1. The difference between IACs and LDCs is based on GDP per capita. This classifi cation is somewhat arbitrary. A country with a high GDP per capita and narrow industrial development based on oil, such as the United Arab Emirates, is excluded from the IAC list. There are 27 economies listed in the text as IACs, including Switzerland, Japan, the United States, Singapore, and Hong Kong. The following countries are considered to be LDCs: Argentina, Mexico, South Africa, Jordan, and Bangladesh.