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ch 10 vocabulary

TermDefinition
Gross National Product (GNP) 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, 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 in a year.
Gross National Income (GNI) 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.
Per capita GNI The Gross National Income (GNI) of a given country divided by its population.
Formal economy Economic productivity in agriculture, mining, industry, and services that is counted or taxed by government. Trade is through formal channels, often using credit.
Informal economy Portion of the economy that is not taxed or regulated by government. Goods and services are exchanged based on barter or cash systems, 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 number of people working age (15 to 64).
Sustainable Development Goals Agenda agreed to by member countries of the United Nations to improve peoples’ lives across several human conditions, including education, environment, political liberty, poverty, and inequality.
Modernization Model Theory that countries follow the same path along stages of development. Developed by economist 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 economically.
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-tier 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 semiperiphery 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 where core and periphery processes are both occurring; places that are exploited by the core but in turn exploit the periphery.
Break of bulk point A place where goods are transferred from one form of transport to another. For example, in a port, containers are unloaded from ships and put on trains, trucks, or riverboats for inland distribution.
Structural adjustment loans A set of requirements to open markets, privatize 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 in markets.
Trafficking A form of forced migration in which organized criminal elements move people illegally from one place to another, typically either 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 is concentrated and to which rural migrants are drawn.
Non-governmental Organizations (NGO) 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: pl229081
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