Chapter 9 Vocab Flashcards
Fair trade
Alternative to international trade that emphasizes small businesses and worker owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organizing, and comply with minimum environmental and safety standards.
Development
A process of improvement in the material conditions of people through diffusion of knowledge and technology.
Foreign direct investment (FDI)
Investment made by a foreign company in the economy of another country.
Gender empowerment measure (GEM)
Compares the ability of women and men to participate in economic and political decision making.
Gender related development index (GDI)
Compares the level of development of women with that of both genders.
Gross domestic product (GDP)
The value of the total output of goods and services produced in a country in a given time period.
Human development index (HDI)
Indicator of level of development for each country, constructed by the United Nations, combining income, literacy, education, and life expectancy.
Less developed country (LDC)
A country that is at a relatively early stage in the process of economic development.
Literacy rate
The percentage of a country’s people who can read and write.
Millennium development goals
Right international development goals that all members of the United Nations have agreed to achieve by 2015.
More developed country (MDC)
A country that has progressed relatively far along a continuum of development.
Primary sector
The portion of the economy concerned with the direct extraction of materials from earths surface, generally through agriculture.
Productivity
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.
Structural adjustment program
Economic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such as raising taxes, reducing government spending, controlling inflation, selling publicly owned utilities to private corporations, and charging citizens more for services.
