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The value of exports decreases in relation to the value of imports. |
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| relative value of exports compared to the costs of imports |
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| If a country is experiencing a decline in terms of trade |
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| increase in spending to maintain living standards |
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members of a national buisness class of senior corporate managers who derive their position and status from connection to foriegn corporations of developed nations. |
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| comprador elite term used in |
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| critical theories of sociology of development to imply that a foriegn-allied buisness tends to encourage local economic development that benefits nations other than their own |
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| Metropolis-hinterland Theory |
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| compradeor elite. the term used in critical theories of sociology of development to imply that foriegn allied national buisness class tends to encourage local econ development that benefits other nations than its own |
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| Easy phases Import Subsititution Industrialization (IsI) |
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| in attempt to join world economy nations turn away from export led growth to inward oriented growth bc exports produce distorted growth and leave county vulnerable to external shock. During easy phases of ISI, nation creates difference bt domestic and international good prices, makes consumers pay higher for int and tthis leads nation to produce consumer nondurables such as food and clothes during this phase until it starts making more specialized complex goods. |
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| like all household goods technology only valuable until something else does the job better. ex. telephone was invented less need for telegram and now that cellular phone is invented less need for landline telephone |
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| advocates a focus on system in its totality and the interactions bt its elements rather than individual elements in isolation. structuralists begin from the assumption that the underlying structure of developing economies is diff from industralized nations. |
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| activist state policy to redress production of bottlenecks and believe that protecting the modern section will cause it to grow |
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| hirschman first described this as relationships between industries |
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| production of a good complimentary to another industry which may spur the development of a new sector ex. roadside res a foward linkage to auto production |
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when an idustry grows and has an increase in demand for inputs. the growth of the industry that supplies these inputs IS the backward linkage. ex. wheels = backward linkage to auto indus. |
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| hirschman said investing in industries with strongbackward linkage on supply chain |
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| as part of ISI certain enterprises should be owned by state |
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| which enterprises should be owned by the state |
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| strategic/oligolpoly(oil, mining, telecom, airplane) and heavy idus like steel and chemical. the goal of state owned is to provide cheape inputs to industry to encourage linkage |
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| steady process: diminishing scarcity, diminishing coercion, increasing peace. Challenge of nations was to overcome scarcity, markets will allocate their resources if everyone follows self interest(invisible hand) and development characterized by division of labor, property and power(gov) |
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| hunting/gather, pastoral, agricultural, commercial. division of labor starts with none to steadily increase, property start with none to cattle, landed estates, and money(capital), power start with none to power from substinence (min), coerceive state to protect landed property and finally invisible hand, limited gov |
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| believed classes needed to be investigated and this was done by investigating forces of prod(land, labor , machines) and relations of production(do the owners hire workers or use slaves?) |
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| technological change created new division of labor and ownership within order. he blieved that we will come to a point (communism) where everyone is happy and nothing will change and we will live happily ever after |
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1. primite communism(no div of labor, no prop, limited public relations) 2. agricultural(some division of labor, land, and llords vs. peaseants productive relations) 3.primitive accumulation(more division of labor, lend and capital and bourgeois vs. tradition publicrelation) 4.Industrial(max division of labor,capitol and labor property and capital vs. labor productive relations) 5. socialism communism(everone does a bit of everything!!!)hahah |
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| walt. whitman rostow. said that economic modernization occurs in 5 basic stages of varying legnths. he blieved that modernization is about ABUNDANCE and that if you get enough wealth in society so it can sustain itself. he took more of an economic approach to EVOLUTION |
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1)tradition(agriculture, limited product) 2)preconditions(institutions, markets, ideas emerge) 3)takeoff(savings, investment, modernize agric, industry) 4)drive to maturity(very high savings, high end industry) 5)mass consumption(self-sustaining growth) |
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| additive model of export-led growth |
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export sector grafted onto the existing structure of production with very littlechange in the nonexport econ. Resources are attracted to the export sector without reducing output elsewhere and factor productivity in the nonexport economy was unaffected by growth to the export sector. ex. expansion of banana exports from Honduras at start of 20th century. the land was previously unutilized and had zero opp cost the capital was foriegn and and labor was provided in large by migrant workers from br. west indes and el sav |
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| destructive model of export-led growth |
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| expansion of new exports was achieved by attracting resources from existing activities in the rest of the economy - either from within export sector or nonexport sector. ex. expansion of tin mining in bolivia, where land, labor and capital all came in large part from resources previously devoted to silver exports. destructive model implied a shift of reources toward higher factor returns although most of the noneport economy as still unaffected |
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| transformative model of export led growth |
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| the export sector expanded in such a way that the productivity of the non export economy was significantly affected. the resources attracted the export sector in this model were more likely to come with nonzero opp cost (as in the destructive model) but this time the impact on factor product markets throughout the economy was considerable. ARgentine meat and cereal expansion is the best example of the transformative model of export-led growth in the period before the First World War. |
