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UN (2015) reported that 1.9 billion down to 836 million extreme poverty.
People who lifted out from extreme poverty still considered to be poor.
2. Trade liberalization/ Free Trade- it means goods and services moves around the world more
easily than ever. It is more on innovations and ideas, Jeffrey Sachs, an economist mobiles
phones are the “single most transformative technology” when it comes to developing the
world.
Leapfrogging – the idea that countries can skip straight to more efficient & cost effective
technologies that were not available in the past.
Fair Trade- concern for the social, economic, and environmental well-being of marginalized
small producers. It aims for a more moral and equitable global economic system.
Environmental Degradation
Efficiency- finding the quickest possible way of producing large amounts of a particular
product.
Ecological Modernization theory sees globalization as a process that can both protect and
enhance the environment.
Food Security
Global food security means delivering sufficient food for the entire world population.The
sustainability of the society such as population growth, climate change, water scarcity, and
agriculture.
The challenges to food security can be traced to the protection of the environment.
• Deforestation
• Industrial Fishing
• Pollution
• Greenhouse gases
• GLOBAL WARMING – poses a threat to the global supply of food as well as to human health.
Income Inequality- New earnings are being distributed that values flow of goods and
services
Wealth- Refers to the net worth of a country which is also the abundances of resourceS in
a specific country.
Income- New earnings that are constantly being added to the pile of a country’s wealth .
Second World (North-South)- The Soviet union and its allies (Albania, Hungary, Poland and
Romania)
Third world (Global South)- Caribbean, Latin America, South America, Africa, some part of
Asia
2. Take-off Stage- people begin to use their talents and skills. This innovations creates new
markets for trade.
3. The drive to technological maturity- nations in this phase typically push for social change
along with economic change.
4. High mass Consumption- your country is big enough that production becomes more about
wants rather than needs.
Semi-Periphery- middle-income countries, due to their closer ties to the global economic
core
Periphery- Low Income countries, whose natural resources and labor support the wealthier
countries.
MARKET INTEGRATION
Market Integration
Occurs when prices among different locations or related goods follow similar patterns over
a long period of time.
In any given economy, production typically splits into three sectors:
1) Primary Sector
2) Secondary/Manufacturing Factor
3) Tertiary/Service Sector
1) The expression of currency in terms of gold or gold value to establish a par value.
(Boughton, 2007)
2) The official monetary authority in each country would agree to exchange its own currency
for those of other countries at the established exchange rates, plus or minus a one-percent
margin.
(Boughton, 2007, pp 106-107)
3) The establishment of an overseer for these exchange rates, the International Monetary
Fund (IMF) was founded.
Positive Consequences
-if lowered prices by removing tariffs, opened up new opportunities for small and medium sized
business to establish a name for itself, quadrupled trade between the 3 countries, and created
five million U.S jobs.
Negative Consequences
-include excessive pollution, loss of more than 682,000 manufacturing jobs, exploitation of
workers in Mexico, and moving Mexican farmers out of business.