Commodity Chain
Series of links connecting the many places of production & distribution & resulting in a commodity that is then exchanged on the market
Gross National Product [GNP]
A measure of the total value of the officially recorded goods & services produced by the citizens & corporations of a country in a given year [Broader than GDP]
Gross Domestic Product [GDP]
Encompasses only goods & services produced w/in a country during a given year
Per Capita GNI
Yielded by dividing GNI data by the population of the country [Standardizes GNI data]
Formal Economy
The legal economy that governments tax & monitor
Informal Economy
The uncounted or illegal economy that governments do not tax & keep track of
- Illegal drug trade, Oldham County Buy Sell Trade, babysitting
Modernization Model
A type of development model that states all countries can become modernized through industrialization. Walt Rostow's Ladder of Development is the most popular.
Neo-Colonialism
The new colonialism where wealthy countries now economically control poorer countries instead of politically.
Structuralist Theory
Holds that difficult-to-change, large-scale economic arrangements shape what can happen in fundamental ways. The world will always have core and periphery countries. Power relationships will always exist
Dependency Theory
Holds that the political & economic relationships between countries & regions of the world control & limit the economic development possibilities of poorer areas
Dollarization
When a country's currency is abandoned in favor of the dollar
[Ex: El Salvador abandoned the colon or the dollar]
World-Systems Theory
Provides insights into political organization of space; Helps us understand the geography, sensitive to the relationships among development processes that occur in different places; Divides world into 3-tier structure [Core, Periphery, Semi-Periphery]
- D
3-Tier Structure
Division of world into
- Core, Periphery, & Semi-Periphery
- Help explain the interconnections between places in the global economy
- With reference to World-Systems Theory
Millennium Development Goals
Goals created by the United Nations for improving the condition of the people in the countries w/ the lowest standards of human development by 2015
1. Eradicate extreme poverty & hunger
2. Achieve universal primary education
3. Promote gender equality & e
Trafficking
Happens when "adults & children fleeing poverty or seeking better prospects are manipulated, deceived, & bullied into working in conditions that they would not choose.
Neoliberalism
Derives from the neo-classical economic idea that government intervention into markets is inefficient & undesirable, & should be resisted wherever possible. One of the ways the core continues to exert economic power over the periphery.
Vectored Diseases
Diseases spread by 1 host [person] to another by an intermediate host or vector
- Malaria
Export Processing Zones [EPZs]
Special manufacturing export zones [offer favorable tax, regulatory, & trade arrangements to foreign firms] -> Set up by governments of many countries in the global periphery & semi-periphery in efforts to attract new industries
- Mexican Maquiladoras, Sp
Maquiladoras
Term given to EPZs in Northern Mexico [Directly across border from US] w/ factories supplying manufactured goods to US market free of import tariffs -> The low-wage workers in the primarily foreign-owned factories assemble imported components &/or raw mat
Special Economic Zones
Specific area w/in a country in which tax & investment incentives are implemented to attract foreign (& domestic) businesses & investment
- SEZs of China [Located near major ports]
Desertification
The spreading of desert conditions on moister zones along desert margins, where plant cover & soils are threatened by overuse and/or changes in the climate -> Made worse by humans destroying vegetation & eroding soils through overuse of lands for livestoc
Island of Development
When a government or corporation builds up & concentrates economic development in a certain city or small region
Nongovernmental Organization
International organizations that operate outside of the formal political arena [not run by state or local governments -> Operate independently] but are still influential in supporting international initiatives on social, economic, & environmental issues -
Microcredit Program
Program that provides small loans to poor people, particularly women, to encourage development of small businesses
- Grameen Bank
- Kayonza Micro Finance
- Bangladesh Rural Advancement Committee [Microfinance program started in 1974]
MDC
Countries that have experienced industrialization (more developed country)
- England
- United States
- France
- Canada
- Germany
LDC
Countries that haven't experienced industrialization (less developed country)
- Haiti
- Sudan
- Somalia
- Gambia
- Angola
Newly Industrialized Country
Countries that have experienced economic growth, appear somewhere in between MDC & LDC status
- Brazil
- Mexico
- India
Rostow's Modernization Model
5 stage theory of a country's development starting off as traditional & ending with high incomes and widespread consumption of goods and services. You should know all 5 stages and that it is also called the "Ladder of Development".
Wallerstein's World System's Theory
Three tier structure (core, semiperiphery, periphery) stating that core countries through capitalistic means control and are economically linked to periphery countries.
Infrastructure
Service that support economic activities
- Transportation Facilities - roads, airports, ports
-Water Services
NAFTA (North American Free Trade Agreement)
Between Mexico, the US, & Canada in 1995, was hailed as a free trade area that would rival the European Union as the world's wealthiest & most populous market
- Agreement to eliminate the barriers to trade, & facilitate the cross-border movement of goods
break of bulk point
a location along a transport route where goods must be transferred from one carrier to another (example from a plane to a truck).
dependency ratio
the number of people under age 15 (young dependency) and over 64 (old dependency) compared to the number of people active in the labor force. Helps to identify how developed a country is.
Gross National Income (GNI)
The value of the output of goods and services produced in a country in a year in addition to the income received from investments outside of the country and minus payments to other countries around the world.
digital divide
the gap in access to telecommunications between developed and developing countries.
context
the geographical situation in which something occurs; the combination of what is happening at a variety of scales at the same time.
structural adjustment loans
loans granted by international financial institutions such as the World Bank and the International Monetary Fund to developing countries in exchange for certain economic and political reforms. Have been criticized for a means to exploit periphery countrie
Washington Consensus
Label used to refer to fundamental principles of free trade including 1)free trade allows countries to be better off by producing what is most efficient for their country 2)competition of free trade promotes continual economic growth.