Ibus 44o2 copy Flashcards
1
Q
What is a characteristic of Brazil’s economy?
A
Largest economy in South America with a 2.8% annual GDP growth in 2024 and projected for 2025
Brazil has experienced economic upheaval and has a higher unemployment rate at 6%, which is a 20-year low.
2
Q
What are some issues related to deforestation in Brazil?
A
Political issue involving clearing the Amazon for wood, cattle, and crops
This includes practices like illegal gold mining and cattle laundering.
3
Q
What challenges does Amazon face in delivering products in Brazil?
A
- Security issues
- Poor infrastructure
- Inefficient postal system
- Lack of proper addresses
Walmart and Amazon partner for security due to the poor system.
4
Q
What is the significance of the Amazon in Brazil’s economy?
A
Provides a cattle supply chain and exports crude oil, sugar, and soybeans
It is a critical area for agricultural and resource extraction.
5
Q
What are some signs of a developing country?
A
- Half-constructed buildings
- Colonial architecture
- Poor infrastructure
- High unemployment
These factors contribute to the challenges faced in business operations.
6
Q
What is a characteristic of developing countries’ economies?
A
Low Human Development Index (HDI) and high tariff rates
Many developing nations rely heavily on state-owned enterprises and have large informal sectors.
7
Q
What is a common cultural trait in developing countries?
A
Polychronic time and collectivism
This means that relationships often take precedence over strict adherence to schedules.
8
Q
What is the primary sector in developing countries?
A
Fishing and raw materials extraction
Many developing countries are stuck in the primary sector with low productivity.
9
Q
Fill in the blank: The _______ is a model of economic growth that emphasizes manufacturing and services.
A
Tertiary sector
10
Q
What is a challenge faced by developing countries regarding financial systems?
A
Large unbanked populations and lack of capital formation
This leads to difficulties in accessing loans and financial instruments.
11
Q
What is a demographic characteristic of developing countries?
A
Higher birth rates and younger populations
However, this can vary, as seen in Brazil’s declining birth rate.
12
Q
What is a major issue regarding infrastructure in developing countries?
A
Poor transportation and security issues
This affects the ability to efficiently move goods in and out of the country.
13
Q
What is the role of corruption in developing countries?
A
Corruption and bribery become part of the system
This is often linked to lack of transparency and institutional voids.
14
Q
What is the significance of the demographic dividend in Africa?
A
Youth populations spur economic growth
This is particularly evident in rapidly urbanizing areas.
15
Q
True or False: The World Bank has an official definition of a developing country.
A
False
The UN also does not have an official definition despite many countries being labeled as such.
16
Q
What is the impact of informal economies in developing countries?
A
High levels of unregulated economic activity
This can include street vendors and under-the-table work contributing to the economy.
17
Q
What are some examples of data used to compare countries?
A
- Electricity consumption per person
- Paved roads percentage
- Newspapers and radios per 1000 people
- Doctors per 100,000 people
These metrics provide insight into the socioeconomic status of countries.
18
Q
What is the challenge of measuring economic activity in developing countries?
A
Income per capita does not reflect wealth inequality
Countries with high corruption and informal economies may appear differently when only using this metric.
19
Q
What is a significant barrier to healthcare in developing countries?
A
Limited access to healthcare and higher death rates
This results in lower life expectancy and challenges in population health.
20
Q
What is the impact of colonial legacies on developing countries?
A
Influences on cultural and economic structures
This can lead to challenges in governance and economic development.
21
Q
What is the primary sector’s role in economic activity?
A
It refers to industries focused on natural resources
Many developing countries struggle to move beyond this sector.
22
Q
Fill in the blank: The _______ sector involves services and is crucial for economic growth.
A
Tertiary
23
Q
What category did India and Nepal move up to?
A
Upper Middle category
This change is attributed to improvements in economic indicators.
24
Q
What caused Ukraine to move into the Upper Middle category?
A
Population reduction leading to GNI per capita spread over fewer people
Ukraine lost 15% of its population.
25
List some comparisons used for countries in the analysis.
* Electricity consumption per person
* Paved roads %
* Newspapers (per 1000 people)
* Radios (per 1000 people)
* Computers (per 1000 people)
* Doctors (per 100,000 people)
* TB rates
* Low birthweight rates
26
What is a common concern in poorer countries?
