APMacro P5-6: IES Country Classification


Material-World-Peter Menzel
Each country at the Summit is classified into one of three categories: Division 1, Division 2, or Division 3 countries. The basis for this classification system is gross domestic product (GDP) per capita. Each category has its own set of characteristics in the areas of currency, export total, cash endowment, and foreign aid.

Division 1 Country
The Division 1 Countries category represents those countries that have the highest standards of living. In your research, you may have come across different names for this group of countries, such as industrialized or developed countries. The Division 1 Countries currency is called the WELCO. The WELCO is the basic unit of value and is the most valuable currency at the Summit. Division 1 Countries have the largest number of exports, cash endowments, and give foreign aid cash to Division 3 Countries.

Division 2 Country
The Division 2 Countries category contains those countries that have fairly decent living standards, but clearly are not as advanced as the Division 1 Countries. In your research, you may come across names such as developing or emerging market economies that describe this category. Division 2 Countries use a currency called the DEVCO. The DEVCO is worth half as much as the WELCO. Division 2 Countries have fewer exports and less cash than Division 1 Countries.

Division 3 Country
The Division 3 Countries category contains those countries that are very poor and have the lowest standard of living on the planet. In your research, you may have come across names such as less developed or underdeveloped to describe this category of countries. Division 3 Countries use a currency called the LESCO. The LESCO is worth half as much as the DEVCO. Division 2 Countries have the fewest exports and the least amount of cash of any of the three categories. Division 3 Countries have foreign aid vouchers that can be exchanged for cash.


1) Standard of Living Analysis p.23

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