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What is Comparative Advantage in economics?
It suggests that countries should specialize in producing goods for which they have a lower opportunity cost relative to other countries.
What are Complementary Advantages?
This concept focuses on countries benefiting from trading together if they produce goods that complement each other.
What are the three strata in Wallerstein's World Systems Theory?
Core, Semi-Periphery, and Periphery.
Define Core countries according to Wallerstein's theory.
Wealthy, developed nations that dominate global trade and have high levels of industrialization and economic power.
What characterizes Semi-periphery countries?
Nations that are in transition between core and periphery, involved in both manufacturing and exporting raw materials.
Describe Periphery countries in Wallerstein's theory.
Less developed nations that provide raw materials and labor but gain less benefit from global trade.
What does Global Capitalism theory suggest?
It posits that the capitalist world economy is a system of exploitation where core nations benefit disproportionately from peripheral countries.
List the five stages of Rostow's Theory of Development.
What defines the Traditional Society stage in Rostow's Theory of Development?
Characterized by subsistence agriculture and a lack of infrastructure.
What happens in the Preconditions for Take-off stage of Rostow's theory?
Economic and social conditions begin to change, leading to the start of industrialization.
What is the Take-off stage in Rostow's Theory?
Rapid economic growth occurs, fueled by industrialization and investment.
What occurs during the Drive to Maturity stage?
The economy diversifies, technology continues to improve, and standards of living rise.
What is the focus of the Age of High Mass Consumption stage?
A shift towards consumption and services as the economy becomes highly developed.