vocab
growth
the annual increase of the productivity of an economy
use value
an object’s value that can be directly utilized.
imperialism
the extension of a nation beyond its geographical borders, which are claimed by force from other nations and turned into colonies
modernization
the process of being up to date in terms of technology and efficiency
law of the equality of opposites
as temperate regions develop, tropical regions are left underdeveloped. one party cannot be better without the other being worse.
interchangeable with pareto optimality.
3rd world
(global south) poor undeveloped countries which emerged from the new world. also contains the fourth world.
surplus value
the profit one receives from selling an object
metropol
independent, developed nations that influence the economy of other nations, good and bad.
nationalization
movement from private to public ownership
reserve army of laborers
unemployed people who are available to an employer at any point. there is a higher percentage in the global south, thus making them more vulnerable to exploitation.
exploitation
the denial of adequate value to the owner. refusal to provide adequate compensation
intrinsic value
the potential/future value an object may possess.
endogenous/exogenous factors
endo: internal factors. factors within the control of the nation being exploited
exo: external factors. factors that are outside the control of the nation being exploited
combined and unequal development
two economies which develop in tandem, but do not develop equally
global economy
the idea that the entire world’s economy is intertwined
commerce
the act of buying and selling (trade/exchange). assumes equality of interaction.
relationship of exchange with attached value
underdevelopment
the denial of opportunity to develop intrinsic value while depriving the population of manual and mineral resources
debt crisis
when no one is willing to lend money to a nation. an inability to get new loans to pay off existing debt.
spillover effect
when the production of one product requires production of other products, thus cultivating multiple industries at once. takes place in temperate zones/AIS states.
home country/host country
home: the nation in which a global corporation is based
host: the nation being exploited by an international corporation
colonialism
acquiring control over another country, occupying it with settlers, and exploiting it economically
labor theory of value
the value of an item is a result of the labor expended to create it
dependency
nations whose economies rely on those of developed nations. often are stuck in this state because developed nations do not want them to be independent.
trade deficit
when the cost of imports exceeds the revenue from exports. also known as “negative trade.”
net decapitalization
in the relationship between center and periphery states, more money leaves the peripheries than comes into them. the opposite is true of center states.