Essential Global Economic & Development Terms
Export
Sales abroad of domestic products. This also includes invisible exports, such as services.
Import
The buying abroad of products and goods. Imports can also be invisible, such as payments for services (e.g., tourism expenditure).
Human Development Index (HDI)
A common indicator for measuring the quality of life, established by the United Nations to assess the degree of development of countries through the United Nations Development Programme (UNDP). It is calculated from the following variables:
- Life expectancy.
- Education (all levels).
- GDP per Capita.
Countries with the highest HDI include Iceland, Norway, Australia, Sweden, Canada, and Japan. In Latin America, Chile and Uruguay are notable, partly due to their relatively low crime rates and organized crime. The HDI ranges from 0 (minimum) to 1 (maximum). For example, Spain's HDI is 0.93.
Trade Liberalization
Refers to measures aimed at removing legal and administrative obstacles that affect economic or financial activity. Its objective is to increase competition and efficiency within sectors. This process involves governments removing specific regulations for businesses, theoretically promoting the efficient operation of the market by shifting the state's role to a mere supervisory one in economic activities, regulated by the constraints of the commercial market itself and consumption.
Multinational Corporation
A large company with several thousand employees that has subsidiaries, especially production facilities, in many countries. Its assets are accumulated through a multinational process.
Standard of Living
The status of an individual or a welfare scale, previously accepted or defined, indicating the level of material well-being and quality of life.
World Trade Organization (WTO)
Created in 1995, the WTO is responsible for ensuring compliance with agreements on international trade rules and policies.
Gross Domestic Product (GDP)
The sum of the value added in the production processes of goods and services within a country over a specific period, usually one year.
Underdevelopment (Center / Periphery)
The status of less developed countries, characterized by low per capita income, low savings rates, and inadequate technologies. These factors prevent rapid economic growth and often coincide with strong demographic growth. The "Center / Periphery" model describes the global economic division between developed (center) and less developed (periphery) nations.
European Union (EU)
A major international entity that includes Spain. It is a supranational organization composed of sovereign and independent European states. These states delegate some of their sovereignty to common institutions to make decisions of joint interest democratically at a European level. The EU initially had 6 members and now comprises 27.