HGAP UNIT 7 REVIEW

Dependency Theory: Core, Semi-periphery, Periphery

*CORE*- buy raw mats, pay for cheap labor, sell consumer goods for high prices *(SELLS CONSUMER GOODS & PROVIDES MONEY FLOW TO SP & P COUNTRIES)* *PERIPHERY*- Pay high prices for consumer goods, which depletes $ supply and opportunities for investment. *(SENDS CHEAP LABOR & NAT RESOURCE SP & C COUNTRIES)*

major reasons Great Britain was the first country to industrialize

CHEAP LABOR COAL & CANALS EASY ACCESS TO RAW MATERIALS AND BUYERS A FREE GOVERNMENT THE ABSENCE OF CONFLICT

Trading between countries

In world trade, *core (a.k.a MDCs, First World, etc.) countries have the advantage in trade over semi-periphery and periphery countries.*

Tertiary branches out to

Quaternary and Quinary

Reshoring

Repatriation of outsourced services, sometimes with labour force brought to country *moves jobs back from foreign to domestic locations* Encouraged by labor unions

export processing zones (EPZs)

SEZs that are *specifically designed to promote export-oriented manufacturing.* *EXAMPLE*- EPZs in Kenya

Brandt Line (north-south divide)

Spatial analysis of development Generally,MDCs are in the northern hemisphere and LDCs are in the southern hemisphere. Fallen out of favor due to the development of many NICs that are located in the southern hemisphere.

Agglomeration

The *spatial grouping of people or activities for mutual benefit*, the *concentration of industries* in a specific area or region can occur for a variety of reasons, such as the *availability of skilled labor, access to transportation and other infrastructure, and the presence of complementary industries* can lead to *increased efficiency and productivity*, as *firms can take advantage of the benefits of being located near other firms and institutions.* *EXAMPLES* *concentration of automobile manufacturing in Detroit, Michigan,* due in part to *availability of iron and coal* in region, as well as presence of the *Great Lakes*, made it *easier to transport raw materials and finished products* *Silicon Valley in California* has become a *hub for technology companies* due to the *concentration of skilled workers, research institutions, and venture capital firms in the region.* can occur due to the *availability of natural resources, transportation infrastructure, and access to markets*

Gross National Income (GNI)

The value of the output of goods and services produced in a country in a year, including money that leaves and enters the country GNI can be calculated with this formula: *GNI = GDP + (EXPORTS - IMPORTS).*

Effects on employment for women

When *women can get jobs,* they can get *healthcare*, *higher education*, and get *specialized ways to work and start a family to improve their status in society* As *countries develop economically,* these *women can have more rights which allows for more education and less "traditional" roles in homes.* *role in society can change and improve with an education* because they *can get a job, make money, and live without dependency on men.*

Importance of coal in industrialization

With the *growth of coal manufacturing, water power was not as important in the location of factories as much as new raw materials (like coal)*. *Coal powered most new factories as Industrialization diffused* into NW Mainland Europe and the Americas, like in Ohio & Pennsylvania.

Women and Income Inequality

Women are often disproportionately affected by income inequality, as they *tend to earn less than men and are more likely to live in poverty* can be due to a variety of factors, such as *discrimination in the workplace, a lack of access to education and training, and the disproportionate burden of unpaid care work that falls on women.* income inequality can have serious negative consequences for both individuals and societies. It can *lead to social and economic divisions, undermine social cohesion, and reduce overall economic growth.*

Mixed Economy

a *hybrid system* that combines elements of *both market and command economies.* It is characterized by a mix of *private enterprise and government control. (mix of capitalism and socialism)* *EXAMPLES*- Germany, France, Russia, USA, China

Assembly line

a production process in which a series of tasks are completed in a specific order to build a finished product Each worker or machine is responsible for completing one specific task, and the finished product is assembled as it moves down the line. first introduced by Henry Ford in the early 20th century, and it revolutionized the way that products were manufactured by *greatly increasing the speed and efficiency of the production process* Today, assembly lines are *used in a wide variety of industries, including automotive, electronics, and food processing* *EXAMPLE*- the production of automobiles are many different tasks that need to be completed in order to build a car. These *tasks are divided among different workers or machines, and the car is assembled as it moves down the line* As the car moves down the line, each worker or machine adds a specific component or performs a specific task, until the car is fully assembled and ready for shipment.

Sun Belt

a region of the United States that includes the southeastern and southwestern states and is *known for its warm climate and rapid population and economic growth* has historically been an *attractive destination for migrants and retirees*, and has also *attracted businesses due to its lower labor and land costs.* *EXAMPLE*- Pheonix, AZ Phoenix has experienced rapid population growth in recent decades due to its *warm climate and affordable housing*, and has also *attracted businesses due to its low labor and operating costs* city has a *diverse economy*, with a *mix of manufacturing, service, and technology industries* *OTHER EXAMPLES*- Tampa, Florida; Dallas, Texas; and Las Vegas, Nevada.

European Union (EU)

a regional organization that *promotes economic, political, and social integration* among its member states, which are primarily located in Europe An *alliance that promotes trade among its member countries in Europe* single currency *EXAMPLES*- france, Italy, greece

Mercoscur

a regional trade bloc in *South America* that *promotes economic integration among its member states*, *COUNTRIES*- Argentina, Brazil, Paraguay, and Uruguay.

