Global Economy Flashcards
Learn the factors and systems affecting the global economy
What is the Fourastié model?
An theory that explains the process of economic development
How does Fourastié explain his theory?
By dividing the economy into three sectors with each sector going
What are the three sectors according to Fourastié?
Primary (raw extraction) sector; Secondary (production of goods) sector; Tertiary sector (services)
In which ways are the ideas of Fourastié inaccurate?
He thought large increases in productivity in the tertiary sector are impossible, which has been disproven by digital technologies such as the Internet
Why do economies transition from being dominated by one sector to another?
Due to productivity increases, mechanisation and automation reducing required labor which can then work in a different sector
When do sectors go through structural changes?
When its importance increases or decreases depending on the share of total employment of the sector
What is intrasectoral change?
Changes across sectors largerly based on management style and business practices
How do areas dominated by a specific sector cope with that sector losing in relevance and status within the wider economy?
By introducing new industries and a new sector to the region using tax incentives, sponsorship, etc.
What addition to the Fourastié model is being proposed by some in regards to the three sector principle?
Some suggest adding a Quertinery or Fourth sector that contains high tech industries that are key to modern competitive economies and are increasing their share of employment rapidly in the last two decades
Are there any factors, manmade or natural, which can cause a great shift in the pattern of the three sector theory?
Yes, for example a global pandemic could reduce the share of employment in sectors and industries that require close contact with other individuals and increase employment and activity in fields that thrive in working alone or in smaller groups
