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Chapter 10

TermDefinition
Gross National Product (GNP) A measurement of a country’s wealth that includes the total value of all goods and services produced within the borders of a country, plus income received from investments outside of the country in a year
Gross Domestic Product (GDP) A measurement of a country’s wealth that includes the total value of all goods and services produced within a country within a year
Gross National Income (GNI) A measurement of a country’s wealth that includes the total value of all goods and services produced by residents of a country, including domestic and foreign production, within a year
Per capital GNI The DNI of a country divided by its population
Formal economy Economic productivity in agriculture, mining, industry, and services that are counted or taxed by government
Informal economy Portion of the economy that is not taxed or regulated by government; goods and services are exchanged and earnings are not reported to government
Digital divide Growing gap in access to internet and communication technologies between connected and remote places
Dependency ratio Number of people not working age (0-14 and over 65) relative to the number of people working (15 to 64)
Sustainable Development Goals Agenda agreed ti by member countries of the United Nations to improve peoples' lives across several human conditions, including education, political liberty, poverty, and inequality
Modernization Model Theory that countries follow the same path along stages of development; developed by Walter Rostow
Context The physical and human geographies creating the place, environment, and space in which events occur and people act
Neocolonialism Economic and financial policies that give higher income countries and organizations control over lower income countries
Structuralist Theory Theories based on the idea that difficult-to-change, large-scale economic arrangements shape what Is possible for a country
Dependency theory Andre Gunder Frank's theory that wealthy countries set up exploitative economic relations whereby lower income countries became dependent on wealthy countries, who in turn benefit the economy
Dollarization When one country abandons their local currency and officially adopts the currency of another country
World Systems Theory Theory originated by Immanuel Wallerstein and illuminated by his three-tiers structure, proposing that social change in and economic wealth in the periphery is inextricably linked to the core
Three tier structure Division of the world economy into the core, periphery, and semi-periphery according to Immanuel Wallerstein's world-systems-theory
Core Places in the world economy where core processes dominate
Periphery Places in the world economy where periphery processes dominate
Semi-periphery Places in the world economy that show both signs of periphery and core processes
Commodity chain Steps in the production of a good from its design and raw materials to its production, marketing, and distribution
Break of bulk point A place where goods are transferred from one form of transport to another
Structural adjustment loans A set of requirements to open markets, private industries, and allow foreign direct investment in developing countries in exchange for loans from international financial institutions
Washington Consensus Agreement among international financial institutions that policies opening markets in lower income countries would lead to economic development
Neoliberalism Policies based on the economic theory that government should not intervene with markets
Trafficking A form of forced migration in which organized criminal elements move people illegally from one place to another, typically to work as involuntary laborers or to participate in the commercial sex trade
Maquiladora Foreign-owned factories in Mexico where low-wage workers assemble imported components and raw materials into finished products for export
Desertification Spread of desert like conditions to semiarid lands due to overuse or misuse of land and water resources
Islands of development Cities in developing regions where foreign investment in concentrates and to which rural migrants are drawn
Non-government organizations Privately funded institutions that aid in development and relief work
Microcredit programs Practice of giving small loans to individuals, who operate within a community of other borrowers, to start businesses and cottage enterprises
Created by: RomyConn
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