UNIT 7 STUDY GUIDE

Post-Fordism

Flexible production and consumption patterns

Complementarity

Mutual benefit of two activities

Footloose Firm

Company not tied to one location

Microfinance

Small loans to low-income individuals

Bulk Reducing

Raw material decreases in weight/volume

Globalization

Integration of economies and societies

Brownfield

Abandoned industrial site

Quinary

High-level decision-making jobs

Backwash Effect

Negative impact on periphery regions

Technopole

High-tech business center

Dependency Theory

Underdeveloped countries exploited by developed ones

Economy of Scale

Cost advantages with increased production

Export Processing Zone

Area with relaxed trade barriers

Bulk Gaining

Final product increases in weight/volume

Primary

Extraction of raw materials

Ancillary Activities

Support services for primary activities

Quaternary

Research and development jobs

Agglomeration

Clustering of businesses for mutual benefit

Secondary

Manufacturing and processing of raw materials

Vertical Integration

Company controls multiple stages of production

Outsourcing

Contracting work to external companies

Tertiary

Service sector jobs

Cottage

Small-scale production at home

Gini Coefficient

Measure of income inequality

What are the UN Sustainable Development Goals?

17 goals to end poverty, protect the planet, and ensure prosperity for all.

How many UN Sustainable Development Goals are there?

17 goals.

What is the purpose of the UN Sustainable Development Goals?

To end poverty, protect the planet, and ensure prosperity for all.

What is Rostow's model of development?

5-stage model of economic growth.

What is Wallerstein's model of development?

World Systems Theory, core-periphery model.

What is a similarity between Rostow and Wallersteins’ models of development?

Both Rostow's and Wallerstein's models of development are based on the idea of stages of development. Additionally, they both examine Both examine development at the national level

Which of these is not a potential impact of the New International Division of Labor on low income countries?

What is a break of bulk point?

A location where goods are transferred from one mode of transportation to another.

What factors do owners balance?

Transportation, labor, and agglomeration costs.

Least Cost Theory

Model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration

Newly Industrialized Country (NIC).

The term NIC typically refers to countries that have rapidly industrialized and experienced significant economic growth in recent decades, such as Mexico, China, South Africa, and India.

Why is not considered a Newly Industrialized Country?

because it has not undergone the same rapid industrialization and economic growth as other countries that are typically classified as NICs. While Russia has a diversified economy and is a major producer of natural resources, it has faced challenges in modernizing its economy and reducing its dependence on oil and gas exports.

Why is Mexico NIC?

Mexico has a diversified economy and is a major producer of automobiles, electronics, and other manufactured goods. It has also benefited from its proximity to the United States, which is a major trading partner and source of investment.

Why is China NIC?

China has a large and diversified economy, and is a major producer of manufactured goods, such as electronics, textiles, and machinery. It has also benefited from its large population, which provides a large workforce and consumer market. Additionally, China has implemented economic reforms and opened up to foreign investment, which has helped to fuel its growth.

Why is India NIC?

India has a large and diversified economy, and is a major producer of textiles, software, and other manufactured goods. It has also benefited from its large and growing middle class, which provides a large consumer market. Additionally, India has implemented economic reforms and opened up to foreign investment, which has helped to fuel its growth.

Factors of high fossil fuel consumption and low GDP

High fossil fuel consumption and low GDP are two factors that are often linked together. Countries with high fossil fuel consumption tend to have lower GDPs due to the high cost of importing and using these fuels.

Factors of low income inequality and high birth rate

Low income inequality and high birth rates are often seen in developing countries where large families are still the norm. These countries may have limited access to family planning and may rely heavily on agriculture for income.

Factors of high literacy rate and large secondary economic sector

High literacy rates and large secondary economic sectors are often seen in developed countries where education is highly valued and there is a strong focus on manufacturing and industry.

Factors of high income distribution and high gender inequality

High income distribution and high gender inequality are often seen in countries where women have limited access to education and job opportunities, leading to a concentration of wealth in the hands of men.

What makes a country highly developed?

A highly developed country typically has a high level of economic development, a high standard of living, and a well-developed infrastructure, including transportation, communication, and healthcare systems. These countries typically have a high level of industrialization and are characterized by a service-based economy, with a focus on technology, finance, and other high-value industries. They also tend to have high levels of education, healthcare, and social welfare programs. Examples of highly developed countries include the United States, Canada, Japan, and many countries in Western Europe

Periphery countries in World Systems Theory

Underdeveloped countries exploited by core countries for labor and resources.

Wallerstein’s World Systems Theory

s a sociological theory that divides countries into core, periphery, and semi-periphery regions based on their level of economic development. The theory suggests that the global economy is characterized by a hierarchical system in which core countries dominate and exploit peripheral countries for their resources and labor. The core countries have advanced economies and are characterized by high levels of industrialization, while the periphery countries have primarily agrarian economies and are dependent on the core countries for capital and technology.