High concern for basic needs
## Footnote
This reflects the prioritization of survival over other aspects.
27
True or False: Poorer countries tend to be more individualistic.
False
## Footnote
Poorer countries are generally more collectivist.
28
What are some characteristics of countries with weak institutions?
* People help one another to fill institutional voids
* Possible emergence of gangs or warlords
* Life expectancy is lower
* Higher prevalence of disease
* Quality of life is lower
29
Which country is mentioned as having high income inequality?
South Africa
30
What is the median age in Sub-Saharan Africa?
19
31
Fill in the blank: The _____ hypothesis suggests that geography influences development.
[geography]
32
What distinguishes inclusive from extractive colonies?
Inclusive colonies build infrastructure for local trade, while extractive colonies focus on resource extraction for the colonizer.
33
What was a significant factor in Korea's development post-war?
Development of strong institutions
34
Name a country that describes itself as a developing country for strategic benefits.
China
35
True or False: Venezuela has strong institutions despite its natural resources.
False
## Footnote
Venezuela has weak institutions and strict authoritarian governance.
36
What are some factors that contribute to a country's development?
* Colonization
* Geography
* Natural resources
* Trade access
* Policy/governance
37
What hypothesis suggests that good institutions lead to greater development?
[institutional]
38
What did the 2016 study reveal about state-owned enterprises (SOEs) in China?
The central government owns 51,000 SOEs, valued at USD 29.2 trillion.
39
What are the two types of legal systems mentioned?
* Common law
* Civil law
40
What impact does ethnic favoritism have in former colonies?
It can lead to social inequality and conflict.
41
What is path dependency in the context of development?
Historically formed institutions determine future institutional possibilities.
42
Fill in the blank: Developing countries are often on the '_____ side' of the great divergence.
[wrong]
43
What is a significant challenge for entrepreneurship in developing countries?
Lack of large companies and skilled workers.
44
What is the role of informal economies in developing countries?
They often lack legal protections and do not contribute significantly to job creation.
45
What is the function of hybrid infrastructure?
Combines natural and man-made elements for enhanced resilience.
46
What is one major risk factor for infrastructure in developing countries?
Increasing frequency of natural disasters.
47
What was the first wave of globalization characterized by?
Involvement of emerging markets primarily in the primary sector.
48
True or False: The second wave of globalization is associated with protectionism.
False
## Footnote
The second wave is characterized by renewed global trade and openness.
49
What are developing countries at risk of regarding infrastructure?
Developing countries are the most at risk due to weaker institutions and finance
## Footnote
They struggle to recover effectively from natural disasters.
50
What is hybrid infrastructure?
Hybrid infrastructure is a combination of natural and man-made elements
## Footnote
Example: a living shoreline combined with a sea wall.
51
Why is infrastructure not to be thought of in isolation?
Infrastructure has economic, social, and environmental effects and many connections
## Footnote
A bridge can connect healthcare systems to neighborhoods.
52
What is a major challenge in infrastructure maintenance?
The hardest part of infrastructure is maintenance.
53
What were the consequences of the Cross Bronx Expressway?
It cut the Bronx in two, depressed property values, and increased asthma rates due to air pollution.
54
How can effective stakeholder engagement be defined?
A two-way process that involves listening and taking feedback from the community.
55
What is the benefit-to-cost ratio of investing in resilience?
The benefit is $4 for each $1 invested.
56
What is one aspect of infrastructure that makes it difficult to fund?
Developing countries often lack sufficient tax revenue due to large informal sectors.
57
What are the social effects of infrastructure?
Labor force efficiency, clean water, housing, healthcare, electricity, and transportation.
58
Fill in the blank: Infrastructure is typically a ______ term.
capital good
59
What is the significance of property rights in infrastructure development?
Good institutions, like property rights, support infrastructure needs.
60
What role does infrastructure play in economic development?
Infrastructure serves as a space shrinker and market enlarger, facilitating trade and access to markets.
61
What is a key characteristic of traditional infrastructure?
It typically serves a limited function, such as getting people to their homes.
62
How does natural infrastructure differ from grey infrastructure?
