Reading Quiz 1.Why are other countries concerned for developing countries? List 3 of the factors that may be obstacles to economic development: 2. _____________ 3. _____________ 4. _____________ 5. List one of the international agencies that work to help developing nations with monetary & fiscal development.

Journal Should the United States provide more aid to developing nations? Why or why not? 3 Sentences and date

Chapter 18 Concepts Use p to complete the following: 1. Capitalism: –Define: –6 Advantages: –3 Disadvantages: 2. Socialism: –Define: –2 Advantages: –3 Disadvantages: 3. Communism: –Define: –Characteristics: –4 Disadvantages:

Chapter 19 Section 1 Economic Development

I. Interest in Economic Development A.International community has humanitarian, economic & political concern for developing nations 1.Starving or disease 2.Supply raw materials 3.New markets for goods 4.Problems can lead to revolutions or even war B.Most in Africa & Asia Many people want less or no aid to go to developing nations. Is this philosophy valid?

II. Obstacles to Development A.Population growth B.Environmental problems: unproductive land/harsh climates C.Lack of education/technology D.Religion E.Debt F.Corruption in leadership G.War torn How does population growth affect per capita GNP?

III. International Agencies A.International Monetary Fund- helps all nations on monetary & fiscal polices that support developing nations with loans B.World Bank- international lending agency that makes loans and provide financial assistance to developing nations

Chapter 19 Section 2 Framework for Development

I. Stages of Economic Development A.Primitive- no formal economy B.Transition- people question old ways and change to new system (sudden/yrs) C.Takeoff- after you overcome primitive views, economy grows more rapidly D.Semidevelopment- industry grows, per capita income grows E.High Development- most peoples needs are met What events could cause a country to change from primitive to transition?

II. Priorities for Industrialized Nations A.Reducing trade barriers B.Reduce deficits, inflation, interest rates, stabilize currency C.Increase aid to foreign countries

III. Priorities for Developing Countries A.Invest in people: education, family planning, nutrition, health care B.Open markets: limit trade barriers/regulations 1.(Are these views used by developed nations to take advantage of less developed nations?) C.Reduce deficits, inflation, interest rates, stabilize currency

China & Russia Economies during Communism/Socialism Problems? Development today compared to the rest of the world

Journal Respond to this statement: If a country cannot compete in the world market, oh well; we’re not missing anything.

Journal List the 5 stages of development. List and date

Chapter 19 Section 3 Financing Economic Development

I. Developing with Internal Funds A.To develop these funds a country must produce more than they consume B.These savings produce financial capital C.In a command economy the gov’t can force savings What incentives can a government use to encourage savings?

II. Developing with External Funds A.Can try to attract private investment B.Ask for assistance from developed nations C.Can barrow from international agencies Why is it important for a country to be able to exchange its currency for other world currencies?

III. Regional Cooperation A.Create free trade areas to reduce restrictions and increase markets B.EU- no internal barriers to regulate the flow of workers, financial capital or goods & services C.ASEAN- doing the same in Asian nations D.OPEC- created a monopoly over the oil supply