1. Developing Countries Ch
Developing Countries Ch. 17 Notes The best way to improve the lot of impoverished people in all nations is with economic growth and development.

2. A developing country is a country whose average per capita GNP is a fraction of that in more industrialized countries.
About a billion people worldwide live on the equivalent of less than a $1.00 a day.

3. Obstacles to economic development in developing countries.
1. Population Growth – this grows at a rate much faster than the population of industrialized countries. More people to feed and greater demand for services like education and health care.
2. Natural Resources and Geography – limited natural resources, such as unproductive land, harsh climates, and scarce energy needed for industry, also can hinder economic growth.
3. Disease and Substance Abuse – health is a major problem. Families have lost their primary income providers due to Aids, bird flu, illegal drugs.

4. 4. Education and Technology – lack literacy and high level of technical skills needed to build an industrial society.
5. External Debt – money borrowed from foreign banks + governments. They may never be able to repay the loans on the interest on the loans.
6. Corruption – this is harmful because it redirects resources into less productive uses. It also makes a few people rich while robbing everyone else.
7. War & It’s Aftermath – Civil wars lead to loss of life, prosperity and damage to infrastructure. Use of chemical weapons and land mines destroy the land.
8. Capital Flight – Legal or illegal export of a nation’s currency and foreign exchange. Destroying their currency to get currency with a higher value (Dollars)

5. Globalization Economic Challenges
Ch. 18 section 1 and 2 Notes

6. Globalization Characteristics and Trends
Globalization is taking place due to voluntary decisions we make as consumers
-we buy products from around the world and we want cheap prices
Examples of Globalization include the following:
1. people buying foreign products
2. firms expanding operations on a global
scale to cut expenses (labor expenses)

7. Fair Trade vs. Free Trade
Free Trade: no trade barriers (tariffs or quotas) between trading nations
Fair Trade: calls for reform to international trade in which everyone has an equal chance to benefit and every worker has a chance to earn a livable wage. It does not allow for companies to take advantage of cheap labor and natural resources in other countries

8. Global Production
Multinational is when a company conducts business in more than one country EXAMPLE: Ford headquarters is in Dearborn Mi. but has operation facilities around in the world (Canada, China, India) Outsourcing- when a company hires an outside firm to complete specific tasks -outsourcing is another way for a business to lower costs of production, which leads to lower prices for their products -Examples: Apple hiring workers in India for tech support School districts hiring bus drivers/custodians from an outside company

9. The Demand for Resources
Nonrenewable resources – resources that cannot be replenished once they are used
Examples: oil (fossil fuels), natural gas, coal
OPEC- Organization of the Petroleum Exporting Countries
-The members are Algeria, Angola, Ecuador, the Islamic Republic of Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates & Venezuela.
-they control the price of oil because they are the main producers of oil for the world market
-they are a monopoly and with more industrialization (India & China), there is more competition for oil. Therefore, we are paying higher prices for the oil that we purchase for use in the United States