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Chapter 9 Notes AP Human Geography
Chapter 9 Notes AP Human Geography
c.
d.
e.
f.
g.
(4)
Hurricanes
People are concentrated on Java because the soil is rich from volcanic ash and the Dutch have their
colonial headquarters there.
Because of the distince vegetation, farmers harvest products that are used to make things like tin,
rubber, coconut oil, and rice.
This region has suffered from warfare.
(1)
France and the US fought to precent Communism on Vietnam
Thailand, Singapor, Malaysia and the Philippeans have been developing.
Economic growth has slowed
(1)
It was once achieved by cooperation between manufactures and government.
(2)
Lately, government officials invested unwisely and are corrupt.
d. Example in India:
To import into India, foreign countries have to get a license which is a longtask because they have to
go through many agencies
The government then restricts the number of imported goods
The government then puts taxes on the goods to double or triple the value
Indian buisnesses were discouraged from making products to export because Indian money could not
be converted
e. If companies could not make money selling inside of India, the government provided cheap
electricity or no debt.
2. Problems with the Self-Sufficiency Alternative
1. Protection of inefficient businesses.
a. Businesses could sell all they made to people however they want.
(1)
There is not incentive to improve the quality, lower production costs, reduce prices, or
increase production
(2)
There was also no competition.
2. Need for a large bureaucracy
a. The complex administration leads to corruption and abuse
(1)
Entrepanuerors wanted to advise people how to make a business instead of doing it
themselves.
(2)
People would smuggle in imported goods and sell them at high prices
B. Development Through International Trade
a. A country must be distinct and unique.
1. Rostows Development Model
a. W.W. Rostow proposed a 5-stage model in the 1950s
1. The traditional society.
a. Not started the process of development
b. High % of people in agriculture and in military and religion
2. The preconditions for takeoff.
a. An elite group initiates economic activities
b. Under the influence, the population invests in water supplies and transportation
3. The takeoff.
a. Rapid growth is started in litited economic activities (clothing, food)
4. The drive to maturity.
a. Modern technology diffuses to other industries
b. Workers become more skilled
5. The age of mass consumption.
a. The economy shifts from heavy goods like steel, to consumer goods like refrigerators
b. Each country would be in one of these stages
(1)
MDCs are in stage 4 or 5; LDCs are in stages 1-3
c. A country in international trade benefits from exposure
d. Based on 2 factors:
(1)
Why cant all countries be an MDC?
(2)
c. Atacked by protestors saying that they control large amounts of money behind closed doors.
2. Foreign Direct Investment
a. Foreign Direct Investment (FDI) Investments made by foreign countries to help the economy of
another country.
b. Grew rapidly during the 1990s from $130 billion to $1.5 trillion.
(1)
The level declined in the middle because of 9/11
c. Not flow equally
(1)
went from MDC to LDC, while went from MDC to another MDC
(2)
China got 1/3 from LDCs, all the other Asian countries got 1/3, 1/5 to Latin America, and
1/10 to African countries
d. Transnational Corporation Invests and interacts in countries other than the one that its headquarters
are in.
(1)
Of the 500 largest TNCs, 140 have headquarters in the US, and 163 in Europe.
D. Financing Development
a. LDCs get money from MDCs in 2 ways, loans and investments.
1. Loans
a. The 2 major leaders are the World Bank and the International Monetary Fund (IMF).
The World Bank:
a. Includes the International Bank for Reconstruction and Development (IBRD) and the
International Development Association (IDA).
(1)
The IBRD provides loans to reform public administrations and legal institutions, develop
finatial institutions, and implement transportation services.
(2)
The IDA supports countries that are too risky to qualify for IBRD loans.
i. The IBRD loans more money from private investors
The IMF:
a. Provides loans to countries that are experiencing balance-of-payment problems that affect trade
b. Designed to help stabilize and pay for imports.
c. Based on size of the countrys economy
b. Both banks were conceived at the 1944 United Nations Monetary and Financial Conference in
Bretton Woods, New Hampshire after WWII and to avoid having another Great Depression.
c. They build new infrastructures to make it more favorable for businesses.
d. The World Bank considers half of its projects to be failers
Projects dont function because of faulty engineering
Aid is stolen by the country
New infrastructure does not attract other investment
e. Many LDCs cannot pay back loans
2. Structural Adjustment Programs
a. Before granting debt relief, an LDC must make a Policy Framework Paper (PFP)
b. Structural Adjustment Program Includes economic goals, strategies, and external financial
requirements.
(1)
Requirements of the plan are:
(2)
E. Fair Trade
a. Fair Trade products are made and traded according to standards that protect workers in LDCs.
(1)
Standards are set by the Fairtrade Labelling Organisations International (FLO).
(2)
Transfair USA certifies the products sold in the US that are fair trade
b. In North America, fair trade products are normally household items such a jewelry, whereas fairtrade
items in Europe are food like coffee and honey.
c. Ten Thousand Villages is the largest fairtrade organization in North America.
1. Fair Trade Producer Standards
a. Fair Trade advocates work with small businesses that are unable to borrow money from banks.
b. These cooperations help them instead of just trying to make money.
c. Consumers pay more for items that are from fair trade.
(1)
Producers of fair trade items get more money back because they dont need a middleman.
2. Fair Trade Worker Standards
a. Fair trade returns an average of 1/3rd back to the producer in the LDC
b. Fair trade requires employees to pay workers fair wages
(1)
Atleast the countrys minimum wage
(2)
Workers are sometimes paid for their necessities such as food and education