Global Groupings

Question 1

Define Gross Domestic Product

Answer 1

A measure of the financial value of the goods and services produced within within a territory (including Foreign firms located there). It is often divided by population size to produce a pee capita figure for the purpose of making comparisons.

Question 2

Define Human Development Index

Answer 2

A United Nations measure of economic no social development that takes into account income per capita, life expectancy and adult literacy.

Question 3

Define Poverty

Answer 3

A lack of wealth. Absolute poverty describes income levels below what is needed to maintain an adequate diet. Relative poverty describes income levels that are below average for a region.

Question 4

Define Petrodollars

Answer 4

Money derived from selling oil. Since the formation of OPEC, states such as Saudi Arabia, The United Arab Emirates, and Venezula have experiences significant increases in levels of national wealth.

Question 5

Define Spatial Division of Labour

Answer 5

The common practice among large firms of moving low skilled work abroad to places where labour costs are low, establishing factories and call centres in poorer countries. Important skilled jobs (e.g. Management and research) are retained at the firms headquarters in its country of origin.

Question 6

Define Development Gap

Answer 6

The difference I’m levels of economic and social well-being between the richest and poorest people on the planet.