Economic Sectors
What are two major global trade agreements/organizations?
NAFTA, OPEC, EU, WTO, IMF
What is the term Fordism referring to?
Mass production, assembly line work (such as that utilized by Henry Ford in his early car factories.)
What is a growth pole?
What is a cottage industry?
Small-scale, home-based business.
What is a break-of-bulk point?
Area where good are transferred from one mode of transportation to another (port, railyard, etc.)
What is the theory of Commodity Dependence?
Country is more likely to be periphery or semi-periphery if over 60% of their exports come from a single commodity/product.
What is GNI per capita?
Gross National Income (total income of all of a country's citizens) divided by population total.
Gives an average national salary... not perfect though.
Give an example of a job that might exist in the informal economy.
Street vendors, illicit sales, babysitting.
What economic sector is dominant in...
1. Core Countries
2. Semi-Periphery Countries
3. Periphery Countries
1. Tertiary/Quaternary/Quinary
2. Secondary
3. Primary
1. Briefly summarize Rostow's theory of economic growth. (150 pts)
2. What was one problem with Rostow's assumptions? (150 pts)
1. All countries will eventually move through the same 5 stages of economic progression.
2. Did not account for colonialism or the uneven global distribution of resources.
What is a key issue with using GDP/GNP to determine a country's standard of living without further context?
Hard to know how wealth is distributed... small percentage of the population might control most of the money.
What were two major developments of the early Industrial Revolution?
Steam Engine, Power Loom, Assembly Line, etc.
Give an example of a bulk-gaining and bulk-reducing product. (200 pts each)
Gaining = cars, reducing = potato chips
What theory centers on understanding how companies minimize their transportation costs by locating their manufacturing centers based on whether their product is bulk-gaining or bulk-reducing?
Least Cost Theory
What is the difference between GDP and GNP?
GDP = everything produced within country's border, regardless of ownership
GNP = everything that a country's residents or companies produce anywhere in the world, regardless of location
What is neoliberalism?
Promotes minimal government intervention in the economy.
What are the 5 economic sectors?
Primary, Secondary, Tertiary, Quaternary, Quinary
Summarize Wallerstein's World System Theory.
Created concepts of core, periphery, semi-periphery countries... argued that countries are locked into dependency on countries in the level above them and unable to build up the capital (money) necessary to develop further... core countries exploit others for secondary/primary sector labor.
How is a country's HDI calculated?
Human Development Index measures life expectancy, education levels, and GNI per capita.
Why is it likely a bad sign if a country's GDP is significantly higher than its GNP?
Most of what is being produced in this country is likely benefitting corporations based in other parts of the world.