Global Society exam 2

Chinese factories respond quicker than other companies around the world because Chinese factories use more robots and assembly lines than human labor

False

Glen Firebaugh and Brian Goesling believe that global inequality is increasing.

False

Who buys US Treasuries?

China, Japan, and Ireland. China buys U.S. treasuries when the dollar loses value to support it.

Which region experienced such rapid economic growth between the 1960's and 1980's that most its NIEs moved from the ranks of the poor to the middle income category?

East Asia

Countries that are middle income

East and Southeast Asia, Middle East, North Africa, The Central and South Americas, former Soviet Union and East European allies

What are state centered theories?

Emphasize the role of governments in fostering economic development

Global Cities

key cities in the global, especially capitalist, economy

Periphery

the least developed countries with weak states institutions

The poorest people in the world are known as the

Bottom Billion

Hyper-consumption

Buying more than one can afford

What are high income countries?

High income countries are generally industrialized first, they (in 2006) had 15.5% of world population and 75.8% of the worlds annual output of wealth, they have high standards of living

Megacities

Cities with a population greater than 10 million people

Double movement

Coexistence of the expansion of the laissez-faire market and the reaction against it

Sovereign Wealth Funds

Funds controlled by nation-states that often invest in other countries

Friedmann's four types of global reach are known as

Global articulations

What is the economic impact due to demand for oil?

Higher prices, difficulty in obtaining supply, unusual sources to obtain oil, possible relaxation of drilling restrictions in Alaska and off US coast, increased efforts to use and create biofuels, huge increase in demands and price of corn, and lead to higher prices or other commodities: food, transportation prices - airline.

Trap of being landlocked with "bad neighbors"

Impact on ability to transport exports

Natural resources trap

Limiting economic development because of excessive dependence on abundant natural resources

which of the following are major forces involved in the speak of new management ideas?

Management, IT firms, management consultants,

Market fundamentalism

Markets will take care of all our needs

multinational articulations

Miami, Los Angeles, Frankfurt, Amsterdam, and Singapore

Relation of Resistance

Movements opposed to exploitation global practices

Conflict Trap

Nation-state confronted with either continuing civil wars or frequent violent coups d'etat

Industrial upgrading

Nation-states, firms, and even workers move from low-value to relatively high-value production

Graduated Sovereignty

National government retains full control in some areas, but surrenders some control in others to corporations and other entities

International Production Networks

Networks of producers involved in producing a finished product

global financial articulations

New York, London, Tokyo

What places are classified as Megacities?

New York, Tokyo, Jakarta, Seoul, Delhi, Shanghai, and Manila

Limited Government

No government can do things as well as the market and should not intervene in it

What are low income countries?

Range of countries from parts of Africa to Vietnam to India to Eastern and Central European Countries, mostly agricultural economies; just beginning to industrialize, they had (in 2006) 36% of world population and 3.3% of worlds wealth, they have poverty, malnutrition, starvation, etc.

What is China's involvement in Global Supply Chains?

Scrap metal "china's industrial might is being constructed out of the ruins of the us," waste paper China's nine dragons paper and American based Chung Nam, T-shirts (American dominance - government's subsidy of cotton - 2002 farm bill), Apparel (Walmart, Target, JCPenny, Gap, Wrangler, Tommy, etc.) 300 - 500 factories around the world, also iPhone, "used" factories, and automobiles

Which of the following are global value chains which involve trade between the US and China?

Scrap metal, tshirts, used factories

Outsourcing

Transfer of activities once performed by an entity to a business (or businesses) in exchange for money

Offshore Outsourcing

Transfer of activities to entities in other countries

What is the relationship between China and the US?

U.S. has the largest trade deficit with China

Global Commodities

Value-adding chains, global industries, and the sellers of global products; buyer driven chains (Nike, Walmart). Value-adding chains, global industries, and the sellers of global products

Global trade operates through economic networks such as supply chains, and international production networks but not through global value chains.

false

What are the four types if "global articulations"

global financial articulations, multinational articulations, important national articulations, and subnational/regional articulations

Semi-periphery

intermediate countries with developing economies

Relations of social production

is how populations survive within international and national institutions that govern material conditions and opportunities to earn a living

the form of outsourcing that is most closely related to globalization is known as?

offshore outsourcing

Countries that are low income

parts of Africa to Vietnam to India to Eastern and Central European

Relations of social production

processes through which populations survive within institutions that govern material conditions

What are dependency theories?

that resources flow from a periphery state to a core state elevating the core at the expense of the periphery. It is a central contention of dependency theory that poor states are impoverished, and rich ones enriched by the way poor states are integrated into the "world system."

Free-Market capitalism

the creation of open domestic economy

Core

the wealthiest industrialized countries with strong states

What are market-oriented theories of inequality?

theories about economic development that assume that the best possible economic consequences will result if individuals are free to make their own economic decisions, uninhibited by governmental constraint

Global value chains

various phases of production, delivery to final consumers, final disposal

Supply Chains

(cotton) value-adding activities in the production process beginning with raw materials and ending with a finished product.

