Test Description: Development 2Instructions: Answer all questions to get your test result. Show
1) Development refers toAvalue of a product compared to the needed labor. Bvalue of the output of goods and services. Cdivision of jobs into different sectors Dimprovement in material conditions. 2) Which of the following is NOT a reason that gender inequality is a challenge to development?Ait is associated with lower literacy rates and higher infant mortality rates. Bit severely limits the economic and social mobility of women. Cit excludes women from the formal economy, wasting a major economic asset. Dit leads to smaller family sizes 3) The difference in per capita GDP between the more developed and less developed regions isAzero Bdecreasing Cconstant Dincreading 4) An example of a primary sector activity isAmanufacturing Bmining Cbanking Deducation 5) All but which of the following statements are correct?AThe primary sector accounts for a larger share of GDP for LDCs than MDCs. BThe HDI is a function of economics, social, and demographic indicators CLack of infrastructure is one factor that limits development in LDCs DThe higher the GDP of a country, the more equal its income distribution. 6) People are more productive in more developed countries because theyAhave a higher value added per person Bwork harder. Chave access to more technology. Dare better educated. 7) All of the following are considered more developed regions exceptANorth America BSouthwest Asia North Africa. COceania DEurope 8) Japan's principal asset for promoting development wasAan abundant supply of labor. Bhigh physiological density. Cextensive supplies of critical raw materials. Da favorable ratio of population to resources. 9) Southwest Asia North Africa shows promise of becoming more developed primarily because of what characteristic?Adesert climate. BIslamic religious principles Cdemocratic reforms Dabundant petroleum reserves 10) Development prospects are limited in Sub-Saharan Africa because of all but which of the following?Aoverworked agricultural land and declining output Bpoor leadership Cmonsoon rains Dcolonial legacy 11) According to Rostow's development model, the process of development begins whenAbanking institutions are sufficiently mature. Bworkers become more skilled and specialized. Ca high percentage of national wealth is allocated to non-productive activities. Dan elite group initiates innovative activities. 12) According to the international trade approach to development, a country should identify all but which of its following assets?Ainternational consumer preferences Babundant agricultural products Cabundant mineral resources Dimports to be limited 13) The biggest problem faced by less developed countries in financing development isAcurrency inflation. Bconfrontation with more developed countries. Cpromoting self-sufficiency. Dinability to repay loans. 14) The biggest problem in promoting development through the international trade alternative isAincreased price of petroleum. Bincreased demand for many goods. Cunequal distribution of resources. Dregional cooperation. 15) Most of the developed nations in the world:AAre in the Americas Bare ruled by monarchs Care above the Equator Dare in Africa 16) The principal benefit of the self-sufficiency approach is to promoteAThe principal benefit of the self-sufficiency approach is to promote Bunequal distribution of resources. CThe principal benefit of the self-sufficiency approach is to promote Dthe maintenance of a large bureaucracy. *select an answer for all questions Play Games with the Questions Above Teachers: Create FREE classroom games with your questions Click for more info! SDG indicators Target 17.11: Significantly increase the exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020. Trade is recognized as a key factor for poverty reduction and economic growth in the 2030 Agenda -— In 2020, amid the economic fallout from the COVID-19 pandemic, the LDCs as a group registered their worst economic growth since the early 1980s. LDCs’ merchandise exports are estimated to have dropped by 6.1 per cent in 2020, and their exports of services by more than 35 per cent. The decline of LDC’s exports was largely due to the terms-of-trade effect. In volume terms, LDCs’ merchandise exports were down 4 per cent, compared to 5.5 per cent for world trade. Although several LDCs have broadened their export base, as many as 38 of them remain dependent on exports of commodities, like copper, cotton, and oil. Exports of commodities represent more than 70 per cent of merchandise exports of LDCs. The sharp decrease in commodity prices during the pandemic, such as oil and minerals, hit African commodity-dependent exporters particularly hard1. The value of African merchandise exports declined by 17.5 per cent in 2020, more than the drop in world exports (-7.2 per cent). The large dependence on trade as a driver of their economic growth, small domestic markets and low levels of diversification increase the vulnerability of these countries to external shocks (see Fostering productive capacities to graduate with momentum). The COVID-19 health crisis has temporarily slowed down the contribution of trade to the achievement of SDGsSustainable Development Goal, such as poverty alleviation, food security, and decent jobs. Although developing countries and LDCs experienced a rebound in trade in 2021, with growth of exports amounting to 30 per cent and 25 per cent, respectively, they continue to face additional challenges due to the 2022 war in Ukraine.
