Economic Development vs. Economic Growth Quiz

The economic system that emerged after World War II, characterized by a balance between domestic economic objectives and openness to international trade and investment.

The process of countries coordinating their economic policies and activities through international institutions.

The increasing interconnectedness of countries through trade, finance, and production.

The reliance of countries on global trade for economic growth.

The spread of production processes across different countries, involving multiple firms and locations.

The expansion of financial instruments and markets across borders, leading to interconnectedness of financial systems.

The vulnerability of global financial systems to shocks and crises due to interconnectedness.

The rising influence and importance of companies that operate across national borders, with assets and production in multiple countries.

The concept of "development" encompasses various facets of a flourishing society, highlighting the well-being and progress of people within a nation.

Economic development focuses on improving the living standards and economic health of a country or region, encompassing factors like human capital, infrastructure, and environmental sustainability.

A condition where a nation experiences a significant gap between the wealth of its rich and poor populations, often coupled with an unfavorable balance of trade.

A measure that combines life expectancy, education levels, and income per capita to reflect overall human well-being in a nation.

The interconnectedness of nations through trade, finance, and cultural exchange, leading to both opportunities and challenges for development.

The process of the world economy increasingly functioning as a unified system, with interconnected markets and businesses.

The increased speed and ease of communication and transportation, which has shrunk the perceived distance between places.

The relative decline of national boundaries and the rise of global market forces.

The rapid growth in international trade compared to overall economic output.

The expansion of multinational companies with production facilities and operations in multiple countries.

The growing influence of multinational companies (TNCs) in the global economy.

Interdependence occurs when countries become increasingly reliant on each other for goods, services, and resources. This reliance can limit a nation's autonomy because actions taken by one country can have significant consequences for others.

According to Krasner, an international regime is a set of rules, norms, and procedures that govern the behavior of states in a particular issue area. Regimes can help to stabilize and order international relations by providing a framework for cooperation and reducing uncertainty.

Marx argued that capitalism creates a system where individuals' autonomy is significantly limited by the need to produce and consume goods and services in order to survive and thrive. This system is inherently exploitative and unequal because the capitalist class profits from the surplus value created by workers.

The division of labor in capitalist societies refers to the specialization of tasks and roles within the production process. This division leads to increased efficiency and productivity, but it can dehumanize individuals by reducing them to cogs in a machine.

In Marxist theory, "false consciousness" refers to a situation where workers are unaware of their true interests and instead accept the dominant ideology that supports the existing power structures. By perpetuating this state of ignorance, capitalist systems can maintain their dominance and extract surplus value.

According to Marxist theory, capitalists extract surplus value from workers by paying them less than the value of their labor. This difference creates profit for the capitalist, but it constitutes a procedural injustice as workers are not fairly rewarded for their contributions.

Structuralist theorists, drawing on Marxist ideas, view the global economy as a single, integrated capitalist system where powerful nations exploit the resources and labor of less developed countries. This analysis highlights the unequal power dynamics and systemic injustices within globalization.

Economic globalization refers to the increasing interconnectedness of national economies through trade, investment, and production. This interconnectedness can lead to greater prosperity, but it also creates challenges related to inequality, environmental degradation, and the concentration of power.

Trade agreements between two or more countries that aim to reduce trade barriers and promote economic integration.

The first wave of regionalism in the early 1960s, characterized by the formation of economic communities like the European Economic Community, a response to the Cold War and a desire for closer economic cooperation between European countries.

The second wave began in the mid-1990s, fueled by the end of the Cold War, the growing integration of markets, and the need to navigate challenges within the WTO.

RTAs can be advantageous for firms because they often lead to preferential market access, reduced trade barriers, and opportunities for expansion into new markets.

A group of countries with very poor economic performance and a very high level of debt.

A concept suggesting that development happens in stages, transitioning from traditional societies to modern, industrialized ones.

A theory that emphasizes the unequal relationship between developed core countries and underdeveloped peripheral countries in a globalized system.

The belief that development is best achieved by freeing individual entrepreneurs within a market system.

The idea that the state plays a critical role in promoting economic growth and development.

An approach to development that emphasizes the well-being and opportunities available to individuals, beyond just economic growth.

A framework for improving the lives of individuals, focusing on their material and social conditions as well as their opportunities and freedoms.

A set of goals adopted by the UN in 2015 to achieve a sustainable and prosperous future for all by 2030.

The idea that global economic system benefits the 'center' countries at the expense of the 'periphery' countries.

The price ratio between a country's exports and imports, often reflecting uneven power dynamics in international trade.

A theory that divides the world into a core, periphery, and semi-periphery based on economic power and relationships.

The process of economic expansion associated with countries like South Korea, Taiwan, and Singapore in the 1960s and 1970s.

A significant shift in the global political economy that questioned the traditional understanding of 'third world' and 'developing countries'.

The idea that development is a national process, with a focus on economic growth.