Chapter 10 Key Terms

Front 1

Commodity Chain

Back 1

Series of links connecting the many places of production and distribution and resulting in a commodity that is on the world market.

Front 2

Developing

Back 2

Relating to societies in which capital needed to industrialize is in short supply

Front 3

Per Capita GNI

Back 3

The gross national product of a given country divided by its population

Front 4

Formal economy

Back 4

The legal economy that is taxed and monitored by a government and is included in a governments Gross National Product as opposed to an informal economy.

Front 5

Informal Economy

Back 5

Economic activity that is neither taxed nor monitored by a government and is not included in that govenment's Gross National Product ; as opposed to a formal economy

Front 6

Modernization model

Back 6

A model of economic development most closely associated with the work of economist Walter Rostow. The modernization model (sometimes referred to as modernization theory) maintains that all countries go through five interrelated stages of development, which culminate in an economic state of self-sustained economic growth and high levels of mass consumption.

Front 7

Contex

Back 7

Circumstances of a situation; environment

Front 8

Neo-Colomialism

Back 8

A process of acculturation or cultural imperialism through which forms of industrial, political and economic organization are often imposed on other cultures under the guise of getting aid in the form of technological and industrial "progress," but it can still lead to good things, like bringing needed infrastructure.

Front 9

Structuralist theory

Back 9

A general term for a model of economic development that treats economic disparities among countries or regions as the result of historically derived power relations within the global economic system

Front 10

Dependency theory

Back 10

A model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones.

Front 11

Dollarization

Back 11

When a poorer country ties the value of its currency to that of a wealthier country, or when it abandons its currency and adopts the wealthier country's currency as its own.

Front 12

World -system theory

Back 12

Wallersteins theory of the core, semi periphery, periphery, and external areas. The core benefited the most from the development of a capitalist world economy. Semi periphery was the buffer between the core and periphery. Periphery are states that lack strong central gov'ts or are controlled by other states. External areas are states that maintained their own economic system and for the most part, remained outside of the capitalist world economy.

Front 13

Three-tier Structure

Back 13

With reference to Immanuel Wallersteins World- system theory , the division of the world into the core , the periphery, and the semi-periphary as a mean to help explain the interconnections between places in the Global economy.

Front 14

Millennium Development Goals

Back 14

Eight international developement goals that 192 United Nationals member states and at least 23 international organizations have agreed to achieve by the year 2015. They include reducing extreme poverty, reducing child mortality rates, fighting disease epidemics such as AIDS, and developing a global partnership for development

Front 15

Trafficking

Back 15

When a family sends a child or an adult to a labor recuiter in hopes that the labor recruiter will send money, and the family member will earn money to send home.

Front 16

Structural Adjustment

Back 16

Loans granted by international financial institutions such as the World Bank and the International Monetary Fund to countries in the Periphary and the semi-periphary in exchange for certain economic and governmental reforms in that country(e.g. privaztization of certain government entries and opening the country to foreign trade and investment).

Front 17

Neoliberalism

Back 17

A strategy for economic development that calls for free markets, balanced budgets, privatization, free trade, and minimal government , intervention in the economy

Front 18

Vectored Dieases

Back 18

A disease carried from one host to another by an interminate host

Front 19

Malaria

Back 19

A disease caused by masquitoes implanting parasites in the blood

Front 20

Export Processing Zones

Back 20

Zones established by many countries in the periphery and semi periphary where they offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment.

Front 21

Maquiladoras

Back 21

The term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. market. The low-wage workers in the periphary forigen-owned factories assemble imported components and/or raw materials and then exported finished goods

Front 22

Special Economic Zones

Back 22

Specific area within a country in which tax incentives and less stringent environmental regulations are implemented to attract foreign business and investment.

Front 23

North American Free Trade Agreement

Back 23

Agreement signed by the United States, Canada, and Mexico in 1992 to form the largest free trade zone in the world.

Front 24

Desertification

Back 24

The gradual transformation of habitable land into desert

Front 25

Island of development

Back 25

Place built up by a government or corporation to attract foreign investment and which has relatively high concentrations of paying jobs and infrastructure.

Front 26

Nongovernmental Organizations (NGOs)

Back 26

International organizations that operate outside of the formal political arena but that are nevertheless influential in spearheading international initiatives on social, economic, and environmental issues.

Front 27

Micro-credit Program

Back 27

Program that provides small loans to poor people, especially women, to encourage development of small businesses.

Front 28

Birth Rate (BR)

Back 28

Number of births per 1,000 people in a population in a given year

Front 29

Death Rate (DR)

Back 29

Number of deaths per 1,000 people in a population in a given year

Front 30

Primary Activity

Back 30

Economic activity concerned with the direct extraction of natural resources from the environment, such as mining, agriculture, and fishing

Front 31

Secondary Activity

Back 31

The processing of raw materials and their transformation into finished industrial products, manufacturing

Front 32

Tertiary Activity

Back 32

Economic activity associated with the provision of services, such as transportation, banking, retailing, education, and office-based jobs

Front 33

Quaternary Activity

Back 33

Service sector industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, administration, and insurance

Front 34

Human Development Index (HDI)

Back 34

Indicator of level of development for each country, constructed by the United Nations, combining income, literacy, education, and life expectancy statistics

Front 35

Gross National Income (GNI)

Back 35

The monetary worth of what is produced within a country plus income received from investments outside the country.

Front 36

Gross Domestic Product (GDP)

Back 36

The market value of all final goods and services produced within a country in a given period of time.

Front 37

Gross National Product (GNP)

Back 37

A measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year.

Front 38

Less Developed Country (LDC)

Back 38

A country that is at a relatively early stage in the process of economic development Ex. Zimbabwe

Front 39

Per capita income (PCI)

Back 39

The amount of money earned in one year in a nation by an average person

Front 40

Newly-Industrialized Country (NIC)

Back 40

A subgroup of developing countries that have experienced rapid industrialization of their economies. Ex.- Taiwan, India, Mexico

Front 41

Physical Quality of Life Index (PQLI)

Back 41

A composite indicator of development composed from life expectancy, literacy rate, and infant mortality

Front 42

Rate of Natural Increase (RNI)

Back 42

The annual rate of population growth

Front 43

Purchasing Power Parity (PPP)

Back 43

Measurement of what the same amount of money buys in different countries

Front 44

More Developed Country (MDC)

Back 44

A country that has progressed relatively far along a continuum of development.

Front 45

Literacy Rate (LR)

Back 45

The percentage of people that can read and write in a given population.

Front 46

Life Expectancy (LE)

Back 46

A figure indicating how long, on average, a person may be expected to live.

Front 47

Infant Mortality Rate (IMR)

Back 47

The number of babies that die within the first year of their lives in a given population.