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| Bulmer-Thomas said the ideal export commodity was |
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| a product that generated foward linkages through a significant degree of processing , backward linkages through domestically produced inputs, high fiscal revenues through tax receipts, and demadn for domestically produced consumer goods through paymet of factor incomes. IT is difficult to find a product that matched all of these requirements, but someshared more than others. ex. chilean copper generated some foward linkages through simple refining process and earned substantial revenue for the state and provided a derived demand for consumer goods through payment of high wage incomes |
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| the generally accpeted perspective of a particular discipline at a given time |
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| deficient in quantity or number compared with demand, abundance is the overcoming of "rude" scarcity |
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| the division of tasks in a society bt men and women, young and old, ability, knowledge, and experience in order to increase productivity, different individuals now specialize in different tasks rather than attempting to do everything |
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| sharing the feelings of others (esp feelings of sorrow or anguish) people will pursue self-interest but not at the expense of abusing other peoople to keep the soul morally healthy |
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| in marxists theory, a specific combo of productive forces and social and technical relations of production. the productive forces include human labor power and the means of procution (tools, equip,buildings, ect.) The social and technical realtions incluede property, power and control reltions governing society's productive assets, cooperative work relations, and the relations between social classes. |
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| in marxist analyses of how societies work, the economic system and relations within the society (it's mode of production) |
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| the institutions of a society emerging its base. it includes the laws, politics, religion, education, art, philosophy, ethics ect. the superstructure both expresses , promotes, and determines a culture's ideology. These institutions work to prepetuate the status quo of the bourgeoises. |
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| What is a paradigm and how do they change? |
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a paradigm is a collection of shared beliefs, serving as a model. they change over time as societies change and new info is acquired. for ex. there used to be a apradigm that earth was at the center of the solar system. later on scientists made new discoveries that disproved the old theory and set a new paradignm with the sun at the center of the universe. "no natural histroy can be interpreted in the absence of at least some implicit body of intertwined theoretical and methodological belief that permits selection, evaluation, and criticism" |
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| Why is modernization associated with suicide according to Durkheim? |
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| One aspect of modernization according to Durkheim's theory is social cohesion: the ability of society to hold itself together in a cultural sense. Technical innovation drives differential and social change as well as more division of labor. as people become more individualized, social cohesion becomes more difficult and scoeity must have stronger values. Durkheim counted the number of suicides and found that the highes numbers occur in places where development occurs fastest. With development occuring so fast, peopel aren't always able to keep up, and dont have to time to readjust their values, causing them to feel lost and contemplate suicide |
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| central american common market |
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| free trade organization for central america, helped facilitate trade to help ease back into the wide economy. largly unified external tarrifs and increased trade withing the member nations of guatemala, honduras , el savador, nicaragua and later costa rica. it failed mainly bc of inner trade disputes and the war bt honduras and el salvador |
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| primary export led growth |
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| export led growth implies opening domestic markets to foriegn competion in exchange for market access in other countries. primary exports produce distorted growth and are vulnerable to external shock |
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| concentrates on producing goods primarily for the domestic market is used in import substitution industrialization (ISI) and creates backwards and foward linkages |
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| a company that manages production or delivers services in more than one country. It requires technology to be transferred to the country the work is being done i, howevery, it is best if there is local production, local ownership, and the locals are employed usually countries are more willing |
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| a problem of export oriented indus(EOI) is that it can lead to overvalued exchange rates, which means the commodity is valued higher than it's actual cost. |
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| ISI, ISI deepening and EOI |
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ISI is the most important substitution industrializiation. It was a trade and economic policy that encouraged national industrial growth and to reduce imports of manufactured goods with backwards and fowards linkages. The deepening of ISI was to reduce a country's vulnerability to declining terms of trade and international shocks. ISI was a failure and replaced by EOI which is the export orientied industrialization, a trade economic policty that is the process of a country speeding up its industrialization by exporting goods for which the nation has a comparative advantage |
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| what policies were associated with import substitution industrialization? |
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| state owned enterprises that included strategic/oligopoly sectors such as oil, mining, telecomms and airplanes. As well as heavy industries that provides steel and chemicals. Access to public money, guarantees, and state regulation for technology transfer and credit would come of ISI. Also, employment and cheap inputs to industry that created a cprice to encourage linkages were policy toolds of ISI. The goal was to create adifference bt domestic and int. prices by making consumers pay higher prices for international goods, this was done through tarriffs, quotas and other government policies |
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| what did creating a common market seem like a strategy to extend the benefits of ISI? |
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| it created incentives to attract foriegn capital and encourage local production and promoted growth |
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| the idea that moral critique and scientific analysis of capitalism are interwoven. in materialist doctrine men are products of circumstances and upbringing and that therefgore changed men are products of other circumstances and changed upbringing. However, Marx's argues that it is men who change circumstances. Ultimately, human actions (moral choices) create social changes and circumstances in history and must therefore be considered in scientific analyysis. Marx claims that although individuals are not "responsible for social relations" they do have the opportunity for individual moral choice within those relations. these include voting for certain legislations making certain individual decisions in teh markert (who to work for/what to do).ect. |
