Economic Barriers
Lower-income countries tend to have larger __________ sectors of the economy.
What is the informal sector?
May allow the owner to use a good or resource for consumption, to generate income, or transfer it to someone else.
What is a property/land right?
Countries that have no direct access to the sea, which prevents integration with global trade
What are landlocked developing countries
When countries remove barriers to trade such as subsidies , tariffs , quotas and administrative barriers.
What is trade liberalization?
Small loans for people to start up or continue to finance a small-scale business.
What is micro-credit?
-inelastic PED and PES lead to price volatility
-Uncertainty leads to less investment in a country
-Lack of diversity in industry creates dependence on sector- easy for things to go wrong
Why is dependence on the primary sector a barrier to economic growth?
Participatory, Consensus-oriented, Accountable, Transparent, Responsive, Effective and efficient, Equitable and inclusive, Follows rule of law
What is main principles of good governance?
_____________ _________ are attitudes, values, perceptions, assumptions, beliefs and expectations that affect system structures and patterns of behaviour.
Mental models
A development strategy where an ELDC country switches away from imported manufactured goods and develops a industrial base to produce these products in their own country.
What is import substitution
____ aid is conditional on the receiving country making special arrangements with certain businesses from the donor developed country, or where it must agree to only trade certain goods and services with that donor country
What is tied aid?
Unreliable sources of electricity make it difficult and costly to manufacture in an area
Poor transportation increases costs and lowers efficiency for business
Why is lack of infrastructure a barrier to economic development?
Weak institutions, treating people differently under the law, corrupt elections are all signs of...
Poor governance
Importing different cultures, damage to the environment, and overcrowding can be considered drawback to which economic development strategy?
Tourism
Saturation of the manufactured goods market, protectionism retaliation, unsustainable growth, negative externalities, and rising income inequality
What are some disadvantages to export promotion?
DOUBLE JEOPARDY:
Provides direct support for regions that are currently experiencing difficulties that prevent people from fulfilling their basic needs.
Name the country (in South Asia) that received humanitarian aid after an earthquake in 2015 primarily by India.
What is humanitarian aid?
Where is Nepal?
According to the United Nations Conference on Trade and Development (UNCTAD), low-income countries are reliant on primary products for approximately this much of their countries' incomes.
What is more than 60%? or What is approximately 2/3 of their income?
Forms of corruption (name 3)
Name any 3
Bribery, extortion, embezzlement, nepotism, or graft
This country is made up of 7,000+ islands as an archipelago. This makes infrastructure development difficult, increasing transportation costs for many goods- which country is this?
What is the Philippines?
Increased competition from foreign firms should lower prices for consumers, improve the quantity and quality, improve productive efficiency, greater choice of products, and access natural resources and technologies that are not available in its own country.
What is benefits of increased imports?
This strategy focuses on the removal of trade barriers, floating exchange rates, and in some cases the use of subsidies.
What is export promotion?
Who is the ‘lender of the last resort’ in the world banking sector?
Who is the IMF?
This measure is often used to compare levels of corruption between countries
What is the corruption perception index?
Afghanistan, Azerbaijan, Chad, Ethiopia, Kazakhstan, Paraguay, Republic of Moldova, Zimbabwe, Mali, Kyrgyzstan and Bhutan
What are examples of landlocked developing countries?
These four countries in this group used the strategy export promotion to boost their industries' competitiveness and greatly reduce poverty.
Where are Hong Kong, Singapore, South Korea, and Taiwan? Who are the Asian Tigers?
This initiative provides debt forgiveness from some bilateral and multilateral debt for countries with the worst debt-to-GDP ratios
The Highly-indebted Poor Countries initiative (HIPC)