Ch10- International Development Flashcards
Commodity Cartels
Associations of producers of commodities (raw materials and agricultural products) that restrict world supply and thereby cause the price of the goods to rise.
Terms of Trade
The relationship between a country’s export prices and its import prices.
Group of 77
A coalition of developing countries in the UN formed in 1964 with 77 members that seeks changes to the international economic order to favor the developing world. It has grown to over 130 members but retains the original name.
Oligopoly
A situation in which a market or industry is dominated by a few firms.
Washington Consensus
An array of policy recommendations generally advocated by developed country economists and policymakers starting in the 1980s, including trade liberalization, privatization, openness to foreign investment, and restrictive monetary fiscal policy.
Primary Products
Raw materials and agricultural products, typically unprocessed or only slightly processed. The primary sectors are distinguished from secondary sectors (industry) and tertiary sectors (services).
Export Oriented Industrialisation (EOI)
A set of policies originally pursued in the late 1960s by several East Asian countries to spur manufacturing for export, often through subsidies and incentives for export production.
Infrastructure
Basic structures necessary for social activity, such as transportation and telecommunication networks, and power and water supply.
Import Subsidised Industrialisation (ISI)
A set of policies pursued by most developing countries from the 1930s through the 1980s to reduce imports and encourage domestic manufacturing, often through trade barriers, subsidies to manufacturing, and state ownership of basic industries.
Less Developed Countries (LDCs)
Countries at a relatively low level of economic development.
What is the role of wealthier nations in relation to developing countries’ challenges?
a) They provide support and assistance
b) They hinder economic growth
c) They have no impact on developing countries
d) They promote political stability
B
What is the shared interest of rich and poor nations regarding economic growth in developing countries?
a) Political stability
b) Conflict resolution
c) Speeding up economic growth
d) Maintaining the status quo
C
How do domestic social and political institutions influence the impact of conflicts of interest on development?
a) They empower special interest groups
b) They overcome obstacles to development
c) They hinder economic growth
d) Their effect depends on the specific development policy being debated
D
Which group or entity can hinder the adoption of development measures in poor countries?
a) Rich nations
b) Social and political institutions
c) Special interest groups
d) Natural disasters
C
What is a necessary condition for successful economic growth in a country?
a) Domestic conflicts of interest
b) International cooperation
c) Political instability
d) Overcoming obstacles at both domestic and international levels
D
