Chapter 4 - Economic development of nations

Question 1

Economic development

Answer 1

Increase in the economic wellbeing, quality of life and general welfare of a nations people.

Question 2

Developed country

Answer 2

Country that is highly industrialized and highly efficient and whose people enjoy a high quality of life.

Question 3

Newly industrialised country

Answer 3

Country that has recently increased the portion of its national production and exports derived from industrial operations.

Question 4

Emerging markets

Answer 4

Newly industrialised countries plus those with the potential newly industrialised.

Question 5

Developing country

Answer 5

Nation that has a poor infrastructure and extremely low personal incomes. Also called less developed countries.

Question 6

Technological dualism

Answer 6

Use of the latest technologies in some sectors of the economy coupled with the use of outdated technologies in other sectors.

Question 7

Economic transition

Answer 7

Process by which a nation changes its fundamental economic organization and creates new free-market institutions.

Question 8

Political risk

Answer 8

Likelihood that a society will undergo political change that negatively affects local business activity.

Question 9

Confiscation

Answer 9

Forced transfer of assets from a company to the government without compensation.

Question 10

Expropriation

Answer 10

Forced transfer of assets from a company to the government with compensation.

Question 11

Nationalisation

Answer 11

Government takeover of the entire industry.

Question 12

Local content requirements

Answer 12

Laws stipulating that a specified amount of a good or service be supplied by producers in the domestic market.

Question 13

Lobbying

Answer 13

Policy of hiring people to represent a company’s views on political matters.

Question 14

Foreign corrupt practices act

Answer 14

Law that forbids US companies from bribing government officials or political candidates in other nations.