Rubenstein Chapter 9 Vocabulary; Part Two

productivity

A measure of the goods and services produced within a particular country.

market-orientation

Business approach that focuses on identifying and meeting the stated or hidden needs/wants of customers, through its own acquired products; the tendency of an economic activity to locate close to its market; a reflection of large and variable distribution costs.

economic development

Improvement of human living standards by economic growth.

value added

The gross value of the product minus the costs of raw materials and energy.

developing country

A country that has low industrial production and little modern technology

LDC

A country that has low levels of average wealth, industrialization and modernization and often high levels of population growth and people employed in agriculture

import substitution

A government policy that uses trade restrictions and subsidies to encourage domestic production of manufactured goods; development strategy that uses tariffs and other barriers to imports, and therefore stimulates domestic industries.

Dependency Theory

A structuralist theory that offers a critique of the modernization model of development. Based on the idea that certain types of political and economic relations (especially colonialism) between countries and regions of the world have created arrangements that both control and limit the extent to which regions can develop; A model of economic and social development that explains global inequality in terms of the historical exploitation of poor nations by rich ones

HDI

A tool developed by the United Nations to measure and rank countries' levels of social and economic development based on four criteria: Life expectancy at birth, mean years of schooling, expected years of schooling and gross national income per capita. The HDI makes it possible to track changes in development levels over time and to compare development levels in different countries.

subsistence economy

A type of economy in which human groups live off the land and have little or no surplus; in which individuals make just enough on the land to support themselves, was dominant in early modern Europe. It was eventually replaced by a monetary economy that involved trade.

neo-colonialism

Country that displays economic dependence on another country; a country that displays so much economic independence on another country, that it seems to be a colony of the independent country.

Brandt Line

Division of the world between MDCs and LDCs (MDCs in north have relatively high HDIs while southern countries have lower indexes)

economic indicators

Economic information used to measure the economy; includes gross domestic product, consumer price index, inflation rate, and unemployment rate; Indicate the health and trend of an economy.

Examples of economic indicators to classify countries as less developed or relatively developed.

GDP, CPI, Median Income, Unemployment Rate, Unemployment Insurance, National Debt, National Deficit, National Surplus. Unemployment, inflation, interest rates, economic growth. GDP is an economic indicator that tells whether a country is less developed or more developed. Like for example, the difference in GDP per capita between Africa and the United States.

basic industries

Industries that sell their products or services primarily to consumers outside the settlement; the industries that are the focal point of the economy for a city.

non-basic industries

Industries that sell their products primarily to consumers in the community; money from your Community going to your community.

comparative advantage

Is a situation in which a country specializes in the production of a good or service at which it is relatively more efficient; the ability of a country to produce a good at a lower cost than another country can.

Rostow's "Modernization Model"

Model created by W.W. Rostow in the 1950's that gives an idea of where a country is in their stage of development. There are five stages in this model, including: 1. "The traditional society," 2. "The preconditions for takeoff," 3. "The takeoff," 4. "The drive to maturity," 5. "The age of mass consumption"

MDC

More Developed Countries, Countries with higher levels of per capita income, industrialization and modernization. they usually have lower levels of population growth. The developed region includes all of Europe, Canada, the U.S., Australia, Japan, New Zealand and the USSR

Use examples of human welfare indicators to distinguish between relatively developed and less developed countries.

People are healthier in MDCs than in LDCs. the health of the population is influenced by diet. On average people in MDC receive more calories and proteins daily then they need compared to LDCs in Africa and Asia, most people receive less than the daily minimum allowance Also when people get sick, MDCs possess the resources to care for them. Total expenditures on health care exceed 8 percent of GDP in MDCs compared to less than 6 percent in LDCs. So not only do MDCs have much higher GDP per capita than LDCs they spend a higher percentage of that GDP on healthcare.

Provide examples of the different sectors of a country's economy and explain the economic relationship between them.

Primary sector workers primarily extract materials from Earth through agriculture and sometimes mining, fishing, and forestry. Secondary sector: includes manufacturers that process, transform, and assemble raw materials into useful products. Other secondary sector industries take manufactured goods and fabricate them into finished consumer goods. Tertiary sector: involves the provision of goods and services to the people in exchange for payment. Tertiary sector activities include retailing banking, law education, and government. The economic relationship between them all is that first, primary sector workers mine raw materials, and silk and such, then secondary workers manufacture that mining ore into an engine for a car which then later is used by a tertiary worker as a taxi for which he takes people around to different place for money.

Draw the Brandt line on a world or regional map and give examples of elements of the core and periphery.

REFER TO DOCUMENT!!!!!

Discuss specific examples of "semi-peripheral" countries, explaining why they are so labeled.

Semi peripheral countries would be like China and Brazil, because while they are developing at a constant rate they are still not developed enough to be a big player in world trade economy. The are technologically advanced but not in all regions of their country.

quaternary sector

Service sector industries concerned with the collection, processing, and manipulation of information and capital. Examples include finance, administration, insurance, and legal services.

regional multiplier

The effect of adding basic industries creating jobs for both basic and non-basic industries

sustainable development

The level of development that can be maintained in a country without depleting resources to the extent that future generations will be unable to achieve a comparable level of development.

raw material orientation

The location of the manufacturing plant in relation to the source of raw materials. While most industries would prefer to locate near their markers in order to save the recurring costs of transportation, some industries - especially those that involve a loss of weight, bulk, or perishability in the process of manufacturing - might prefer to locate near their source of raw materials since their material index is much greater than 1.0.

literacy rate

The percentage of a country's people who can read and write.

secondary sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials. EX: metal working and smelting, automobile production, textile production, chemical and engineering industries, aerospace manufacturing, energy utilities, engineering, breweries and bottlers, construction, and shipbuilding.

primary sector

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.

tertiary 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.

agglomeration economies

The savings to an individual enterprise derived from locational association with a cluster of other similar economic activities, such as other factories or retail stores

trickle-down effects

The theory that money invested in the core (the top income earners investing more into the business infrastructure and markets) will in turn have a positive influence (create more jobs) on the periphery (middle and lower class individuals); increased wealth for the upper class means benefits for the lower class.

gross national product

The total value of goods and services, including income received from abroad, produced by the residents of a country within a specific time period, usually one year.

Compare and contrast different theories and models of economic development and the relationship between LDCs and relatively developed countries.

Two approaches, Self sufficiency and and Rostows World trade development model. Self sufficiency states that the country has to try and spread its money as equally as it can across all sectors and regions, while growth is slow and modest it reduces poverty and lessens the disparity in income between Urban areas and rural. Meanwhile Rostows development model has five stages in which a country develops. These stages are: Traditional society, preconditions to takeoff, takeoff, drive to maturity, and the age of mass consumption. traditional society is when the counrtys people are more bent on agricultural income and most of the countries national wealth is spent on nonproductive activities such as religion and military. Preconditions to takeoff: is when a few people come up with innovative ideas and start businesses, under these new leaders the country starts developing economically and technologically but only in the urban business areas surrounding these new companies. Next is takeoff in which these companies start gaining a lot of wealth and become more technologically efficient which leads to the countrys drive to maturity. Drive to maturity: Is when technology starts spreading to the rest of the country, and the entire country experiences rapid growth and workers become more skilled ans specialized. And last is the age of mass consumption: In which the country goes from heavy steel manufacturing to selling of consumer goods such as cars, refrigerators toys and such