Examples of core countries according to Wallerstein's World Systems Theory include

he United States, Canada, Japan, Western European countries, and Australia. These countries have advanced economies, high levels of industrialization, and dominate the global economy through their control of capital, technology, and markets. They also tend to have high levels of education, healthcare, and social welfare programs.

example of semi-periphery countries

Brazil, Mexico, China, India, and South Africa. These countries are in transition between the core and periphery regions and may have some level of industrialization and economic development, but are still dependent on the core countries for capital and technology. They may also serve as a source of cheap labor and raw materials for the core countries.

example of peripheral countries

Haiti, Afghanistan, Somalia, and Nepal. These countries have primarily agrarian economies and are dependent on the core countries for capital, technology, and markets. They are often exploited for their natural resources and labor, and have low levels of economic development and industrialization. They also tend to have high levels of poverty, inequality, and political instability.

Who is most likely to be a beneficiary of microfinance programs?

Microfinance programs are typically aimed at providing financial services to low-income individuals and households who lack access to traditional banking services. As such, the beneficiaries of microfinance programs are often women, small business owners, farmers, and other individuals who are excluded from the formal financial sector. These programs aim to promote financial inclusion, reduce poverty, and support economic development in disadvantaged communities.

What are microfinance programs?

Financial services for low-income individuals

Who are the beneficiaries of microfinance programs?

Women, small business owners, farmers, and excluded individuals

What is the goal of microfinance programs?

Promote financial inclusion, reduce poverty, and support economic development

Who are the target communities of microfinance programs?

Disadvantaged communities

What is the impact of ecotourism?

Positive and negative impacts on the environment and local communities. On the positive side, ecotourism can promote conservation efforts, raise awareness about environmental issues, and provide economic benefits to local communities. It can also support the preservation of cultural heritage and traditions. On the negative side, ecotourism can contribute to environmental degradation, disrupt local ecosystems, and lead to the exploitation of local communities and resources.

What are the positive impacts of ecotourism?

Promotes conservation, raises awareness, provides economic benefits, supports cultural preservation.

What are the negative impacts of ecotourism?

Contributes to environmental degradation, disrupts local ecosystems, leads to exploitation of local communities and resources.

What is Rostow's model of economic development?

A linear progression of stages from traditional to modern society.

What is the first stage of Rostow's model?

Traditional society with subsistence agriculture.

What is the second stage of Rostow's model?

Pre-conditions for takeoff with commercial economy and infrastructure.

What is the third stage of Rostow's model?

Takeoff with growth of industrialization and middle class.

What is the fourth stage of Rostow's model?

Drive to maturity with diversified economy and focus on research and development.

What happens during the drive to maturity stage?

Shift away from heavy industry and towards specialized industries.

What is the focus of traditional society?

Meeting basic needs with limited technology.

What emerges during the pre-conditions for takeoff stage?

Commercial economy and national identity.

What emerges during the takeoff stage?

Industrialization and middle class.

What emerges during the drive to maturity stage?

Diversified economy and consumer culture.

What area of the US best demonstrates the impact of deindustrialization on the landscape?

The Rust Belt region, which includes parts of the Midwest and Northeast, is often cited as the area of the US that best demonstrates the impact of deindustrialization on the landscape. This region was once a hub of manufacturing and industry, but has experienced significant economic decline and population loss since the mid-20th century.

What is the Rust Belt?

Region in Midwest/Northeast impacted by deindustrialization

What was the Rust Belt known for?

Manufacturing and industry

What has happened to the Rust Belt since the mid-20th century?

Significant economic decline and population loss

What are two benefits of globalization?

Increased access to goods and services from around the world, and greater cultural exchange and understanding between different countries and peoples.

What are two drawbacks of globalization?

It can lead to job losses and economic inequality in some countries, and it can contribute to environmental degradation and the exploitation of natural resources.

What are two benefits of supranationalization?

Increased cooperation and coordination among member countries, and ability to tackle global issues.

What are two drawbacks of supranationalization?

Loss of national sovereignty and identity, and slow decision-making due to consensus.

What are economies of scale?

Cost advantages from production increase

How do economies of scale reduce costs?

Spreading fixed costs over more units

What benefit do companies get from economies of scale?

Charge lower prices and earn profit

What is vertical integration?

Company owns multiple supply chain stages.

What are the benefits of vertical integration?

Control costs and quality, greater efficiency and profitability.

What is horizontal integration?

Acquisition of companies at the same supply chain stage.

What are the benefits of horizontal integration?

Increased market share, reduced competition.

How does horizontal integration differ from vertical integration?

Horizontal is same stage acquisition, vertical is multiple stage ownership.

What is the primary economic sector?

Extraction of natural resources

What is the secondary economic sector?

Manufacturing of raw materials

What is the tertiary economic sector?

Provision of services and sale of finished goods

What is the quaternary economic sector?

Information services, consultation, education, and research

What is the quinary economic sector?

Executive level of business and government