Vocabulary

absolute poverty

measure of a person's inability to obtain the necessities of life, such as food, clothing, and shelter

core nation

wealthy industrialized nation that controls and benefits from the global economy

dependency theory

theory that explains global inequality as caused by colonialism and neocolonialism

economic liberalism

philosophy that favors free markets and limited government regulation

global stratification

hierarchical arrangement of nations based on economic status

market-oriented theory

theory that emphasizes the role of the free market and the private sector

modernization theory

theory that high-income nations became wealthy by adopting the proper values, technologies, and beliefs

neocolonialism

dominance of former colonial powers over low-income or periphery nations

periphery nation

low-income nation that depends on and is exploited by wealthier nations

relative poverty

measure of inequality based on the standard of living for the majority of people in a society

semiperiphery nation

nation that exhibits characteristics of both core and periphery nations

social stratification

hierarchical arrangement of societal groups based on wealth or social status

state-centered theory

theory that views governments (states) as a necessary structure to promote change and reduce inequality

world-systems theory

theory that a world economic system exists in which wealthy nations exploit poor ones to help generate their wealth