APHUG 7.4

Trade Overview

  • Unit 7 Day 4: Introduction to concepts related to trade.

Quiz Preparation

  • Students are encouraged to get ready for an upcoming quiz related to the unit's concepts.

Objectives of the Unit

  • AP Standards 7.6, 7.7, and 7.8:

    • Explain causes and geographic consequences of recent economic changes.

    • Discuss the increase in international trade, deindustrialization, and growing interdependence in the world economy.

    • Relate sustainability principles to industrialization and spatial development.

Warm-Up Activity

  • Definitions Required:

    • Fordism: Mass production model.

    • Post-Fordism: Flexible, adaptable production methods.

  • Advantages of Post-Fordism in the 21st-century economy: Focus on teamwork and problem-solving among workers.

Fordism vs. Post-Fordism

  • Fordism:

    • Characterized by mass production in a single location (e.g., assembly lines).

    • Workers are assigned narrow roles in the production process.

  • Post-Fordism:

    • Focuses on flexible production methods and innovation.

    • Encourages teamwork and outsourcing of certain jobs.

    • Production is distributed globally.

Rostow’s Modernization Model

  • Five stages of development outlined by Walt Rostow:

    1. Traditional Society: Dominated by subsistence farming.

    2. Preconditions for Takeoff: New leadership fosters diversification.

    3. Takeoff: Similar to an Industrial Revolution with sustained growth.

    4. Drive to Maturity: Diffusion of technologies and industrial specialization.

    5. High Mass Consumption: High incomes and widespread production.

Alternative Theories of Development

  • Neocolonialism: Rich countries control poorer countries economically despite political independence.

  • Structuralism: Large-scale economic arrangements dictate development capabilities.

  • Dependency Theory: Examines the influence of global political/economic relationships on development possibilities.

World Systems Theory

  • Developed by Immanuel Wallerstein, focusing on the spatial (geographical) and temporal (historical) dynamics of global economies.

  • Three-tier structure:

    1. Core: Wealth-generating countries.

    2. Periphery: Economically weaker countries.

    3. Semi-periphery: Mix of both, acting as a buffer.

Globalization

  • Definition: Increasing interactions across borders and the interdependence that results.

  • Capitalist dynamics driven by both consumer demands and producer responses.

  • Concepts of commodification and vertical integration.

Global Division of Labor

  • Labor often concentrated in periphery and semi-periphery regions for cost efficiency.

  • Core regions mainly focus on Research and Development (R&D).

  • Concepts of time-space compression and just-in-time delivery practices.

Commodity Chain Stages

  • Stages include:

    • Raw materials

    • Manufacturing and assembly

    • Distribution

    • Market locations

  • Different modes of transportation (rail, maritime, road) and their implications for costs.

Global Production Networks

  • The commodity chain model is too simplistic; a focus on global networks instead of just individual chains is essential for understanding product distribution.

Case Study: Nike

  • Nike illustrates the shift in manufacturing strategy due to globalization and just-in-time production methodologies.

Global Trade and Government Roles

  • Government regulations can impact production costs (environmental laws, minimum wage, etc.).

  • Strategies such as deregulation to attract businesses, regional trade agreements (e.g., ASEAN, USMCA).

Special Economic Zones (SEZs)

  • SEZs provide tax and regulatory advantages to attract foreign investment.

  • Typically situated near major ports and aimed at low-skill manufacturing operations.

Economic Impacts of Deregulation

  • Deindustrialization: Movement of jobs from industrial sectors, affecting core countries.

  • Example: Movement from Steel Belt to Rust Belt in the U.S.

Service Economy Transition

  • Technologies like GIS help identify optimal locations for new businesses.

  • Quaternary sector services show a diverse range of locational influences.

High-Technology Corridors

  • High-tech corridors aim to attract IT designers and tech firms, evidenced by Silicon Valley's growth.

  • Technopol: A planned area for high technology companies, fostering synergy and innovation.

Sustainable Development Goals (SDGs)

  • Overview of the 17 SDGs, including goals addressing poverty, hunger, health, education, and climate action.

Tourism as a Development Strategy

  • Tourism's growth within the global economy, which now surpasses oil in economic value.

  • Negative impacts on local communities and infrastructure due to tourism development.

Ecotourism

  • Defined as sustainable tourism aimed at minimizing environmental impact.

  • Challenges include dependency on tourism revenue and potential environmental degradation.

Examples of Ecotourism

  • Costa Rica: Promoting sustainable practices while gaining economic benefits.

  • Nepal: Example of a region promoting ecotourism.