Unit 7, 46 words Flashcards
focuses on the shift from tradition to modern forms of society
Stages of Economic Growth model
In the 1970s, historian Immanuel Wallerstein proposed an alternative model to Rostow’s, which he called…
World Systems Theory
countries do not exist in isolation but are part of an intertwined world system in which all countries are dependent on each other.
Dependency model
raw material such as coffee,cocoa, and oil, that have not undergone any processing.
commodities
when more than 60 percent of its exports are raw materials
Commodity dependence
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.
trade
a system of exchange in which no money changes hands.
barter
ability to produce a good or service at a lower cost than others
comparative advantage
when a country has the income, goods, or service that the another country desires
complementarity
laws that reduced barriers to trade
free trade
a set of reforms that reduced government regulations and taxation
neoliberal policies (neoliberalism)
groups of countries that agree to acommon set of trade rules
trading blocs
southern common market, which includes several south american countries
mercosur
global organization to monitor the rules of international trade by providing a forum for negotiating trade deals, settling disputes between its members, supporting needs of developing countries, and helping companies follow similar international trade policies.
World Trade Organization (WTO)
created in 1945 to aid countries caught in need of financial assistance
IMF
contracting work to noncompany employees or other companies to reduce costs
outsourcing
as with multinational manufacturing, some tertiary and Quaternary sector companies move their back offices to other countries.
offshoring
Returning jobs to business’s home country
reshoring
a changes system of employment in the various economic sectors throughout the world
new international division of labor
activities that creates new wealth for a region are considered…
basic economic activity
does not generate new money for the area. Instead, it allows for re-circulation of the existing money in the area.
Non-basic economic activity
businesses that operate in multiple countries are known as
TNC and MNC
Over 100 countries in the world have attracted TNC and MNC by using special manufacturing zones. These offer foreign corporations major tax savings, inexpensive labor, fewer environmental regulations, well-serviced industrial sites…
EPZ
specific area within a country in which tax and investment incentives are implemented to attract foreign (and domestic) businesses and investment.
Special economic zones (SEZs)