AMSCO Unit 7 KC#2 (7.5-7.8) Terms 61-121

Is an economic model that focuses on how people live. Suggested that different inputs and levels of investment were required to allow countries to move from one stage to the next.

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

• Uses limited technology

• Carries out local or regional trading

• Enjoys limited socioeconomic mobility

• 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

• Develops major technological innovations

• Starts industrialization and primary sector begins to shrink

• Spreads entrepreneurial mentality

• Begins to urbanize

• Initiates self-sustaining growth

• Creates new industries while strengthening existing ones.

• Improves energy, transportation, and communication systems.

• Sees economic growth greater than population growth

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

• Spends money on nonessential goods (consumerism)

• Purchases of high-order goods become common

• Desires to create a more egalitarian society

• Supports a strong teriary sector

Limited Examples | Role of Exploitation | Bias Toward Progress | Lack of Variation | Lack of Sustainability | Need for Poorer Countries | Narrow Focus

On a global scale, decisions about where to locate factories, offices, and other businesses shape the wealth and power of countries.

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

• Includes the economically advantaged countries of the world

• Includes the headquarters of most large multinational companies and banks

• Focuses on higher-skill, capital-intensive production

• Promotes capital accumulation

• Dominates semiperiphery and periphery economically and politically

• Locates factories and service centers in semiperiphery and periphery countries

•Benefits greatly from international trade

"• Includes most middle-income countries, sometimes called emerging economies.

• Provides the core with manufactured goods and services that the core formerly provided for itself.

• Shares characteristics of both core and periphery

• Includes the least-developed countries

• Maintains many jobs in low-skill, labor-intensive production and extraction

• Provides the core and semiperiphery with inexpensive raw materials and labor

• Receives jobs but few profits from manufacturing

• Attracts jobs by having weak laws protecting workers and the environment

"Unlike Rostow's model, Wallerstein's model does not suggest that all countries can reach the highest level of development, nor does it explain how countries can improve their position. In contrast, it indicates that the world system will always include a combination of types of countries. But countries can change categories, moving in or out of the core.

Little Emphasis on Culture | Emphasis on Industry | Lack of Explanation | Limited Roles

raw material such as coffee, cocoa, and oil, that have not undergone any processing.

When more than 60 percent of a countries exports are raw materials.

occurs when one party desires a good or service that it does not have or cannot produce and another party has the desired good or service with which it is willing to part.

a system of exchange in which no money changes hands. "This is most common between individuals. (In the book-turned-movie To Kill a Mockingbird, the main character, a lawyer, provides legal services to a poor farmer in exchange for bags of food.)

the ability to produce a good or service at a lower cost than others.

When a country has the income, goods, or services that the another country desires, they have

Policies, or laws, that reduced barriers to trade.

A set of reforms that reduced government regulations and taxation.

Pg 487 "Factors decreasing Trade"

Groups of countries that agree to a common set of trade rules.

A trading bloc that includes several South American countries.

a global organization. It was created in 1995 to monitor the rules of international trade by providing a forum for negotiating trade deals, settling disputes between its members, supporting the needs of developing countries, and helping companies follow similar international trade policies.

interdependency has strengthened the links among the countries' economies. Growth in one country can result in new economic opportunities in other countries.

Created in 1945 to aid countries caught in need of financial assistance. Recognizing how quickly a financial crisis can lead to social and political instability, the IMF promotes economic stability for countries dealing with financial struggles.

contracting work to noncompany employees or other companies. "Ihe contracted company might be less expensive because it specializes in the work and does it more efficiently.

Companies will locate services or manufacturing in other countries if the costs of doing business are lower and worth the risk of moving some operations overseas

A changed system of employment in the various economic sectors worldwided ( In core countries, people design and develop products for the global market. Tertiary, quaternary, and quinary jobs have increased in the core. • In semiperiphery countries, people often manufacture goods marketed in core countries. Consequently, employment in the secondary sector has increased. Employment in the primary sector has declined. • Periphery countries, such as Bangladesh, Angola, and Papua New Guinea, have large primary sectors and export minerals and resources to core and semi-periphery countries for further processing and consumption. )

These types of activities generate new wealth for a region and these activities are usually exported from the region. While these activities do not generate new wealth for a region rather these activities are consumed within the region.

