Hamza Kashgari On your birthday I will say

Hamza Kashgari "On your birthday, I will say that I have loved the rebel in you, that you've always been a source of inspiration to me, and that I do not like the halos of divinity around you. I shall not pray for you, " Hamza Kashgari wrote in one tweet. "On your birthday, I find you wherever I turn. I will say that I have loved aspects of you, hated others, and could not understand many more, " he wrote in a second. "On your birthday, I shall not bow to you. I shall not kiss your hand. Rather, I shall shake it as equals do, and smile at you as you smile at me. I shall speak to you as a friend, no more, " he concluded in a third.

Chapter 9 DEVELOPMENT

“Commanding Heights” Lenin…Government needed to control key economic sectors (the Commanding Heights) electricity generation, heavy manufacturing, mining, and transportation

Agglomeration Clumping together of industries for mutual advantage Asian Tigers/Dragons- Taiwan, S. Korea, Hong Kong, Singapore (NIC) Backwash effect- Braindrain due to agglomeration Big Mac Index- Tool for calculating purchasing power parity that compares Big Mac prices Purchasing Power Parity (PPP)- measurement tool calculating exchange rates so that each currency buys an equal amount of goods

Classical Liberalism- emphasis is placed on securing the freedom of the individual by limiting the power of the state. In its economic form, it advocates a respect for private property and free markets. Comparative advantage- ability of a country to produce a good or offer a service better than another Conglomerate Corporations Massive Corp. operating a collection of smaller companies that provide specific services Deglomeration Unclumping industries due to negative effects

Development- Process of improving the material condition of people through the growth and diffusion of tech and knowledge Development Gap Difference between MDC and LDC/Developing countries Dependency theory Argues that political and econ relations among countries limit development of LDCs (Structuralist) ○ Vicious cycle of domination (Africa) ○ Interdependence not independence

Economy System of production, consumption, and distribution Export processing zones Also called Free trade zones Region in LDC that offers tax breaks/less restrictions to attract export driven business Free trade Allowing outsourcing without regulation Except that of the market Fair Trade Policies that favor regulation of business to ensure workers throughout the world are guaranteed a living wage

Foreign Direct Investment by a multinational corp. in a foreign economy Footloose Industries Industry not bound by location Friedrich Hayek Believer in Classical Liberalism Ford Production method Globalization Spread of activities from a home country to other parts of the world

Gender Empowerment index/measure (GEM) Compares the ability of men and women to participate in economic and political decision making Gender related development index (GDI) Compares the level of development of women with that of both sexes Human Development Index (HDI) Created by the United Nations to recognize a country’s level of development as function of three factors: economic, social, and demographic factors

Gross Domestic Product (GDP) Value of the total number of goods and services produced in a country in a given period of time (normally one year). Also known as GNI (Gross National Income). May be “GDP per capita” Meaning person (GDP/ Population)

Public debt per capita

High tech corridor (technopole) Tech agglomerate Industrialization Growth of manufacturing activity in an economy or region ○ Usually occurs alongside a decrease in primary economic activities in a country Primary economic activities Activities that revolve around getting raw materials from the earth Inflation rise in the general level of prices of goods and services in an economy over a period of time. Each unit of currency is worth less…leads to erosion

Informal sector Network of business transactions not reported… not included in GDP International trade approach Method to improve a country’s development by emphasizing its unique strengths International Monetary Fund (IMF) Designed to stabilize exchange rates and improve payments World Bank Official goal to reduce poverty

Liberal development theories Emphasize government regulation in business Literacy rate Locational interdependence Industries choose location based on competition Spatially fixed vs. Spatially variable costs Weight gaining/losing processes Process that takes raw materials and creates a heavier/lighter products Market orientation Locating weight-gaining industries near the market for the heavier products Vs. Material orientation

Modernization model W. W. Rostow (1950′s) stages of development ○ 1. “The traditional society, ” ○ 2. “The preconditions for takeoff, ” ○ 3. “The takeoff, ” ○ 4. “The drive to maturity, ” ○ 5. “The age of mass consumption. ”

Least cost theory Industries will locate based on the cheapest place to be Alfred Weber ○ 4 factors: transportation, labor, agglomeration, deglomeration Less Developed Countries On the poorer side of the dev. Spectrum LDCs or Developing nations More Developed Countries Multiplier effect increase in some economic activity starts a chain reaction that generates more activity than the original increase North-South Gap More MDCs in N. Hemisphere vs. more LDCs in S. Hemisphere

Reparations A compensation for something that has occurred Primary Sector Acquisition of raw materials Secondary Sector Processing raw materials into a finished product Tertiary Sector Moving, Selling, Trading products from Primary and Secondary Sectors Quaternary Sector business services, such as trade, insurance, banking, advertising, and wholesaling Quinary sector- Highest level of decision making Ex. Legislation or presidential cabinet

Outsourcing MNC relocating parts or all factories to other countries Pacific Rim Economic region Four Asian tigers plus China and Japan Self-Sufficiency approach Build a country’s independence Productivity Value of a particular product compared to the amount of labor needed to make it. Privatization Selling of publicly operated industries to companies

Special economic zones (see Export processing zones) Structural Adjustment program Stipulations on a loan a country receives in order to get/ use the loan Structuralist theories Cycle of dominance Substitution principle Industries will move to lower labor costs while raising transportation costs Sustainable development Balance between human development and the environment to support it

Technopole Multinational Corporation (MNC) Operating in more than one country AKA International Corporation Has a “Home” and “Hosts” Transnational Corporations (TNC) ○ Multiple “Homes” Value Added Gross value of the product minus the cost of raw materials and energy.