The Development Gap Flashcards
Five categories of wealth?
Rich industrialised countries
Oil-exporting countries
Newly industrialising countries
Former centrally planned economies
Heavily indepted poor countries
First world?
Europeans
Second world
Wealthy regions
North America
Australia
Third world
Poorer countries
Fourth world
Poorest countries
Declining in economic growth
NIC?
Newly industrialising countries
Developing areas
Invisible trade
Work force, services, financial industry
Visible trade
Goods that you will buy and sell
Trade surplus
You are selling more than you need to buy- you make more money
Trade deficit
You are spending more money than you are making - you lose money
Why does most trade take place between wealthier countries?
MEDC’s can afford tariffs
Good infrastructure to move raw materials
Manufactured goods more expensive to buy
Trading blocks
Primary products…
Tend to be low in price
Prices can fluctuate
Output can decline
Manufactured goods…
Greater value- sell at a higher price
Prices tend to increase
Markets are protected- trading block
Government (bilateral) aid?
Richer country –> poorer country
Ledc has to buy goods from donor
Multilateral aid?
By organisations- world bank imf