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| marxist theory that there is a steady decline of conditions in the workng class. Marx believed that in capitalism more and more of the labor force consisted of people dependent on a wage or salary for living. immiseration is the idea that the wealth of the capitalists grows faster than the incomes of the working class. It also relates the decline in overall living standards to the increase in expenditures that the working class incurs which increase the necessary salary needed in order to meed the basic living needs. |
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| a practice of domination which involves the subjaugation of one people to another. Often used to describe a large group of people who resettle or who are dependent and directly governed by a foriegn nation |
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| the belief in the desirability of the acquisition of colonies and dependencies, or the extension of a countrie's influence through trade, diplomacy ect. imperalism is the practice of extending the power, control or rule by one country over areas outside its borders. Teh areas are so controlled or ruled may be called that countrys EMPIRE. imperalism is a branch of colonialism in which the controlled areas are formally declared to be its colonies or protectorates. imperialism is also used to refer to situations where the mode of control is less formal; for instance when the dominant country's influence or control in the subordinate areas is economic not involving overt territorial conquest. |
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| Diff bt colonialism and imperialism |
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| the practice of colonialism usually involved the tranfer of population to a new territory where the new arrivals lived as permanet setterlers while maintaining political allegiance to their country of origin. Imperialism, on the other hand, comes from latin term Imperium, meaning to command. Thus, the term imperialism, draws attention to the way that one country exercieses power over another, whether through setllement, sovereignty, or indirect mechanisms of control. Both colonialism and imperialism were forms of conquest that were expected to benefit Europe economically and strategically. The term colonialism is frequently used to describe the settlement of places such as north america, uastrailia, new zealand, algeria, brazil and that wer controlled by a large population of permanenet european residents. the term imperialism often describes cases in which a foriegn government administers a territoy without significant settlement; typically expamples include the scramble for Africa in late 19th centy and am domination of phillipines and puerto rico. |
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| poop from bats and birds used as an effective fertilizer and can be harvested along the coasts of peru and chile. one of the most significant raw material exports traded inthe peripheries of south america during colonization |
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| inceasing complexity of a system in order to repsond to variation in the enviroment. it also allows for faster development. differentiation is what characterizes political development |
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| the movement of minority groups of society into the mainstream of society. these people gain access to opportunities right and services available to the members of the mainstream |
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| the existence of two sepereate economic systems within one country. it is commmon in less developed ocuntries, where one system is geared to local needs and another to the global export market |
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| where each society would evolve inevitably from barbariasm to greater levels of development and civilization. the more moderns states would be more wealthier and powerful and citizens more free and have higher standard of living. everything has to fit together to deal with political, economic and cultural development. a process of differentiation, through the division of labor, integration, through the cultural system, and changing value orientation. it stresses the importance of societies being open to change and saw reactionary foreces as restricting development |
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| ascription>achievment>tradition>strain |
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| these are all changes in vlaue orientation. we move from ascription (where family in which you wer born matters) to achievment ( where what you accomplish matters) to tradition (where we leave traditional society where we are self-sufficient and unconnected and come to the modern world where we have to be intedependent from our neighbors and we value them and build up relationships with them. Tradition can also lead to STRAIN where we come out of the village where we have many common bonds and end up alone and isolated in the city and kill ourselves |
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3rd step in rostovian take off model (aka stages of growth) major historical model of ec growth five stages. 1. traditional soc 2. preconditions for take off 3. take off 4. drive to maturity5. age of high mass consumption structuralist model tale off occurs when sector led growth becomes common and society is driven by more conomic posessions than trandions. at this point hte norms of econ growth are well established. In discussing take off rostow is a noted early adopter to the term transtion which is to describe the passage of a traditional to a modern economy. After take-off, a country will take as long as fifty to one hundred years to reach maturity., |
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Why did Marx appear to support colonialism? |
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he believed that colonialism brought investment, specialization, and technology and he though that by destorying pre-capitalist relations and introducing capitalism we can start on a better way of life. he believed that by moving the population to rich territories, a nation creates a market for industrial goods and a reliable source of natural resources. Colonialism would hep find new market to absorb excess consumer goods |
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| how did colonialism reshape local economies of the colonies |
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| colonialism extracted natural resources and destoryed local industries. it made policies that would ensure that the colonies would channel raw materials out and manufacturers in. If the colonies did not comply they would intervene, and if necessary, wipe out the domestic industrial capacity. for ex, in india, the english came in and forbid the indians from producing textiles and forced them to buy the textiles made in england that were made out of indian cotton |
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| what were the three areas of action triggered by modernization? |
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| The three spheres of action triggered by modernization are social, psychological, and cultural. Parsons identified these areas in order to break development apart into different pieces to make it easier to understand. This also relates to the process of development involved in differentiation, integration, and value orientation. Modfernization involved greater differentiation of the way in which we work. culture helps people make sense of what is going on and offers shortcuts to know where things are going. culture holds society together when modernity threates to pull it apart. development helps people become psychologically ready for the quick change that come with modernization |
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