As an extension of the Marxist thought, the North-South division is argued to be a serious problem in the world agenda as well. The North-South division refers to the structural inequalities in the international economy. The North is roughly composed of developed northern hemisphere countries, while the South is comprised of underdeveloped or developing Third World countries. This categorization ignores the geographic position of some countries, such as Australia and New Zealand, taking placing in the South, yet being labeled as part of the North.