Trade Flashcards
what way do modernisation theorists argue is best for countries to develop
modernisation theorists argue that the best way for countries to develop is through trade. they argue that countries should open themselves up to investment from the west and to produce and export products and compete.
outline phase three of rostows model
In the ‘take off’ phase (phase three) of Rostow’s model, countries will start to manufacture goods for export to other countries. next, the ‘drive to maturity phase (phase four) sees earnings from exports reinvested in public infrastructure such as education
explain how trade can assist in the process of development through creating employment
One way trade can assist in the process of development is through creating employment. Traditionally, developing nations produce large amounts of raw materials for export to western markets.
However, the process of globalisation has
meant a diversification of industry in the developing world which has meant that rather than be employed
in the traditional agricultural sectors, many workers are now being employed by transnational companies The demand for these goods, has led to more secure employment opportunities for
workers in the developing world.
neoliberals argue developing countries need to do to ecourage investment
Neoliberal development policy argues that developing countries need to create a ‘business-friendly’ environment in order to encourage inward investment from wealthy individuals and Transnational Corporations. indeed Many developing countries have actually set up huge Export Processing Zones, or Free Trade Zones In order to attract TNCs developing countries have set up. These offer incentives for Transnational Corporations to invest, including tax breaks, low wages, and lax health and safety legislation.
according tp neoliberal theory, why could corporations help a country develop
In Neoliberal theory, corporations will help a country develop by providing jobs and training. The money earned will be spent on goods and services at home and abroad creating more money to invest and (limited) tax revenue for further development.
