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• Economic globalization

  -       refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital, and wide and rapid spread of technologies.

  -       It reflects the continuing expansion and mutual integration of market frontiers, and is an irreversible trend for the economic development in the whole world at the turn of the millennium.
• Protectionism

  -       means policy of systematic government intervention in foreign trade with the objective of encouraging domestic production.

  This encouragement involves giving preferential treatment to domestic producers and discriminating against foreign competitors"
• Trade protectionism

  -       usually comes in the form of quotas and tariffs.
• Tariffs

  -       are required fees on imports or exports.
• Trade liberalization or free trade

  -       Free trade agreements and technological advances in transportation and communication mean goods and services move around the world more easily than ever.
• Fair trade

  -       as defined by the International Fair Trade Association,

  -       is the "concern for the social, economic, and environmental wellbeing of marginalized small producers" (Downie, 2007, pp. C1-C5).

  -       It aims for a more moral and equitable global economic system.

  -       Specifically, it is concerned with protection of workers and producers, establishment of more just prices, engagement in environmentally sound practices and sustainable production, creation of relationships between producers in the South and consumers in the North, and promotion of safe working environment.
• Sustainable Development

  -       the development of our world today by using the earth's resources and the preservation of such sources for the future

  -       In other words, development has to be ensured in and for the future generations.
• Efficiency

  ·         means finding the quickest possible way of producing large amounts of a particular product.
• Global food security

  ·         means delivering sufficient food to the entire world population.

  ·         It is, therefore, a priority of all countries, whether developed or less developed.

  ·         The security of food also means the sustainability of society such as population growth, climate change, water scarcity, and agriculture.
• Greenhouse gases

  ·         gases that trap sunlight and heat in the earth's atmosphere, contribute greatly to global warming.
• Multiplier effect

  ·         means an increase in one economic activity can lead to an increase in other economic activities.
• Exploitation and Oppression

  ·         a form of economic colonialism that puts profits before people.
• Wealth

  ·         refers to the net worth of a country.

  ·         It takes into account all the assets of a nation--may they be natural, physical, and human less the liabilities.

  ·         In other words, wealth is the abundance of resources in a specific country.

  ·         This means that wealth inequality speaks about distribution of assets.
• Gross Domestic Product (GDP)

  ·         In order to measure global economic inequality, economists usually look at income using the Gross Domestic Product (GDP)
• Income

  -       is the new earnings that are constantly being added to the pile of a country's wealth.
• “Economic Big Bang”

  -       Branko Milanovic (2011), an economist who specializes in global inequality, explained all this by describing an "………." wherein the industrial Revolution caused the differences among countries.
• Income inequality

  -       we mean that new earnings are being distributed;

  it values the flow of goods and services, not a stock of assets
• Although it is the Industrial Revolution that allowed a significant inequality in the past, economic globalization and international trade are the forces responsible in today's global income inequality.
• Skill-based technological change

  -       It complemented skilled workers but replaced many unskilled workers.

  -       In modernized economies, jobs are more technology-based, generally requiring new skills.
• "First World"

  -       Western capitalist countries

  -       was associated with rich, industrialized countries.
• "Second World"

  -       The Soviet Union and its allies

   
• Third World"

  -       Everyone else was grouped.

  -       which started as just a vague catch all term for non-alliance countries, came to be associated with impoverished states
• Gross Domestic Product (GDP)

  -       which measures the total output of a country
• Gross National Income (GNI)

  which measures GDP per capita
• Global North

  First World countries, such as the United States, Canada, Western Europe, and developed parts of Asia are regarded as the
• Global South

  -      includes the Caribbean, Latin America, South America, Africa, and parts of Asia.

  These countries were used to be called the Third World during the Cold War
• Modernization Theory

  -       First theory of global stratification

  -       This theory frames global stratification as a function of technological and cultural differences between nations.
• 1.     The Columbian Exchange

  o    The first event is known as the

  o    This refers to the spread of goods, technology, education, and diseases between the Americas and Europe after Christopher Columbus's so-called "discovery of the Americas."
• 1.     The Industrial Revolution

  o    The second historical event is the ……….. in the eighteenth and nineteenth centuries.

  o    This is when new technologies, like steam power and mechanization, allowed countries to replace human labor with machines and increase productivity
• 1.     Traditional stage

  o    This refers to societies that are structured around small, local communities with production typically being done in family settings.

  o    Tradition rules how a society functions: what your parents do is what their parents did, and what you will do when you grow up, too
• WALT ROSTOW'S FOUR STAGES OF MODERNIZATION

  1.  Traditional stage

  2. Take-off stage

  3. Drive to Technological maturity

  4. High Mass Consumption
• 1.     Take-off stage

  o    People begin to use their individual talents to produce things beyond the necessities. This innovation creates new markets for trade.

  o    In turn, greater individualism takes hold and social status is more closely linked with material wealth.
• 1.     Drive to Technological maturity

  o    which technological growth of the earlier periods begins to bear fruit in the form of population growth, reductions in absolute poverty levels, and more diverse job opportunities.

  o    Nations in this phase typically begin to push for social change along with economic change, like implementing basic schooling for everyone and developing more democratic political systems.

   
• 1.     High Mass Consumption

  o    It is when your country is big enough that production becomes more about wants than needs.

  o    Many of these countries put social support systems in place to ensure that all of their citizens have access to basic necessities.
• Dependency

  -       is the condition in which the development of the nation-states of the South contributed to a decline in their independence and to an increase in economic development of the countries of the North (Cardoso and Felato, 1979).

  -       focuses on how poor countries have been wronged by richer nations

  -       was used to underscore the extent to which the economic and political development of poor countries was conditioned by the global economy, whose center of gravity was located in the developed nations.

   
• Dependence

  -       "The idea of … refers to the conditions under which alone the economic and political system can exist and function in its connections with the world productive structure
• The two main sub-theories:

  -       North American Neo-Marxist approach and the

  • Latin American structuralist approach
• Peripheral Nations

  -       are countries that are less developed and receive an unequal distribution of the world's wealth.
• Core Countries

  -       are more industrialized nations who receive the majority of the world's wealth
• High-Income Nations

  -       Wallerstein described this as the "core" of the world economy.

  -       This core is the manufacturing base of the planet where resources funnel in to become the technology and wealth enjoyed by the Western world today