Greater challenges to world trade are posed by the war in UkraineIn 2021, world merchandise exports rose by 26.3 per cent compared with 2020 and reached a record high of US$22.3 trillion, exceeding their pre-COVID-19 level by 17 per cent.
Meanwhile, trade in servicesIn the international trade in services context, services are understood as the result of a production activity that changes the conditions of the consuming units or facilitates the exchange of products or financial assets -— However, this upward trend should be met with increasing uncertainty due to the conflict in Ukraine and the trade and financial sanctions imposed on the Russian Federation, as well as the lockdowns related to COVID-19 in China in the first half of 2022. The war in Ukraine has led to “a huge cost in human suffering and is
sending shocks through the world economy,” UNCTAD Secretary-General, Rebeca Grynspan, said in a statement on the situation in Ukraine -— Lower-income countries, in particular, are most exposed to price fluctuations and supply shocks in
agri-food markets. On average, more than 5 per cent of the import basket of the poorest countries consist of products that are likely to face price hikes resulting from the ongoing war in Ukraine. The share is below 1 per cent for richer countries. In 2018–2020, LDCs imported US$1.4 billion of Russian wheat (29 per cent of their total) and another $0.5 billion from Ukraine (10 per cent).
-— Russia also accounts for a quarter of global natural gas exports, one fifth of the global coal market and supplies more than 10 per cent of global crude oil. The hikes in fuel prices and disruption of supplies will
negatively impact net oil importers, in particular, heavily indebted countries poor countries, and a majority of CISCommonwealth of Independent States countries. According to the IMFInternational Monetary Fund estimates, an oil price hike of 5$ per barrel is expected to deteriorate trade balances of these countries by more than 1 per cent of
GDPGross domestic product (GDP) is an aggregate measure of production, income and expenditure of an economy. As a production measure, it represents the gross value added, i.e., the output net of intermediate consumption, achieved by all resident units engaged in production, plus any taxes less subsidies on products not included in the value of output. As an income measure, it represents the sum of primary incomes (gross wages and entrepreneurial
income) distributed by resident producers, plus taxes less subsidies on production and imports. As an expenditure measure, it depicts the sum of expenditure on final consumption, gross capital formation (i.e., investment, changes in inventories, and acquisitions less disposals of valuables) and exports after deduction of imports -— Tourism-dependent developing countries are likely to be greatly impacted by the war in Ukraine. The most exposed are SIDSSmall island
developing states (SIDS) were recognized as a distinct group of developing countries at the Earth Summit in Rio de Janeiro in June 1992. More information on UNCTAD official page., in particular, those with a high share of Russian visitors, such as Maldives or Seychelles. The war is therefore expected to compound the devastating effects of the COVID-19 pandemic on the tourism
sectors of these countries -— Overall, the United Nations Task Team for the Global Crisis Response
GroupOn 14 March 2022, UN Secretary-General António Guterres established of a Global Crisis Response Group on Food, Energy and Finance (GCRG) to coordinate the global response to the widespread impacts of the war in Ukraine. (GCRGOn 14 March 2022, UN Secretary-General António Guterres established of a Global Crisis Response Group on Food, Energy and Finance (GCRG) to coordinate the global response to the
widespread impacts of the war in Ukraine.) estimated that 1.7 billion people in 107 economies are severely exposed to at least one of the crisis’ three global channels of transmission – rising food prices, rising energy prices, and tightening financial conditions. Of these 1.7 billion people, 553 million are already poor, and 215 million are already undernourished -— Trade openness of developing economies and LDCsAs shown in Figure 1, LDCs’ trade openness, expressed as the ratio of the sum of exports and imports of goods and services to GDP, has been consistently lower than in other developing economies. The drastic decline in world trade had a disproportional impact on LDCs which already entered the pandemic period as minor players in world trade. The LDCs’ trade openness dropped by almost 16 per cent in 2020, compared to the previous year, from 52 per cent to around 43 per cent. This is twice more than in other developing economies, excluding LDCs, which recorded a decline of more than 8 per cent for the same period (see Figure 1). Figure 1. Trade openness index (Percentage) Source:
UNCTADstat -— Notes: This index measures the relative importance of international trade in goods and services (sum of exports and imports) relative to the domestic economic output of an economy. Economy groups refers to the April 2022 classification as specified in -— Current trends of trade in developing economiesBetween 2017 and 2019,
