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