Pg. 144-165 Flashcards
What is wealth?
Production, distribution and consumption
Economic indicators do what?
Compare the wealth of countries
What is purchasing power parity? (PPP)
Measures the quantity of goods and services that can be bought in each country, in a given currency
What is Gross Domestic Product? (GDP)
It measures the wealth created in a given year, based on goods and services produced
What’s Gross National Income? (GNI)
The average income earned by a country’s population
What is inflation?
The increase in price of goods and services for a given period of time
What is the Human Development Index? (HDI)
Takes into account aspects related to individual well being and ability like health income and education of a population
What is economic growth?
An increase in production volume
What factors cause economic growth?
productivity Investment growth International trade Improved production techniques Population growth Consumers purchasing Education and qualification
What are the Asian dragons and tigers?
Asian countries that have experienced extremely rapid economic expansion
What are causes of globalization?
More communication and transportation
Free trade zones
Liberalization of trade
Multinationals
What are advantages of globalization?
Diverse products
Lower prices
International division of labour
What are disadvantages of globalization?
Interdependence between trading nations
Inequalities between developed and undeveloped states
Relocation to places with cheap labour
Competition between industries
What is the IMF?
International Monetary Fund
What is the IMFs goal?
To obtain global stability by loaning money to countries, giving advice, assistance and training.
Resources cause?
Disparity of wealth since they’re unequally distributed
Why won’t a country get rich from their natural resources?
Lack of money
Foreign companies take their profits
Market fluctuations
What inequalities does wealth cause?
Unequal income gap
Urban rural gap
Gender inequalities
Do all countries benefit from globalization?
No, underdeveloped countries are taken advantage of and exploited by rich countries
What advantages do developed countries have for investors?
- cheap labour
- no labour laws
- less environmental standards
Who is in the best place to take advantage of globalization?
Multinationals
What do you need to benefit from globalization?
A solid economy
Good governance
Effective social policies
International influence
What is colonialism?
When a territory is occupied and exploited by a territory that’s foreign.
What is the main benefit of colonialism?
Economic. The mother country gets all the profits even if it goes against the colonies wishes.
