Development & Globalisation: Key Terms Flashcards
Bilateral Aid
Assistance given by a government directly to the government of another country.
Capitalist
An economic and political system in which a country’s trade and industry are controlled by private sector owners for profit, rather than by the state.
Commodities
Raw materials or primary agricultural products that can be bought and sold, such as copper or coffee.
Communism
A theory or system of social organisation in which all property is owned by the community and each person contributes and recieves according to their ability and needs.
Consumption
The using up of goods and services.
Deindustrialisation
The reduction of industrial activity or capacity in a region or economy.
Dependency Theory
The notion that resources flow from a ‘periphery’ of poor and underdeveloped states to a ‘core’ of wealthy states, enriching the latter at the expense of the former.
Deregulation
The process of removing or reducing state regulations.
FDI
Foreign Direct Investment - An investment made by a company or entity based in one country, into a company or entity based in another country.
Free Trade
International trade left to its natural course without tariffs, quotas or other restrictions.
Global Market
The activity of buying or selling goods and services in all the countries of the world, or the value of the goods and services sold.
Globalisation
The integration of economies, industries, cultures and policy-making around the world.
Global Shift
The movement of industrial economic activities from the core countries to the periphery.
HDI
Human Development Index - a composite statistic of life expectancy, education and per capita income.
IMF
International Monetary Fund.
Outsourcing
A practice used by different countries to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.
PPP
Purchasing Power Parity.
Multilateral Aid
Aid provided by a group of countries, or an institution representing a group of countries such as the World Bank.
Neocolonialism
The use of economic, political, cultural or other pressures to control or influence other countries, especially former dependencies.
Spatial Division of Labour
Occurs when the process of production is no longer confined to national economies.
Subsidy
A sum of money granted by the state or public body to help an industry or business keep the price of a commodity or service low.
Tariff
A tax or duty to be paid on a particular class of imports or exports.
Trade Bloc
A type of intergovernmental agreement, often part of a regional intergovernmental organisation, where regional barriers to trade (such as tariffs or quotas) are reduced or eliminated among the participating states.
Trade Liberalisation
The removal or reduction of barriers or restrictions on the free exchange of goods between nations.
TNC
Transnational Corporation - any corporation that is registered and operates in more than one country at a time.
World Bank
An international bank established in 1944 to help member nations reconstruct and develop, especially by guaranteeing loans.
WTO
World Trade Organisation - the global international organisation dealing with the rules of trade between nations.
