Chapter 10 Flashcards
Development
The process of improving the conditions of people through diffusion of knowledge and technology.
Developed country
Also known as a more developed country, this has progressed further along the development continuum.
Developing country
Also frequently called a less developed country, this has made some progress toward development, though less than the developed countries.
Human Development Index (HDI)
Created by the UN, this measures the level of development for countries based on a decent standard of living, a long and healthy life, and access to knowledge.
Gross National Income (GNI)
The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country.
Purchasing Power Parity (PPP)
An adjustment made to the GNI to account for differences among countries in the cost of goods and price related to income.
Primary sector
Includes activities that directly extract materials from Earth through agriculture and sometimes by mining, fishing, and forestry.
Secondary sector
Includes manufacturers that process, transform, and assemble raw materials into useful products, as well as industries that fabricate manufactured goods into finished consumer goods.
Tertiary sector
Involves the provision of goods and services in exchange for payment, such as retailing, banking, law, education, and government.
Productivity
The value of a particular product compared to the amount of labor needed to make it.
Value added
In manufacturing, this is the gross value of a product minus the costs of raw materials and energy.
Pupil/teacher ratio
This is the number of enrolled students divided by the number of teachers.
Literacy rate
The percentage of a country’s people who can read and write.
Inequality-adjusted Human Development Index (IHDI)
This modifies the HDI to account for inequality within a country. Under perfect equality, the HDI and IHDI are the same.
Gender-related Development Index (GDI)
Measures the gender gap in the level of achievement for the three dimensions of the HDI: income, education, and life expectancy.
Gender Inequality Index (GII)
Measures the gender gap in the level of achievement in three dimensions: reproductive health, empowerment, and the labor market.
Female labor force participation rate
The percentage of women holding full-time jobs outside the home.
Maternal mortality rate
The number of women who die giving birth per 100,000 births.
Adolescent fertility rate
The number of births per 1,000 women ages 15 to 19.
Foreign Direct Investment (FDI)
Investment made by a foreign company in the economy of another country.
Structural adjustment program
Contains economic ‘reforms’ or ‘adjustments’ such as economic goals, strategies for achieving the objectives and external financing requirements.
Microfinance
Provision of small loans and other financial services to individuals and small businesses in developing countries that are unable to obtain loans from commercial banks.
Fair trade
International trade that provides greater equity to workers, small businesses, and consumers.
Cooperative store
A member-owned, member-governed business that operates for the benefit of its members according to common principles agreed upon by the international cooperative community.
