Unit 2- International economic Environment
Developed countries are also called advanced countries, industrialized countries, more developed countries (MDC), more economically developed countries (MEDC), Global North countries, first world countries and post-industrial countries. While there is no official guideline for which country may be considered developed, different institutions have created different categories. The IMF identifies 32 advanced economies, while the World Bank identifies 65 high income countries, the Economist Intelligence Unit identifies 30 countries with the highest quality of life. Features:
Developed economies have high income per capita. High income group (HIG) countries are defined by the World Bank as countries with a per capita income of $12,196 or more. However, according to the United Nations definition some high income countries may also be developing countries. Thus, a high income country may be classified as either developed or developing. For instance, despite being HIGs, the OPEC countries in the Middle East depend overwhelmingly on oil production and export; in many cases (notably Saudi Arabia), per capita GDP is also skewed.
Developed economies have high gross domestic product (GDP). When using GDP as an indicator of developed status, one must take into account how some countries have achieved a (usually temporarily) high GDP through natural resource exploitation (e.g., Nauru through phosphate extraction) without developing the diverse industrial and service-based economy necessary for developed status — similarly, the Bahamas, Barbados, Antigua and Barbuda depend overwhelmingly on the tourist industry.
Developed economies are those where the tertiary (services) and quaternary sectors dominate. The quaternary sector of industry is an extension of the Three-sector hypothesis (primary-agricultural, secondary-manufacturing and tertiary-service) of industrial evolution. It...
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