Please Do Now A. Take out 2 new sheets of paper (you will need each one for different reasons. B. Announcements: 1. I will be starting an interesting movie today after I am finished discussing Notes #15 2. School Loop was updated on Friday and will be updated again tonight, around 8pm.

2 Bellringer “E-1” List 5 things that you use everyday that require electricity. I plan to make a point in a couple of minutes. 1)

3 Our Next Exam Will Cover: The “Global Economy” A) Here are the main topics that will be considered: How Can Countries Raise $$$ To Develop? What is a “Developed” Economy? Why Do Nations Trade? What Are Some “issues” Of Development? What Are Trade Barriers? How do Economists Measure Trade?

NOTES #15 Levels Of Economic Development Questions For Today: 1. How can economies of the world be categorized? 2. What are 13 measurements that economists can use to compare the development of different countries?

5 Interesting Facts About The World A) ½ of the world’s population (3.5 billion) live in “poverty” B) 1 billion live on less than $1 a day

6 How Can The Economies of The World Be Categorized?

7 Categorizing The World’s Economies Developed Nations 1. Nations with a higher average level of “material well-being” 2. People are greatly impacted by: Machinery Electricity Internet access 3. Some Examples: United States Canada Australia Japan Less-Developed Nations 1. Nations with a low level of material well-being 2. A low standard of living 3. Some Examples: Bangladesh Nations throughout Africa Saudi Arabia Mexico

8 What are 14 Measurements used By Economists To decide if a nation is “Developed” or not?

9 1 st Measurement To Determine A Country’s Level of Development: Energy Consumption

10 A) “Developed Nations” have high levels of per capita energy consumption. 1. Nations that consume big amounts of fossil fuels tend to be industrialized (skilled at manufacturing goods) 2. Nation’s that don’t are likely agriculture based economies B) Major energy sources are: oil, natural gas, coal, & nuclear energy. U.S. Fossil Fuel Consumption st Measurement To Determine a Nation’s “Development” Energy Consumption

11 2 nd Measurement To Determine A Country’s Level of Development: Specialized Labor Force

12 A) “Developed Nations” have large amounts of workers with high levels of “human capital.” 1. Human capital = skills/knowledge gained from education or experience. B) A skilled labor force results in specialized, advanced goods & services. 2 nd Measurement To Determine a Nation’s “Development” #2 Advanced Labor Force

13 3 rd Measurement To Determine A Country’s Level of Development: Per Capita G.D.P.

14 3 rd Measurement To Determine a Nation’s “Development” Per Capita G.D.P. “Per Capita GDP” = A Nation’s G.D.P. Its Population Divided By Diagram Illustrates 2014 estimates Government Statistics Show Per Capita GDP of the United States After 2015 was $56,300

15 A. Per Capita GDP allows economists to compare the living standards among people of different nations. 1. Australia’s Per Capita GDP = $65,400 (in 2015) 2. India’s Per Capita GDP = $6,300 (in 2015) B. Economists conclude that the average Australian: 1. can more easily meet basic needs than the average Indian. 2. Probably has income left over to spend on nonessentials, or simply to save/invest. Per Capita G.D.P., Continued

16 4 th Measurement To Determine A Country’s Level of Development: Amount Of Consumer Goods

17 A) “Developed Nations” have larger amounts consumed per person. B) People in developed countries have enough $$$ to meet basic needs + disposable income for nonessential goods. YearResult # of TVs in the U.S. – Source: “The Economist,” Feb th Measurement To Determine a Nation’s “Development” #4 Amount Of Non- Essential Goods/Services Consumed

For The Next 25 Minutes 1/3 points will be deducted for each day that you do not show progress. Please continue the following. I will collect it at the end of class. It will be worth 75 points: Key Terms PG 471 (find definitions) Key Terms PG 478 (find definitions) Key Terms PG 485 (find definitions) PG 476 #1-5 (copy or restate, then answer) PG 483 #1-6 (copy or restate, then answer) PG 488 #1-6 (copy or restate, then answer) If you finish the above, see me for what is needed to start “Test Corrections” for the last exam.

Please Do Now A. Take out your bellringers B. Take out Part A for Notes #15 (started yesterday) C. Agenda for today. 1. Bellringer 2. Discuss Notes #15 3. Continue Bookwork 4. 5 Minute Break 5. India Research 6. Continue Slumdog Millionaire

20 Bellringer “E-2” Simply answer the following: 1) How many years would you like to live? 2) What is your plan for reaching that goal?

