quizz chapter 7

Global Stratification

the unequal distribution of wealth, power, and prestige on a global basis, resulting in people having vastly different lifestyles and life chances both within and among the nations of the world.

First World Nation

were said to consist of the rich, industrialized nations that primarily had capitalist economic systems and democratic political systems. The most frequently noted First World nations were the United States, Canada, Japan, Great Britain, Australia, and New Zealand.

Second World Nations

nations were said to be countries with at least a moderate level of economic development and a moderate standard of living. These nations include China, North Korea, Vietnam, Cuba, and portions of the former Soviet Union.

Third World Nations

the poorest countries, with little or no industrialization and the lowest standards of living, shortest life expectancies, and highest rates of mortality. Examples of these nations include Democratic Republic of the Congo, Liberia, Niger, and Sierra Leone.

Gross National Income (GNI)

a term that refers to all the goods and services produced in a country in a given year, plus the net income earned outside the country by individuals or corporations.

Standard of Living

by which he meant material well-being that can be measured by the quality of goods and services that may be purchased by the per capita national income.

Four Economic Categories for GNI

1. Low-Income Economies
2. Lower-Middle Income Economies
3. Upper-Middle Income Economies
4. High-Income Econimies

Low-Income Economies

had a GNI per capita of less than $1,005 in 2010. Currently, about thirty-five nations are classified by the World Bank (2012) as low-income economies. In these economies, many people engage in agricultural pursuits, reside in nonurban areas, and are impoverished.

Lower-Middle Income Economies

had a GNI per capita between $1,006 and $3,975 (2012).

Middle Income Economies

Countries classified as lower middle income include the Southeast Asian countries of Lao PDR and Timor-Leste, and the sub-Saharan African countries of Togo and Ghana. However, even though these countries are referred to as "middle-income" countries, 30 percent or more of the people residing in these countries live in poverty as defined by the World Bank—that is, they live on less than $1.25 a day in purchasing power (World Bank, 2012).