UNIT 3 Developing Economies.docx (copy)

Countries that are characterized by low per capita income and are in the process of economic growth and development.

An international organization that classifies countries into least developed, developing, and petroleum-rich categories.

An international organization that classifies countries into low-income, middle-income, and newly industrializing categories.

Also known as the World Bank, it classifies countries into low-income, middle-income, upper-middle-income, and high-income categories.

Countries with a Gross National Income (GNI) per capita of USD 1,025 or less.

Countries with a GNI per capita of USD 1,026-4,035.

Countries with a GNI per capita of USD 4,036-12,475.

Countries with a GNI per capita of USD 12,476 or more.

The first important feature of underdeveloped countries is their low per capita income and high poverty rates.

Developing countries are generally predominantly agricultural, with a large portion of the population relying on agriculture for their livelihoods.1. Industrial sector:The sector of an economy that includes manufacturing, mining, construction, and utilities.

Job openings or positions available for individuals to work and earn income.

Jobs that are not related to farming or agriculture, such as industry, transport, and services.

The ratio of the population to the amount of available land.

The process of increasing the stock of capital goods in an economy through investment.

The motivation or incentive for individuals or businesses to invest their money in productive assets.

The average income per person in a given population or country.

The tendency of individuals to imitate or emulate the consumption patterns and lifestyles of wealthier or more developed countries.

A situation where individuals are employed but their work is not productive or necessary for the functioning of the economy.

The increase in the number of individuals in a population over time.

The number of deaths per 1,000 individuals in a population in a given time period.

The number of births per 1,000 individuals in a population in a given time period.

Describes the situation in underdeveloped economies where natural resources are either unutilized or underutilized due to various difficulties such as shortage of capital and primitive technology.

Refers to the low quality of people as productive agents in underdeveloped countries, characterized by low labor efficiency, factor immobility, limited specialization, lack of entrepreneurship, illiteracy, and conservative social values.

Describes the dualistic character of developing economies, particularly those with surplus labor, where there is a sharp contrast between the traditional sector and the modern sector in terms of social systems and production techniques used.

Refers to the difference in production techniques or technologies used between the traditional sector (labor-intensive) and the modern sector (capital-intensive) in underdeveloped economies, leading to higher labor productivity and earnings in the modern sector.1. Unemployment:The state of being without a job or work.

The state of having a job that is below one's skill level or not enough hours of work.

The coexistence of advanced and outdated technology in an economy.

Technology that requires a large amount of capital investment.

The available resources, such as labor and capital, in an economy.

The sector of the economy that uses advanced technology and techniques.

A plan or approach to promote economic development in a country.

Excess labor supply beyond the demand in an economy.

The process of improving the economic well-being and living standards of a country.

The level of wealth, comfort, and material goods available to people in a certain area.

Countries with high levels of economic prosperity and wealth.

Countries with low levels of economic prosperity and wealth.

The absence of conflict and violence on a global scale.

The elimination or reduction of poverty in a society.

The abilities and freedoms that individuals have to live a fulfilling life.

Actions taken to alleviate poverty and improve the well-being of the poor.

An increase in the production and consumption of goods and services in an economy.

Engaging in activities and personal states that are considered important and meaningful.

The ability to make decisions and have control over one's own life.

The state of being happy, healthy, and prosperous.1. Developing countries:Countries that are in the process of improving their economic and social conditions.

The average income of individuals in developing countries is lower compared to developed economies.

Due to low income, people in developing countries have limited ability to save money.

The average number of years a person is expected to live is significantly lower in developing countries compared to developed countries.

Developing countries often have limited access to quality education, resulting in lower levels of education among their population.

Developing countries may lack adequate healthcare infrastructure and services, leading to poorer health outcomes.

Developing countries often have inadequate transportation, communication, and other basic infrastructure systems.

Many people in developing countries lack access to clean water, proper sanitation facilities, and adequate housing.

Developing countries tend to have a higher proportion of their workforce engaged in agriculture and other primary sector activities.

Underdevelopment trap

Developing countries often have significant amounts of debt owed to foreign lenders, which can limit their ability to invest in education, healthcare, and other development initiatives.

Developing countries heavily depend on the export of primary products, such as agricultural commodities or raw materials.

Insufficient spending on education, training, and skill development hampers productivity growth and international competitiveness.

Highly skilled professionals, such as doctors and teachers, leaving their home country to seek better job opportunities abroad.

Developing countries face barriers such as tariffs, subsidies, and other trade restrictions imposed by foreign governments, which can hinder their ability to export goods.1. Tariffs:Taxes imposed on imported goods, often higher for products that developing economies focus on, discouraging their industrial growth.

Economies with underdeveloped sectors, such as the financial sector, which can discourage saving and investment.

The physical size of a country, along with its population and income level, determines its economic potential and differentiates it from other developing nations.

Many developing nations were once colonies of Western European countries, which influenced their economic structures and institutions.

The availability of natural resources and the quality of the workforce in a country.

The relative importance of government-owned and privately-owned industries in a country's economy.

The composition and organization of industries within a country.

The extent to which a country relies on foreign sources for economic and political stability.

The allocation of power and the organization of institutions and political systems within a nation.1. Physical resources:Land, minerals, and other raw materials that influence a country's potential for economic growth.

The numbers of people and their level of skills that influence a country's potential for economic growth.

Countries with favorable physical resource endowments, particularly in oil.

Countries with relatively minimal endowments of raw materials, minerals, and fertile land.

The attitudes, beliefs, and values of a country's population that influence its economic structure.

The level of skills in managing and organizing that determine the ability of the public sector to alter the structure of production.

The division between government-owned and privately-owned resources and their relative importance in a country's economy.

The degree to which private sector resources are owned by foreign investors.

The availability and shortage of skilled manpower in a country.

The composition and relative importance of agriculture, manufacturing, and service sectors in a country's economy.1. Third World development strategies:Vary depending on the nature, structure, and degree of interdependence among primary, secondary, and tertiary industrial sectors.

Consists of agriculture, forestry, and fishing.

Mostly manufacturing.

Commerce, finance, transport, and services.

The degree to which a country is dependent on foreign economic, social, and political forces.