Ch 9 Vocab Flashcards
A process of improvement in the material conditions of people through diffusion of knowledge and technology.
Development
Alternative to international trade that emphasizes small businesses and worker-owned and democratically run cooperatives and requires employers to pay workers fair wadges, permit union organizing, and comply with minimum environmental and safety standards.
Fair Trade
Investment made by a foreign company in the economy of another country
Foreign direct investment (FDI)
The value of the total output of goods and services produced in a country in a given time period (normally 1 year)
GDP gross domestic product
indicator of level of development for each country, constructed by the united nations, combining income, literacy, education, and life expectancy.
human development index HDI
A country that is at a relatively early stage in the process of economic development
Less developed country
LDC
the percentage of a country’s people who can read and write
literacy rate
country that has progressed relatively far along a continuum of development
more developed country MDC
The portion of the economy concerned with the direct extraction of materials from Earth’s surface, generally through agriculture, although sometimes by mining, fishing, and forestry
Primary sector
the value of a particular product compared to the amount of labor needed to make it
productivity
the portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials
secondary 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
Tertiary sector
A company that conducts research, operated factories, and sells products in many countries, not just where its headquarters or shareholders are located
transnational corporation
the gross value of the product minus the costs of raw materials and energy
value added
economic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such as raising taxes, reducing government spending,controlling inflation, selling public owned utilities to private corporations
structural adjustment program
