Presentation Transcript

1. CH 19, 1-3Economic Development Key Terms, Section 1 Developing country 521 countries whose average GNP is a fraction of a more industrialized nation’s. Most are in Africa Asia Latin America Oceania
2. Crude birthrate 524 The number of live births per thousand people. Longer life expectancies make it difficult to increase per capita GNP
3. Life expectancy 524 the average remaining lifetime in years for persons who reach a certain age. Longer life expectancies make it difficult to increase per capita GNP
4. Zero population growth (ZPG) 524 the condition in which the average number of births are equal to the average number of deaths. China controls births by heavily taxing parents with extra children
5. External debt 525 money borrowed from foreign banks and governments Some nations are so much in debt they cannot pay loans Debt can be larger than the nation’s GNP Makes them vulnerable to…..
6. Default 525 a person, business, or nation cannot pay off a debt, not even the interest. Will not be able to borrow money in the future.
7. Capital flight 525 the legal or illegal export of a nation’s currency and foreign exchange. People lose faith in the government the national economy Creates a cash shortage in the nation Slows investment
8. International Monetary Fund (IMF) 526 treaty group that offers advice to all nations Monetary Fiscal Supports the currency of developing nations Loans Goal is to Improve ability to compete Attract foreign investment Also cut “unnecessary” spending (usually public spending, welfare, pensions, gov’t jobs) Leading to increased global protests over the last 20 years.
9. World Bank 526 treaty corporation meant to aid developing nations Loans Financial assistance Advice Owned by IMF member nations
10. Section 2 Primitive Equilibrium 528 first stage of economic development No formal economic organization No monetary system Little or no economic motivation No change Rules handed down generation to generation Culture and tradition are guides
11. Takeoff 5/22 529 third stage of economic development End of primitive equilibrium Economy grows rapidly New and better ways of doing things Imitating foreign ideas and goods. People save and invest Production improves
12. Section 3 Expropriation 534 a country takes control of foreign property in its territory. Without payment in return Discourages foreign investment Fidel Castro did this in the late 1950s with US-owned businesses.
13. Soft loans 535 may never be paid back Part of the agreement with the neediest nations. Offered by the International Finance Corporation International Development Association
14. Free-trade area 535 an agreement in which two or more countries reduce trade barriers and tariffs among themselves. To promote trade
15. Customs union 535 an agreement in which two or more countries abolish tariffs and trade restrictions among themselves Adopt uniform tariffs for nonmember countries.
16. European Union (EU) 535 began in 1993. Single largest unified market in the world No internal trade barriers Common passports Common elections Regulation free travel
17. euro 535 common currency of EU members Integrated in 2002
18. ASEAN 535 Association for Southeast Asian Nations. 1967 regional cooperation between: Indonesia Malaysia Singapore The Philippines Thailand Economic Peace and stability
19. cartel 536 a group of producers (sellers) who agree to limit the production or sale of a product to control prices OPEC (Organization of Petroleum Exporting Countries) regulate the price of oil by Increasing production = lower prices Decreasing production = raising prices
20. Population density 536 number people per square mile of land area in a nation or region. South Korea has had one since the 1950s. Regardless, strict government policies turned a weak nation into a strong economic power today. One of the four “Asian Tigers”. South Korea, Singapore, Taiwan, Malaysia
21. Hwk Assessments, Class Work, to Know
22. Sect. 1, Assessments 1. A country whose average GNP is a fraction of that in more industrialized countries Economic problems more severe
23. 3 Humanitarian Economic Political
24. 4 Population growth Limited natural resources Lack of appropriate education Lack of appropriate technology External debt Capital flight Unstable government Religious beliefs/conflicts Corrupt government War and its aftermath
25. 5 Argentina’s is higher
26. Sect. 2, Assessments 1 A process by which traditional economies evolve to more fully provide for people’s needs and wants. Transition passes through many stages
27. 3 primitive equilibrium Transition Takeoff Semidevelopment High development
28. 4 Reduce trade barriers Reform macroeconomic policy Increase financial support for developing nations Support market policy reform
29. 5 Invest more in education Basic health care Remove regulations that restrict free markets Open markets to international trade Reduce borrowing Decrease deficits Allow for market incentives
30. Sect. 3; Assessments 1 Encourage savings Attract foreign investors Seek grants or loans from foreign governments Obtain a loan from international agencies Regional cooperation
31. 3 Internal: savings, External: Private funds from foreign investors, Grants or borrowing from other countries Borrowing from an international agency such as the World Bank.
32. 4 Helping developing countries with loans and guarantees of loans from private sources.
33. 5 Such cooperation often consists of the reduction or elimination of barriers and tariffs.
34. Image, 523 Question: Norway Denmark Iceland Switzerland Japan Luxembourg
35. 12, image, 525 Question Many cannot afford free public education Many children must work for the families’ subsistence.
36. 12, Global Economy, 530 Questions 1 It is becoming more diversified and attracting volunteers who want to obtain skills to further their own careers as well as to help others. 2 To gain experience in the business world before obtaining a job in the US and to help the world.
37. 6, image, 535 Question International Bank for Reconstruction and Development IFC IDA IMF
38. 6, image, 536 Question No internal barriers regulating Workers Financial capital Goods and services EU citizens have free access to other member nations Can vote in EU elections
39. The Worst Places to Work in the World? The International Trade Union Confederation (ITUC) used 97 different indicators to compile its index, centered around the…. ability of workers to join unions, win collective bargaining rights available access to due process and legal protections. The report evaluates labor rights in 139 countries…. --Washington Post, May, 2014 Yellow = 1 (best) ex. Sweden, light sand = 2, Russia sand = 3, Canada Light orange = 4, United States Orange = 5 (worst), India red = (uberworst, war, political turmoil), Ukraine White = NA, Cuba
40. EC: How Could the US Get such a Dismal Labor Rights Score? (5) Question: The report ranks the U.S. a 4, a sign of "systematic violations" —  collective bargaining rights are uneven across the U.S.'s states unions are far weaker than some of their counterparts in northern Europe.  “Countries such as Denmark and Uruguay led the way through their strong labour laws….. The report is biased to the labor point of view.
41. 6, image, 537 Question Opened its market to world trade Focused on fewer, but key industries.