Module 11 Flashcards
Globalization
-Is the increasingly international interconnectedness and integration among nation-states, resulting in greater interdependence
~Driven by economic integration development, information, and communications technology, as well as political and social links
~Culture and ideology has never been more globally homogenous (uniform, similar)
*Individualism
Global inequality
-The systematic disparities in income, wealth, health, education, access to technology, opportunity, and power between countries, communities, and households around the world
~About 15% of the world’s populations lives on less than$2.00 a day
~56% subsist on between $2 and $10 a day
Global Phenomenon
-COVID 19 2019-2020 global pandemic ~Tourism ~Consumption ~Travel ~Business -Democracy and development -Misinformation and disinformation campaigns ~Nation-states intervening, tempering, and disrupting
Transnational corporations
-Corporations or firms operating in two or more countries
~A social entity that is unlike any other social institution
~They are not bounded to any geopolitical territory. They do not hold allegiance to any one nation-state
Global capitalists
-Examples ~Ford ~Apple ~Facebook ~Alibaba
Walter Rostow’s Modernization Theory
-Suggests that low-income countries can develop economically only if they give up their traditional ways and adopt modern economic institutions, technologies, and cultural values that emphasize savings and productive investments
~Modernization is the process whereby a society’s social institutions become more complex
~Assumes lack of economic development is a result of endogenous factors
~Loans offered by industrialized nations through International Financial Institutions fund large scale infrastructural development in less developed countries
Stages of development
-Traditional stage
~The decline of small traditional communities agriculture. Dependent on a rural economy.
-Transition and early industrialization
~Specialization/bureaucratization and the creation of surplus, and investment in infrastructure. Dependent on the social appreciation of education and skill development
-Industrialization and drive to technological maturity
~Industrialization, growing investment, regional growth and political change. Dependent on urban/suburban economy
-High mass consumption
~Diversification, innovation, less reliance on imports, service sector becomes dominant
Dependency Theory
-Was created in response to the western-centric position in modernization theory.
-Argues that the global inequality stems from core countries (rich nations) exploiting semi (middle income) and peripheral (low income) countries, creating a cycle of dependency
~As long as semi peripheral nations are dependent on core nations for economic stimulus and access to the global economy, they will never achieve consistent and stable economic growth
~Assumes that lack of economic development is largely a result of exogenous factors
~TNCs are largely based within wealthy countries
Immanuel Wallerstein World System Theory
-Nations are connected by the expansion of a capitalist world economy form the 16th century forward, and engage in political and economic relations with one another
~There is a power hierarchy between nations
~His unit of analysis is the world
~International division of labor as a basis of global inequality
~Core nations established their position where they can exploit resources from the semi and periphery
Three unequal economic zones within the world-system
-Core
~The most advanced industrial countries that take the largest share of profits from the world economic system
-Semi-periphery
~Made up of 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
-Periphery
~Made up of countries that have a marginal role in the world economy and are thus dependent on the core producing societies for their trading relationships
*Mostly agricultural counties, often manipulated by the core for their raw materials
