Unit 7 improtant

.Traditional Society

.Traditional Society

• Depends upon primary sector activities(farming,fishing,hunting) for subsistence

• Uses limited technology

• Carries out local or regional trading

• Enjoys limited socioeconomic mobility

  -Example:Medieval Europe

Preconditions for Take-off

• Improves infrastructure (roads,electrical grid,water systems, etc)

• Improves farming techniques and shifts toward commercial agriculture

• Exports agricultural and raw materials (international trade)

• Diffuses technology more widely

• Starts individual socioeconomic mobility

  -Example:Nigeria today

Take-off

• Develops major technological innovations

• Starts industrialization and primary sector begins to shrink

• Spreads entrepreneurial mentality

• Begins to urbanize

• Initiates self-sustaining growth

  -Example:Bangladesh today

Drive to Maturity

• Creates new industries while strengthening existing ones

• Improves energy,transportation,and communication systems

• Sees economic growth greater than population growth

• Invests in social infrastructures(schools,hospitals, etc.)

  -Example:Brazil today

High Mass Consumption

• Spends money on nonessential goods (consumerism)

• Purchases of high order goods become common

• Desires to create more egalitarian society

• Supports a strong tertiary sector

  -Example:United States, early 1920s to present

Rostow:Limited Examples

American and European examples, so it did not fit countries of non-Western cultured of non capitalist economies

Rostow:Role of Exploitation

Lead to poorer countries getting trapped in a state of dependency upon wealthier countries

Rostow:Lack of Variation

Does take in to account the significant differences among countries, such as physical size, population, natural resources, relative location, political systems, and climate

Rostow:Lack of Sustainability

Assumed that everyone could eventually lead a life of high mass consumption but failed to consider sustainable development or the carrying capacity of the earth

Rostow:Need for Poorer Countries

Failed to recognize that most of the countries which reached the stage of high mass consumption did so by exploiting the resources of lesser-developed countries, countries that were still developing would have difficulty finding other countries to exploit

Rostow:Narrow Focus

Focused on domestic economies and did not directly address interactions between countries, specifically globalization

Commodity Dependence

A country is commodity dependent if 60% or more of its exports are commodities

Dependency Theory

States that more developed countries benefit from less developed countries stagnating and will take steps to encourage stagnation

World Systems Theory

Countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other

World:Little Emphasis on Culture

Focused heavily on economic influence—investments and purchases of raw materials—but it paid little attention to the pervasive influence of culture—movies, music, and television

World:Emphasis on Industry

Based on industrial production, but many countries have postindustrial economies based on providing services

World:Lack of Explanation

Limited practical use, suggesting that countries can change their status, but it does not explain how

World:Limited Roles

Focused too much on the roles of countries, governments, and corporations, as a result it failed to recognize the role of organizations such as UN agencies and private, nonprofit charitable NGOs

Least cost theory

the location of a processing plant will be in an area that ensures the lowest cost of moving raw materials to the processing plant and moving the finished product

Gross National Product (GNP)

The total value of all goods and services produced by a country's economy in a given year. It includes all goods and services produced by corporations and individuals of a country, whether or not they are located within the country

Gross National Income (GNI)

the total amount of money earned by a nation's people and businesses. It is used to measure and track a nation's wealth from year to year

Gross Domestic Product (GDP)

the total monetary or market value of all the finished goods and services produced within a country's borders

Human Development Index (HDI)

a metric used to critique the development of a state without relying entirely on economic input

Gender Inequality Index(GII)

A composite measure of several factors indicating gender disparity:

-Reproductive health

-Empowerment

-Labor market participation

Comparative Advantage

the ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.

Outsourcing

contracting work out to noncompany employees or other companies.

Special Economic Zones

An area within a country in which tax incentives and less stringent environment regulations are implemented to attract foreign business and investment.

Export-Processing Zones

Zones established by many countries in the Semi Periphery/Periphery that offer favorable tax, regulatory, and trade arrangements to attract foreign trade and investment.

-Want countries to come manufacture and export, NOT selling back to the state.

Free Trade Zones

Specific regions that have free trade between other nations and themselves

Post-Fordism

A world economic system characterized by a more flexible set of production practices

Agglomeration

A process involving the clustering or concentrating of people or activities

Growth Pole

An area of high-value economic development which attracts a greater amount of economic development

Just-in-time delivery

A system in which the inputs needed in the assembly process arrive at the assembly plant very close to the point in time they will be used.

-Reduces total amount of storage space needed for stock

-Offers a clear risk when it comes to the production of goods

-Integral for the post-fordist economic global system of production

-Aided by the agglomeration

Ecotourism

Responsible travel to natural areas that conserves the environment, sustains the well-being of the local people, and involves interpretation and education.

(Ecotourism)Environmental integrity

the purpose of the trips are to visit beautiful landscapes and the only way to continue to do that is by conserving the environment

(Ecotourism)Social equity

people of varied and interesting cultures live in these areas and provide a unique opportunity to learn about the lives of other people

(Ecotourism) Economic vitality

the tourism allows communities to have a stable source of income meaning they do not need to alter the environment to earn income or leave to the city for work