NOTES #15, Continued Levels Of Economic Development Questions For Today: 1. What are 13 measurements that economists can use to compare the development of different countries?

22 Discussed So Far… A) The following “measurements” were discussed last Friday Energy Consumption Measurements Of Development Per Capita G.D.P. Consumption Of Goods/ Services Specialized Labor Force

23 5 th Measurement To Determine A Country’s Level of Development: Literacy Rate

24 A) Developed nations have high “Literacy Rates” 1. Literacy Rate = proportion of the population over age 15 that can read & write l Literacy Rate of U.S. in 2014 = 99% (source: cia.gov) l Literacy Rate of India in 2014= 61% (source: cia.gov) B) High Literacy rates: 1. Usually indicate a commitment to education. 2. Will lead to more productivity among workers 5 th Measurement To Determine a Nation’s “Development” Literacy Rate

25 6 th Measurement To Determine A Country’s Level of Development: Life Expectancy

26 A) “Life Expectancy ” = average expected lifespan of an individual years in U.S. (76 for males; 81 for females) B) The population of developed nations tend to: 1. Be well nourishing & sheltered 2. Have advanced medical care networks 3. Have a high degree of sanitation to ward off the spread of diseases 6 th Measurement To Determine a Nation’s “Development” #6 Life Expectancy

27 7 th Measurement To Determine A Country’s Level of Development: Infant Mortality Rate

28 A) Infant Mortality Rate = # of deaths that occur in 1 st year of life, per 1,000 live births. B) “Developed Nations” have LOW Infant Mortality Rates 1. In the U.S., the rate is 6 deaths for every In Afghanistan, the rate is 121 deaths for every 1000! 7 th Measurement To Determine a Nation’s “Development” Infant Mortality Rate

29 8 th Measurement To Determine A Country’s Level of Development: Agricultural Output

30 A) Developed nations have high agricultural output due to advanced: 1. Irrigation techniques 2. Fertilizers 3. Pesticides 4. Seed varieties 5. Machinery that makes farmers more productive. B) In U.S., 1 farmer can support 80 people. In less developed nations, farmers might only be able to support their own family. 8 th Measurement To Determine a Nation’s “Development” Level Of Agricultural Output

31 9 th Measurement To Determine A Country’s Level of Development: Urbanization

32 A) Urbanization = the degree to which people live in cities or towns. B) Developed nations have most of the population living in cities. C) U.S. “urbanization” astronomically grew during the Gilded Age (1860’s to 1900’s) 9 th Measurement To Determine a Nation’s “Development” Level of Urbanization

33 10 th Measurement To Determine A Country’s Level of Development: Infrastructure

34 A) Developed nations have heavy Infrastructure, which improve it’s ability to produce goods/services B) Infrastructure = services & facilities necessary for an economy to function. Examples: 1. Elaborate roads & freeways 2. Power plants to produce energy 3. Schools (education network) 4. Banks (promote savings, investing, finance) C). 10 th Measurement To Determine a Nation’s “Development” Degree Of Infrastructure

35 11 th Measurement To Determine A Country’s Level of Development: Middle Class

36 A) Developed nations have a large/growing “Middle Class,” which promote: 1. Long-term economic growth “middle-class” spenders are a stable source of demand for goods/services 2. Future generations of entrepreneurs/innovators 11 th Measurement To Determine a Nation’s “Development” Large or Growing “Middle Class”

37 12 th Measurement To Determine A Country’s Level of Development: Political/Economic Freedom

38 A) Developed nations tend to offer the population: 1. A life free of political oppression 2. Opportunities for political participation 3. Opportunities for economic advancement & mobility 4. Governments with little corruption 12 th Measurement To Determine a Nation’s “Development” Degree of Political/Economic Freedom

39 13 th Measurement To Determine A Country’s Level of Development: Communication Systems

A) Developed nations tend to have advanced communications in: A) Telephone B) Internet C) Satellite B). 12 th Measurement To Determine a Nation’s “Development” Degree of Communication Networks

For The Next 25 Minutes A. 1/3 points will be deducted for each day that you do not show progress. B. Please continue the following. I will collect it at the end of class. It will be worth 75 points: Key Terms PG 471 (find definitions) Key Terms PG 478 (find definitions) Key Terms PG 485 (find definitions) PG 476 #1-5 (copy or restate, then answer) PG 483 #1-6 (copy or restate, then answer) PG 488 #1-6 (copy or restate, then answer) If you finish the above, you can complete Parts B (create + answer 8 checkpoint questions) & Part C (Define 5 vocab words) using the notes that you took in class. I don’t have handouts ready to pass out at this time.

