Economic Development: Key Terms Flashcards
Back offices
Offices of a company handling high-volume communications by telephone, electronic transaction or letter. Are increasingly decentralised to locations where space and labour costs are more ideal.
Appropriate technology
Specifically designed for the area it will be used in.
Balance of trade
The difference between the cost of imports and the cost of exports
Biofuels
Any fuel derived from renewable biological sources such as plans for animal waste
Biomass
Biological material used to generate energy, for example plants grown for biofuel.
Carbon footprint
The affect human activities have on the climate in terms of the total amount of greenhouse gas production.
Cumulative causation
The process whereby a significant increase in economic growth can lead to even more growth as more money circulates in the economy
Deindustrialisation
The long-term absolute decline of employment in manufacturering.
Desertification
The degradation of land in arid and semi arid areas resulting primarily from human activities and influenced by climatic variations.
Development
The use of resources and the application of available technology to improve the standard of living within a country
Disposable income
The amount of income a person has left after paying for all necessities
Economic core region
The most highly developed region in a country with advanced systems of infrastructure and high levels of investment, resulting in high average income.
Economic migrants
People who move to another country to get a better job and improve their standard of living
Energy gap
The gap between demand for energy and the energy that can actually be supplied
Exports
Goods that are sold to other countries
Extensive farming
When one type of farming and large farms dominate a very large area. Inputs per hectare are low compared with intensive farming, such as market gardening
Food miles
The distance that food has been transported before it is sold.
FDI (foreign direct investment)
Overseas investments in physical capital by MNCs
Free trade
Trade between countries when the prices paid are determined by what is the producer wants to be paid and what the consumer is prepared to pay and there are no barriers
GDP (Gross domestic product)
Total value of goods and services produced by a country in a year
GDP at purchasing power parity (PPP$)
The GDP other country converted into US dollars on the basis of the purchasing power parity of the countries currency. It is assessed by calculating the number of units of a currency required to purchase the same representative basket of goods and services to US dollar would buy in the USA.
Global city
Major world city supplying financial, business and other significant services to all parts of the world. The world’s major stock markets and the headquarters of large MNCs are located in global cities.
Globalisation
The increasing interconnectedness and interdependence of the world economically, culturally and politically
Global shift
Where the global trends for wealth e.g. MEDCs/LEDCS, changes as it levels out.
Greenhouse effect
The property of the earth’ atmosphere by which long wavelengths heat rays from the earth’s surface are trapped or reflected back by the atmosphere.
Gross national income
Total value produced within a country together with its income received from other countries
High-technology cluster
Where high-tech companies group together in a region because their location factors are similar and such companies benefit from being in close proximity
Imports
Good that are bought from other countries
Informal sector
Jobs that are often without regular hours and payment
Infrastructure
The basic amenities that people need in a city, such as roads, sewerage, electricity and water supplies.
International aid
The giving of resources (money, food, goods, technology, etc.) by one country or organisation to another poorer country. The primary objective is to improve the economy and quality of life in a poor country.
LEDC
Countries with low economic output per person, often measured by gross national product (GNP)
Life expectancy
The average number of years a person may expect to live when born, assuming past trends continue.
Literacy rate
Percentage of people that have basic reading skills
Low-carbon economy
A country where significant measures have been taken to reduce carbon emissions in all sectors of the economy
MEDC
Countries where there are is a high level of economic activity and where there is generally a good standard of living for most people
MNC
Firms that produce goods in more than one country
Multiplier effect
The process whereby a significant increase in economic growth can lead to even more growth as more money circulates in the economy
Natural increase
An increase in population where there are more births than deaths in a year
NIDL (New International division of labour)
This divides production into different skills and tasks that are spread across regions and countries rather than within a single company
NIC (Newly industrialised countries)
Countries that have moved rapidly from having limited economic-development to having many new industries producing goods for both the home and export market
NGO (Non-governmental Organisation)
Private organisations that work on big issues affecting humanity. They may get money from governments and work with the governments, but they are private organisations, not government-controlled.
Niche market
Small markets that deal in a specialised product
Non-renewable energy
Energy from sources that are finite and will eventually run out, such as fossil fuels
North-south divide
The simple division between MEDCs (mainly in the north) and LEDCs (mainly in the South)
Optimum location
The location that best satisfies the objectives of the company. For most, this will be the maximum profit location.
Optimum population total (OPT)
The number of people that an area can support in a way that allows them to have a sustainable standard of living
Outsourcing
Where are company contracts out some of its work to another company. This usually happens because the company can save money. However it can also happen if the company lacks certain skills.
Periphery
Parts of the country outside the economic call region. The level of economic development in the periphery is significantly below that of the core.
Product chain
The full sequence of activities needed to turn raw materials into a finished product
Public Inquiry
A public meeting held to reach decisions about difficult planning proposals
Quality of life
This term sums up all the factors that affects a person’s general well-being and happiness
Re-industrialisation
The establishment of new industries in a country or region that has experienced considerable decline of traditional industries
Seasonal employment
Temporary employment for part of the year only
Subsidies and grants
Money that the government can give or loan to a business
Subsistence farming
The most basic form of agriculture where the produce is consumed entirely or mainly by the family who work the land or tend the livestock. If a small surplus is produced it is sold or traded
Sustainable development
Development that meets the needs of the present without harming the ability of future generations to meet their own needs
Tariff
A tax put on goods when they are moved from one country to another (import tax)
Trade deficit
When the cost of imports is greater than the money made from exports
Trade surplus
When the money made from exports is greater than the cost of imports