trade in developing economies was vigorously recovering from the trade downturn in 2014-2016. This was offset by the economic impact of the pandemic in 2020, when trade in goods and services decreased by 7 per cent and 25 per cent, respectively. In 2021, trade rebounded sharply and reached US$11.2 trillion for developing economies. Trade in goods exceeded its pre-COVID-19 level and reached US$9.6 trillion. Trade in services, however, still falls short of pre-pandemic levels, despite estimated
16.7 per cent growth in 2021 -— Figure 2. Trends of goods and services trade in developing economies (Millions of United States dollars) Source: UNCTADstat
-— Developing countries’ performance with respect to SDG 17.11.1The evaluation of progress towards SDG target 17.11, aiming to significantly
increase the exports of developing countries, and to double the LDCs’ share of global exports by 2020, is difficult to achieve. One of the measurement challenges relates to the choice of the baseline year. While the agreed default year is 2015 for key SDGs indicators -— Performance as to SDG target 17.11 does vary considerably with the selected baseline year, used to calculate the change over time, at both country and group levels. A baseline year is a reference point in time against which progress in the future is measured. For example, if 2015 is considered as a baseline, the target to increase LDCs’ share in global trade, in 2021, translates into a 0.17 percentage point reduction. If 2010 were used, we would see a 0.04 percentage point decrease (see table 1). Table 1. Evolution of LDCs' and developing economies' share of global trade (Different baselines scenario, in percentage)
Source: UNCTADstat -— Another measurement hurdle to consider is the composition of LDCs which varies over the years. LDCs graduation is expected to accelerate and several LDCs are scheduled to exit least developed status in the
coming years. Vanuatu has already done so and several others (Bhutan, Angola, Sao Tomé and Principe, Solomon Islands, etc.) follow suit -— Map 1. Developing countries’ share of global exports of goods and services (Percentage of total trade) Source: UNCTADstat
-— Developing economies’ and LDCs’ participation in world tradeOver the last two decades, developing economies have recorded a notable increase in their share of world trade in goods and services. Developing countries’ share in world exports has risen from 36.8 per cent in 2010 to 39.7 per cent in 2013, but has stagnated ever since, increasing only slightly to 40.1 per cent in 2021. LDCs’ share in world exports of goods and services has hovered around 1 per cent since 2011 and stood at 0.93 per cent in 2021. The outbreak of the COVID-19 crisis caused LDCs’ share of world exports to fall to 0.94 per cent in 2020, compared with 0.98 per cent in 2019, a drop of 4 per cent. Developing countries’ share of global exports of goods and services registered an increase of 0.1 percentage points in 2020 compared to the previous year. In 2020, trade in services for both developing countries and LDCs declined by more than trade in goods. As a result, these countries’ shares of global trade in services declined by 16.5 per cent and 30 per cent, respectively (see Figure 3). Figure 3. Developing economies’ and LDCs’ share in global exports (SDG 17.11.1) of goods and services, 2010-2021 (Percentage) Source: UNCTADstat -— Note: Statistics on trade in services are preliminary, annual estimates based on the most recent quarterly figures (BPM6). Statistics on trade in goods are estimates based on Comtrade, international and national sources. China, EU27 and the United States of America are the top trading partners of LDCsIn 2020, developing economies shipped most of their exports to the United States of America (US$1.4 trillion), China (US$1.1 trillion) and other Asian economies. The value of merchandise exports of developing countries to the EU27 in 2020 amounted to almost US$1 trillion. For LDCs, the top export destinations in 2020 were the EU27 (US$34.1 billion), China (US$38.9 billion) and the United States of America (US$14.8 billion). In 2020, LDCs in Africa and Haiti delivered goods worth US$28.8 billion to China, more than to any other economy in the world (see Figure 4). Asian LDCLeast developed country exports were oriented towards China and the United States of America, amounting to US$11.4 billion and US$9.9 billion, respectively. The exports of LDCs in Asia to the
EU27 amounted to US$22.9 billion in 2020. Intra-regional trade is also high for LDCs from East Asia and the Pacific, and low but rising for LDCs from most other regions -— Figure 4. Top 5 partners for LDCs in merchandise exports (Ranked by 2020, US$ billions) Source: UNCTADstat -— Notes: The country groupings are based on the geographic regions defined under the Standard Country or Area Codes for Statistical Use (known as M49) of the United Nations