Trade deficits

occurs when a *country imports more goods and services than it exports* means that the *value of the goods and services that the country imports is greater than the value of the goods and services it exports.* can have a variety of economic and political consequences. trade deficit may indicate that a country is relying too heavily on foreign goods and not producing enough of its own goods to meet the demand of its consumers, *can lead to a decline in domestic manufacturing and employment.*

Country-level scale: Core, SP, P

*CORE*- high income, eco and polit dominant, high trans & comm infrastructure, control market, businesses HQed here *(MAJOR CITIES, NY, Chicago)* *SP*- middle income, aspects of C & P, active in manufacturing goods and export raw mats, better trans & comm than P *(2nd-TIER CITIES, Cincinatti, Atlanta)* *P*- lower income, low levels of education than core, export nat resources to SP & C, not reliable trans & comm infrastructure, low skill labor intensive jobs *(RURAL AREAS) P(exports materials)---> SP(manufactures goods)---> C(sells consumer goods, controls market)

Roles of Women Change Based on Economic Development

As *countries develop economically*, the *roles and opportunities available to women often change* In many *developing countries*, *increased economic development has led to a rise in women's participation in the workforce,* as *more women have gained access to education and employment opportunities.* However, despite this increase in participation, *women still face significant barriers to achieving equality in the workplace* often *paid less than men* for the same work and *may have limited access to higher-paying jobs and leadership roles.* women may *face discrimination and other forms of gender-based violence in the workplace.* *changing roles of women in the workforce* can also have an *impact on other areas of society, such as family dynamics and gender roles.* *EXAMPLE*-, as more women enter the workforce, traditional gender roles and expectations may shift, and there may be a greater need for support services such as child care and eldercare.

What does Economic Patterns have to do with development

As a *country becomes more developed*, the *primary sector declines due to an increase in industrialization*. So, the *tertiary sector is also going to increase.* In *less developed countries* the *economy is mostly made up of primary economic activities.*

Economy

*large set of interrelated production and consumption activities* that *aid in determining how scarce resources are allocated.* production and consumption of goods and services are used to fulfill the needs of those living and operating within the economy (economic system)

Offshoring

*moving elements of your companies operations overseas while keeping them within the company* *Cheaper labor* but *still highly skilled*

Market economy

*production and distribution of goods and services* are *determined by the laws of supply and demand in a free market.* *EXAMPLES*- USA, England, Japan *THERE ARE NO PURE MARKET ECONOMIES*

4th stage of modernization/roscow's model: drive to maturity

*technical advancements* and *increased investment in education* lead to a *shift towards a more skilled and knowledge-based economy* *manufacturing sector continues to be the driving force behind economic growth* also a *rise in the service sector* and the *development of more advanced and specialized industries.* *economy continues to experience rapid economic growth*, *increase in productivity and income* *standard of living* for the population i*mproves* but *pop declines,* is a *greater demand for consumer goods and services.* stage is *characterized by a more diversified and advanced economy,* with a *greater focus on innovation and technological development* can lead to the *development of new products and industries*, and can drive further economic growth and development *investment in social infrastructure(schools, hospitals, etc)* *EXAMPLES*- Brazil, Russia, China

World Systems Theory: Core, periphery, semi-periphery

*CORE*- most industrialized and technologically advanced, and they dominate the global economy through their control of finance, trade, and production. (*COUNTRIES INCLUDE: former colonial powers, US, UK, Japan, AUS, Germany*) *PERIPHERY*- less industrialized and have a more dependent relationship with the core, as they are primarily engaged in the production of raw materials and agricultural goods. (*COUNTRIES INCLUDE: Afghanistan, Peru, Kenya*) *SEMI-PERIPHERY*- intermediate between the core and periphery, and they may have some industrialization and trade connections with both the core and periphery (*COUNTRIES INCLUDE: NRICs are BRICs, Mexico*)

examples of neoliberal policies

*Deregulation:* Removing or reducing regulations on business, such as laws and regulations that control prices, protect consumers, or protect the environment. *Liberalization:* Opening up markets to foreign competition by reducing tariffs, quotas, and other trade barriers. *Privatization:* Selling state-owned enterprises, such as utilities or transportation companies, to private investors. *Austerity*: Reducing government spending, often in an effort to reduce budget deficits or debt. *Free trade*: Promoting international trade by reducing tariffs, quotas, and other trade barriers. *Monetary policy*: Using tools such as interest rates to control inflation and stimulate economic growth

examples of barriers that women may face:

*Discrimination:* Women may face discrimination in the workplace based on their gender, which can take many forms, including unequal pay for the same work, limited opportunities for promotion and leadership, and gender-based harassment and violence. *Lack of access to education and training:* Women may have limited access to education and training opportunities, which can limit their ability to qualify for certain jobs and advance in their careers. *Unpaid care work:* Women often bear a disproportionate burden of unpaid care work, such as childcare and eldercare, which can limit their ability to participate in paid employment or pursue education and training opportunities. *Limited access to credit and financial resources:* Women may have limited access to credit and financial resources, which can make it difficult for them to start businesses or invest in their own education and training. *Stereotypes and societal expectations:* Women may face societal expectations and stereotypes that limit their career choices and opportunities, and they may be discouraged from pursuing certain fields or leadership roles.

