Vocab.
List all FIVE of the economic sectors.
Primary, Secondary, Tertiary —> Quaternary, Quinary
Describes the relationship between MDCs and LDCs. Wallerstein's theory views the world as a single economic system and describes the patterns of power across the globe. Sees the world in a three tier hierarchy - the core, semi-periphery, and periphery. The model associated with this theory is the Core-Periphery model.
What does GDP stand for, and what is the formula for calculating GDP?
Gross Domestic Product:the total value of goods and services by the citizens and corporations within a given country's borders in a given year.
GDP = goods + services
What is TFR, and in what kinds of countries is TFR the highest?
Total Fertility Rate; the average number of children one woman in a given region or country will have during her childbearing years.
LDCs or Semi-periphery and periphery countries have a higher TFR.
ONE thing that happened on this day in history - WITH the exact year.
*see powerpoint*
Describe the difference between Fordism and Post-Fordism.
Fordism is a system of manufacturing where the goal is to make the products for mass consumption faster and more efficiently; focus on fast and cheap production. Fordism is characterized by Henry Ford and the use of the assembly and a division of labor, and was a direct result of the Industrial Revolution.
Post-Fordism is used to describe the system of production that relies on automation through the use of robots and computer systems and is centered on low-volume manufacturing and flexible systems that allow for quick responses to changes in the market. More modern manufacturing system; less "top-down" and does not rely on a division of labor, but rather team-based tasks.
Describe Weber's Least Cost Theory.
predicts the location of factories based on the sites that could have the LOWEST cost to the companies. Takes TWO things into consideration:
1. distance of transportation to the market
2. the weight of goods being transported.
Which is more accurate in determining a country's levels of economic development: GDP or GNI? WHY?
GNI; Gross National Income. GNI is more accurate because it accounts for trade.
GNI = GDP + (exports - imports)
What is IMR, and what factors affect IMR?
Infant Mortality Rate; the number of deaths of children under the age of 1 per 1,000 live births.
Factors that affect IMR: access to maternal and prenatal healthcare, women's healthcare/public healthcare, sanitation, clean water, food source, employment, education
What is a free-trade zone?
usually an area around an airport or seaport where goods can be landed, stored, handled, manufactured, and re-exported, Usually tariff free
What is the difference between comparative and complementary advantage?
Comparative: a country can produce a product at less cost and with more efficiency compared to other countries.
Complementary: two countries trading have opposing comparative advantages and engage in trade with each other because it's mutually beneficial. it compliments both countries.
Less Developed Countries (LDCs) are highly dependent on foreign factories and technologies from More Developed Countries (MDCs) to provide employment and infrastructure
The LDCs in this theory get stuck in the continuous cycle of dependency on the MDCs which never allow their economies to fully develop
What is the difference between a formal and informal economy? Would a LDC have a higher formal or informal economy?
Formal Economy: an economy that is regulated/supervised and taxed by the government. The taxes collected from businesses and workers most often is used to finance a variety of public services (Ex: Social Security, Medicare/ Medicaid)
Informal Economy: mostly illegal products that are sold and NOT regulated by the government. NOT included in GNI or GDP
A LDC would have a higher informal economy
List the effects of employment for women.
access to healthcare, higher education, specialized work, less traditional roles in the home, make money, less dependency on men
What is agglomeration? Explain what a growth pole is as an example of agglomeration.
agglomeration - when a large number of companies and industries cluster together and benefit from the cost reductions and gains in efficiency that result from their proximity
What is a supranational organization? Give an example.
when three or more countries come together to achieve a common goal or respond to a common challenge.
Examples: European Union, NAFTA
Describe Rostow's Stages of Development.
Model that analyzes the 5 steps that it takes to move from an agricultural society to a service-based economy.
Rostow’s main assumption in creating the model was that each country had some kind of comparative advantage.
What is dual economy? What kind of countries have dual economic (may choose more than one): Core, Periphery, or Semi-Periphery?
A Dual economy is a product of uneven development resulting from industrialization. Dual economies have two distinct divisions of economic activity across more than one economic sector.
Periphery and Semi=Periphery countries may have dual economies.
Aside from women's role in society, IMR, and TFR, what are other indicators of a country's social development?
Literacy rates, education, Life expectancy, death rates, access to healthcare, measures of democracy
What is ecotourism, and how does this differ from regular tourism?
Ecotourism: when people visit regions of countries mainly to visit natural habitats or landmarks, like Yellowstone or the Costa Rican Rainforest. Ecotourism has become more and more popular as a means of environmentally friendly and sustainable economic development.
What is economic outsourcing, and what effect does this practice have on both MDCs and LDCs?
Outsourcing: moving jobs in manufacturing and production, as well as jobs in services, outside the country in which a company is located to take advantage of cheap labor and production.
Effects: Unemployment in MDCs, population losses in manufacturing cities, companies may become more efficient and profitable. Employment and job opportunities increase in LDCs, increasing urbanization, more disposable income, poor labor laws
What is Neoliberalism?
Neoliberalism is the belief that open markets and free trade across the globe will lead to economic development everywhere, decrease tension between countries, and spread democracy and human rights
Neoliberal policies encourage free trade markets and discourage political interference with economic systems.
They also lead to more deregulation and privatization
What is a micro loan?
small credit or loans given to people in developing countries to start small businesses and help improve the economy
What does HDI stand for, and what was the purpose of this?
Human Development Index; created by the UN to measure indicators of development. The HDI has a score between 0 and 1, where 1 is the most developed.The factors that are calculated are the GDP per capita, adult literacy rate, average level of education, and total life expectancy
The purpose of this index is to show the negative impacts of extreme poverty on developing countries’ economic potential.
Give an example of a job in each of the economic sectors: Primary, Secondary, Tertiary, Quaternary, Quinary
Primary: extracting natural resources from the earth; agriculture/farming, fisheries, lumber, mining, etc.
Secondary: processing and manufacturing of raw materials not finished products; factories and manufacturing
Tertiary: Service sector, retailing and transportation of the finished goods; restaurants, retail stores, design, shipping
Quaternary: knowledge-based sector, focuses on research and information creation and transfer. Standard business services for research and administration. This is the portion of the tertiary sector that requires workers to process and handle information and environmental technology. Examples: finance, insurance, marketing, investment, real estate, college professors, education, software developers, government
Quinary: highest levels of decision making and large-scale research; includes top officials in government and business. Involves the top leaders in government, science, universities, nonprofit organizations, health care, culture, and media. Workers in these fields also require high levels of education and experience. Examples: Congressmen, higher-education leaders, top government officials