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Globalization and the Economy

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Term
Definition
Imports   To buy resources or goods from another country  
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Developed   A country that has a mix of agriculture and a great deal of manufacturing and service industry (USA, Japan, Australia)  
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Developing   A country that has little industry and is mostly agricultural(Ethiopia, Afghanistan)  
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Profit Motive   The driving force that encourages the increase in wealth  
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GDP (Gross Domestic Product)   Total value in dollars of all the final goods and services produced in a country during a single year  
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Globalization   Individual economies rely on each other for resources and markets  
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Tariffs   Taxes on imported goods  
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Export   To sell resources or goods to another country  
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Inflation   Increase in prices over a period of time  
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Profit   Money a business earns after all expenses have been met  
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Investment   Money committed in order to gain a profit  
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Command   In this type of economy the government controls the buying and selling of goods.  
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Market   In this type of economy the individuals control the buying and selling of goods.  
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Mixed   In this type of economy the government has some involvement in the economy but individuals decide what goods to buy and sell.  
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Traditional   This type of economy is based on bartering and trading  
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GDP per Capita   When you take the GDP and divide it by the population of the country  
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HDI- Human Development Index   Used to determine the social and economic development levels of countries  
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Renewable Resource   Water, sun, wind, air, soil, crops, and trees  
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Nonrenewable Resource   Coal, oil, diamonds, salt, iron-ore and copper  
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Created by: Reachbeth
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