Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
34 Cards in this Set
- Front
- Back
PPP
|
Purchasing Power Parity
Measures how much of a common "market basket" of goods and services each currency can purchase locally, including goods and services that are not traded internationally. |
|
GNI
|
Gross National Income
A measure of the income that flows to a country from production wherever in the world that production occurs. Lower in wealthy countries |
|
GDP
|
Gross Domestic Product
Is an estimate of the total value of all materials, foodstuffs, goods, and services that are produced by a country in a particular year. |
|
Carrying capacity
|
The maximum population that can be maintained in a place at rates of resource use and waste production that are sustainable in the long term without damaging the overall productivity of that or other places.
|
|
Sustainable development
|
One that achieves a balance among economic growth, the environmental impacts of that growth, and the fairness (social equity) of the distribution of the costs and benefits of that growth
Illustrated by ecological footprint |
|
Ecological footprint
|
measure of human pressures on the natural environment from the consumption of renewable resources and the production of pollution.
demand has exceeded supply by about %40 US has 6th largest footprint Largest is UAB Afghanistan, Bangladesh, Haiti, Malawi are low |
|
Economic Structure
|
Primary Activities- concenred with natural resources of any kind
Secondary Activities- Processing/assembly/etc of raw materials derived from primary activities Tertiary Activities- Sale and exchange of goods and services Quaternary Activities- processing of knowledge and information. |
|
International Division of Labor
|
THe specialization, by countries, in particular products for export.
|
|
Postindustrial countries
|
Where the tertiary and quaternary sectors dominate the workforce
|
|
Newly Industrializing Countries (NICs)
|
Formerly peripheral coutnrires that have acquired a significant industrial sector, usually through Foreign Direct Investment
China, South Korea, Mexico, Brazil, INdia, Indonesia, Thailand |
|
Trading Blocs
|
Groups of countries with formailized systems of trading agreements
|
|
Autarky
|
countries that do not contribute significantly to the flows of imports and exports demonstrate a high degree of autarky.
Generally periperhal countries: Bolivia, Burkina Faso, Ghana, Malawi, Samoa, Tanzania |
|
Neoliberal Policies
|
Economic policies predicated on a minimalist role for the state that assume the desirability of free markets not only for economic organization but also for political and social life.
|
|
Dependency
|
Peripheral countries depend on countries that are geographically or geopolitically close
Involves a high level of reliance by a country on foreign enterprises, investment, or technology Can result in a narrow economic base |
|
Elasticity of demand
|
The degree to which levels of demand for a product or service change in response to changes in price.
Where a relatively small change in price induces a significant change in demand, elasticity is high. |
|
Terms of Trade
|
DEtermined by the ratio of prices at which imports and exports are exchanged
When price of exports rises relative to the price of imports, the terms of trade reflect an improvement for the exporting country. No matter how efficient primary producers become, or how affluent their customers, the balance of trade is always tilted against them. |
|
Import Substitution
|
A strategy to change acquire a new role in the international division of labor. Basically trying to move up from primary to secondary.
Very difficult, peripheral countries who try to do this have to borrow from other countries. |
|
Fair Trade
|
A movement focused on building equitable trading relationships between customers and the worlds more economically disadvantaged artisans and farmers.
|
|
Geographical Path dependence
|
relationship between present-day activities in a place and the past experiences of that place.
|
|
External economies
|
existing labor markets, existing consumer marked, existing frameworks of social capital
Cost savings that result from advantages beyond a firm's organization and methods of production. |
|
Localization economies
|
Cost savings that accrue to particular industries as a result of clustering together at a specific location.
Like Silicon Valley |
|
Agglomeration effects
|
Interdependencies that accrue cost advantages to individual firms because of their location among functionally related activities.
|
|
Backward linkages
|
develop as new firms arrive to provide the growing industry with components supplies, specialized services, or facilities
|
|
Forward linkages
|
develop as new firms arrive to take the finished products of the growing industry and use them in their processing, assembly, finishing, packaging, or distribution operations.
|
|
Ancillary industries
|
Maintenance and repair, recycling, security, and business services
|
|
Cumulative causation
|
Myrdal
Any significant local advantage tends to be reinforced through geographic principles of agglomeration and localization. REfers to the spiraliing building of advantages that occurs in specific geographic settings as a result of the development of external economies, agglomeration effects, and localization economies. |
|
Infrastructure
|
Roads, schools, and recreational amenities
|
|
Backwash effects
|
NEgative impacts on a region that come from the economic growth of some other region.
Out-migration, outflows of investment capital, shrinkage of local tax bases. |
|
Spread effects
|
POsitive impacts on a region from the economic growth of some other region
Demands for food, consumer products, and other manufactures |
|
Agglomeration diseconomies
|
Negative economic effects of urbanization and local concentration of industry
-higher prices that must be paid by firms competing for land and labor -delays resulting from traffic congestion -costs of waste disposal -higher taxes |
|
Deindustrialization
|
Relative decline in industrial employment in core regions as firms scale back their activities in response to lower levels of profitability.
Rustbelt |
|
Creative Destruction
|
withdrwawl of investments from activities that yield low rates of progic in order to invest in new activities
|
|
Fordism
|
Mass production, based on assembly line techniques and scientific management, together with mass consumption, based on higher wages and sophisticated advertising techniques
|
|
neo-Fordism
|
logic of mass production coupled with logic of mass consumption
|