Development

Agglomeration economies The term economies of agglomeration is

used in urban economics to describe the benefits that firms obtain when locating near each other ('agglomerating'). This concept relates to the idea of economies of scale and network effects.

Human Development Index(HDI)An indicator of the level of development for

each country constructed by the united nations, combining income, literacy, education, and life expectancy.

Primary Sector The sector of an economy making direct

use of natural resources Sectors that produce or obtain raw

materials or natural products Industries engaged in extraction of natural

resources

Quaternary sectorThe portion of an economy that is based of

knowledge applicable to some business activity that usually involves the provision of services.

NeocolonialismThe major world powers control the

economies of the poorer countries, even though the poorer countries are now politically independent states.

ProductivityThe value of a particular product compared

to the amount of labor needed to make it.

Value AddedDifference between the total sales revenue

of an industry and the total cost of components, materials, and services.

HDIHuman Development Index

Created by the United Nations, and recognizes that a country’s development level is a function of all three factors (economic, social, and demographic.)

MDCMore developed country

A country that has progressed relatively far along a continuum of development

Trickle-down TheoryAn economic theory of monetary benefits

directed by the government to big businesses that will in turn, pass down to and profit, smaller businesses and the general public.

Comparative AdvantageThe principle that an area produces the

items for which it has the greatest ratio of disadvantage in comparison to other areas, assuming free trade exists.

Tertiary SectorThe portion of the economy concerned with

transportation, communication, and utilities, sometimes extended to the provision of all goods and services to people in change for payment. I bet coach Woerner can’t tell what color this is!!! HAHAHA he is bald!!!!!

SUSTAINABLE DEVELOPMENTThe 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.

Economic indicatorAny economic statistic such as

unemployment rate GDP or the inflation rate

Basic IndustriesIndustries that sell their products or

services primarily to consumers outside the settlement

Ex. Agriculture, Chemicals, Steel, Metal, Manufacturing, etc.

Non-Basic IndustriesIndustries that sell their products primarily

to consumers in their community; small businesses that sell to local customers

Ex. Diners, service companies, Convenience stores, drug dealers, etc.

Comparative AdvantageConcept in economics that a country should

specialize in producing and exporting only those goods and services which it can produce more efficiently than other goods and services

Gross National Product Total market value of all goods and

services produced by a nation during a specific period.

John Mark Friend

LDCLess Developed Country classified by per

capita income, literacy rates, T.V.s per capita, and hospital beds per capita.

Ex: Middle East, South Asia, East Asia, Latin America, Southeast Asia, and Central Asia.

Brandt LineLine that divides the MDCs and the LDCs

Economic DevelopmentSustained, concentrated actions of policy

makers and communities that promote the standard of living and economic health of a specific area

Productivity The value of a particular product compared

to the amount of labor needed to make it.

Market orientationTendency of an economic activity to locate

close to its market; reflection of large and variable distribution costs.

Raw Material OrientationThe tendency of an economic activity to

locate near its raw material source.

Regional multiplierEconomic growth caused by economic

growth.EX: The discovery o steel leads to a steel

manufacturing business.

Quaternary SectorPart of the economy. Consists of

intellectual activities like government, culture, libraries, and scientific research.

- Jordan

Primary SectorThe portion of the economy concerned with

the direct extraction of materials from Earth’s surface, generally through agriculture, although sometimes through mining, fishing, and forestry.

Subsistent EconomyAn economy which refers simply to the

gathering or amassment of object value, the increase in wealth, or creation of wealth; focus on a ‘natural’ way of living.

Literacy RateThe percentage of a country’s people who

can read and writeLiteracy rate is usually higher in MDC’s

usually in 90%Affects the health, population, life

expectancy, infant mortality rate, natural increase rate, and crude birth rate.

All these affect the development

Import Substitution

A government strategy that replaces some imports to encourage local production of those products to generate employment.

Secondary Sector

The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.

Economic IndicatorsA piece of economic data of macroeconomic scale,

that is used by investors to interpret current or future investments possibilities and judge the overall health of an economy. Economic indicators can potentially be anything the investor chooses, but specific pieces of data released by government and non-profit organizations have become widely followed.

Ex: unemployment, consumer price index, bankruptcies, price of crude oil

Brandt LineA line depicting the North-South divide

between the developed countries and the less developed countries. Created by West Germany Chancellor Willy Brandt in 1980.

Market-OrientationThe tendency of an economic activity to

locate close to its market; a reflection of large and variable distribution costs

NeocolonialismA disparaging reference to economic and

political policies by which major developed countries are seen to retain or extend influence over the economies of LDC’s and peoples

Control by a powerful country of its former colonies (or other LDC’s) by economic pressures

Import SubstitutionThe process by which domestic producers

provide goods or services that formerly were bought from foreign producers.