Hyperdebt

Owing more than one will be able to repay

In the article, "Winners and Losers in Globalization", what were some of the obstacles that kept Malawi in continued poverty?

Landlocked, drought, HIV/AIDS

Megalopolis

A long chain of interconnected cities with the potentiality of becoming one huge city

Free market

A market free of any impediments

The main economic activity in most low income countries is

Agriculture

What is neoliberalism?

An economic approach that emphasis benefits of free markets and free trade, putting our trust into the markets not the government

What does race to the bottom mean?

Countries involved in a downward spiral of competitiveness. In order for less developed countries to compete they must offer lower wages, poorer working conditions, longer hours, higher pressures and demands

What are middle income countries?

Countries primarily in East and Southeast Asia, Middle East, North Africa, The Central and South Americas, former Soviet Union and East European allies, they industrialized late, less developed than high-income countries, they had (in 2006) 46.7% of world population and 20.8% of world's wealth

What are the reasons NIE's had such rapid economic growth?

Countries that evolved from colonial relationships that imposed hardships but also paved the way for economic growth, east Asian region benefited from long period of world economic growth, some argue cultural traditions, such as Confucianism aided growth, and growth took place during high point of cold war, when us and its allies provided economic and military aid.

Free-market capitalism

Creation of an open domestic economy

Deterritorialization

Declining significance of the geographic location in which culture exists

Growth Triangles

Largely autonomous domains linking neighboring countries allowing for the exploitation of resources that exist on the border

What does poverty around the world look like?

Extreme deprivation in south Asia & Africa, over 300 million Chinese people live in extreme poverty, amount of poor increasing in Latin America, South Asia, Sub-Saharan Africa, in US poverty more common than in other countries with similar development, child poverty rate is high in us, Ireland, Spain, Israel and Italy, in Eastern Europe child poverty rates as high as 85% and higher.

Export Processing Zone (EPZ)

Independent area controlled by corporations and free of national control

subnational/regional articulations

Osaka-Kobe, San Francisco, Seattle, Houston, Chicago, Boston, Vancouver, Toronto, Montreal, Hong Kong, Milan, Lyon, Barcelona, Munich, and Dusseldorf

important national articulation

Paris, Zurich, Madrid, Mexico city, Sao Paulo, Seoul, and Sydney

Laissez Faire

Policies of non-intervention by the nation-state in market, trade, or the economy more generally

Bad governance trap

Policies which can inhibit or destroy economy

What is the Skeptic's argument about globalization and development around the world?

Skeptics argue that the role of globalization varies, and no gains are permanent; how well one does depend largely on where one is born, the proportion of absolutely poor people has declined but the very low bottoms slight progress does not mean that there is less inequality

Social class

Social ranking made on the basis of economic factors such an occupation, wealth, and income

What country had "hidden strengths" that helped them become a "developed nation

South Korea

What are the factors for increased competition for commodities?

Starting point for many global value chains, oil, natural gas, copper nickel, etc., competition fueled not so much by developed countries but by massive development in developing countries (India, and China - although developing exponentially) "Global commodities ranging from oil to base metals and grains are moving higher as billions of people in China and around the world get wealthier and are consuming more as they produce products for us, and increasingly for themselves."

What is world systems theory?

That the world is divided into core, periphery, and semi-periphery

Structural Adjustment

The conditions of economic "restructuring" that are imposed by organizations such as the World Bank and the IMF on borrowing nations Receiving nations are expected, among other things, to put into place tight monetary and fiscal policies, to liberalize financial markets and trade, to privatize, and to deregulate

Precariat

The growing number of part-time workers, temporary workers, and others living precariously without stable jobs, occupational identities, or social protections

How did the management of globalization impact Korea and Malawi?

The management of globalization impacted Malawi by having a corrupt government, dependent on foreign aid, spread of AIDs epidemic, and droughts, initial benefits were short lived and had no choice but to seek help from IMF and world bank. It impacted Korea by causing it to receive American aid (military aid they did not have to pay back), no natural resources, became great exports, and among poorest countries, they started to thrive because they had education.

What is Global Inequality?

The systematic differences in wealth and power among countries

What is modernization theory?

The theory that low-income societies develop economically only if they give up their traditional ways and adopt modern economic institutions, technologies, and cultural values that emphasize savings and productive investment

What do Hyperglobalizers and IMF/World Bank argue about what globalization and development has done to the world?

They argue that globalization and development has resulted in positive changes in developing countries; less absolute poverty, people live longer, etc.

Ideology

a system of widely shared ideas and beliefs accepted as truth by some group(s)

Deregulation

commitment by nation states to limit or eliminate restraints on the free market and free trade

What are Newly Industrializing Economies (NIEs)?

countries whose economies have not yet reached a developed country's status but have outpaced their developing counterparts. Hong Kong, Singapore, Taiwan, and South Korea. Increase economic freedom and personal liberties, transition from agriculture to manufacturing, the presence of large national corporations, and urbanization