Studied by 11 people
Self-sufficiency
No foreign ownership of business and resources
Protect their businesses from international competition
Barriers limit the import of goods (tariffs or quotas)
Baby businesses are nursed to success
Investment is spread as uniformly as possible
International trade path
Become more pop in the late 20th century
Important for a country to determine its distinctive or unique economic assets (like animal, vegetable, or mineral) or what they can make cheaper or better than someone else
Comparative advantage
Many former colonies were resource rich, so after colonization, people still do shit
Rostow’s Model of Development
Traditional society (primary activities and little to no tech)
Preconditions for take-off (starts putting in infrastructure)
Take-off (rapid industrialization + culture change)
Drive to maturity (expansion of secondary sector + tertiary sector development to support institutions)
Age of high mass consumption (expolit comparative advantage over LDCs)
Limitations of Rostow
Assumes all desire to embrace modern/western ideas (everyone wants to earn money, but is that true?) (ethnocentrism)
Requires exploitation of developing countries
4 Asian tigers/dragons
South Korea
Singapore
Taiwan
Hong Kong
Arab Gulf States
Saudi Arabia
Kuwait
Bahrain
Oman
UAE
World Trade Organization (WTO)
Goal is to reduce barriers to international trade
No favorites
Criticisms: everything’s behind closed doors, and they think large corporations are influencing these decisions
Also the WTO has too much power (sovereignty diminishes)
WTO rules stand between dying people and the medicine that will save their lives
Microfinance
Method to increase access to finance (loans) in developing countries with poor banking systems
Scale reflects local or subnational needs
Muhammad Yunus
Nobel peace prize winner for establishing Grameen Bank in Bangladesh (rural and female recipients)
Stimulus strategy
gov. spends more to stimulate more aspects of society/development
Spend more than they collect
Democratic thing
Austerity strategy
gov spends less so people can recover
Reduced taxes + reduce spending on public programs
People on the lower income scale struggle a lot more
Structural adjustment
If a country takes out loans its unable to pay, other economically healthy countries will help them out
Get a roadmap of how to pay off their loans
Detractors of structural adjustment programs
Poverty worsens
Cut social services
Fair trade
Producers: greater share of price
Workers: fair wages, rights
Consumer: cooperative stores
Site factors
labor, land, and capital
Situation factors
relates to the proximity to inputs or consumers
Labor-intensive industry
industry where wages and employee payments constitute a high percentage of expenses
Bulk reducing
weight/volume of the final product is less than the weight of the raw material
Bulk gaining
the final product is heavier than the raw material that requires transport, or harder to ship (factory is closer to market)
Degree of agglomeration
lots of businesses are nearby and share the overhead costs (cost of doing business regardless of what it is)
Note 
Flashcard (53)