Distinctions Based on Wealth:
· High-income countries- Those w/annual per-capita income greater than $11,115
· Upper-middle-income countries- Those w/annual per-capita income of $11,115 or less but more than $3,595
· Lower-middle-income countries- Those w/annual per-capita income of $3,595 or lower but more than $905
· Low-income countries (often called developing countries)- Those w/annual per-capita income of $905 or less
The world economy revolves around 3 major marketplaces: North America, Europe, and Pacific Asia.
North America:
· world's largest marketplace and most stable economy
· Canada plays a role in the international economy, and the U.S. and Canada are each other's largest trading partners.
· Mexico has became a major manufacturing center
· cheap labor and low transportation costs
· May have peaked because China is pulling their companies back to china cause of drug-related violence
Europe:
· 2 regions- Western and Eastern
· Western Europe consists of Germany, United kingdom, and france
· E-commerce and technology have become increaingly important in this region.
Pacific Asia:
· Consists of Japan, China, Thailand, Malaysia, Singapore, Indonesia, South korea, taiwan, the philippines, and australia
· fueled by strong entries in the automobile, electronics, and banking industries, the economies of these countries grew rapidly in the 1970s and 1980s.
The World Trade Organization
· 3 goals
· Promote trade by encouraging members to adopt fair trade practices.
· Reduce trade barriers by promoting multilateral negotiations.
· Establish fair procedures for resolving disputes among members.
Balance of Payments
· the money that a country pays for imports and receives for exports- its balance of trade- accounts for much of its balance of payments
· money spent by tourist in a country, money spent by a country on foreign-aid program, and money exchanged by buying and selling currency on international money makets...