Gender Inequality and the HDI

*HDI*- a composite measure of human development that takes into account a range of factors, including life expectancy, education, and income is a useful measure of overall development, it *does not take into account gender-based inequalities, which can exist even in countries with high HDI scores.* *Gender inequality*- refers to the unequal treatment or opportunities for individuals based on their gender. can take many forms, including *discrimination in education, employment, and access to healthcare, *as well as *unequal power dynamics within households and communities.* can have serious negative impacts on the well-being and development of individuals and societies Women and girls who face gender-based discrimination and exclusion are *often denied opportunities to reach their full potential and contribute to the development of their communities and countries.* *Gender Development Index (GDI)*- measures gender-based inequalities in life expectancy, education, and income. is used to identify areas where women and girls may be disadvantaged and to track progress toward gender equality.

examples of how the roles of women have changed as a result of economic development:

*Increased participation in the workforce:* As countries develop economically, women's participation in the workforce tends to increase. This can be due to a variety of factors, such as increased access to education and employment opportunities, changes in societal expectations and gender roles, and the need for additional household income. *Changes in family dynamics:* Economic development can also lead to changes in family dynamics, as more women enter the workforce and take on roles outside of the home. This can result in a greater need for support services, such as child care and eldercare, and may lead to a shift in traditional gender roles and expectations. *Increased economic independence:* Economic development can also provide women with greater economic independence, as they are able to contribute to household income and make their own financial decisions. This can lead to increased autonomy and empowerment for women. *Changes in societal attitudes:* Economic development can also lead to changes in societal attitudes towards women, as they become more visible in the workforce and take on a greater role in the economy. This can lead to a greater recognition of the value of women's contributions and a shift towards more gender-equal attitudes and policies.

Unit 7 core theme

*Industrialization and Economic Growth* will *give power to some* but will *hurt others* through the process of *Uneven Development.*

Outsourcing

*Taking internal company functions and paying an outside firm to handle them* *Cheaper* - might be a specialized company or labor that is less expensive/fewer benefits

Industrialization -->

*consumer goods* more *affordable and available*

Maquiladoras

*factories located in developing countries that import raw materials and export finished goods* factories are often *owned by transnational corporations* and are *located in countries with lower labor and production costs.* are a controversial form of economic development, as they *can provide jobs and economic growth in the host country*, but are also *accused of exploiting cheap labor and undermining local businesses.* *EXAMPLE*- a factory in Mexico that imports raw materials from the United States, assembles the materials into finished products, and then exports the products back to the United States are often located in border regions *U.S. is the main market for maquiladora exports*, although they also export to other countries.

Women -->

*gained* economic power with *opportunities in factories*

raw materials demand -->

*increased*, new sources acquired by steamship

Transnational corporations (TNCs)

*large businesses that operate in multiple countries* have *significant economic power and influence* and are *often accused of exploiting developing countries* and *undermining local businesses and cultures* *EXAMPLE*- McDonald's has restaurants in over 100 countries and generates a significant portion of its revenue from international operations has been criticized for its *impact on local cultures and economies*, as well as for its *environmental and labor practices* *OTHER EXAMPLES*- Coca-Cola, Disney, Nike, and ExxonMobil

5th stage of modernization/roscow's model: High Mass Consumption

*technical knowledge and education levels are high*, and the *economy becomes more industrialized and trade-based* *manufacturing sector continues to be a key driver of economic growth*, but there is also a *significant expansion of the service sector,* which becomes the largest contributor to GDP. *economy continues to experience economic growth*, but at a *slower and more sustainable pace* (standard of living for the population is generally high*, and there is a *high level of demand for consumer goods and services.* *pop continues to decline or goes into negative(bc women dont wanna have kids/ dont got the time)* stage is *characterized by a highly developed and diverse economy*, with a *strong emphasis on innovation and technological development* greater focus on *social welfare and quality of life*, and there is a *greater level of economic and social equality.* ppl *spend money on nonessential goods* *EXAMPLES*- US, Canada, Japan, S Korea, Eastern EU

stages of modernization model

1) Traditional Society 2) Preconditions to take-off 3) Take-off 4) Drive to maturity 5) High mass consumption

Criticisms of Rostow's Model

1. *BASED ON .INDUSTRIALIZED, CAPITALIST, COUNTRIES* (doesn't take into account countries that dont follow these ideals, countries that value kinship/community higher than wealth) 2. *SCALE & UNEVEN DEVELOPMENT* (Stages of growth are not uniform across one country, country's overall stage may be higher than some areas of country) 3. *LINEAR PROGRESS* (not all countries will progress in order, doesnt take into account wars, nat disasters, corruption) 4. *GLOBALIZATION*(doesnt take into account fact that all countries are connected in globalized world) 5. *EQUAL POTENTIAL TO DEVELOP* (doesnt factor in that major differences in countries like landscapes, climates, nat resource access, relative location could help/hinder development) 6. *SUSTAINABILITY* (doesnt take into account natural environment, depletion of resources, and level of waste that is generated by massive consumption) 7. *COLONIALISM* (didnt factor in the massive impact of colonialism on LDCs, Most countries that reached mass consumption did so by exploiting LDCs, resources, countries today dont have that option)

examples of how Weber's least cost theory might apply in practice:

A car manufacturer might choose to locate its production facilities in a country where labor costs are lower, in order to minimize its production costs. A clothing retailer might choose to source its garments from a supplier in a country where raw materials are cheaper, in order to minimize its production costs. A software company might choose to outsource its customer support to a call center in a country where labor costs are lower, in order to minimize its costs. An electronics retailer might choose to locate its distribution centers near major transportation hubs, in order to minimize the cost of shipping its products to customers. *In each of these examples, the firm is making a decision based on the principle of minimizing its costs, in order to maximize its profits.*

Barriers for Women

Despite the increasing participation of women in the workforce, *women still face significant barriers to achieving equality in terms of wages and employment opportunities.* On average, *women earn less than men for the same work* (gender pay gap) can be caused by a variety of factors, such as *discrimination, a lack of access to education and training, and the disproportionate burden of unpaid care work that falls on women* may also *face barriers to accessing certain types of employment or to advancing in their careers* may be *underrepresented in certain industries or occupational sectors*, and they may *face discrimination or other barriers to promotion and leadership opportunities.*

Break-of-Bulk Point

a *location where the transfer of goods from one mode of transportation to another takes place*, such as from a *ship to a truck* or from a *train to a warehouse* is a point in the supply chain where the *movement of goods is transferred from one form of transportation to another,* typically in order to reach the final destination. are important because they *allow for the efficient movement of goods over long distances by enabling the use of different modes of transportation* *EXAMPLE*- a ship may be used to transport goods from one country to another, and then a truck or train can be used to transport the goods to the final destination within the country. *can be found at ports, airports, rail yards*, and *other locations where different modes of transportation intersect.* play a crucial role in the global supply chain, as they *facilitate the movement of goods and materials around the world.*

Multidimensional Poverty Index (MPI)

a *measure of poverty *that *looks at multiple dimensions of well-being, including education, health, and living standards* used to i*dentify the extent of poverty in a country* and to *identify groups that are disproportionately affected by poverty.*

Growth Pole

a *specific area or sector that drives economic development in a region* idea behind it is that *economic development in one area can have spillover effects that stimulate growth in other areas* *EXAMPLES*- *the development of a new port or transportation hub, can create jobs and stimulate economic development in the surrounding region* *construction of the Panama Canal* led to the development of a *growth pole in Panama City*, as the city became a *major transportation hub for shipping goods between the Atlantic and Pacific Oceans* also *led to the development of other growth poles in the surrounding region*, as new industries, such as *tourism and real estate, emerged to serve the needs of the canal*

Human Development Index (HDI)

a composite measure of a country's development that takes into account a range of factors, including *life expectancy, education, and income.* used to *rank countries based on their level of development* and to identify areas for improvement. indicators they use are Life Expectancy at Birth, Expected Years of Schooling and Average Years of Schooling, and GNI It ranges from 0 to 1 - countries with HDI *closer to 1 are highly developed with the average citizen living a long and healthy life, everyone has access to higher education, and they have a high standard of living.* *THE HIGHER THE BETTER*

USA-Mexico-Canada Agreement (former NAFTA)

a free-trade relationship that had a full removal of all tariffs (taxes on goods that cross international border) made it easier for Canada and Mexico to sell their products in US and vice versa

interchangeable parts (standardization/mass production)

a manufacturing process in which parts are designed and made to be interchangeable with other parts means that *any part can be used in place of any other part, without the need for custom fitting or modification* are an *important part of modern manufacturing* because they *allow for faster, more efficient production and repair.* concept was first developed in 19th century, was an *important factor in the development of the assembly line,* which *revolutionized the way that products were made.* Today, are used in a wide range of industries, including automotive, aerospace, and electronics.

Gender Development Index (GDI)

a measure of *gender-based inequalities in a country*, taking into account factors such as *life expectancy, education, and income* used to i*dentify areas where women and girls may be disadvantaged *and to *track progress towards gender equality.*

Environmental Performance Index (EPI)

a measure of a country's *environmental performance*, taking into account factors such as *air and water quality, biodiversity, and climate change* is used to *identify areas where a country may be performing poorly in terms of environmental protection* and to *track progress towards environmental sustainability.*

Gross Domestic Product (GDP)

a measure of the total value of goods and services produced in a country, divided by the country's population. often used as a measure of a country's economic development because it *reflects the average income earned by individuals in the country.* only measures *DOMESTIC* (NOT international impacts on the) economy using this formula: *GDP = GOODS + SERVICES*

Rostow's Stages of Development (Modernization Model)

a model that *analyzes the 5 steps that it takes to move from an agricultural society to a service-based economy.* His *main assumption in creating the model was that each country had some kind of comparative advantage.* Critics of this model state that it *does not account for colonial legacy or government corruption in developing countries*

Just-In-Time Delivery (JIT)

a supply chain management strategy in which *materials and goods are delivered to the production process or to the end customer just in time for them to be used*, *rather than being delivered in advance or being stockpiled.* goal is to reduce waste, improve efficiency, and lower costs by reducing the amount of inventory that a company needs to hold. *EXAMPLES*- Amazon, Toyota, Nike *Toyota*- Only when orders are received from a client and a car is ready to be built, then do they receive raw materials on their production floor. In doing so, holding inventory is minimized which leads to lower costs.

