Chapter 10 & 11 Vocabulary Flashcards
Commodity Chain
a linked system of process that gathers resources, converts them into goods, packages them for distribution, disperses them and sells them on the market.
Gross National Product GNP
measure of all goods and services produced by a country in a year, including those generated from investments abroad. Accounts for citizens/residents of that country Toyota, a japanese motor company, would not be factored in the U.S GDP.
Gross Domestic Product GDP
The dollar amount of all goods and services produced within a country’s borders. Toyota would be factored as long as it is within the U.S. any businesses earrings money within us
Gross National Income GNI
The measure of how much people earn in a year. Measure of wealth for individual citizens in a country
Formal Economy
The legal economy that governments tax and monitor (included in GDP). the economic activity that is recognized and supported by the government.
Informal Economy
transfers of money, goods, or services that are not supported by the government. (not included in GDP or GNI calculation).
Modernization Model
a.k.a Rostow’s stages of economic growth; countries will go through 5 interrelated stages of economic development.
Neo-colonialism
when powerful countries indirectly control smaller countries or even their former colonies.
Wallenstein’s World Systems Theory
organizes countries of the world into core, semi-periphery or periphery.
Gender Inequality Index (GII)
an index to measure gender inequality in health, empowerment and economic status of a country.
Structural Adjustment Loans
loans granted by international financial institutions such as the world bank and the International Monetary form to periphery and semi-periphery countries in exchange for economic and governmental reforms in the country. Loans given to developing countries to develop it.
UN Millenium Development Goals
17 goals made by the UN to reducing income poverty, hunger, disease, lack of adequate shelter and exclusion — while promoting gender equality, health, education and environmental sustainability
Export Processing Zones (EPZ)
a smaller area within a country that doesn’t have taxes. They provide incentives so that foreign companies can come and conduct their business in rhe developing regions. Cheaper Labour and free trade. A city in Deceloping countries that encourage foreign investments.
Maquiladora
An example of a export processing zone near the border of the US. U.s comapnies buil companies there to take advantage of lower labour costs in Mexic
Special Economic Zones
area within or around a country that usually allows free trade and usually doesn’t have environmental restrictions or tariffs in order to encourage offshoring.
