Chapter 9 Flashcards
The development of social and economic relationships stretching worldwide. A key part is the emergence of a world system
Globalization
The systematic differences in wealth and power among countries
Global inequality
Theories about economic development that assume that the best possible economic consequences will result if individuals are free to make their own economic decisions, uninhabited by governmental constraint
Market-oriented theories
A version of market-oriented development theory that argues that low-income societies develop economically only if they give up their traditional ways and adopt modern economic institutions, technologies, and cultural values that emphasize savings and productive investment
Modernization theory
The economic belief that free-market forces, achieved by minimizing government restrictions on business, provide the only route to economic growth
Neoliberalism
Marxist theories of economic development that argue that the poverty of low-income countries stems directly from their exploitation by wealthy countries and by the transnational corporations that are based in wealthy countries
Dependency theories
The process whereby Western nations established their rule in parts of the world away from their home territories
Colonialism
The theory that poor countries can still develop economically, but only in ways shaped by their reliance on the wealthier countries
Dependent development
Pioneered by Immanuel Wallerstein, this theory emphasizes the interconnections among countries based on the expansion of a capitalist world economy. Core, semiperiphery, and periphery countries
World-systems theory
According to the world-systems theory, describes the most advanced industrial countries, which take the lion’s share of profits in the world economic system
Core
Describes countries that have a marginal role in the world economy and are thus dependent on the core producing societies for their trading relationships
Periphery
Describes countries that supply sources of labor and raw materials to the core industrial countries and the world economy but are not themselves fully industrialized societies
Semiperiphery
Worldwide networks of labor and production processes yielding a finished product
Global commodity chains
Developing countries that over the past two or three decades have begun to develop a strong industrial base
Emerging economies