Statistics Division -— China’s rising importance in global tradeIn the last twenty years, China has become a major player in global trade. Its share in world exports of goods increased from 4 per cent in 2000 to 15 in 2021 (see Figure 5). To compare, the share of the United States of America in global exports of goods amounted to 8 per cent, Germany to 7 per cent, and Japan to 3 per cent in 2021. Between 2000 and 2021, China’s share of total imports of goods expanded rapidly from 3.4 per cent to almost 12 per cent. China’s exports not only proved to be resilient to trade tensions with the United States of America, but recovered faster than those of most other countries from the COVID-19 pandemic, already surpassing pre-pandemic levels by mid-2020. The successful mitigation strategies employed by China in the beginning of the pandemic allowed it to reopen its supply chains ahead of other countries and orient manufacturing capacity towards the products for which global demand was rising. In 2021, China’s share in global exports of goods rose by two percentage points, and in global imports of goods by more than one percentage point, compared with 2019. Figure 5. China’s share in world trade (Percentage) Source: UNCTADstat -— In 2020, China was the largest export destination for 38 countries, and the largest partner for imports for 51 countries, including the United States of America and Japan, for which the share of China in total exports/imports amounted to 20 per cent or more. Its share of total exports and imports of goods of developing countries rose to 34 per cent and 29 per cent, respectively. Over the last two decades, China has become an important source of supply for many products, from precision instruments and industrial machinery to computers and smartphones. In 2020, high-skill and technology intensive manufactures constituted about 40 per cent of Chinese exports of manufactured goods, or 7.8 per cent of the world exports of this group of products (see Figure 6). Figure 6. China’s share in exports of manufactured goods, by degree of manufacturing (Percentage) Source: UNCTADstat -— Enhancing trade diversification in developing countries and LDCsLDCs’ merchandise exports are mainly focused on primary products and simple manufactures, especially textiles and clothing. The concentration, as measured by the
Herfindahl-Hirschman Index2, increased from 2001 to 2008, and since then, has gradually declined, reaching 0.18 per cent in 2020, compared to 0.52 per cent in 2008, (see Figure 7). Guinea-Bissau, Chad, Angola and South Sudan are the four African LDCs with the highest concentration index, approaching or even exceeding an index value of 0.9 in 2020, which indicates that their trade is
concentrated in a very few products. Guinea-Bissau is highly dependent on trade in fruits and nuts, Chad, South Sudan and Angola on petroleum.3 Among Asian LDCs, Yemen, which top exports product is crude petroleum, had the highest export concentration indexThis index measures, for each product, the degree of export market concentration by country of
origin. It tells us if a large share of commodity exports is accounted for by a small number of countries or, on the contrary, if exports are well distributed among many countries. The index ranges from 0 to 1 with higher values indicating more market concentration -— Developing economies’ exports concentration index in 2020 stood at 0.09. Exports are most concentrated in Africa and Oceania. The export mix is more varied in the developing economies of Asia, where Turkey, Thailand and India are the most diversified countries in the region. In developing America, Mexico, Panama and Guatemala recorded the lowest concentration index in 2020. Figure 7. Product concentration index of exports in LDCs and developing economies (Percentage) Source: UNCTADstat -— Notes: The country groupings are based on the geographic regions defined under the Standard Country or Area Codes for Statistical Use (known as M49) of the United Nations Statistics Division -— In 2020, manufactured goods accounted for about 73 per cent of total merchandise exports from developing economies. The share of fuels has reduced from about 22 per cent in 2010 to 10 per cent in 2020. Food accounted for 8 per cent of total exports of developing economies, followed by ores, metals, precious stones and non-monetary gold (around 8 per cent). The structure of exports by product group has changed significantly in LDCs and developing economies over the last ten years (see Figure 8). In 2020, manufactured goods accounted for more than 37 per cent of total exports in LDCs – a notable increase from approximately 19 per cent in 2010. The biggest exporters of manufactured goods in 2020 were Asian LDCs. Bangladesh, Cambodia and Nepal received 70 per cent or more of their export revenues from exporting manufactured goods in 2020. Ores, metals, precious stones and non-monetary gold formed the second largest product group in 2020 (about 27 per cent), while in 2010 they accounted for around 17 per cent in LDCs’ exports. The share of fuels dropped in 2020 to approximately 19, compared to 51 per cent in 2010. The proportion of food items in exports increased from around 9 to 14 per cent during the same period. Figure 8. Export structure by product group in LDCs and developing countries (Percentage) Source: UNCTADstat -— Notes: For the composition of product groups please refer to -— The country groupings are based on the geographic regions defined under the Standard Country or Area Codes
