Wealth Flashcards
(23 cards)
What is PPP used for ?
PPP is the method used to contextualize a comparison of the world’s economies ,what money will buy and how much is needed.
What is the difference between GDP and GDP per capita?
GDP measures the wealth created in a year , where as GDP per capita measures the standard of living and gives a value to a populations Purchasing Power
What is Inflation?
Inflation is the economic imbalance due to a rise in the price of goods and services which leads to a drop in purchasing power
What is the Human Development Index ( HDI )
The HDI intergrates several series of data too take into account the income, health and the level of education of a states population.
What’s a good/ bad HDI number ?
HDI numbers vary from 0 ( meaning your country’s deplorable ) to 1 meaning your country’s exellent ( economically speaking )
What kind of HDI number do developed countries and least developed have?
Least developed countries or developing countries may have an HDI of 0.5 or lower and Developed countries have an HDI of 0.8 or higher
Who are the Triad countries ? and why ?
North America , Western Europe & Japan
They experienced the strongest growth after WWII
What are the Asian dragons ?
the asian dragons are the four countries to experience extremely rapid economic expansion.
Who are the Asian dragons ?
Taiwan, Singapore, South Korea and Hong Kong
Which Economic indicator measures the value of a country’s wealth created in a year ?
Gross Domestic Product (GDP )
Which Economic indicator is a monetary tool used to compare the evolution of an economic indicator over time , without taking into account inflation ?
The Constant Dollar
Which Economic indicator is an average level of income per person including investments and foreign income
Gini Per capita
Which Economic indicator is a method used to compare the economies of two countries that don’t have the same cost of living ?
Purchasing Power Parity ( PPP )
What 3 elements are required in order for a state to benefit from Globaliation?
1- A solid economy
2- Good governance
3- Effective social policies
Why are inequalities less obvious in industrialized countries than developing countries?
Industrialized countries tend to have social nets in place even when they are not a welfare state. There’s also less demand for charitable resources and for social programs so fewer are to take a larger portion of what exists
Name two causes that lead to economic globalization
- Goods and Services
- Trade flows
Name at least two characteristics of countries with an emerging economy + an example
1- Rapid economic growth based on Industrialization
2- Reliance on exports
3- Uneven development of territory
ex: Brazil, India , China and Russia
what are 2 factors that prevent developing countries from getting rich off their resources ?
1- Developing these natural resources is too costly
2- Economies of some countries are based too heavily on their natural resources. Which places them at the mercy of international market fluctuations.
what is globalization ?
Globalization is the exchange of goods and services on a global scale. I also refers to the interdependance of countries in all areas.
What are some advantages of globalization
- Diversifaction of products and services available on the market
- Lower prices
- internatinal division of labour
What are some disadvantages of globalization
- Increased interdependance of trading nations
- increased inequalities between developed and developing countries
- relocation of certain industries to places where cheap labour is available
what does the International Monetary Fund ( IMF ) do ?
- They oversees global economic stability
- They give loans to countries in financial difficulty
- offers economic advice to member states
- provides technical assistance and training
What is Neocolonialism
Neocolonialism is when a mother country exercises influence over a country.
