Final Exam (c.10)

Question 1

less developed countries (LDCs)

Answer 1

countries at a relatively low level of economic development

Question 2

infrastructure

Answer 2

basic structures necessary for social activity, such as transportation and telecommunications, power and water supply

Question 3

primary products

Answer 3

raw materials and agricultural products, typically unprocessed or only slightly processed. The primary sectors are distinguished from secondary sectors (industry) and tertiary sectors (services)

Question 4

oligopoly

Answer 4

a situation in which a market or industry is dominated by a few firms

Question 5

terms of trade

Answer 5

The relationship between a country’s export and import prices.

Question 6

import-substituting industrialization (ISI)

Answer 6

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.

Question 7

export-oriented industrialization (EOI)

Answer 7

set of policies pursued by some East-Asian countries in the mid 1960s to spur manufacturing for export, often through subsidies and incentives for export production.

Question 8

Group of 77

Answer 8

coalition of developing countries in the UN, formed in 1964, that seeks changes to the economic order to favor the developing countries. (now has 130 members)

Question 9

commodity cartels

Answer 9

associations of producers of commodities that restrict world supply of their products and thereby cause the prices of their goods to rise.