit local workers to maximize profits and developing countries are serving as a cheap labor pool
Economic indicators
A piece of economic data, usually of macroeconomic scale, that’s used by investors to interpret current or future investment possibilities and judge overall health of economy
Gross national product
Total monetary value of all final goods and services produced in a country over the course of a year
Import substitution
A government policy which uses trade restrictions and subsides to encourage domestic production of manufactured goods
Market-orientation
Tendency of an economic activity to locate close to it’s market; a reflection of large and variable distribution cost
Neo-colonialism
Control by a powerful country of it’s former colonies (pr other LDCs) by economic pressure
Quaternary sector
The portion of the economy which includes jobs that focus on business services like trade, insurance, banking, advertising, and wholesaling
Raw material orientation
Location of a manufacturing plant in relation to sources of raw material
Regional multiplier
Stimulation of economic growth by growth itself. As secondary industries develop, they create a demand for raw material and goods. This machinery is made from steel and this stimulates steel manufacturing while development of Stella industry requires more machinery. More jobs arise in service industries.
Rostow’s modernization model
Five stages of development in which LDCs usually move up the “ladder”
Sustainable development
Level of development that can be maintained in a country with depleting resources to the extent that future generations will be unable to achieve a comparable level of development
Subsistence economy
A type of economy in which human groups live off the land with little or no surplus
Trickle- down effect
An economy theory which states that investing money in companies and giving them tax breaks is the best way to stimulate the economy
