pt2 Flashcards
(105 cards)
What is GDP?
Gross Domestic Product – the total value of the economy per year.
What is GNI?
Gross National Income – the total value of all goods and services produced in a country per year, including income from abroad.
What is the poverty line defined as (2015)?
Living on less than $1.90 per day.
What is the development gap?
The difference in levels of development between the richest and poorest countries.
What was the Brandt Line?
A 1980 map dividing rich countries (north) from poor countries (south).
What is the development continuum?
A scale showing changing levels of wealth and development from low to high income countries.
How does the World Bank classify countries by income?
High Income: >$12,736, Upper Middle: $4,126–$12,735, Lower Middle: $1,026–$4,125, Low Income: <$1,025.
What is globalisation?
The free flow of goods, people, ideas and money, making the world increasingly interconnected.
What are exports?
Goods that are sold to other countries.
What are imports?
Goods that are purchased from other countries.
What is infrastructure?
Essential services and facilities like roads, airports, and water supply.
What is interdependence?
When countries are economically, culturally, politically, and socially connected and depend on each other.
What is an MNC?
A Multi-National Company – a large company with branches in several countries (e.g., Nike).
What are tariffs?
Taxes placed on imported goods.
What are quotas?
Limits on the amount of goods a country can import/export in a year.
What are subsidies?
Government money given to industries to reduce costs.
What are trade blocs?
Groups of countries with free trade agreements (e.g., EU).
What is enclave tourism?
Tourism where activities are confined to one area, usually benefiting MNCs more than locals.
How do HICs contribute to uneven development through trade?
They pay low prices for raw goods and set quotas/tariffs limiting LIC profits.
Why do LICs earn less from trade?
They export low-value goods and rely on only a few crops, making them vulnerable.
How do MNCs contribute to uneven development?
Profits return to HICs; workers in LICs earn low wages.
Why are LICs vulnerable to natural disasters?
They rely on few crops, so one disaster can destroy income.
What impact do tariffs and quotas have on LICs?
They protect HIC markets and make it hard for LICs to compete globally.
How do HICs benefit from global trade?
They export manufactured goods, earn more income, and afford better healthcare.