Trade and Development in Latin America Quiz

Poor countries want more and better opportunities, while rich countries want markets to buy their goods and sell their products

Powerful domestic interest groups pursuing policies that promote particularistic interests

To maintain their dominance in global trade

<p>They can either promote or slow development</p> Signup and view all the answers

<p>They may thwart development</p> Signup and view all the answers

<p>Rich countries may support policies that hurt the poor countries' ability to pursue freer trade</p> Signup and view all the answers

<p>Biased international institutions in favor of rich countries</p> Signup and view all the answers

<p>Disagreements among actors on policies and interests</p> Signup and view all the answers

<p>Everyone prefers more development to less</p> Signup and view all the answers

<p>Because it doesn’t solely depend on you</p> Signup and view all the answers

<p>Import-substitution industrialization (ISI)</p> Signup and view all the answers

<p>Washington Consensus</p> Signup and view all the answers

<p>World Trade Organization</p> Signup and view all the answers

<p>Export-oriented industrialization (EOI)</p> Signup and view all the answers

<p>Trade working against the interests of LDCs</p> Signup and view all the answers

<p>Primary products</p> Signup and view all the answers

<p>The proportion spent on food decreases</p> Signup and view all the answers

<p>Self-sufficiency in manufactured products through high trade barriers, subsidies, and state ownership of basic industries</p> Signup and view all the answers

<p>IMF and World Bank policies and conditions attached to loans</p> Signup and view all the answers

<p>Import-substitution industrialization (ISI)</p> Signup and view all the answers

<p>They require multiple countries to access seaports</p> Signup and view all the answers

<p>Economic vulnerability and lack of diversification</p> Signup and view all the answers

<p>Lead to undemocratic institutions and slow growth</p> Signup and view all the answers

<p>Divided land arbitrarily</p> Signup and view all the answers

<p>They may be driven by politics of special interests</p> Signup and view all the answers

<p>Impact on economic diversification due to uneven distribution of resources</p> Signup and view all the answers

<p>Lead to varying development paths</p> Signup and view all the answers

<p>Their dependence on one resource leads to economic vulnerability</p> Signup and view all the answers

<p>Landlocked countries face higher trade costs and require multiple countries to access seaports, making trade more difficult and expensive.</p> Signup and view all the answers

<p>The resource curse theory suggests that dependence on one resource leads to economic vulnerability, lack of diversification, and corruption, hindering overall economic development.</p> Signup and view all the answers

<p>Government policies, provision of public goods, infrastructure, sound institutions, and social infrastructure, as well as the politics of special interests, can lead to prioritization of certain groups' interests over the public interest, impacting overall development.</p> Signup and view all the answers

<p>Differences in political institutions and economic policies can lead to varying development paths, with equal distribution of wealth leading to democratic institutions and economic growth, while unequal distribution leads to undemocratic institutions and slow growth.</p> Signup and view all the answers

<p>The colonial legacy has led to ethnic divisions across borders, arbitrary land divisions by European empires, and the lack of lasting institutions built by wealthy settlers, leaving little foundation for independence and development.</p> Signup and view all the answers

<p>Foreign interests and colonial legacies continue to bias the economy against less developed countries, impacting their development.</p> Signup and view all the answers

<p>Domestic factors such as government policies, politics of special interests, domestic institutions, and colonial legacy can hinder economic development.</p> Signup and view all the answers

<p>Natural resources in less developed countries may have been impacted by colonization, uneven distribution, and the hindrance of economic diversification due to mining or plantations.</p> Signup and view all the answers

<p>Wealthy landowners, urban sectors, and politicians may prioritize their interests over the public interest, impacting the overall development of a country.</p> Signup and view all the answers

<p>Foreign direct investment and colonial past can lead to resource-rich countries remaining poor, as seen in examples like Angola, Nigeria, and Indonesia.</p> Signup and view all the answers

<p>They argued that trade works against the interests of LDCs due to deteriorating terms of trade, mainly selling primary products facing decreasing prices, while rich countries implement heavy agricultural subsidies and control manufacturing.</p> Signup and view all the answers

<p>ISI began in the 1930s as a development strategy aiming to make countries self-sufficient in manufactured products through high trade barriers, subsidies, and state ownership of basic industries.</p> Signup and view all the answers

<p>By the 1970s, countries following ISI were self-sufficient in manufactured products but faced problems such as low-quality exports, inefficient industries, and protected markets.</p> Signup and view all the answers

<p>The focus shifted to export-oriented industrialization (EOI), encouraging countries to produce for foreign markets and consumers.</p> Signup and view all the answers

<p>The Washington Consensus included trade liberalization, privatization, and fiscal and monetary policies.</p> Signup and view all the answers

<p>Integration into world markets through globalization creates both winners and losers, with poor countries often being the losers.</p> Signup and view all the answers

<p>Institutions biased against LDCs, international political factors worsening development issues, and the impact of the World Trade Organization reflecting the interests of rich countries.</p> Signup and view all the answers

<p>The IMF and World Bank have a significant impact on developing countries.</p> Signup and view all the answers

<p>Engel’s law states that as income rises, the proportion spent on food decreases, but the terms of trade work in favor of rich countries.</p> Signup and view all the answers

<p>Improving the living standard of people in developing countries requires addressing both domestic and international factors.</p> Signup and view all the answers

<p>Poor countries want more and better opportunities, while rich countries want markets to buy their goods and sell their products.</p> Signup and view all the answers

<p>Powerful domestic interest groups might pursue policies that promote particularistic interests at the expense of overall development, leading to disagreement on policies.</p> Signup and view all the answers

<p>Domestic institutions can either promote or slow development within countries.</p> Signup and view all the answers

<p>Rich countries may support policies that hurt poor countries, such as pursuing freer trade in manufactured products, which they can benefit from, while poorer countries cannot pursue freer trade.</p> Signup and view all the answers

<p>International institutions, such as the World Bank and International Monetary Fund, might be biased in favor of rich countries, possibly due to differences in interests and policies.</p> Signup and view all the answers

<p>It is mentioned to emphasize that achieving development depends on various actors, interests, interactions, and institutions, and not solely on individual desires or efforts.</p> Signup and view all the answers

<p>Disagreements among actors, powerful domestic interest groups pursuing particularistic interests, biased international institutions, and differences in interests and policies between rich and poor countries might hinder the achievement of development.</p> Signup and view all the answers

<p>It is challenging to achieve development due to the complex interactions, differing interests, and potential biases among actors and institutions at both domestic and international levels.</p> Signup and view all the answers

<p>Unequal distribution of wealth can lead to powerful groups within countries impeding development, as they might prioritize their own interests over the public interest.</p> Signup and view all the answers

<p>International cooperation for development might be hindered by differing interests between rich and poor countries, biased international institutions, and disagreements on policies among actors.</p> Signup and view all the answers