42 PLEASE DO NOW A. Take out your bellringers B. Take out Part A for Notes #15 (its been over a week since we last used it) C. Announcements: A. A quiz #7 will take place today on Notes #15 (after I am finished discussing todays information). B. Donating 1 box of Kleenex = 1% grade lift on last day of school.

BELLRINGER “E-6” Simply copy the following: What are 6 Actions That Less Developed Countries Can Take In Order To Raise $$$ For Development?

NOTES #15, Continued Levels Of Economic Development Question For Today: 1. What are 5 major areas that need improvement if Less Developed Countries want to develop? 2. What are 6 Actions That Less Developed Countries Can Take In Order To Raise $$$ For Development?

45 “Less Developed Countries” Need To Improve In 5 Major Categories A) Economists agree that the road to development should see improvements in the following areas: Strong Industries Infrastructure Education Health Care System Capital Investment

46 Main Question For Today: What are 6 major ways that LDC’s can raise $$$ to invest in the areas just described?

47 #1 Internal Financing

48 A) Internal Financing = occurs when citizens of an LDC invest and/or save $$$ in THEIR OWN country. B) People of LDC’s must: 1. Invest in their own banks 2. Attempt to increase their personal savings 3. Discourage wealthy elites from investing in foreign countries 1 sh Method LDC’s Can Use To Raise $$$ for Development Internal Financing

49 #2 Foreign Direct Investment

50 A) Occurs when an LDC allows foreigners to own or control some type of business in the economy. B) Why would an LDC invite foreigners to invest? 1. Creates industries 2. Creates jobs + opportunity for the labor force to be trained 3. Provides opportunity for related services & industries to develop C). 2 nd Method LDC’s Can Use To Raise $$$ for Development #2 Foreign Direct Investment

51 A) What might attract foreign companies to “set up shop” in an LDC? 1. Profit 2. Natural resources 3. Cheap labor force 4. Large population of potential customers Foreign Direct Investment, Continued

52 #3 Foreign Portfolio Investment

53 A) Occurs when an LDC allows foreigners to invest in the country’s stock and/or bond markets. B) How might foreign $$$ investments benefit LDC’s? 1. Allows “start-up” companies & industries to emerge For exp: it might allow for the construction of railroads or offshore oil drilling. 2. Allows existing companies to expand 3 rd Method LDC’s Can Use To Raise $$$ for Development #3 Foreign Portfolio Investment Indian Companies

54 #4 Accepting Financial Aid

55 A) This occurs when a developed country either DONATES or LOANS $$$ to an LDC. B) What might motivate a developed country to do this? 1. Humanitarian concerns 2. Cultural reasons 3. Economic motives 4. Political motives 5. Military motives 4 th Method LDC’s Can Use To Raise $$$ for Development Accepting Foreign Aid

56 Example #1 A. The Marshal Plan of the U.S. after WW2 Accepting Foreign Aid, Continued Example #2 A. The 2004 Earthquake + Tsunami Catastrophe In Asia B. The U.S. pledged $350 million to help with relief & recovery efforts.

57 #5 The World Bank

58 A) An international financial institution that provides loans to LDC’s + other forms of development help. 1. Today it contains 188 member countries 2. Approximately 100 countries receive help. B) Official goals of World Bank are to: 1. Reduce poverty 2. Promote foreign investment in LDC’s 3. Promote international trade of LDC products 4. Facilitate capital investment in LDCs 5 th Method LDC’s Can Use To Raise $$$ for Development #5 The World Bank

59 #6 United Nations Development Program

60 A) A program of the “United Nations” aimed at helping LDC countries develop through grant funding. B) If you accept the $$$, you must promise to promote democracy/freedom in your country. C) It operates with 4 goals: 1. Reduce poverty 2. Offer crisis prevention or crisis recovery 3. Promote “democratic governance” 4. Promote “sustainable development” of the environment. D) It is funded by voluntary contributions. 6 th Method LDC’s Can Use To Raise $$$ for Development #6 United Nations “Development Program”