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17 Cards in this Set
- Front
- Back
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What is purchasing power parity? |
A measure of per capita income that shows the purchasing power of an income
Instead of it's worth at current exchange rates |
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What is a third world? |
Less developed countries |
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What are underdeveloped countries? |
A term used to describe third world countries |
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What are developing countries? |
Countries that have not reached the same level of development as the Richer, Advanced countries |
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What is development? |
A condition that involves the satisfaction of the basic needs of all of the people As well as the means for them to live the fulfilling and productive lives Based on the creation of a more Diversified, sophisticated, and sustainable economy |
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Development may be thought of in terms of three goals: |
1) Satisfying the basic needs of everyone, such as food, housing, clothing, and clean water As well as the means to live the fufilling and productive lives, such as education, Healthcare, employment, and security against severe hardships 2) to build a more Diversified and sophisticated economy 3) development needs to be environmentally sustainable |
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What is the human development index? |
An annual index for most countries Calculated by the UN development programme Based on educational attainment, life expectancy and per capita gross Nation income |
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What are two approaches of how countries can develop? |
Market driven approach State directed approach |
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What's a free market economic model? |
An economic model to emphasize private Enterprise Significantly limits the economic role of the state |
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What is the statistic economic model? |
An economic policy that gives government a significant role in selecting a country's economy |
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What are two major free market models? |
Modernization Theory
Washington consensus |
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What is modernization theory? |
Development model that views the Traditional Values, practices, and institutions of third world countries as the basic cause of under development
To develop, poor countries should change their cultural outlooks, social structures, economic organization, and political system based on the model of the advanced Western Society |
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What is Dependency Theory? |
Criticizing modernization Theory Under development results from unequal power relationships Between the Centre( Dominant capitals countries) and the periphery (poor, dependent countries) |
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What is the Washington consensus? |
Encourage developing countries to generate revenue for debt repayment by cutting government expenditures |
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What are state-directed approaches on how countries develop? (Statist approach) |
Socialist models Capitalist models. |
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What are two capitalist development policies? |
Import substitution industrialization. Asian model |
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What is import-substitution industrialization? |
A model of Economic Development where a country established High tariffs To protect the businesses settings up to manufacture Goods that replace Imports |
