When the first edition of this textbook was published in 1996, the World Bank defined low-income country

When the first edition of this textbook was published in 1996, the World Bank defined €œlow-income country€ as one with per capita income of less than $501. In 2003, when the third edition of Global Marketing appeared, €œlow income€ was defined as $785 or less in per capita income. As shown in Table 2-4 of this chapter, $1,045 is the current €œlow-income€ threshold. The other stages of development have been revised upward in a similar manner. How do you explain the upward trend in the definition of income categories during the past 20 years?

Table 2-4

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Stages of Market Development 2013 GNI 2013 World GDP (%) 2013 GDP per Capita (S) Population (millions) Income Group by per Capita GNI ($ millions) High-income countries (OECD) GNI per capita > $12,746 45,760,000 44,490 1,054 High-income countries (non-OECD) 20,622 GNI per capita > $12,746 5,369,000 252 Upper-middle-income countries GNI per capita > $4,126 to < $12,745 18,690,000 7,598 25 2,409 Lower-middle-income countries 2,074 GNI per capita > $1,046 but < $4,125 5,234,000 2,561 Low-income countries GNI per capita s $1,045 612.7 709 .80 849