Chapter 10 Flashcards
Middle income countries
Historically less-developed countries that have experienced significant economic growth and democratization.
Lower income countries
Countries that lack significant economic development or political institutionalization or both; also known as less-developed countries (LDCs).
Developing counties
Lower and middle income countries
Empire
A single political authority that has under its sovereignty a large number of external regions or territories and different peoples.
Imperialism
A system in which a state extends its power to directly control territory, resources, and people beyond its borders.
Colonialism
An imperialist system in which a foreign territory is physically occupied, using military force, businesses, or settlers.
Neocolonialism
An indirect form of imperialism in which powerful countries overly influence the economies of less-developed countries.
Import substitution
A mercantilist strategy for economic growth in which a country restricts imports in order to spur demand for locally produced goods.
Middle income trap
A situation where counties experience economic growth but are unable to develop at the speed necessary to catch up with developed countries.
Export-oriented industrialization
A mercantilist strategy for economic growth in which a country seeks out technologies and develops industries focused specifically on the export market.
Neoliberalism
A policy of economic liberalization adopted in exchange for financial support from liberal international organizations; typically includes privatizing state-run firms, ending subsidies, reducing tariff barriers, shrinking the size of the state, and welcoming foreign investment.
Structual-adjustment program
A policy of economic liberalization adopted in exchange for financial support from liberal international organizations; typically includes privatizing state-run firms, ending subsidies, reducing tariff barriers, shrinking the size of the state, and welcoming foreign investment.
Washington Consensus
A policy of economic liberalization adopted in exchange for financial support from liberal international organizations; typically includes privatizing state-run firms, ending subsidies, reducing tariff barriers, shrinking the size of the state, and welcoming foreign investment.
Informal economy
A segment of the economy that is not regulated, protected, or taxed by the state.
Microfinance
A system in which small loans are channeled to the poor through borrowing groups whose members jointly take responsibility for repayment.