Natural infrastructure can produce diverse economic, social, and environmental benefits.
63
What is a challenge of calculating cost-benefit for infrastructure?
The future does not reflect historical trends anymore.
64
What is one reason many emerging market infrastructure projects fail?
Political risk and corruption.
65
What is Debt Trap Diplomacy?
Loans with high interest rates that can lead to dependency on the lender.
66
What does the term 'networked' refer to in the context of infrastructure?
Infrastructure is frequently interconnected, affecting various systems.
67
What is a negative externality of infrastructure development?
Displacement of local communities.
68
True or False: Infrastructure is consumed directly.
False.
69
What is the impact of infrastructure on the labor market?
It enlarges the labor market by improving access to jobs.
70
What does the term 'lumpy' mean in relation to infrastructure?
Infrastructure demand is incremental; you either have none or a complete structure.
71
How can stakeholder engagement improve infrastructure projects?
By consulting local populations to ensure their needs are met.
72
What are some natural infrastructure examples?
Biowalks, mangroves, and other nature-based solutions.
73
Fill in the blank: Effective infrastructure is designed with ______ in mind.
the future
74
What is the impact of climate change on infrastructure investment needs?
Weather-related natural hazards will increase the demand for resilient infrastructure.
75
What are public-private partnerships?
Collaborative agreements between government and private sectors to fund infrastructure.
76
What has been a major issue in the Philippines regarding infrastructure?
Building infrastructure to accommodate increased risk from rain and storms.
77
What are the challenges associated with retrofitting existing infrastructure?
It is very expensive compared to building new infrastructure.
78
What is one effect of improved infrastructure on innovation?
It enlarges the 'ideas' market, leading to more innovation.
79
What is a significant factor in infrastructure failure related to governance?
Weak rule of law and unenforceable contract rights.
80
True or False: Infrastructure can create natural monopolies.
True.
81
What does 'nature-based solutions' refer to?
Using natural elements to enhance resilience and mitigate hazards.
82
What is the significance of consulting local communities in infrastructure projects?
It ensures that the projects are developed according to the needs and safety of the local population.
83
What is the connection between the rule of law and GDP growth?
Higher GDP growth is associated with a well-established rule of law
## Footnote
The effectiveness of laws and their enforcement mechanisms play a crucial role.
84
What is law extensiveness?
The number of laws present in a legal system
## Footnote
It relates to how comprehensive the legal framework is in a country.
85
What is a common problem in developing countries regarding laws?
Enforcement mechanisms are typically lacking
## Footnote
Developing countries may have laws but struggle to implement them effectively.
86
What can big corporations do in developing countries with weak institutions?
They can create their own institutions
## Footnote
This can help mitigate the effects of weak governance.
87
What is minority shareholder exploitation?
When family controls a large portion of a publicly traded company, leading to a lack of agency for minority shareholders
## Footnote
This is a common issue in developing countries.
88
How does weak institutional adherence affect innovation?
It may lead to reliance on relationships and corruption, resulting in slow growth and low innovation
## Footnote
Lack of reliability discourages investment from outsiders.
89
What makes good governance attractive to investors?
It reduces risk and is less subject to catastrophic failures
## Footnote
Good governance contributes to market stability.
90
What are the benefits of good corporate governance?
* Supports market-based models
* Lowers cost of capital
* Provides access to financing
* Improves stakeholder relationships
* Enhances operational performance
* Integrates into global value chains
## Footnote
Companies like Apple avoid countries with poor governance due to reputational risks.
91
What are the levels of governance?
* National governance systems
* Firm-level governance
## Footnote
Evidence shows that voluntary governance mechanisms are less effective in weak governance systems.
92
What does corporate governance rely on?
* Legal and judicial systems
* Property rights
* Creditor rights
* Shareholder rights
* Corruption levels
* Transparency
* Financial institutions
## Footnote
Enforcement abilities are also critical.
93
What is the agency problem in developed countries?
Conflicts between managers and shareholders
## Footnote
Managers may prioritize short-term gains over long-term sustainability.
94
What characterizes ownership structure in emerging markets?
Concentrated ownership, often family-owned or controlled by financial institutions
## Footnote
This differs from the more dispersed ownership typically seen in developed countries.
