Economic Transition Key Terms

Question 1

Globalisation

Answer 1

the growing economic interdependence between the leading nations in trade, investment and cooperative commercial relationships, and in which there are relatively few artificial restrictions on the cross-border movement of people, assets, goods or services. It includes integration of social relations, knowledge, culture and politics. It has been aided by the ICT revolution that has reduced the friction of distance and time.

Question 2

Research and Development

Answer 2

R&D requires highly skilled and well paid technicians who are engaged in the process of creating new products. They will normally be found in core countries, and within these countries in very specific locations such as university science parks

Question 3

Primary sector

Answer 3

produces raw materials from the land and the

sea.

Question 4

Secondary sector

Answer 4

manufactures primary materials into finished

products.

Question 5

Consumer goods

Answer 5

goods produced for sale to the public.

Question 6

Capital goods

Answer 6

goods produced for sale to other industries.

Question 7

Tertiary sector

Answer 7

provides services to businesses and to people.

Question 8

Quaternary sector

Answer 8

uses high technology to provide information

and expertise.

Question 9

Primary-product dependent

Answer 9

is when a country relies on one
or a small number of primary products for most of its export
earnings.

Question 10

Newly industrialised countries

Answer 10

are countries that have

undergone rapid industrialisation since the 1960s.

Question 11

Post-industrialised societies

Answer 11

refer to developed countries
where far fewer people are now employed in manufacturing industries than in the past. Most people work in the tertiary sector, with an increasing number in the quaternary sector.

Question 12

GDP at Purchasing Power Parity (PPP$)

Answer 12

is the gross domestic
product (GDP) of a country converted into US dollars on the basis
of how the value of the currency compares with that of other
countries.

Question 13

Gross National Income (GNI)

Answer 13

comprises the total value of
goods and services produced within a country (i.e. its gross domestic product), together with its income received from other countries (notably interest and dividends), less similar payments
made to other countries.

Question 14

Human Development Index

Answer 14

is a measure of development that combines three important aspects of human wellbeing: life expectancy, education and income.

Question 15

Periphery

Answer 15

is the parts of a country outside the economic core
region. The level of economic development in the periphery is
signifi cantly below that of the core.

Question 16

Land reform

Answer 16

is the process of changing the pattern of ownership
of land in a country, usually by breaking up large holdings and distributing smaller parcels of land to a larger portion of the population. This can be done in various ways, including with or without compensation of the previous owners