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Development

Use these terms for your chapter 10 vocab activities

TermDefinition
Commodity chain Series of links connecting the main places of production and distribution and resulting in a commodity that is then exchanged on the world market
Gross National Product ( GNP) the total value of all goods and services produced by a country during a given year.
Gross Domestic Product (GDP) The total value of all goods and services produced within a country during a given year
Gross National Income (GNI) monetary worth of what is produced within a country PLUS income received from investments outside the country
Per Capita GNI Gross National Income data divided by the population of the country to standardize the measurement.
Formal Economy The legal economy that is taxed and monitored by a government and is included in the governments gross national product
Informal Economy economic activity that is neither taxed nor monitored by government, and is not included in that governments Gross National Product.
Modernization model A model of economic development associated with the work of Walter Rostow. The modernization model maintains that all countries go through 5 stages of development, ending in an economic state of economic growth and high levels of mass consumption.
neo-colonialism The entrenchment of the colonial order , such as trade and investment under a new guise. ( Colonial powers still control developing nations through trade and aid)
structuralist theory 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.
dependency theory a structuralist theory that offers a critique of the modernization model of development. Based on the idea that political and economic relations between countries can limit the development of some LDC's.
dollarization 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.
world systems theory Theory originated by Immanuel wallerstein and illuminated by his three tier structure, proposing that social change in the developing world is inextricably linked to the activities of the developed world.
three tier structure The division of the world into the core, periphery and semi-periphery as a means to explain the interconnections between places in the global economy.
Millenium Development Goals Goals created by the United Nations to encourage development in LDC's by addressing social concerns and issues within these countries
structural adjustment loans policies imposed on less developed countries by int. agencies to create conditions encouraging international trade, (raising taxes, reducing govt. spending, control inflation, selling publically owned utilities charging citizens more for services
Service any act that fulfills a human want or need and returns money to those who provide it.
vectored disease A disease carried from one host to another by an intermediate host.
malaria disease spread by mosquitos which carry the malaria parasite in their saliva and which kills approximately 150,000 children in the global periphery each month
export processing zones Zones established by many countries in the periphery and semi-periphery where they offer favorable tax, regulatory and trade arrangements to attract foreign trade and investment
maquiladoras The term given to zones in northern Mexico with factories supplying manufactured goods to the U.S. Market. The low wage workers in the primarily foreign owned factories assemble imported components and or raw materials and then export finished goods
special economic zones specific area within a country in which tax incentives and less stringent environmental regulations are in effect to attract foreign business and investment
North American Free Trade Agreement NAFTA Agreement entered into by Canada, Mexico and the United States in December 1992and which took effect on January 1st 1994, to eliminate the barriers to trade in, and facilitate the cross-border movement of goods and services between the country.
desertification The encroachment of desert conditions on moister zones along the desert margins, where plant cover and soils are threatened by desiccation through overuse - in part by humans and their domesticated animals
island of development Place built up by a government or corporation to attract foreign investment and which has relatively high concentrations of paying jobs and infrastructure.
nongovernmental organizations NGO's 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
microcredit programs programs that provide small loans to poor people, especially women, to encourage development of small business.
Human Development Index created by the United Nations, recognizes that a country's level of development considers economic social and demographic factors. HDI measures GDP, literacy rate, education, and life expectancy.
Developed Country A country that has progressed further along the development continuum, meaning that it has improved the material conditions of people through diffusion of knowledge and technology
Developing country This is a country that is seen as a periphery nation. It has made some progress towards development but still has limited material conditions because of limited technology and education.
Gender related development Index (GDI) Compares the level of development of women with that of both sexes. compares income, literacy, education, and life expectancy and compares those numbers to men in the same country.
LDC Less developed country - periphery or semi-periphery
MDC More Developed Country ( a core country
Primary Sector economic activity economic activity concerned with the direct extraction of natural resources from the environment - such as mining fishing, lumbering and especially agriculture.
Secondary Sector The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials
Tertiary Sector The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.
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