for Statistical Use (known as M49) of the United Nations Statistics Division -— COVID-19 crisis seriously impacted trade in servicesBefore services were severely affected by the COVID-19 pandemic, growing services exports was a general trend across all economic regions, but mainly benefiting developed economies. In 2021, this group still accounted for 74 per cent of all traded services. With US$1.59 trillion worth of services exported in 2021, developing economies accounted for only 26 per cent of the global services market. 2021
recorded an increase of 17 per cent in exports of services compared to 2020 after contracting by 18 per cent in 2020 -— Among broad service categories, travel, the most prominent sector in developing economies’ exports in 2019, was most severely affected in 2020. Exports of travel services dropped from US$583 billion in 2019 to US$186 billion in 2020, a third of the previous value. The recovery of travel services in 2021 was relatively weak: developing countries exported an estimated US$200 billion in the travel sector. Trade in transport declined to a lesser extent and amounted to some US$300 billion in 2020 for developing economies. In 2021, demand for international transport was high after the pandemic disruptions. Prices went up and developing countries recorded a substantial transport exports growth of 45 per cent, largely attributable to Asian exporters. Grouping together other services – including telecommunications, computer, insurance, financial, IP-related, and other business services, etc. – their exports were slightly higher in 2020 than in 2019. Rising thereafter by 15 per cent, they reached an estimated US$936 billion in 2021. This represented almost 60 per cent of total services supplied internationally by developing economies. Many of these services can be traded remotely and some – like telecommunications and computer services - were highly demanded during lockdowns and social distancing. LDCs continue to lag behind other groups of countries in services exports. Their share amounted to approximately 0.6 per cent of total services exports in 2021, a drop of around 28 per cent compared to 2019. Exports of personal, cultural and recreational services have been the most dynamic sector in LDCs’ services exports. They grew, on average, by over 11 per cent annually between 2010 and 2020. In the same period, notable annual average increases were recorded for charges for the use of intellectual property, transport, and travel services (11 per cent, 8 per cent, and 2 per cent, respectively). In the same period construction services and telecommunication services saw a downturn and registered a drop of about 3 per cent and 1 per cent, respectively (see Figure 9). Figure 9. Annual average growth of services exports in LDCs, by service category, 2010-2020 (Percentage) Source: UNCTADstat -— LDCs and other developing economies have a revealed comparative advantage4 in exports of travel services. For LDCs the index reached 2.1 in 2020, LDCs have also a comparative advantage in exporting transport services (1.7). The index for other developing countries excluding LDCs was larger than one in travel services (1.3), transport sector (1.3), and telecommunications, computer, and information services (1.1) (see Figure 10). Figure 10. Revealed comparative advantage in services exports, 2020 (Proportion) Source: UNCTAD calculations based on data from UNCTADstat -— Notes: The revealed comparative advantage is measured as the proportion of a country group’s exports by service category, divided by the proportion of world exports in each category. A country or region is considered to have a revealed comparative advantage for a product or sector if the index is greater than one. Notes
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elit. Lorem ipsum dolor sit amet, consectetur adipiscing elit. What are the traditional barriers to international trade?The most common barrier to trade is a tariff–a tax on imports. Tariffs raise the price of imported goods relative to domestic goods (good produced at home). Another common barrier to trade is a government subsidy to a particular domestic industry. Subsidies make those goods cheaper to produce than in foreign markets.
What do less developed countries have more of compared to more developed countries quizlet?Compared to more developed countries, less developed countries have a higher percentage of workers in which sector of the economy? provision of goods and services.
What is Japan's principal asset for promoting development?Mr. Haman's class, Ch. 9 vocab and study guide. Which is the best example of footloose activity?Detailed Solution. The correct answer is Computer Chip. Diamonds, computer chips, and mobile manufacturing are some examples of footloose industries. These are generally non-polluting industries.
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