95
What are the pros of family ownership?
* Quick decision-making
* Long-term focus
* Competitive advantage
## Footnote
However, it can also lead to lack of transparency and nepotism.
96
What are the cons of family ownership?
* Lack of transparency
* Nepotism and favoritism
* Competitive disadvantage
## Footnote
This can also block resources from other companies.
97
What is the role of business groups in developing countries?
They provide networks and resources to compensate for weak institutions
## Footnote
Business groups can facilitate access to capital and information.
98
What are the potential issues with state-owned firms?
* Underperformance
* Low profitability
* Concentration in capital-intensive industries
## Footnote
These issues can stem from inefficiencies and lack of market competition.
99
What are the types of convergence in corporate governance?
* Functional
* Formal
* Contractual
## Footnote
These types push companies towards better governance standards.
100
What are red flags in corporate governance?
* Excessive power of executive leadership
* Lack of accountability
* Complex organizational structures
## Footnote
Indicators of potential governance failures.
101
How do business groups fill institutional voids?
* Providing access to capital
* Offering in-house training programs
* Promoting brand recognition
## Footnote
They help navigate weak market structures.
102
What are the characteristics of business groups?
* Legally independent firms
* High involvement between owners and managers
* Ability to tailor incentives
## Footnote
They often have complex ownership and management structures.
103
What does diversification in business groups potentially lead to?
Creating inefficiencies and a conglomerate discount
## Footnote
This can occur when companies drift from their core competencies.
104
What are the advantages of concentrated ownership in weak institutional environments?
* Trust and relationships substitute for enforceable contracts
* Improved access to information through networks
## Footnote
This is particularly crucial in developing countries.
105
What challenges does Indonesia face in becoming a superpower?
* Poor infrastructure
* Weak institutions
* Social issues
## Footnote
These factors hinder its economic development despite its potential.
106
What is the primary reason for smelting nickel in Indonesia?
Little control over the pollution
## Footnote
The environmental impact of nickel smelting is a significant concern.
107
What exception do smelters have in Indonesia regarding coal-fired power plants?
Smelters are exempt from cuts in coal-fired power plants
## Footnote
This creates a challenge in reducing overall emissions.
108
What is the current situation with Jakarta in terms of its capital?
Jakarta is sinking, prompting plans to move the capital to another island
## Footnote
This highlights issues of urban planning and disaster response.
109
What potential social issue arises from moving the capital of Indonesia?
Greater wealth division
## Footnote
There is concern that the poor may remain in the old capital while the wealthy move.
110
How does Indonesia rank on the corruption perception index?
High on the corruption perception index
## Footnote
This indicates significant challenges in governance and accountability.
111
What is a major barrier to implementing sustainable practices in developing countries?
Sustainability is expensive and resources are limited
## Footnote
Financial constraints hinder the ability to invest in sustainable practices.
112
What role does waste management play in sustainability?
Requires strong infrastructure and institutions
## Footnote
Effective waste management is essential for sustainable development.
113
What cultural factor affects sustainability awareness in developing countries?
Low civilian awareness around sustainability
## Footnote
Many people do not prioritize recycling or waste management due to cultural habits.
114
Fill in the blank: The people who benefit from polluting systems are the _______.
oligarchs
## Footnote
This highlights the power dynamics in resource management.
115
What is a significant challenge in enforcing environmental regulations in developing countries?
Weak institutions and law enforcement
## Footnote
Even with regulations, enforcement is often ineffective.
116
What global issue is exacerbated by rapid urbanization?
Deforestation, slums, urban sprawl, pollution
## Footnote
These factors contribute to environmental degradation.
117
What is a key challenge for developing nations in balancing industrialization and environmental protection?
Limited resources both financial and technologically
## Footnote
This creates a conflict between economic growth and environmental sustainability.
118
What is one potential solution to improve sustainability in developing countries?
Carbon trading
## Footnote
This can provide financial incentives for reducing emissions.
119
What does the Environmental Burden equation EB = P x A x T represent?
EB = Environmental Burden, P = Population, A = Consumption, T = Technology
## Footnote
This formula helps in understanding the impact of population and consumption on the environment.
