7.5 - 7.8
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| rostow's stages of economic growth model | a theory that assumes that all countries want to modernize, and that all would, although at different speeds.
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| rostow's model stage 1 | traditional society - depends on primary sector activities, uses limited technology, limited trading and socioeconomic mobility
Ex: 17th century English colonies, medieval europe
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| rostow's model stage 2 | preconditions for take-off - improved infrastructure and farming technique, exports agriculture and raw materials, more technology
ex - nigeria today, afghanistan today, early 19th century US
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| rostow's model stage 3 | take-off - major technological developments, industrialization and shrinking primary sector, begins urbanization, initiates self-sufficient growth
ex - mid-19th century US, late-19th century japan, bangladesh today
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| rostow's model stage 4 | drive to maturity - new industries created, improvements to energy, transportation and communication, more economic growth than population growth, investment in social infrastructure
ex - late-19th century US, early-20th century germany, brazil today
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| rostow's model stage 5 | high mass consumption - nonessential good demand, desire to have a more egalitarian society, supports a strong tertiary sector
ex - US today, japan today
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| criticism of rostow's model | limited examples, role of exploitation, bias towards progress, lack of variation, lack of sustainability, need for poorer countries, narrow focus
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| wallerstein's world systems theory | an alternative model to rostow's model that is a dependency model
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| dependency model | a model that shows that countries don't exist in isolation but are part of an intertwined world system in which all countries are dependent on each other
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| wallerstein's theory for core countries | includes the economically advantaged countries of the world. focuses on higher-skill, capital-intensive production, promotes capital accumulation, benefits from international trade
ex - US, UK, japan, australia, germany
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| wallerstein's theory for semi-periphery countries | includes most middle-income countries (emerging countries). provides core with manufactured goods/services, shares characteristics of both core and periphery countries
ex - china, brazil, mexico, south africa, india
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| wallerstein's theory for periphery countries | includes the least-developed countries. maintains low-skill, labor-intensive jobs, provides core/semiperiphery with inexpensive raw materials and labor, receives jobs but low wages
ex - afghanistan, zimbabwe, bolivia, kenya, laos
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| criticism of wallerstein's theory | little emphasis on culture, emphasis on industry, lack of explanation, limited roles
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| commodities | raw materials that haven't undergone any processing
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| commodity dependence | when a country has an export percent of over 60% raw materials
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| trade | when one party desires a good/service that it doesn't have/can't produce and another party has the desired good/service that it is willing to part with for compensation
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| barter | a system of exchange in which no money changes hands
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| comparative advantage | the ability to produce a good/service at a lower cost than others
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| complementarity | when a country has the income, goods, or services that another country desires
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| free trade | policies/laws that reduce barriers to trade
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| neoliberal policies | a set of reforms that reduce government regulations and taxations
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| policies decreasing trade | trade barriers, increased tariffs, reducing purchases, health problems
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| trading blocs | groups of countries that agree to a common set of trade rules
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| mercosur | southern common market, which includes several SA countries
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| world trade organization (WTO) | a global trading bloc organization, created in 1995 to monitor international trade
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| impacts of economic interdependence | strengthened links between countries economies and growth in one country can result in economic opportunities and the opposite for another country
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| international monetary fund (IMF) | an international financial institution (IFI) created to aid countries caught in need of financial assistance
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| outsourcing | contracting work to non company employees or other companies
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| offshoring | the process of companies moving their back offices to other countries
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| new international division of labor | a changed system of employment in the various economic sector throughout the world
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| new international division of labor for core countries | design/develop products for the global market. more tertiary, quaternary and quinary jobs
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| new international division of labor for semi periphery countries | manufacturing goods marketed in core countries. employment in secondary increased, decreased in primary
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| new international division of labor for periphery countries | large primary sectors, export minerals/resources to core/semiperiphery for further processing and consumption
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| basic economic activity | activities that create new wealth for a region
ex - manufactured goods, commercial farm products
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| non-basic economic activity | activities that don't generate new wealth for a region, allowing for a recirculation of the existing money
ex - a grocery store
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| transnational corporations (TNCs) / multinational corporations (MNCs) | businesses that operate in multiple countries
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| export-processing zones (EPZs) | special manufacturing zones that attract TNCs and MNCs
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| maquiladoras | the EPZs of mexico
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| post-industrial economy | an economy that no longer employs a large number of people in factories but has people who provide services and process information
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| assembly line | when an item is moved from worker to worker, with each person repeatedly performing the same task
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| fordism | the system of mass production
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| substitution principle | a principle in which businesses maximize profit by substituting one factor of production for another
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| post-fordism | the industrial adaptation using the fordism system
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| economies of scale | mechanization saves a company money long term by allowing increased output with increased efficiency
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| just-in-time delivery | a system in which the inputs in the assembly process arrive at the assembly location when they are needed, which reduces the expensive storage costs of extra inventory but at the risk of running short on inputs
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| locational interdependence | when the location decision for one factory is dependent upon the location of other related factories
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| technopole | a hub for information-based industry and high-tech manufacturing
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| growth poles (growth centers) | a concentration of high-value economic development due to technopoles
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| spin-off benefits (spread effects) | positive economy outcomes beyond the growth poles
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| backwash effects | negative effects on one region that result from economic growth in one region
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| corporate parks (business parks) | a cluster of office buildings that take advantage of agglomeration economies
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| sustainability | using the earth's resource without doing permanent
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| sustainable development | addressing problems caused by depletion of natural resources, mass consumption of goods, pollution of air/water, and the impact of climate change
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| ecological footprint | impact on the environment
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| causes of pollution | natural events (volcanos, etc) dust storms, burning wood, coal or oil, water pollution from waste from industries or from farm chemicals
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| impacts of pollution | large impacts on plants, animals, and humans, which increases health care costs
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| efforts to control pollution | forcing every company to reduce emissions
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| climate change | caused by human actions, increased amount of wildfires, hurricanes, floods, and droughts with widespread consequences in the future such as diseases, rising ocean levels, melting glaciers, increased refugee crises
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| ecotourism | an example of sustainable development where people travel to a region where they are interested in its distinctive and unusual ecosystem, where the environment benefits
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| sustainable development goals (SDGs) | the 17 new goals that the UN created to replace the MDGs, intending to finish the job of the MDGs but with more awareness of environmental challenges and ways to overcome them
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