Chaps 10 & 11 Flashcards
(47 cards)
Autonomy
State of independence from another country, the ability to act by oneself.
World Health Org
UN org that deals with health issues around the world. Eradicated smallpox
GDP per capita
Measure of a country’s development. It is the total size of a country’s economy divided by the population
Purchasing Power Pariry
A measure that compares 2 currencies and adjusts them so that they can be compared in a meaningful way.
Big Mac Index
A measure created by The Economist that compares the value of currencies by comparing the cost of a Big Mac hamburger in different countries. The US is used as the baseline cost for the jndex
Gini coefficient
A measure of the distribution of income in a country raining from 0 to 1 where 0 means perfect equality and 1 means perfect inequaliry
Human Development Index
Measure of the level of human development in a country. Includes GDP per capita, life expectancy and education levels
Structural factors
Historical and environmental factors that influence how a country can develop it’s economy
Resource curse
Curious negative effect for a country’s economy when the country has a valuable resource (such as oil)
Patronage politics
Using state finds to pay off private or semi private political supporters
Modernization theory
Theory of 1950-60s that suggested all countries should be able to develop by following the practices of wealthy states in Europe and North America
Neocolonialism
The practice of maintaining control over smaller developing countries by keeping strong dependent links to the government and or dominating their economies. This allows a powerful state to control a smaller state without colonizing it
Foreign direct investment
When a company in one country invests in a company in another country that leads to the investor to have control over the new company
Host country
The country in which a multinational corporation owns other companies
Home country
The term used to describe where the headquarters of the multinational corporation is based
Expropriation
The taking or nationalization of property owned by a foreign company with or without compensation
Import substitution industrialization
Development policy that promotes cutting off international trade and substituting it with domestic production
Export-led growth
The idea that to develop a country’s economy the government should push for companies to focus on the products that can be exported to other countries
Subsidies
Funds given to companies by a government to help them grow
Orthodox liberal
Extreme free-market approach where gov is very limited and most of a country is composed of private enterprise
Neoliberal
A return to liberal or free-market economics
Washington Consensus
And orthodox liberal approach to development that too cold in the 1980s and was used to try to promote economic growth in poor countries. Had very little success
Pegged exchange rates
Foreign currency exchange rates that are fixed by government officials against another currency or standard rather than freely traded in a market setting
Balance-of-payments
I countries balance between exports, imports and debt. If exports are too low and cannot support the countries that there is an economic crisis
