Economic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such as raising taxes, reducing government spending, controlling inflation, selling publicly owned utilities to private corporations, and charging citizens more for services.
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Gender Empowerment Measure (GEM)
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Compares the ability of women and men to participate in economic and political decision making.
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Literacy Rate
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The percentage of a country's people who can read and write.
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Tertiary sector
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The portion of the economy concerned with transportation, communications, and utilities, sometimes extended to the provision of all goods and services to people in exchange for payment.
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Primary sector
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The portion of the economy concerned with the direct extraction of materials from Earth's surface, generally through agriculture, although sometimes by mining, fishing, and forestry.
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Gender-Related Development Index (GDI)
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Compares the level of development of women with that of both sexes.
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Millennium Development Goals
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Eight international development goals that all members of the United Nations have agreed to achieve by 2015
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Secondary sector
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The portion of the economy concerned with manufacturing useful products through processing, transforming, and assembling raw materials.
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Human Development Index (HDI)
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Indicator of level of development for each country, constructed by United Nations, combining income, literacy, education, and life expectancy.
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Fair trade
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Alternative to international trade that emphasizes small businesses and worker owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organizing, and comply with minimum environmental and safety standards.
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Transnational corporation
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A company that conducts research, operates factories, and sells products in many countries, not just where its headquarters or shareholders are located.
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Gross domestic product (GDP)
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The value of the total output of goods and services produced in a country in a given time period (normally 1 year).
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Less Developed Country (LDC)
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A country that is at a relatively early stage in the process of economic development.
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Productivity
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The value of a particular product compared to the amount of labor needed to make it.
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Development
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A process of improvement in the material conditions of people through diffusion of knowledge and technology
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Foreign direct investment (FDI)
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Investment made by a foreign company in the economy of another country
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More Developed Country (MDC)
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A country that has progressed relatively far along a continuum of development.