Unit 7 Study Guide-

Vocabulary

• Post-Fordism- flexible production and consumption patterns

• Complementarity*- mutual benefit of two activities*

• Footloose Firm- company not tied to one location

• Microfinance- small loans to low-income individuals

• Bulk Reducing- raw material decreases in weight/volume

• Globalization*- integration of economies and societies*

• Brownfield*- abandoned industrial site*

• Quinary*- high-level decision-making jobs*

• Backwash Effect*- negative impact on periphery regions*

• Technopole*- high-tech business center*

• Dependency Theory- underdeveloped countries exploited by developed ones

• Economy of Scale- cost advantages with increased production

• Export Processing Zone- an area with relaxed trade barriers

• Bulk Gaining- final product increases in weight/volume

• Primary- extraction of raw materials

• Ancillary Activities- support services for primary activities

• Quaternary*- research and development jobs*

• Agglomeration- clustering of businesses for mutual benefit

• Secondary- manufacturing and processing of raw materials

• Vertical Integration- company controls multiple stages of production

• Outsourcing- contracting work to external companies

• Tertiary- service sector jobs

• Cottage- small-scale production at home

• Gini Coefficient- a measure of income inequality

Questions

What are the UN Sustainable Development Goals?

• 17 goals to end poverty, protect the planet, and ensure prosperity for all.

How many UN Sustainable Development Goals are there?

• 17 goals.

What is Rostow's model of development?

• 5-stage model of economic growth.

What is Wallerstein's model of development?

• World Systems Theory, core-periphery model.

What is a similarity between Rostow and Wallersteins’ models of development?

• Both Rostow's and Wallerstein's models of development are based on the idea of stages of development. Additionally, they both examine development at the national level

Which of these is not a potential impact of the New International Division of Labor on low-income countries?

• The potential impacts of NIDL on low-income countries include increased economic growth and job creation, but one potential impact that is not typically associated with NIDL is a decrease in government corruption.

What is a break of a bulk point?

• A location where goods are transferred from one mode of transportation to another.

What factors do owners balance?

• Transportation, labor, and agglomeration costs.

Least Cost Theory

• A model developed by Alfred Weber according to which the location of manufacturing establishments is determined by the minimization of three critical expenses: labor, transportation, and agglomeration

Newly Industrialized Country (NIC).

• The term NIC typically refers to countries that have rapidly industrialized and experienced significant economic growth in recent decades, such as Mexico, China, South Africa, and India.

Why is Russia not considered a Newly Industrialized Country?

• because it has not undergone the same rapid industrialization and economic growth as other countries that are typically classified as NICs. While Russia has a diversified economy and is a major producer of natural resources, it has faced challenges in modernizing its economy and reducing its dependence on oil and gas exports.

Why is Mexico NIC?

• Mexico has a diversified economy and is a major producer of automobiles, electronics, and other manufactured goods. It has also benefited from its proximity to the United States, which is a major trading partner and source of investment.

Why is China NIC?

• China has a large and diversified economy and is a major producer of manufactured goods, such as electronics, textiles, and machinery. It has also benefited from its large population, which provides a large workforce and consumer market. Additionally, China has implemented economic reforms and opened up to foreign investment, which has helped to fuel its growth.

Why is India NIC?

• India has a large and diversified economy and is a major producer of textiles, software, and other manufactured goods. It has also benefited from its large and growing middle class, which provides a large consumer market. Additionally, India has implemented economic reforms and opened up to foreign investment, which has helped to fuel its growth.

Factors of high fossil fuel consumption and low GDP

• High fossil fuel consumption and low GDP are two factors that are often linked together. Countries with high fossil fuel consumption tend to have lower GDPs due to the high cost of importing and using these fuels.

Factors of low-income inequality and high birth rate

• Low-income inequality and high birth rates are often seen in developing countries where large families are still the norm. These countries may have limited access to family planning and may rely heavily on agriculture for income.

Factors of high literacy rate and large secondary economic sector

• High literacy rates and large secondary economic sectors are often seen in developed countries where education is highly valued and there is a strong focus on manufacturing and industry.

Factors of high-income distribution and high gender inequality

• High-income distribution and high gender inequality are often seen in countries where women have limited access to education and job opportunities, leading to a concentration of wealth in the hands of men.

What makes a country highly developed?

• A highly developed country typically has a high level of economic development, a high standard of living, and a well-developed infrastructure, including transportation, communication, and healthcare systems. These countries typically have a high level of industrialization and are characterized by a service-based economy, with a focus on technology, finance, and other high-value industries. They also tend to have high levels of education, healthcare, and social welfare programs. Examples of highly developed countries include the United States, Canada, Japan, and many countries in Western Europe

Periphery Countries in World Systems Theory

• Underdeveloped countries are exploited by core countries for labor and resources.

