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Chapter 10

TermDefinition
Gross national product is a measure of the total value of the officially recorded goods and services produced by residents of a country in a given year.
gross domestic product includes only goods and services produced within a country during a given year.
gross national income a calculation of the monetary value of what is produced within a country, plus income received from investments outside the country, minus income payments to other countries around the world.
Per capita GNI dividing the gni by the population of the country
Formal Economy the legal economy that governments tax and monitor.
Informal economy the uncounted or underground economy that governments do not tax and keep track of, including everything from a garden plot in a yard to the illegal drug trade.
Digital divide Growing gap in access to Internet and communication technologies between connected and remote places.
dependency ratio measures the proportion of dependents in the population relative to every 100 people of working age.
sustainable development goals goals to improve the condition of the people in the countries with the lowest standards of human development
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 The continuation of colonial relationships after formal colonialism ends
Structuralist theory holds that difficult-to-change, large-scale economic arrangements shape what is possible for a country’s development in fundamental ways
Dependency theory holds that the political and economic relationships between countries and regions of the world control and limit the economic development possibilities of lower income areas.
Dollarization The process of adopting the U.S. dollar as a country’s currency
World systems theory incorporates attention to the role that space (geography) and time (history) play in the power relationships that exist in the world economy
Three tier structure Division of the world economy into the core, periphery, and semiperiphery according to Immanuel Wallerstein’s world-systems theory.
Core processes generate wealth in a place because they require higher levels of education, more sophisticated technologies, and higher wages and benefits
Periphery processes, on the other hand, require little education, lower technologies, and lower wages and benefits. may generate a stable food supply in a place, but it does not have a significant impact on the larger formal economy.
Semi-periphery exhibits both core and peripheral processes, with semiperipheral places serving as a buffer between the core and periphery in the world economy
Commodity chain a series of links connecting the many places of production and distribution that are involved in the creation of a final product that is bought and sold on the market.
Break of bulk point goods traded on one mode of transport were transported to another mode of transport
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 a variant of the neoclassical economic idea that government intervention into markets is both inefficient and undesirable
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 results from humans destroying native vegetation and eroding soils through the overuse of lands for livestock grazing or crop production.
Islands of development When a government or corporation builds up and concentrates economic development in a certain city or small region
Non-governmental organizations operate independently, and the term is usually reserved for entities that operate as nonprofits.
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: SchoolEnjoyer96
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