120
True or False: As countries become wealthier, the climate problem becomes less significant.
False
## Footnote
Wealthier nations often have higher carbon footprints.
121
What is Kenya's approach to sustainable energy?
81% of electricity from low carbon sources
## Footnote
Kenya utilizes geothermal, wind, and solar energy extensively.
122
What geographical advantage does Kenya have for wind energy?
East Africa wind valley
## Footnote
This location allows for effective wind energy generation.
123
What are some challenges faced by developing countries?
Soil degradation, deforestation, contamination of water, overfishing, air pollution, slums, population growth
## Footnote
These issues are interconnected and impact sustainable development.
124
What is a significant benefit of cell phone ownership in developing countries?
A 10% increase in cell phone ownership boosts GDP per capita by 1% per year
## Footnote
This highlights the role of technology in economic development.
125
What is the Triple Bottom Line?
People, profit, planet
## Footnote
This framework emphasizes the importance of social and environmental goals alongside financial performance.
126
What is a B Corp?
Benefit corporation certified by B Lab
## Footnote
B Corps must meet high standards of social and environmental performance.
127
Fill in the blank: The circular economy aims for a closed loop cycle where there is no _______.
waste
## Footnote
This concept promotes sustainability through resource efficiency.
128
What can hinder the success of debt-for-nature swaps?
Need for stable currency and long-term commitment
## Footnote
These financial arrangements require careful planning and execution.
129
What is one of the main reasons for the difficulty in transitioning away from coal?
High cost of transition and sunk costs in existing infrastructure
## Footnote
Transitioning to renewable energy can be economically challenging.
130
What is the main ethical dilemma faced by multinationals in developing countries?
The choice to use child labor or pay very low wages due to the lack of power in the developing country
## Footnote
Multinationals must navigate the ethical implications of local practices versus home country standards.
131
What does moral relativism imply?
The idea that moral standards can vary between cultures and situations
## Footnote
This concept raises questions about the universality of ethics.
132
Define Maslow’s hierarchy of needs.
A motivational theory depicted as a pyramid with five levels: physiological, safety, belonging and love, esteem, and self-actualization
## Footnote
Often used in management to understand employee motivations.
133
List the five levels of Maslow's hierarchy of needs.
* Physiological needs
* Safety needs
* Belonging and love needs
* Esteem needs
* Self-actualization
134
What is the ethical challenge presented by local standards in developing countries?
Determining whose standards to follow when local standards are lower than home country standards
## Footnote
This poses a dilemma for businesses operating internationally.
135
What is regulatory arbitrage?
The practice of moving to countries with looser laws or lower tax codes to reduce operational costs
## Footnote
This raises ethical questions about the implications of such business decisions.
136
What was the SS United States known for?
It was the fastest cruise ship to cross the Atlantic and one of the most luxurious of the 1950s
## Footnote
The ship faced ethical issues when refurbishing due to asbestos removal.
137
What did Polaroid do in response to ethical concerns about apartheid?
They pushed for change by launching education programs and made donations to education in South Africa
## Footnote
This was part of a broader effort to address their complicity in the regime.
138
What are the three conflicting approaches to ethics?
* Moral Relativism
* Imperialism
* Integrated approach
139
What is utilitarianism in ethical decision-making?
The principle of doing whatever leads to the most good for the most people
## Footnote
This framework focuses on the outcomes of actions.
140
What is Kantian ethics based on?
The belief in intrinsic dignity and human rights, advocating for equal treatment of all individuals
## Footnote
This approach emphasizes making the right choices regardless of outcomes.
141
What is virtue ethics?
An ethical framework based on the idea that good people should do virtuous things
## Footnote
It focuses on moral character rather than specific actions.
142
What is ethical (cultural) relativism?
The view that moral standards are relative to cultures and should be followed accordingly
## Footnote
This perspective has been rejected for failing to account for universal human rights.
143
What is the integrative social contracts theory?
A theory that balances universal ethical norms with local cultural standards
## Footnote
It emphasizes the importance of community impact in ethical decision-making.
144
What are hypernorms?
Global standards that dictate fundamental ethical behavior, such as no slavery and the right to a safe work environment
## Footnote
They are considered non-negotiable across cultures.
