AP COGO Unit 5 Terms

Modernization theory

Societies progress through stages of development, from traditional to modern, as they adopt new technologies and values

Dependency theory

The global economic system perpetuates the underdevelopment of poorer nations by exploiting their resources and labor, and that wealthy nations maintain their dominance by keeping developing countries dependent on them for trade, aid, and investment

Globalization

The increasing interconnectedness of economies, cultures, and societies around the world, driven by advances in communication and transportation technologies

Economic liberalization

The reduction of government control over the economy and the promotion of free-market policies, such as privatization and deregulation

Global market forces

The economic and financial factors that affect the world economy

Protectionism

The use of trade barriers such as tariffs, quotas, and subsidies to protect domestic industries from foreign competition

Neoliberalism

An economic ideology favoring policies that support the free market and reduce trade barriers

Structural adjustment policies

Requirements for receiving assistance from international lenders

Austerity measures

Cuts to social services in an effort to reduce government debt

Deregulation

The removal of government regulations and restrictions on businesses to promote competition and efficiency

Fiscal policy

The removal of government regulations and restrictions on businesses to promote competition and efficiency

Monetary policy

The use of interest rates and money supply to influence the economy

Challenges of globalization

• Economic interdependence

• Loss of control over borders

• Emergence of global governance

• Cultural homogenization

• Environmental degradation

Privatization

The transfer of ownership and control of state-owned enterprises to private individuals or companies

Trade liberalization

The removal of trade barriers such as tariffs, quotas, and other restrictions on imports and exports

Fiscal discipline

The reduction of government spending and the implementation of sound fiscal policies to control inflation and stabilize the economy

Financial liberalization

The removal of restrictions on the flow of capital and the liberalization of financial markets

International organizations

Organizations that operate across national boundaries and involve the participation of multiple countries to promote diplomacy, security, and economic development

• United Nations (UN)

• World Bank

• International Monetary Fund (INF)

Import substitution industrialization (ISI)

An economic model that focuses on strengthening domestic industries to reduce reliance on foreign imports

Supranational organizations

Organizations composed of multiple member states that establish rules and agreements that influence national policies → Unlike countries, they are not sovereign states, but their decisions can impact national governments

• Economic Community of West African States (ECOWAS)

• World Trade Organization (WTO)

• European Union (EU)

• North Atlantic Treaty Organization (NATO)

Means-tested programs

Meant for individuals below a certain income

Non-means-tested programs

Available to people at all income levels

Resource curse

A problem faced by countries that have a valuable and abundant natural resources

Special economic zones

Designated areas within a state that operate under different economic regulations than the rest of the state, aiming to attract foreign investment and stimulate economic growth

• China = East

UK - Social welfare policies

• Has a welfare state system that provides social security to its citizens.

• The government provides benefits such as healthcare, education, and housing to those in need.

• Has adapted its social policies to address issues such as poverty, unemployment, and inequality.

• The government has implemented policies such as the National Living Wage and Universal Credit to support low-income families.

Russia - Social welfare policies

• Has a social welfare system that provides benefits such as healthcare, education, and pensions to its citizens.

• The government has implemented policies to address issues such as poverty and unemployment.

• The government has also implemented policies to support families, such as the Maternity Capital program which provides financial support to families with children.

China - Social welfare policies

• Has a social welfare system that provides benefits such as healthcare, education, and pensions to its citizens.

• The government has implemented policies to address issues such as poverty and inequality.

• The government has also implemented policies to support families, such as the Two-Child Policy which allows families to have two children instead of one.

Iran - Social welfare policies

• Has a social welfare system that provides benefits such as healthcare, education, and pensions to its citizens.

• The government has implemented policies to address issues such as poverty and unemployment.

• The government has also implemented policies to support families, such as the Family Support Law which provides financial support to families with children.

Mexico - Social welfare policies

• Has a social welfare system that provides benefits such as healthcare, education, and pensions to its citizens.

• The government has implemented policies to address issues such as poverty and inequality.

• The government has also implemented policies to support families, such as the Prospera program which provides financial support to families in need.

Nigeria - Social welfare policies

• Has a social welfare system that provides benefits such as healthcare, education, and pensions to its citizens.

• The government has implemented policies to address issues such as poverty and unemployment.

• The government has also implemented policies to support families, such as the Conditional Cash Transfer program which provides financial support to families in need.

Impact of industrialization

• Increased productivity

• Urbanization

• Improved living standards

• Climate change

• Globalization

• Inequality

Demographic change

The changes in the size, structure, and distribution of a population over time

Causes of demographic change

• Fertility rate

• Mortality rate

• Migration

• Aging population

UK - Demographic changes

• Aging population: The UK has an aging population, with a median age of 40.5 years.

• Immigration: Immigration has been a key factor in the UK's population growth.

• Brexit: Brexit has led to a decline in immigration, which could have an impact on the UK's economy and workforce.

Russia - Demographic changes

• Aging population: Russia also has an aging population, with a median age of 39.6 years.

• Declining birth rate: Russia's birth rate has been declining, which could lead to a shrinking workforce and economic challenges.

• Immigration: Russia has been trying to attract immigrants to address its demographic challenges.

China - Demographic changes

• Aging population: China is facing an aging population, with a median age of 38.4 years.

• One-child policy: The one-child policy has led to a decline in the birth rate, which could have long-term economic consequences.

• Urbanization: China's population is increasingly urban, which could have implications for social and economic policies.

Iran - Demographic changes

• Young population: Iran has a young population, with a median age of 31.5 years.

• Declining birth rate: Iran's birth rate has been declining, which could have economic and social implications.

• Urbanization: Iran's population is increasingly urban, which could have implications for social and economic policies.

Mexico - Demographic changes

• Young population: Mexico has a young population, with a median age of 28.3 years.

• Immigration: Mexico has been a major source of immigrants to the United States.

• Urbanization: Mexico's population is increasingly urban, which could have implications for social and economic policies.

Nigeria - Demographic changes

• Young population: Nigeria has a young population, with a median age of 18.4 years.

• Rapid population growth: Nigeria's population is growing rapidly, which could have economic and social implications.

• Urbanization: Nigeria's population is increasingly urban, which could have implications for social and economic policies.

Natural resources

The materials and substances that occur naturally in the environment and are used for economic gain