Chapter 8

fourth stage of development

(high mass consumption stage). During this stage, the country has now reached the final stage, which means its people have fully embraced the values and beliefs of high-income nations, and they have a ***high standard of living that goes along with their values.

buyer driven commodity chain

-low income/middle income -exploited by low wages

underdevelopment

Dependency theory offers a better understanding of global poverty that goes beyond economic values and belief systems. The exploitation of poor countries is a reason why low-income countries are stuck in a cycle of poverty. *pointed out by dependency theory

wine glass

Four-fifths of the world's population, a large majority, share a very small percentage of the world's total income. The majority of the income is held by the top fifth of world earners

dependency theory

It focuses on how poorer nations are trapped by richer nations' exploitation. (High-income nations rely on lower-income countries for their raw materials, and in return, the poorer countries become structurally dependent on the richer nations for the money that is exchanged for the raw goods)

major critique of the modernization theory

It takes a Eurocentric viewpoint of low-income nations, which implies that the lower-level economies are wrong.

producer driven commodity chain

central role in controlling the productions process -automobile industry

world systems theory

how a country is incorporated into the global capitalist economy (core, semi, peri)

second world nations

moderate level of development

third world nations

poorest

First world nations

rich, industrialized nations

division of labor theory

split into fragments: whichever part of the world can provide the best combination of capital and labor

semiperipheral nations

such as Brazil and China, are moderately industrialized nations that fall in the middle on the global stratification scale. They do a lot of the manufacturing work that used to be located in core countries, and they often help core countries profit from the lower-level peripheral countries.

core nations

such as the United States and Switzerland, are the most powerful nations in the world. Most of the world's capital and technology is concentrated in such nations. They have tremendous wealth and often use their wealth and power to exploit less-advantaged nations.

Modernization theory

suggests that low-income economies can move to middle- and high-income economies by taking on the values of the higher-level economies

second stage of development

take off stage. a period of economic growth, belief in individualism, ppl start to look toward the future

third stage of development

technology maturity/ embrace beliefs and values

first stage of development

traditional stage, very little social change takes place and do not think much about changing

global stratification

unequal distribution of wealth, power, and prestige on a global basis = vastly different lifestyles

International organizations encounter problems as they try to measure wealth and poverty on a global basis. One reason such measurements are challenging is that...

The concepts of wealth and poverty are multidimensional

birth rate consequences

The consequence of these rates is that countries that are already struggling will have more people sharing few resources, while countries that have many resources will have fewer people sharing them. This is likely to only increase global inequality. *higher birth rates= harder time dealing

The income gap between the richest and poorest percentage of the world population continues to narrow. T or F

This is false. The gap between the wealthiest and poorest percentage of the world population has been increasing over the past several decades.

High-income countries typically have highly industrialized economies. T or F

This is true. High-income countries are likely to be highly industrialized and have high levels of national and individual income.

subjective poverty

actual income vs expectation

peripheral nations

Peripheral nations, such as Haiti and Ghana, are among the poorest nations on earth. * but they also frequently have highly desirable natural resources that attract core countries. Core countries use their power to extract these resources.