Businesses that operate in multiple countries

Offer foreign corporations major tax savings, inexpensive labor, fewer environmental regulations, well-serviced industrial sites, and proximity to good transportation networks that allow for easy delivery of raw material and shipping of finished products. EPZs are often near international airports, seaports, or land borders from where the products can be exported easily.

Special Economic Zones that are in China

Special Economic Zones that are in Mexico

These are locations where a foreign company can store, warehouse, transfer, or process without additional taxation or duties if goods are exported

One that no longer employs large numbers of people in factories but has people who provide services and process information.

In which an item is moved from worker to worker, with each repeatedly performing the same task.

The use of assembly lines allowed companies to rapidly produce more standardized products and with less-skilled workers than ever before. This system of mass production, known as

in which businesses maximize profit by substituting one factor of production for another, has been applied to the labor force

The remaining workers are often trained to do more than one job, so they can rotate among a few different workstations during a day, reducing the risk of injuries.

by allowing business owners to increase output with improved efficiency. Machines can work 24 hours a day without breaks or vacations, and they produce consistent, high-quality work.

a system in which the inputs in the assembly process arrive at the assembly location when they are needed. system reduces the expensive storage costs of extra inventory— but at the risk of running short on inputs.

Being near similar factories allows businesses to use the same services, such as transportation companies or accounting firms that might specialize in providing service to the industry.

is a hub for information-based industry and high-tech manufacturing. The proximity of companies allows for benefits such as the sharing of certain services and attracting highly skilled workers to the area. Often these technopoles are located near universities well known for their computer, mathematics, engineering, science, and entrepreneurial business programs:

The concentration of high-value economic development in the growth pole attracts even more economic development.

which are positive economic outcomes beyond the growth pole. For example, farmers that are 100 miles away from a growth pole should have expanded markets in which to sell their produce, resulting in increased sales and profits.

negative effects on one region that result from economic growth in another region. A typical backwash effect is the loss of the highly educated young people from distant communities who migrate to growth poles for employment.

office buildings and other commercial spaces are more likely to be evident on the landscape. Increasingly, these office buildings congregate in

Using the earth's resources without doing permanent damage to the environment

is to address problems caused by depletion of natural resources, mass consumption of goods, pollution of air and water, and the impact of climate change.

or impact on the environment. One measure of an ecological footprint is how much land is needed to provide one person with resources and to handle the person's garbage.

Some, such as volcanic eruptions, are natural events that humans do not influence. • Some are a mixture of natural events and human actions. For example, dust storms occur naturally in some dry regions. However, they are more likely to occur after farmers have removed the deep-rooted natural vegetation that holds soil in place. • Some are completely the result of human actions. For example, people pollute the air when the burn wood, coal, or oil. pollute water when they dump waste from industries or allow farm chemicals to flow into rivers or lakes.

Pollution has large impacts on plants, animals, and humans. According to the Global Alliance on Health and Pollution, in 2015, pollution caused 16 percent ofdeaths worldwide. Over 90 percent of these deaths occurred in low- or middle-income countries, and most who died were children. Pollution strains the economies of countries by increasing health care costs and causing people to miss school and work because they are ill or taking care of someone who is.

The solution was to force every company to reduce emissions. Under pressure from organized citizens, the federal government passed stricter laws on air pollution. With the passage of the Clean Air Act in 1970 and its subsequent amendments, the country reduced the emission of six major types of air pollution by over 70 percent.

Concludedd that the rise in temperature contributed to more frequent and more destructive wildfires, hurricanes, floods, and droughts.

travel to a region by people who are interested in its distinctive and unusual ecosystem. The money spent by ecotourists and the jobs created can provide incentives to people to protect these rare areas rather than convert them to agriculture or industry.

intended to finish the job that the MDGs (Millennium Development Goals) has begun, but with more awareness of environmental challenges and ways to overcome them. As with the MDGs (Millennium Development Goals), the UN gave countries 15 years to achieve the goals.

Argentina and South Korea have very different economic histories. Argentina was once a wealthy country, but its economy has since declined. South Korea, on the other hand, has experienced rapid economic growth in recent decades.