Weber's least cost theory (location theory)

an economic theory that proposes that *firms will choose the production methods that minimize their costs, in order to maximize their profits* firms will consider a variety of factors, including the *cost of labor, raw materials, and capital, as well as transportation and other logistics costs*, when deciding how to produce a good or service. assumes that *firms are rational and will choose the production methods that minimize their costs*, given the *available technology and other constraints* assumes that *firms will choose the location for their production that minimizes their costs,* taking into account *transportation and other logistics costs.* *suggests that firms will choose the location for their production that minimizes their costs and maximizes their profits*

Organization of Petroleum Exporting Countries (OPEC)

an intergovernmental organization of 13 oil-producing countries that *aims to coordinate and unify the petroleum policies of its member states.* has the *ability to influence global oil prices through its control of a significant portion of the world's oil reserves* and its *ability to regulate oil production.* *COUNTRIES*- venezuela, iran, iraq

World Trade Organization (WTO)

an international organization that *promotes free trade and the liberalization of international trade.* sets rules and standards for international trade, and its member states agree to abide by these rules as part of their membership *EXAMPLES*- Finland, France, AUS

Traditional economy

based on *customs, traditions, and the way of life that has been followed for generations.* It is characterized by a strong reliance on *agriculture, trade, and the bartering(exchange) of goods and services.* *EXAMPLES*- Brazil, Haiti, Yemen

Why does industrialization happen

because of the *growth of large scale manufacturing economic activities in a region* It can usually lead to *favoring commercial farming over subsistence.* With the *growth of coal manufacturing, water power was not as important in the location of factories as much as new raw materials (like coal)*.

2nd stage of modernization/roscow's model: preconditions to take off

country's leadership *begins to invest in infrastructure and technical knowledge *in order to *stimulate economic growth.* may involve *building roads, bridges, ports, and other infrastructure to support economic activity* *investing in education and training* to *increase the technical knowledge of the workforce.* may also be a *shift towards more specialized and productive forms of agriculture(mechanized farming)*, as well as the *development of small-scale industries and manufacturing* can lead to an *increase in productivity and income,* and can *lay the foundation for more rapid economic growth in the future.* *EXAMPLES*- Nigeria

Special Economic Zones (SEZs)

designated areas within a country that have *special economic regulations* that are *more favorable than the regulations that apply in the rest of the country* often *established to encourage economic development and attract foreign investment.* offer a *range of incentives to firms*, such as tax breaks, relaxed regulatory requirements, and access to infrastructure *incentives are designed to make it more attractive for firms to locate in the SEZ* and to take advantage of the favorable economic conditions typically *located in developing countries*, and they are *often established in areas that are underdeveloped or disadvantaged.* goal of SEZs is to *stimulate economic development and create jobs in these areas,* and to *help the country catch up with more developed countries.* *EXAMPLES*- Shenzhen Special Economic Zone in Chinaa (created to encourage economic development and foreign investment in the region)

Country developments -->

develop with *more trade* and *more knowledge of economics*

Informal Economy

economic activities that are *not regulated or recognized by the government* includes activities such as *informal employment,* the *production and sale of goods and services through informal channels,* and the *exchange of goods and services outside of the formal market.* *EXAMPLES*- -Street vending or selling goods on the black market -Informal employment or self-employment without legal recognition or protection -The exchange of goods and services through barter or other non-monetary forms of exchange -The production of goods using traditional or informal methods, such as handicrafts or cottage industries -The sale of goods and services through unregistered or informal channels

neoliberal policies

economic policies that *promote free market principles, such as deregulation, liberalization, and privatization.* policies are designed to *increase the role of the private sector in the economy* and *reduce the role of the government.* have been *adopted by many countries around the world*, but they have also been controversial and have been *criticized for contributing to income inequality, environmental degradation, and other negative outcomes.* have created new organizations, spatial connections, and trade relationships, such as the EU, World Trade Organization (WTO), Mercosur, and OPEC, that foster greater globalization.

