Global Groupings

Question 1

What are LDCs?

Answer 1

Least economically developed countries- a country that, according to the United Nations, exhibits the lowest indicators of socioeconomic development, with the lowest Human Development Index ratings of all countries in the world.

Question 2

What are NICs?

Answer 2

Newly industrialised countries- describes a country whose level of economic development ranks it somewhere between the developing and first-world classifications.

Question 3

What are FCCs?

Answer 3

Former Communist Countries

Question 4

What are OPECs?

Answer 4

Only petroleum exporting countries- regulate flow of oil and influence the price of oil.

Question 5

What are OECDs?

Answer 5

Organisation for Economic Cooperation Development

Question 6

Gross National Product

Answer 6

The value of all the goods and services earned by a country including companies working abroad.

Question 7

Gross Domestic Product

Answer 7

The value of all the goods and services earned by a country excluding foreign earnings.

Question 8

Per capita

Answer 8

Statistics providing an average per person.

Question 9

Purchasing Power Parity

Answer 9

Relates average earnings to prices and what they will actually buy you.

Question 10

Physical quality of life index

Answer 10

Made up of life expectancy, literacy rates and infant mortality.

Question 11

Human development Index

Answer 11

Made up of life expectancy, literacy rates, infant mortality and also school enrolment.

Question 12

Human suffering index

Answer 12

Made up of daily calorie intake, access to clean water, inflation rate, access to communications, political freedom and civil rights.

Question 13

MEDC

Answer 13

More Economically Developed Country- Countries with more resources, salaries and housing accessibility’s are MEDC’s. A MEDC will have a lower birth rate and also a low death rate due to advanced Medical Technology and has low baby population and high elderly population.

Question 14

LEDC

Answer 14

Less Economically Developed Country- A LEDC have a high birth rate and also a high death rate due to poor health care and a different type of diseases. The countries are also very poorly developed and the birth rate is high. Life is rather hard and people don’t have much money to get resources.

Question 15

BRIC

Answer 15

Brazil Russia India China
BRIC is an acronym that refers to the economies of Brazil, Russia, India, and China, which are seen as major developing economies in the world.

Question 16

Why join a trade bloc?

Answer 16

No tax on trade= more trade= more economic growth
Access to markets
Attracts inward investment from TNC’s
Strength in numbers

Question 17

Trade blocs differ from economic groupings in two important ways:

Answer 17

1. To trade freely, agreements have to be drawn up which allow national boundaries to be crossed by flows of goods, money and sometimes workers – this requires an amendment of national laws (hence it can be described as being political)
2. Trade blocs can contain countries at different levels of development – this allows for a ‘Spatial division of labour.’