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30 Cards in this Set

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  • Back
  • 3rd side (hint)
What is Development?
The process by which a nation improves the economic, political, and social well-being of its people
Two types of nations are Developed & Less Developed/Developing
What is a Developed Nation?
A nation with a higher average level of material well-being.
nations with highly developed infrastructure, highly industrialize & service oriented, high literacy rates
What is a Less Developed Nation?
A nation with a low level of material well-being.
Nations with poorly developed infrastructure & minimal industry, low literacy rates
What is Per Capita Gross Domestic Product (per capita GDP)?
A nation's gross domestic product (GDP) divided by its total population.
used to compare the living standards within nations
What is Industrialization?
The extensive organization of an economy for the purpose of manufacture.
requires large amounts of energy to manufacture products
What is Subsistence Agriculture?
Level of farming in which a person raises only enough food to feed his/her family
farming using simple tools, few machines on small tracts of land
What is the Literacy Rate?
The proportion of the population over age 15 that can read & write
Developed nations have a higher literacy rate than less developed nations
What is Life Expectancy?
The average expected life span of an individual.
Indicator of how well an economic system supports life and fends off death.
What is Infant Mortality Rate?
The number of deaths that occur in the first year of life per 1000 births
The U.S.A. has a rate of 6.4 or 6.4 deaths out of every 1000 births in the 1st yr. of life
What is Infrastructure?
The services and facilities necessary for an economy to function.
ex. are transportation & communication systems, roads, power plants, schools, & banks.
What is a Newly Industrialized Country (NIC)?
Less developed country that has shown significant improvement in the measures of development.
ex. are Mexico, Brazil, Malaysia, Thailand, Singapore, Hong Kong, South Korea, & Taiwan.
What is the World Bank?
An international organization devoted to assisting development.
Uses per capita gross national income (GNI) to categorize nations as high, middle, or low income.
What is Population Growth Rate?
The increase in a country's population in a given year, expressed as a percentage of the population figure at the start of the year.
takes into account the # of births, deaths, & people migrating to/from a country; expressed as a percentage of the population figure at the start of the year.
What is the Natural Rate of Population Increase?
The difference between the birth rate and the death rate.
Many LCDs are experiencing an increase in life expectancy and population growth
What is Arable?
Land suitable for growing crops.
Accounts for only 10% of Earth's land
What is Malnutrition?
Inadequate nutrition.
suffered by the population in many of less developed nations. Causes low birth weight, brain damage & birth defects in children
What is Internal Financing?
Financing derived from the savings of a country's citizens.
Developing countries save for investment or look to the developed world for investment funds.
What is Foreign Investment?
Investment originating from other countries.
Americans borrowed from othe countries in order to build the transamerican railroad.
What is Foreign Direct Investment (FDI)?
The establishment of an enterprise by a foreigner.
Foreign investment is often a Multinational Corporation in an LDC.
What is a Foreign Portfolio Investment?
The entry of funds into a country when foreigners make purchases in the country's stock and bond markets.
Ex. U.S. investor buys shares in a Mutual Fund which in turn buys shares in a Foreign company.
What is the World Bank?
The largest provider of development assistance founded in 1940.
It raises money on financial markets & accepts contributions from the wealthier member nations.
What is the United Nations Development Program (UNDP)?
United Nations program dedicated to elimination of poverty through development
world's largest source of grant funding for economic & social development.
What is Debt Rescheduling?
Lengthening the time of debt repayment and forgiving, or dismissing, part of the loan
In return the debtor nationis expected to accept an IMF stabilization program
What is a Stabilization Program?
An agreement between a debtor nation and the IMF in which the nation agrees to revise its economic policy.
Program that provides incentives for higher export earnings & to lower imports.By increasing exports an LDC can earn more foreign money to repay debt.
What is Privatization?
The sale or transfer of state-owned businesses to individuals
gives individuals, not government, the right to make decisions about what to produce & how much to produce
What is a Work Ethic?
System of values that gives central importance to work.
In a free market, incentives, not quotas, influence people's labor.
What is Glasnost?
A policy of political "openness" introduced into the Soviet Union in the late 1980s
Encouraged Soviet citizens to say what they wished without fear of government persecution.
What is Perestroika?
Soviet leader Gorbachev's plan for economic restructuring.
Called for a gradual change from a centrally planned system to free enterprise. Gorbachev desired to incorporate markets & incentives into the existing structure of communism.
What is Light Industry?
The production of small consumer goods.
Ex. producing clothing, appliances, bicycles, etc.
What are Special Economic Zones?
Designated regions in China where foreign investment is encouraged, businesses can make most of their own investment , and production decisions, and foreign companies are allowe to operate
Coastal cities of Hong Kong & Taiwan are where China's places of Economic growth. Ex. Three Gorges Dam caused much displacement in population (>100 million) but brought economic growth to the area