Economic Terms

Economic Terms - Economic Terms Remittances: the sending of...

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Economic Terms Remittances: the sending of money, checks, etc., to a recipient at a distance. money or its equivalent sent from one place to another. Tariffs: taxes in trade Commodities/primary products: -the production of organic compounds from atmospheric or aquatic carbon dioxide, principally through the process of photosynthesis -important to understand developing countries Businesses: a. capital vs. labor intensive—machinery, technology…. b. Maquilas/EPZs c. Microenterprises: became very important when Muhammad Yunus developed Grameen Bank micro loans that are affordable to be returned *Maquila (Maquiladora): a factory run by a U.S. company in Mexico to take advantage of cheap labor and tax regulation EPZ (Export Processing Zone): an industrial area containing many foreign-owned factories Microenterprise: owner-operated with few employees (very small business) Foreign Debt: part of the total debt in a country that is owed to creditors outside the country. The debtors can be the government, corporations or private households. The debt includes money owed to private commercial banks, other governments, or international financial institutions such as the IMF and World Bank. -absolutely central to understand the situations the developing countries experience Societal Terms Social Development: an alteration in the social structure of a social group or society, ie. a change in the nature, social institutions, social behaviors or social relations of a society Social Welfare: e ·e ·w L 4 4 Culture: referred to the values, norms, custom of society Social Classes: Upper class: "Old money." middle class—Caucasians (teachers……. .small business people) Manual class—factory workers Lower class—permanently jobless Labor Terms Formal vs. informal sector Formal sector: encompasses all jobs with normal hours and regular wages, and are recognized as income sources on which income taxes must be paid. Informal sector: economic activity that is neither taxed nor monitored by a government, and is not included in that government's Gross National Product (GNP) i.e.) barter and gift economy. Although the informal economy is often associated with developing countries, where up to 60% of the labor force (with as much 40% of GDP) works, all economic systems contain an informal economy in some proportion. The term informal sector was used in many earlier studies, and has been mostly replaced in more recent studies which use the newer term.
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Unemployment Labor intensive vs. Capital intensive Labor intensive: A process or industry that requires a large amount of labor to produce its goods or services. The degree of labor intensity is typically measured in proportion to the amount of capital required to produce the goods/services; the higher the proportion of labor costs required, the more labor intensive the business. Labor intensive industries include restaurants, hotels, agriculture and mining.
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Economic Terms - Economic Terms Remittances: the sending of...

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