Vocabs 5.2 Flashcards
more developed countries (MDCs)/highly developed countries (HDCs)
does well in measures of development
less developed countries (LDCs)
score low on some measures of development
newly industrialized countries (NICs)
score in the middle for many measures of development
Rostow’s Stages of Economic Growth
theory that describes how countries shift from traditional to modern economies
modernization theory
idea with right conditions, all countries can achieve economic growth and development
dependency theory
countries in early stages of are dependent upon the countries in the late stages
commodity dependence
countries in early stages depend on exporting raw materials to earn money
World Systems Theory
will always been a combination of core, semi-periphery, and periphery countries
comparative advantage
the ability for a country to produce a good or product more efficiently than another country
complementarity
the ability for countries who hold comparative advantages in certain areas to link together to satisfy each other’s wants
neoliberalism
economic ideology that promotes power in hands of private companies, lower taxes, less government spending, free trading
free trade
trade between countries that is not subject to taxes or limitations
trade barriers
rules or laws that countries use to limit the amount of goods and services that can be traded
tariff
trade barrier that is a tax placed on goods that are imported from other countries
Organization of the Petroleum Exporting Countries (OPEC)
a group of countries that work together to manage the production and pricing of oil
debt crises
when a country can’t pay back its debts, meaning it owes more money than it can afford to pay
International Monetary Fund (IMF)
organization that allows countries experiencing financial problems to borrow money, often has conditions or requirements
