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.
