WEEK 5 D2: TOPIC 3-4 ECONOMIC GLOBALIZATION, INEQUALITY, AND THE GLOBAL CITY

• Multiplier effect - an increase in an economic activity which can lead to an increase in other economic activities.

• Economic colonialism - puts profit before people; example is the outsourcing of jobs

• Skill based technological change - this is when jobs slowly transition to more technology-based areas which requires new skills for workers

TYPES OF ECONOMIC INEQUALITY

• WEALTH INEQUALITY

  • WELATH - net worth of a country

  • to measure this the gross domestic product is measured by economists

• INCOME INEQUALITY

DIVISIONS OF THE WORLD - Started during the cold war wherein wester capitalist countries were first, the soviet union and its allies were second and everyone else was grouped into third

• third world - impoverished

• first world - rich and industrialized

Another way of classifying the world was North-South which is when the second world joined either the first or the third

These divisions refer to racial inequality

• GLOBAL NORTH - white

  • provides industrialized food exports

• GLOBAL SOUTH - black

  • produces non traditional products for export

GLOBAL CITY

• used to describe New York, London, and Tokyo which are economic centers that exert control over the world’s political economy