Examples of industrialized countries in the following topics:
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Industrializing Countries
- Industrializing countries have low standards of living, undeveloped industry, and low Human Development Indices (HDIs).
- An industrializing country, also commonly referred to as a developing country or a less-developed country, is a nation with a low standard of living, undeveloped industrial base, and low Human Development Index (HDI) relative to other countries.
- Industrializing countries have HDIs between the most and least industrialized countries in the world .
- For example, India is considered a industrializing country.
- Explain why some scholars use the term 'less-developed country' instead of 'industrializing country'
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Negative and positive effects of globalization for developing country business
- Protectionist policies in industrialized countries prevent many producers in the Third World from accessing export markets;
- It creates greater opportunities for firms in less industrialized countries to tap into more and larger markets around the world
- For example, it is now commonplace for businesses in industrialized countries to outsource functions such as data processing, customer service and reading x-rays to India and other less industrialized countries (Bhagwati et al, 2004).
- Advanced telecommunications and the Internet are facilitating the transfer of these service jobs from industrialized to less industrialized and making it easier and cheaper for less industrialized country firms to enter global markets.
- Transnational corporations may also help the environment by exporting higher standards and best practices to less industrialized countries.
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Least Industrialized Countries
- The Pacific island country of Samoa illustrates the distinction between least industrialized countries that receive international aid from the UN and industrializing countries that do not necessarily receive significant assistance from the UN.
- In contrast to industrialized and industrializing countries, the world's least industrialized countries exhibit extremely poor economic growth and have the lowest Human Development Index (HDI) measures in the world.
- To be considered a least industrialized country, or least developed country (LDC) as they are commonly called, a country must have a small economy and low standards of living .
- Thus, the definition of LDCs is more rigid than the definition of developing/industrializing and developed/industrialized countries .
- Countries in the 1–10,000 international dollar range roughly correspond to least industrialized countries.
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Elements of economic globalization
- International Trade: An increasing share of spending on goods and services is devoted to imports and an increasing share of what countries produce is sold as exports.
- Between 1990 and 2001, the percentage of exports and imports in total economic output (GDP) rose from 32.3 per cent to 37.9 per cent in industrialized countries, and from 33.8 per cent to 48.9 per cent in low and middle-income countries (World Briefing Paper, 2001).
- In the 1980s, about 20 per cent of industrialized countries' exports went to less industrialized countries; today, this share has risen to about 25 per cent, and it appears likely to exceed 33 per cent by 2010 (Qureshi, 1996).
- Capital market flows also include remittances from migration, which typically flow from industrialized to less industrialized countries.
- As a result, for less industrialized countries this means it is more difficult to advance their businesses without the technical system and knowledge in place such as the Internet, data tracking, and technical resources already existing in many industrialized countries.
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Industrialized Countries
- Industrialized countries have greater levels of wealth and economic development than less-industrialized countries.
- In countries such as the United States, with well-developed industries, residents have consistent access to electricity, roads, and other infrastructure that improves their standard of living.
- An industrialized country, also commonly referred to as a developed country, is a sovereign state with a highly developed economy relative to other nations.
- In terms of global stratification, industrialized countries are at the top of the global hierarchy.
- Developed countries, which include such nations as the United States, France, and Japan, have higher GDPs, per-capita incomes, levels of industrialization, breadth of infrastructure, and general standards of living than less developed nations.
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Global Aging
- Global aging differs depending on the access to economic and social resources; thus, industrialized countries tend to have older populations.
- However, while the trend of a growing older population appears world over, people in industrialized nations are older than people in non-industrialized nations.
- Easier access to pervasive biotechnology in industrialized nations means that people live longer.
- Unfortunately, in some countries HIV/AIDS has ravaged the population to the point where the average life expectancy drops.
- Most of these countries have lower levels of development and industrialization.
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Industrialization and the Graying of the Globe
- Most Western countries industrialized by the nineteenth century but the Industrial Revolution is still occurring around the world.
- One schematic by which one can divide the world is between industrialized and non-industrialized countries.
- Industrialized countries are defined by measures of economic growth and security.
- Countries that score poorly on these scales are considered to be non-industrialized, though it should be noted that non-industrialized countries are undergoing the process of industrialization.
- Thus, while people in all countries are living longer than prior generations, people in industrialized nations live longer than people in non-industrialized nations.
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World-Systems Theory
- India is an example of a semi-peripheral country -- it is largely dependent on foreign investors for capital, but has a growing technology industry and emerging middle class consumer market.
- Core countries (e.g., U.S., Japan, Germany) are dominant, capitalist countries characterized by high levels of industrialization and urbanization.
- Peripheral countries (e.g., most African countries and low income countries in South America) are dependent on core countries for capital and are less industrialized and urbanized.
- Peripheral countries generally provide labor and materials to core countries.
- Semiperipheral countries exploit peripheral countries, just as core countries exploit both semiperipheral and peripheral countries.
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Infant Industry Argument
- Economic markets are inherently competitive and newer economies are vulnerable to their more developed counterparts in other countries.
- Economic markets are inherently competitive, and newer economies are highly vulnerable to their more developed counterparts in other countries for a variety of reasons.
- The infant industry argument is that new industries need protection until they have become efficient enough to compete in the world market.
- History has proven the value of protection for the countries employing tariff-based international trade policies.
- Infant industries generally do not have the capacity to do this.
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Answers to Chapter 20 Questions
- A government protects its agricultural, defense/military, energy, and communication industries.
- These industries are critical for a modern, functioning society, and a supply disruption could cause a severe crisis within the country.
- A firm cannot transfer its profits outside a country because the country imposed capital controls.
- These industries are prestigious and lead to a rise of skilled and educated labor force.
- The Risk Rating System is a method to measure a country risk.