Wallerstein’s World Systems Theory

• a sociological theory that divides countries into core, periphery, and semi-periphery regions based on their level of economic development. The theory suggests that the global economy is characterized by a hierarchical system in which core countries dominate and exploit peripheral countries for their resources and labor. The core countries have advanced economies and are characterized by high levels of industrialization, while the periphery countries have primarily agrarian economies and are dependent on the core countries for capital and technology.

Examples of core countries according to Wallerstein's World Systems Theory include

• the United States, Canada, Japan, Western European countries, and Australia. These countries have advanced economies, and high levels of industrialization, and dominate the global economy through their control of capital, technology, and markets. They also tend to have high levels of education, healthcare, and social welfare programs.

example of semi-periphery countries

• Brazil, Mexico, China, India, and South Africa. These countries are in transition between the core and periphery regions and may have some level of industrialization and economic development, but are still dependent on the core countries for capital and technology. They may also serve as a source of cheap labor and raw materials for the core countries.

example of peripheral countries

• Haiti, Afghanistan, Somalia, and Nepal. These countries have primarily agrarian economies and are dependent on the core countries for capital, technology, and markets. They are often exploited for their natural resources and labor, and have low levels of economic development and industrialization. They also tend to have high levels of poverty, inequality, and political instability.

Who is most likely to be a beneficiary of microfinance programs?

• Microfinance programs are typically aimed at providing financial services to low-income individuals and households who lack access to traditional banking services.

What are microfinance programs?

• Financial services for low-income individuals

Who are the beneficiaries of microfinance programs?

• Women, small business owners, farmers, and excluded individuals from the formal financial sector

What is the goal of microfinance programs?

• Promote financial inclusion, reduce poverty, and support economic development in disadvantaged communities.

Who are the target communities of microfinance programs?

• Disadvantaged communities

What are the positive impacts of ecotourism?

• Promotes conservation, raises awareness, provides economic benefits to local communities, and supports cultural heritage and traditions preservation.

What are the negative impacts of ecotourism?

• Contributes to environmental degradation, disrupts local ecosystems, and leads to the exploitation of local communities and resources.

What is Rostow's model of economic development?

• A linear progression of stages from traditional to modern society.

What is the first stage of Rostow's model?

• Traditional society with subsistence agriculture.

What is the second stage of Rostow's model?

• Pre-conditions for takeoff with commercial economy and infrastructure.

What is the third stage of Rostow's model?

• Takeoff with the growth of industrialization and the middle class.

What is the fourth stage of Rostow's model?

• Drive to maturity with a diversified economy and focus on research and development.

What happens during the drive to maturity stage?

• Shift away from heavy industry and towards specialized industries.

What is the focus of traditional society?

• Meeting basic needs with limited technology.

What emerges during the pre-conditions for the takeoff stage?

• Commercial economy and national identity.

What emerges during the takeoff stage?

• Industrialization and the middle class.

What emerges during the drive to maturity stage?

• A diversified economy and consumer culture.

What area of the US best demonstrates the impact of deindustrialization on the landscape?

• The Rust Belt region, which includes parts of the Midwest and Northeast, is often cited as the area of the US that best demonstrates the impact of deindustrialization on the landscape. This region was once a hub of manufacturing and industry but has experienced significant economic decline and population loss since the mid-20th century.

What is the Rust Belt?

• A region in Midwest/Northeast impacted by deindustrialization

What was the Rust Belt known for?

• Manufacturing and industry

What has happened to the Rust Belt since the mid-20th century?

• Significant economic decline and population loss

What are two benefits of globalization?

• Increased access to goods and services from around the world, and greater cultural exchange and understanding between different countries and peoples.

What are two drawbacks of globalization?

• It can lead to job losses and economic inequality in some countries, and it can contribute to environmental degradation and the exploitation of natural resources.

What are two benefits of supranationalization?

• Increased cooperation and coordination among member countries, and ability to tackle global issues.

What are two drawbacks of supranationalization?

• Loss of national sovereignty and identity, and slow decision-making due to consensus.

What are economies of scale?

• Cost advantages from the production increase

How do economies of scale reduce costs?

• Spreading fixed costs over more units

What benefit do companies get from economies of scale?

• Charge lower prices and earn a profit

What is vertical integration?

• The company owns multiple supply chain stages.

What are the benefits of vertical integration?

• Control costs and quality, greater efficiency and profitability.

What is horizontal integration?

• Acquisition of companies at the same supply chain stage.

What are the benefits of horizontal integration?

• Increased market share, reduced competition.

How does horizontal integration differ from vertical integration?

• Horizontal is a same-stage acquisition, and vertical is multiple-stage ownership.

What is the primary economic sector?

• Extraction of natural resources

What is the secondary economic sector?

• Manufacturing of raw materials

What is the tertiary economic sector?

• Provision of services and sale of finished goods

What is the quaternary economic sector?

• Information services, consultation, education, and research

What is the quinary economic sector?

• The executive level of business and government