Econ 8 Vocab
Terms
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- Balanced Growth
- Equal rates of factor growth (Capital K and Labor L) and technological progress in the production of both labor and Capital intensive commodities.
- Engine of growth
- the view that exports were the leading sector that propelled the economies of the regions of recent settlements into rapid growth and development during the 19th century.
- Regions of recent settlement
- The mostly empty and resource-rich lands that Europeans settled during the 19th century: US, Canada, Australia, South Africa, Argentina.
- Vent for surplus
- The view that exports could be an outlet for surplus agricultural commidities and raw materials in developing countries.
- Endogenous growth theory
- the theory that seeks to identify in detail and rigorously the actual channels or the ways by which freer trade leads to faster longrun economic growth.
- Commodity, or net barter, terms of trade
- The ratio of the price index of the nation's EXPORTS to the price index of its IMPORTS times 100. N= (Px/Pm)100
- Income terms of trade
- The ratio of the price index of the nation's EXPORTS to the price index of its IMPORTS times the index of the nation's VOLUME of EXPORTS.
- Immiserizing growth
- A nations terms of trade deteriotes so much as a result of growth that the nation is worse off after growth than before, even if growth without trade tends to improve the nation's welfare.
- Marketing boards
- National schemes set up by several developing nations after WWII to stabilize export prices for individual producers of an agricultural commodity.
- International commodity agreements
- Organization of trading nations attempting to stabilize and increase the prices and earnings of the primary exports of developing nations.
- Buffer stocks
- International Commodity agreement that involves the purchase of a commodity when the commodity price falls below a set floor, and the sale of the commodity out of the stock when the commodity price rises above an established max. price. (International tin, cocoa and rubber agreements only lasted a couple years).
- Export Controls
- Type of internation commodity agreement that seeks to regulate the quantity of the comodity exported by each nation. (OPEC)
- Import-substitution industrialization (ISI)
- The industrialization policy that many developing nations followed during the 50's-70's involving the replacement of imports of industrial goods with domestically produced goods.
- Export-oriented industrialization
- The policy of industrialization pursued by some developing nations that involves increasing the output of manufactured goods for export.
- Foreign debt
- the hundreds of billions of dollars that developing countries owe to commercial banks in developed countries and that they find diffuicult to repay or even pay interest on.
- Newly Industrialized Economies (NIEs)
- Also High performance Asian Economies (HPAEs). Hong Kong, Korea, Singapore and Taiwan. Growth characterized by praid growth in GDP and industrial production and manufactured exports.
- Eport pessimism
- The feeling that developing countries exports to developed countries cannot grow rapidly because of the latter's increased protectionism (1980's)
- New Intarnation Economic Order (NIEO)
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Called for in 1974 by the General Assembly of the United Nations. Called for:
1. Renegotiation of international debt.
2. Establishment of International Commodity Agreements.
3. Preferential market access given to Manufactured exports of developing countries.
4. Removing agricultural trade barriers.
5. Transfer of technology to developing countries.
6. Increasing yearly flow of foreign aid to developing countries.
7. Allowing developing countries greater control in international decision making.