Chapter 9 (Not Included in Final Exam)

Chapter 9 (Not Included in Final Exam) - 11/17/2010 Chapter...

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11/17/2010 1 Chapter 9 Understanding Emerging Markets Advanced economies are post-industrial countries characterized by high per capita income, highly competitive industries, and well-developed commercial infrastructure. Examples - Australia, Canada, Japan, New Zealand, the United States, and Western European countries. Developing economies are low-income countries characterized by limited industrialization stagnant economies . Examples - e.g. Bangladesh, Nicaragua and Zaire. Emerging market economies are a subset of former developing economies that have achieved substantial industrialization, modernization, improved living standards and remarkable economic growth . Examples - e.g. Brazil, Russia, India, China (so called BRIC countries). Country Classification
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11/17/2010 2 For operational and analytical purposes, the World Bank’s main criterion for classifying economies is gross national income (GNI) per capita. Based on its GNI per capita, every economy is classified as low income, middle income (subdivided into lower middle and upper middle), or high income. Other analytical groups based on geographic regions are also used. WORLD BANK COUNTRY CLASSIFICATION There is no established convention for the designation of "developed" and "developing" countries or areas in the United Nations system. In common practice, Japan in Asia, Canada and the United States in northern America, Australia and New Zealand in Oceania, and Europe are considered "developed" regions or areas. In international trade statistics, the Southern African Customs Union (SACU- Botswana, Lesotho, Namibia, South Africa and Swaziland) is also treated as a developed region and Israel as a developed country; Countries emerging from the former Yugoslavia are treated as developing countries; and Countries of eastern Europe and of the Commonwealth of Independent States in Europe are not included under either developed or developing regions United Nation Classification Source: United Nations Statistics Division, 2010
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11/17/2010 3 1. A low-income criterion 2. A human resource weakness criterion based on indicators of: (a) nutrition; (b) health; (c) education; and (d) adult literacy; and 3. An economic vulnerability criterion based on indicators of: (a) the instability of agricultural production; (b) the instability of exports of goods and services; (c) the economic importance of non-traditional activities (share of manufacturing and modern services in GDP); (d) merchandise export concentration; and (e) the handicap of economic smallness (as measured through the population in logarithm); and the percentage of population displaced by natural disasters Least Developing Countries (LDCs)
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11/17/2010 4
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11/17/2010 5 Mature state of industrial development; Transitioned from manufacturing economies into service-based economies. Home to 14% of the world’s population,
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Chapter 9 (Not Included in Final Exam) - 11/17/2010 Chapter...

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