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TCW W2 Lesson 2 The Global Economy
TCW W2 Lesson 2 The Global Economy
THE GLOBAL
ECONOMY
Sub-topics
Commodities
A reasonably
interchangeable good or
material, bought and sold
freely as an article of
commerce. Commodities
include agricultural
products, fuels, and metals
and more.
Definition of Terms
http://www.businessdictionary.com/definition/service.html
Services
A valuable
action, deed, or
effort performed
to satisfy a need
or to fulfil a
demand.
Definition of Terms
http://www.businessdictionary.com/definition/service.html
Capital
Factors of
production that
are used to create
goods or services
and are not
themselves in the
process.
Definition of Terms
http://www.businessdictionary.com/definition/service.html
Technology
the application of
scientific
knowledge for
practical purposes,
especially in
industry.
Economic Globalization and
Types of Economies
2. it reflects the continuing
expansion and mutual integration
of market frontiers, and is an
irreversible trend for the economic
development in the whole at the turn
of the millennium. (United Nations)
There are 2 types of
economies associated
with economic
globalization -
Protectionism –
A policy of systematic
government intervention in
foreign trade with the
objective of encouraging
domestic production.
Protectionism –
This encouragement
involves giving
preferential treatment to
domestic producers and
discriminating against
foreign competitors.
Protectionism –
This comes usually in the
form of quotas and
tariffs. (McAleese,2007)
sahod sahod
Some key concepts
The Concept of
First, Second
A
and Third World.
Started during the COLD
WAR (1947)
The Cold War was a period of geopolitical
tension between the Soviet Union with its
satellite states (the Eastern Bloc), and
the United States with its allies (the Western
Bloc) after World War II. a state of political
hostility between countries characterized by
threats, propaganda, and other measures
short of open warfare.
The state of political hostility that existed
between the Soviet bloc countries and the
US-led Western powers from 1945 to 1990.
It happened when the Soviet Union (USSR)
began building missile sites in Cuba in 1962.
Together with the earlier Berlin Blockade,
this crisis is seen as one of the most
important confrontations of the Cold War. It
may have been the moment when the Cold
War came closest to a nuclear war.
Western Capitalist countries
were labelled First World
Soviet Union and its allies
were termed Second World
The rest were grouped into
Third World
After the end of Cold War
(1991), Second World
category disappeared
making the First World
associated as rich and
industrialized nations.
Third World was associated
with impoverished states.
The term is now been
considered out-dated and
inaccurate.
The North-South
Classification
B
The Global North
It includes the “First World”
nations such as the US,
Canada, W. Europe and
developed regions of Asia.
The Global South
This includes the Caribbean,
Latin America, South America,
Africa and developing regions
of Asia.
The Global North
The Global South
topic
Theories of
Global
Stratification
Definition of Terms
http://www.businessdictionary.com/definition/service.html
Stratification
is a system or
formation of layers,
classes, or categories.
IV. Theories of Global
Stratification
A. Modernization Theory
Frames global stratification as
a function of technological and
cultural differences between
nations.
IV. Theories of Global
Stratification
Rests on the idea that
affluence could be attained by
anyone.
Argues that the tension
between tradition and
technological change is a
barrier to growth.
IV. Theories of Global
Stratification
2 historical events that made Western
Europe advanced than much the rest of
the world -