Chapter 10 Dilemmas of Development Flashcards

Originally Taiwan, South Korea, Singapore, and Hong Kong, countries that achieved rapid growth rates using a strategy of export-led growth, causing many Asian countries to follow in their path. Now many rapidly growing Asian countries are considered ‘tigers’.

A type of policy designed to prevent dumping by other states. Permitted by international law, anti-dumping policies constitute one sort of non-tariff barrier (NTB).

The idea that, for some poor countries, development can be best attained in a world of economic turbulence through systematic government controls on the pace of trade integration, capital inflows and outflows, the movement of labor within the country, and the external value of the national currency.

Brazil, Russia, India, China, and South Africa. These five rapidly developing countries have the collective potential, within several decades, to overtake the combined economic weight of the industrial world.

A school of thought that argues that international economic linkages hinder development in developing countries. Proponents of dependencia argue that the connections between developing countries and wealthy countries are designed for the benefit of the wealthy countries (often former colonial powers) and the only people in the developing country who benefit are the small number of wealthy elites that promote the international linkages.

A country whose residents have not, on average, attained the living standards typically enjoyed on average by residents of wealthy countries.

The attainment by a poorer country of an increase in its rate of growth of GDP per capita.

A strategy that argues that international economic linkages are good for developing countries because the international economy presents important opportunities for development. The strategy entails switching preference for government credit and foreign currency from firms producing for local markets to firms producing for export markets.

(1) One sort of investment transaction involving multiple currencies in which residents of one country - most typicaly multi national enterprises - may establish wholly woned foriegn subsidaries, or buy enough shares of a foriegn firm to control the operations of that firm.(2) When an enterprise (usually an MNE) in one country moves capital to another country with the intention of establishing an on-going business presence.

A country with good governance at home typically possesses transparent and consistent political and legal systems, combats official corruption, and protects property. These factors encourage individuals to save, make investments, and pursue technological innovations that promote economic growth.

For any given country, the final monetary value of the goods and services that are produced in that country in a given year.

A process of enlarging people’s choices and giving them a means to lead lives that they value. Measurements of human development include such factors as life expectancy, income, and education.

A national development strategy that seeks to avoid international economic linkages in favor of focusing on domestic production. High tariffs and other similar measures encourage the local economy to forego imported goods in favor or goods produced locally by national champions.

A kind of international private capital flow in which banks in one country supply loans to individuals in another country.

A kind of international private capital flow in which individuals or firms in one country buy bonds originating in another country.