Mercantilism

economic theory that holds that a *country's wealth is directly tied to its supply of gold and silver*, and that the *government should take steps to increase exports and decrease imports in order to accumulate precious metals* was based on the idea that a *country's wealth could be measured by the amount of gold and silver it possessed.* Governments at the time followed mercantilist policies by *enacting protectionist trade policies, such as tariffs on imported goods, and subsidies for domestic industries* has largely *been abandoned as an economic theory*, as it is *now recognized that wealth is not solely based on the possession of gold and silver*, and that *free trade can be beneficial for economic growth* *EXAMPLE*- British policy of requiring American colonies to produce raw materials for export to Britain, and to purchase finished goods from Britain British government *believed that this policy would increase Britain's wealth by promoting the export of British goods*, and by *preventing the colonies from becoming self-sufficient and competing with Britain in international trade.*

1st stage modernization/roscow's model: traditional society

economy is focused on *primary production*, such as *agriculture and the extraction of natural resources.* is *little technical knowledge or infrastructure,* *economy is typically characterized by low levels of productivity and income.* economy is often based on* traditional methods of production and trade,* and there is *little division of labor* Economic activity is often *organized around kinship and community ties*, may be *little or no formal market system.* characterized by a *lack of access to education and modern technology* *lack of legal and regulatory frameworks to support economic activity.* *EXAMPLES*- rural areas in developing countries but NO COUNTRY IS CURRENTLY HERE, Medieval EU

3rd stage of modernization/roscow's model: takeoff

economy undergoes a shift towards *industrialization*, and labor begins to shift from *primary production to factories* increase in *urbanization* as *new infrastructure is developed to support the growing industrial sector* economy experiences *rapid and sustained economic growth* *increase in productivity and income* *manufacturing* sector *becomes the driving force behind economic growth*, *rapid expansion of industry and trade*, *tech advances* stage is often accompanied by significant changes in society, *people migrate from rural areas to urban centers in search of employment* *traditional ways of life are transformed by the growth of industry and technology.* *EXAMPLES*- NCIS(newly industrialized countries), Phillippines, India, Viertnam

The Dependency Theory

holds that *LDCs are highly dependent on foreign factories and technologies from MDCs to provide employment and infrastructure* *LDCs in this theory get stuck in the continuous cycle of dependency on the MDCs* which *never allow their economies to fully develop.*

indicators of social levels of development:

include fertility rates, infant mortality rates, access to health care, life expectancy, and literacy rates.

Population Growth

increase in the number of people in a population There are several factors that can contribute to population growth, including: *Birth rate:* The number of births in a population over a given period of time. *Immigration:* The movement of people into a population from other countries. *Life expectancy:* The average lifespan of people in a population. *Fertility rate:* The number of children that a woman is expected to have during her lifetime. can have both *positive and negative impacts on a country or region.* On the positive side, a *growing population can lead to economic growth and development* On the negative side, a *rapid increase in population can put strain on resources* such as food, water, and housing, and *can contribute to environmental problems* such as pollution and deforestation.

Railroads -->

increased circulation of *goods, people, and ideas*

supranational organization

international organization that *operates above the level of individual nation-states* It is a type of international organization that *has powers and functions that go beyond those of traditional international organizations* *member states are willing to cede some of their sovereignty to the organization* in order to *achieve a common goal.*

International Monetary Fund (IMF)

international organization that *provides financial assistance to member countries* in order to *help them address balance of payment problems and stabilize their economies* *provides loans* to member countries and sets conditions for their use also provides technical assistance and advice on economic policy. *COUNTRIES*- AUS, Republic of Congo, Argentina, US

Semi-periphery

occupies a middle ground between the core and the periphery, and often has a *mix of characteristics from both core and periphery* countries may have *some industrialization and economic development*, but they are *not as advanced as the core countries* and often have a *lower level of global economic influence* *EXAMPLES*-Brazil, Russia, India, and China countries have *experienced significant economic growth and development in recent years,* but they are still *not as economically advanced as the core countries* of the global economy.

Weber's Least Cost Theory

predicts where owners would locate manufacturing industries based on three factors: -*transportation costs* -*labor cost* -*(the benefit of) agglomeration*

Economies of Scale

refer to the *cost advantages that a firm can achieve by increasing its scale of production.* As a *firm increases its production, it may be able to reduce its average costs by taking advantage of various efficiencies*, such as *purchasing raw materials in larger quantities* or *using specialized production equipment.* can *allow firms to produce goods at a lower cost than their competitors,* which can *give them a competitive advantage.* *EXAMPLES*- Costco, Sam's Club (sell products at relatively low prices to move a large product volume, relies on its membership fee to earn significant profit)

Quarternary Economic Activities (production)

refers to *activities that involve the creation and distribution of knowledge and information*. It includes *research and development*, as well as the *design and management of complex systems.* focusing on research and information creation and transfer *EXAMPLES*- *Research and development:* conducting scientific and technological research to advance knowledge and create new products and technologies. *Information technology:* designing, developing, and maintaining computer systems and software. *Management consulting:* providing advice and guidance to organizations on strategy, operations, and other business-related topics. *Intellectual property:* creating and protecting intangible assets, such as patents, trademarks, and copyrights. *investment banking, real estate, college professors, education, software developers* is often *associated with highly skilled and knowledge-intensive industries.* It *can drive innovation and competitiveness in the economy,* and is an *important contributor to economic growth and development.*

Quinary Economic Activities (production)

refers to the *highest level of economic activity*, which *involves the decision-making and policy-making* that drives the other sectors of the economy. It includes activities such as *high-level management, administration, and policy development.* *EXAMPLES*- *High-level management:* making strategic decisions and setting the overall direction of an organization. *Policy development:* creating and implementing policies and plans at the national or international level. *Government administration:* managing the operations of the government and implementing policies. *Think tank research:* conducting research and providing analysis and recommendations on public policy issues. is typically *carried out by highly educated and experienced individuals,* and can have *significant impacts on the direction and performance of the economy.* Decisions impact millions

Development -->

should be *sustainable* to *prevent depletion of limited natural resources*

Microloans

small loans provided to individuals or small businesses can be a *useful tool for promoting economic development and improving standards of living, particularly for women.* can *provide women with the financial resources they need to start or expand small businesses,* which can be an *important source of income and a means of improving their standard of living* can be especially *useful for women in developing countries,* where *access to traditional forms of credit may be limited* They can *provide a way for women to overcome financial barriers* and *gain greater economic independence and empowerment.*

Weber's Location Triangle

sought the *optimum location for the production of a good based on the fixed locations of the market and two raw material sources*, which geographically form a triangle.

