Developed Country – A country that has progressed further along the development continuum.
Developing Country – A country that has made progress towards development that is expected to continue.
Development – A process of improvement in the material conditions of people through diffusion of knowledge and technology.
Fair Trade – Products are made and traded according to standards that protect workers and small businesses in LDCs.
Foreign Direct Investment – Investment made by a foreign company in the economy of another country.
Gender Empowerment measure (GEM) – compares the abil¬ity of women and men to participate in economic and political decision making.
Gender-Related Development Index (GDI) – compares the level of development of women with that of both sexes.
Gross Domestic Product (GDP) – The value of the total output of goods and services produced in a country, normally during a year.
Human Development Index (HDI) – Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy.
Gross domestic product (GDP) – The value of the total output of goods and services produced in a country in a given time period (normally one year).
Less developed country (LDC) – Also known as a developing country, a country that is at a relatively early stage in the process of economic development.
Literacy rate – The percentage of a country’s people who can read and write.
More developed country (MDC) – Also known as a relatively developed country or a developed country, a country that has progressed relatively far along a continuum of development.
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.
Productivity – The value of a particular product compared to the amount of labor needed to make it.
Relatively Developed Country – A country that is at the most developed end of the development continuum.
Secondary sector – The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
Structural adjustment program – Economic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such as raising taxes, reducing government spending, controlling inflation, selling publicly owned utilities to private corporations, and charging citizens more for services.
Tertiary Sector – Involves the provision of goods and services to people in exchange for payment. These activities include retailing, banking, law, education, and government.
Transnational Corporation – Invests and operates in countries other than the on in which its headquarters are located.
Value added – The gross value of the product minus the costs of raw materials and energy.