south asia Flashcards
microcredit
Method of giving access of credit to impoverished households, specifically in Bangladesh
Collateral:
an item owned by a borrower that can be legally be taken away by the lender if there is failure to repay the loan
Muhammad Yunus
Came up with the Grameen Model
Grameen model principles:
- Group lending
- No group member is allowed more than one loan at a time
- Shared ownership of bank by borrowers
- every group member is responsible for the rest of the group’s loans
4 reasons for Grameen model high recovery rate
- Bank sends same employee every week to the village where the borrowers live in order to collect installments on the loan
- Members of each group have pressure to pay back their loans because if you don’t, no one else will be able to borrow again
- Women clients were more likely than men clients to pay back loans, so women are prioritized. Most borrowers are women for this reason
Bangladesh is extremely vulnerable to climate change both for geophysical and social reasons
- It sits on a flat and low lying landscape that’s crossed by three major river systems making the country vulnerable to storm surges and rising sea levels associated with climate change in the regions
Three main forms of foreign ownership that companies can take;
o Minority foreign ownership
o Majority foreign ownership:
o Full foreign ownership:
Minority foreign ownership:
company owns 50% or less of a business
Majority foreign ownership:
when a company owns more than 50% of a business
Full foreign ownership:
when a company owns 100% of a business
Foreign ownership: Global connections
existing connections between India and the global economy intensify as more foreign companies take advantage of the change in laws to tap into the large middle class market
What attracts manufacturers to India
educational structure… they have invested a lot in their post-secondary education system
Information economy
refers to sectors of the economy involved in the production and market exchange of all kinds of information and knowledge
eg.) advertising, publishing, ecommerce, ebusiness, web design, app development, education & training, telephone support & customer service, etc.
Offshoring
international outsourcing
Global connection of information economy:
large numbers of highly qualified Indian professionals have been migrating to North America over the past couple of decades to work in the regions financial and software development sectors