Wallerstein's World Systems Theory

structural theory of economic development that *explains how the global economy is divided into a core, a periphery, and a semi-periphery.* suggests that the *global economy is characterized by a core-periphery hierarchy,* in which the *core countries dominate and exploit the periphery countries for their own economic benefit.* highlights the *role of colonialism and imperialism in shaping the global economy and maintaining the core-periphery hierarchy.*

Neocolonialism

the *continuing economic and political control of a country by a more powerful outside force, even after the formal end of colonialism* can take the form of* economic policies that favor the interests of foreign corporations and governments*, or the *use of military or diplomatic pressure to influence the domestic policies of a weaker country.* *EXAMPLE*-influence of the United States on the economies and governments of Latin American countries. Many Latin American countries have a history of U.S. intervention and influence, and have *implemented economic policies that favor U.S. interests*, such as *free trade agreements and privatization of state-owned enterprises.* As a result, these countries *have become heavily dependent on exports to the U.S.* and have become *vulnerable to fluctuations in the U.S. economy.* This dependence has *led to criticism that these countries are still being exploited and controlled by outside powers,* despite the formal end of colonialism.

Primary Economic Activities (production)

the *extraction and production of raw materials*, such as agricultural products, minerals, and forestry products. *EXAMPLES*- *Farming:* growing crops or raising livestock for food, fiber, or other products. *Mining:* extracting minerals, such as coal, metal ores, and oil, from the earth. *Forestry:* harvesting trees for wood and other products, such as paper. *Fishing:* catching and harvesting seafood. *Quarrying:* extracting stone, sand, and other materials for construction and other purposes. often *involves the use of natural resources* and *can have significant environmental impacts.* important for primary producers to consider sustainability in their operations.

Command Economy (Planned economy)

the *government controls the production and distribution of goods and services.* *EXAMPLES*- Cuba, North Korea, Venezuela, and the former Soviet Union *THERE ARE NO PURE COMMAND ECONOMIES*

Commodity Chain

the *series of activities that are involved in the production, distribution, and consumption of a particular product* or commodity. It *includes all of the steps*, from the* extraction of raw materials to the final sale of the finished product to the consumer.* can include activities such as *raw material extraction, manufacturing, distribution, marketing, and retail.* It can *involve a wide range of actors, including primary producers, manufacturers, distributors, wholesalers, and retailers.* Understanding the chain can *help to reveal the various stages of production and distribution that are involved in bringing a product to market* can *provide insight into the social, economic, and environmental impacts of commodity production.* also help to identify opportunities for improvement and innovation in the production and distribution process.

Post-Fordist Production

the *shift away from mass production* and *towards more flexible, customized, and knowledge-intensive forms of production.* shift is characterized by the *use of advanced technologies*(automation, robotics, and artificial intelligence) as well as the *increasing importance of knowledge-based activities* (design, research, and development) *EXAMPLE*- use of 3D printing to manufacture customized products on demand a customer can design a product using computer-aided design software and then send the design to a 3D printer, which will produce the product on demand. This allows for the production of customized products with short lead times and reduces the need for large-scale production runs and mass storage of finished goods.

Core

the highly industrialized, economically advanced countries that dominate the global economy *EXAMPLES*- US, Japan, Canada

Periphery

the less industrialized, less economically developed countries that are often dependent on the core countries often *characterized by a lack of economic and political power*, and may be heavily *dependent on the core countries for trade, investment, and other forms of economic support.* *EXAMPLES*- Haiti, Nigeria, Kenya countries often have *lower levels of economic development and industrialization compared to the core countries* may be *more vulnerable to external economic and political pressures.*

Formal Economy

the organized, regulated, and structured economic activity that is *recognized and supported by the government* of a country country with a *larger formal than the informal economy* is one that is *generally MORE developed for an indicator of development* *EXAMPLES*- -Employment in a large corporation or government agency -The sale of goods and services through a registered business -The payment of taxes -The use of currency as a medium of exchange -The production of goods in a factory using modern equipment and technology

Imperialism

the policy of *extending a country's power and influence through diplomacy or military force* can involve the *acquisition of colonies, the establishment of protectorates, or the use of military bases to project power abroad.* has played a *significant role in the history of many countries,* and has *often been driven by economic, political, and cultural factors.* critics argue that it has *led to the exploitation and abuse of colonized peoples and their resources,* while others argue that it has *brought economic development and cultural exchange.* *EXAMPLE*- a *country with a powerful military invading and occupying a weaker country* in order *to gain control over its resources and territories.* *EXAMPLE*- a *country using its economic and political influence to coerce other countries into adopting policies that are favorable to its own interests.*

Colonialism

the policy or *practice of a country seeking to extend or maintain its authority over other territories*, often *by establishing settlements and occupying the land* colonies that are established are ruled by the colonial power, which exerts control over the colonized people and their resources. can involve the *use of military force, economic coercion, and cultural assimilation.* has had *significant impacts on the cultures, economies, and political systems* of both the colonizing countries and the colonized territories.

