Development & Globalisation: Key Terms

Question 1

Bilateral Aid

Answer 1

Assistance given by a government directly to the government of another country.

Question 2

Capitalist

Answer 2

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.

Question 3

Commodities

Answer 3

Raw materials or primary agricultural products that can be bought and sold, such as copper or coffee.

Question 4

Communism

Answer 4

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.

Question 5

Consumption

Answer 5

The using up of goods and services.

Question 6

Deindustrialisation

Answer 6

The reduction of industrial activity or capacity in a region or economy.

Question 7

Dependency Theory

Answer 7

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.

Question 8

Deregulation

Answer 8

The process of removing or reducing state regulations.

Question 9

FDI

Answer 9

Foreign Direct Investment - An investment made by a company or entity based in one country, into a company or entity based in another country.

Question 10

Free Trade

Answer 10

International trade left to its natural course without tariffs, quotas or other restrictions.

Question 11

Global Market

Answer 11

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.

Question 12

Globalisation

Answer 12

The integration of economies, industries, cultures and policy-making around the world.

Question 13

Global Shift

Answer 13

The movement of industrial economic activities from the core countries to the periphery.

Question 14

HDI

Answer 14

Human Development Index - a composite statistic of life expectancy, education and per capita income.

Question 15

IMF

Answer 15

International Monetary Fund.

Question 16

Outsourcing

Answer 16

A practice used by different countries to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.

Question 17

PPP

Answer 17

Purchasing Power Parity.

Question 18

Multilateral Aid

Answer 18

Aid provided by a group of countries, or an institution representing a group of countries such as the World Bank.

Question 19

Neocolonialism

Answer 19

The use of economic, political, cultural or other pressures to control or influence other countries, especially former dependencies.

Question 20

Spatial Division of Labour

Answer 20

Occurs when the process of production is no longer confined to national economies.

Question 21

Subsidy

Answer 21

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.

Question 22

Tariff

Answer 22

A tax or duty to be paid on a particular class of imports or exports.

Question 23

Trade Bloc

Answer 23

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.

Question 24

Trade Liberalisation

Answer 24

The removal or reduction of barriers or restrictions on the free exchange of goods between nations.

Question 25

TNC

Answer 25

Transnational Corporation - any corporation that is registered and operates in more than one country at a time.

Question 26

World Bank

Answer 26

An international bank established in 1944 to help member nations reconstruct and develop, especially by guaranteeing loans.

Question 27

WTO

Answer 27

World Trade Organisation - the global international organisation dealing with the rules of trade between nations.