Economic Concepts and Definitions

Rostow's Modernization Model

• focuses on economic development

• is primarily concerned with social equality

• emphasizes environmental sustainability

• advocates for political stability

Agglomeration

• Geographic clustering of similar industries or businesses

• Random distribution of businesses across a region

• Isolation of industries in rural areas

• Concentration of population in urban centers

Wage Gap

• difference in pay for men and women

• the amount of money earned by employees in a specific industry

• the disparity in job opportunities between genders

• the average salary of workers in a country

Comparative Advantage

• one country has a lower opportunity cost for a good or service so it can produce it cheaper than another country

• a situation where one country can produce more of a good than another country

• the ability of a country to produce a good at a lower absolute cost than another country

• when countries trade goods and services without any restrictions

SEZs

• an area within a country that offers more favorable economic regulations

• a type of tax exemption for foreign companies

• a government program for local business development

• a special type of investment fund

GII

• difference in equity between men and women by measuring women's health, empowerment and employment

• a measure of economic growth in developing countries

• a statistical tool for analyzing gender roles in education

• an index for tracking global poverty rates

GNP

• the total value of goods and services produced by a country's citizens and companies, domestic and international

• the total value of goods and services produced within a country's borders only

• the total income earned by a country's residents regardless of where it is produced

• the total value of goods and services produced by foreign companies operating in the country

Ecotourism

• Attracting small groups of tourists to nature-based vacations, also protects environment

• Mass tourism that harms natural habitats

• Traveling to urban areas for cultural experiences

• Luxury vacations in remote locations

Positively Correlated

• When A goes up, B goes up and when A goes down, B goes down

• When A goes up, B goes down and when A goes down, B goes up

• A and B are unrelated

• A increases while B remains constant

Commodity Dependence

• relying on one product for more than 60% of a country's economic output

• having a diverse range of products contributing to economic output

• exporting more than 50% of goods to a single country

• maintaining a balanced trade deficit