Deindutrialization

the process of a *country or region experiencing a decline in its industrial sector,* often *characterized by the loss of manufacturing jobs and the closure of factories.* can be driven by a variety of factors, including *technological change, globalization, and shifts in economic policy.* number of *negative impacts* on a country or region, including *rising unemployment, declining incomes, and social unrest.* lead to a loss of competitiveness in international markets and a decline in the overall standard of living. number of ways in which governments and communities can *respond to deindustrialization*, such as by *investing in education* and *training to help workers adapt to new industries,* *supporting the development of new businesses and industries,* and *implementing policies to promote economic development and growth.* *EXAMPLES*- *US*- has undergone a *significant shift away from manufacturing and towards a service-based economy,* leading to the *loss of millions of manufacturing jobs*, driven by factors such as *technological change, globalization, and shifts in economic policy.* *UK*- decline of industries such as *coal mining, steel production, and shipbuilding,* has *contributed to economic and social challenges in many communities that were previously reliant on these industries.* *Rust Belt in US*- region in the U.S. that stretches from New York to Illinois, was *once a hub of heavy industry*, but has experienced significant deindustrialization in recent decades due to the *loss of manufacturing jobs and the closure of factories.*

Deindustrialization

the process of a *region or country losing its industrial base and shifting towards a service-based economy* can occur due to a variety of factors- *technological change, globalization, and shifts in consumer demand* *EXAMPLE*- the decline of the manufacturing sector in the United States in recent decades Manufacturing employment in the U.S. has declined by 15% in recent years. Has been due in part to the *outsourcing of manufacturing to countries with lower labor costs*, as well as *automation and other technological changes* that have reduced the need for labor. As a result, *many U.S. cities that were once reliant on manufacturing have experienced economic decline and social disruption.*

Industrialization

the process of economic and social change that transforms a human group from a pre-industrial society into an industrial one is a part of a wider modernization process, where *societies become more complex* and *move from a simple agricultural economy to a more diversified one* involves the *use of machinery*, particularly steam-powered engines, to *replace human or animal labor in the production of goods* also involves the *creation of a system of mass production*, in which *large quantities of standardized goods are produced efficiently and at low cost.*

Secondary Economic Activities (production)

the processing of raw materials into finished goods, such as manufacturing, construction, and power generation. *EXAMPLES*- *Manufacturing:* converting raw materials into finished products, such as textiles, automobiles, and electronics. *Construction:* building infrastructure, such as roads, buildings, and bridges. *Power generation:* producing electricity from a variety of sources, including fossil fuels, nuclear energy, and renewable energy. *Factories* often involves the *use of specialized equipment and skilled labor,* and can have significant economic and technological impacts. It is an important driver of economic growth and development in many countries.

Tertiary Economic Activities (production)

the provision of services, such as healthcare, education, and finance, *focuses on moving, selling, and trading products in primary and secondary sectors.* *EXAMPLES*- *Healthcare:* providing medical services and treatments to individuals. *Education:* teaching and imparting knowledge to students. *Finance:* providing financial services, such as banking, investment, and insurance. *Hospitality:* providing accommodation, food, and other services to travelers. *Retail:* selling goods and services to consumers. *marketing, design, restaurants, shipping* sector is often considered to be the *service sector of the economy,* as it *involves the provision of intangible goods and services rather than physical goods* is an *important contributor to economic growth and development*, as it *can create high-skilled, high-paying jobs and drive innovation.*

Income inequality

the unequal distribution of wealth and income within a society. often measured by *comparing the income or wealth of different groups within a population*, such as the *rich and the poor,* or the *top and bottom income earners.*

Central American Free Trade Agreement (CAFTA)

trade agreement designed to r*educe tariff barriers between Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, and the United States*

Per Capita Calculations

used to determine the average value of a particular statistic for a population. divide the total value of a particular statistic by the population size used to *make comparisons between countries or regions with different population sizes*, as they *allow you to adjust for differences in population size* and *focus on the average value of a particular statistic for a given population.* can be useful for *comparing living standards between countries*, *assessing the economic development of a region*, or *identifying trends in a particular statistic over time.*

Social Stratification

way in which a society is divided into layers, or *strata*, based on factors such as wealth, income, power, and prestige layers are often ranked, with some strata being considered the higher status and others lower a fundamental aspect of many societies, and it can take many different forms. Some societies have a *rigid class system*, in which a *person's social status is largely determined by their family background and is difficult to change.* Other societies have a more *fluid system*, *individual's social status can change over the course of their lifetime based on their own achievements and actions*. can have a significant *impact on an individual's opportunities and quality of life.*