Source: Image of globe, curved arrows, cell phone, dollar bill, growth chart, images by Video Scribe, License held by Jeff Carroll.
Hi, I'm Jeff, and in this lesson, we'll learn about the major global markets and how an organization like the World Bank helps improve the state of developing countries. So let's get started.
When we look at the world economy, there are three primary marketplaces which drive most business-- North America, Europe, and Asia. But even those marketplaces are not just limited to their specific geographic locations. Each of these marketplaces has impact across the entirety of the world thanks for the openness of world financial markets. And each market integrates and affects the others so that the world functions as one large financial ecosystem.
But some countries don't have the same access to these marketplaces. One organization that helps countries that are not as large or influential as those with global marketplaces is the World Bank. It is an international banking organization connected to the United Nations and focused on developing poorer nations. They offer support through policy advice, research and analysis, and technical assistance. They help developing countries with investments in their infrastructure and their businesses.
The World Bank uses per capita income to determine which countries need assistance. Per capita income is the average income of a group. High income countries such as the United States have per capita income of 12,616 or more. Upper middle income is 4,086 to 12,615, and this includes countries like Serbia and Guatemala.
Lower middle income is 1,036 to 4,085. These include Mongolia and Morocco. Low income countries have a per capita income of $1,035 or less and are sometimes referred to as developing countries. Countries such as Kenya, Nepal, and Afghanistan are in this category.
The World Bank has assisted many lower income countries develop new businesses because there is opportunity in every market. For example, cell phones, which were once considered only a product for higher income countries, have dropped in cost enough that they are now viable products around the world. And by increasing the amount of technology and newer products available in lower income countries, the World Bank hopes to create a cycle where there is even more business as people begin to use these new products to develop their own methods of earning income.
Nicely done. In this lesson, we learned about the large global markets. We discussed the World Bank and how it uses per capita income to define developing countries. And we considered the opportunities available in those developing countries. Thanks for your time and have a great day.