Reviewer in Contemporary World Global Income Inequality

Inequality - phenomenon of unequal distributions

Globalization - a term use to described how trade
of resources.
and technology have made the world into a more
 Cricism
connected and independent place.
 Lack of Education
Homogeneity - it has same classification
 Gender
Heterogeneity - it has different classification
2 types of Economic Inequality
Global Economy - the interconnected worldwide
Wealth Inequality - the value of an individual or
economic activities that take place between
group's money and/or material assets that have
multiple countries.
built up over time.
Economic Globalization - refers to the increasing
Income Inequality - refers to how unevenly
interdependence of world economies
income is distributed throughout a population. The
- development in terms of financial investment
less equal the distribution, the greater the income
materials and global track.
inequality.
Global Trade - exchanging of goods or services
Poverty - economic growth is the main channel
between countries.
through which globalization can effect poverty.
Types of economies
Micro Credit - is a common form of microfinance
Protectionism - refers to government policies that
that involves an extremely small loan given to an
restrict international trade to help domestic
individual to help them become self employed or
industries.
grow a small business.
Trade Liberalism - is the removal or reduction of
Economic Big-bang - the explosion of industry
restrictions or barriers on the free exchange of
and modern technology caused economic gap
goods between nations.
among countries.
Ways make trade easier
- access to technology also contributed to
Fair Trade- an arrangement designed to help
worldwide income inequality
producers in developing countries achieve
Theories of Global Stratification
sustainable and equitable trade relationships
 High Income Nation
Trade Bloc- are associations and agreements
 Middle Income Nation
between different governments around the world
 Lower Income Nation
with the purpose of managing and promoting trade
Modernization Theory - theory frames global
between countries.
stratification as a function of technological and
Outsourcing- manufacturing jobs transfer from
cultural differences between nations.
developed nations to developing nation to reduce
Colombian Exchange - refers to the spread of
or eliminate trade barriers.
goods technology, education, and diseases
Economic Globalization and Sustainable
between America and Europe.
Development
Industrial Revolution - this is when a new
Environmental Degradation - economic
technologies like stream power and mechanization
development was hastened by the industrial
allowed countries to replace human labor.
revolution.
Walt Rostou’s - was an American economist,
Efficiency- means finding the quickest possible
professor, and political official. He created
way of producing large amount of a particular
Rostow's Model of Development explaining how
product.
countries can become modern and industrial
Environmental issues - should be given priority
economies through a series of stages.
over economic issue.
4 Stages of Modernization
Ecological Modernization theory - sees
Traditional Stage - limited technology, static
globalization as a process that can both protect
society and dominated by subsistence farming.
and enhance the environment.
Take off Stage - short period intense growth in
Carbon Tax - is levied on the carbon content of
which industrialization begins to occur, and workers
fossil fuels. The term can also refer to taxing other
and institutions become concentrated group a view
types of greenhouse gas emissions, such as
industry.
methane. Drive to Technology Maturity Stage - stage take
Carbon Neutrality - is the balance between place over a long period of intensive growth. As a
emitting carbon and absorbing carbon emissions standard of living rise use of technology increases
from carbon sinks. and the national economy grows and diversities.
Food Security - is the ability to obtain consistent High Mass Consumption Stage - consumer
access to the food needed for a healthy life, oriented durable goods flourish service and
acquired by culturally accepted methods. Food between dominant. It is when your country is big
security and food access are concepts that deeply enough that production becomes more about wants
affect the standard of living for countries, than needs.
households, and individuals.
Immanuel Wallerstein - american sociological
and economic historian
-best known for his world system approach
- modern world system is a capitalist world
economy with capitalism defined as “ the endless
assimilation of capital.
Geographical Division - divisional structure allows
companies to organize geographically instead of
centralizing. This provides each division with the
autonomy regarding logistics to achieve maximum
efficiency. Each division may make their own
decisions based on local preferences, markets and
requirements
Core - mostly wealthy coountries
Periphery - controlled economically but controlled
physically ex. Philippines
Semi-periphery - they can export product to the
core and they receive product to the periphery.
Ex. Brazil, china, argentina, s. korea, and indonesia
External Area - grow independent country
ex. North korea
Defendency Theory and the Latin American
Experience
1. Center of the center
2. Peripheral of the center
3. Center of the periphery
4. Perifiry of the perifiry
1. International Division Labor
- agricultural - technology
- skills - natural resources
2. Class Distinction
- upper class - middle class
- lower class
3. Global Capitalism - maintaining the power or
wealth to the upper class
Raul Prebisch - He has published widely on
issues related to trade policy and economic reform
in developing and transitional economies
The Third World and Global
Cold War - is a state of conflict between nations
does not involve direct military action.
First World - is a term that consists of countries
that stable democracies, high standards of
capitalist economies and economic stability.
Second War - was anchored on the industrialized
communist realm of the soviet union and ts often
included poor community states located elsewhere.
Third World - was defined as the non-aligned
world and as the global realm of poverty and
under-developed.
Global North - refers to developed together of
europe and north america, which are characterized
by established wealth, technological advancement
political stability.
Global South - refers to the developing countries
which represents mainly agrarian economies africa,
latin america and others that are not as
economically sound and politically stable.
The Global City - engines and places where
globalization take place ex. New york,
london,tokyo.
Key function of the global city indicators for
globality
1. Economic power-washington
2. Centers of the authority
3. Centers of political influence
4. Center for higher learning and culture boton
Global Stratification - refers to the distribution of
wealth power resources and influence among
worlds population.
Market Integration - refers to the process of
creating a unified market place where goals
services and capital can flow freely between
countries or regions.
- take forms including the reduction of trade
barriers, such as tariffs the adoption of common
currency and the development of infrastracture to
facilitate transportation and communication.
- it benefits is to allow firms access a large part of
consumer and suppliers which can increase the
profit and lead to higher levels of economic growth
The Bretton Woods System
- was an international monetary framework
established in 1944. it aimed to promote economic
stability and prevent competitive devaluations
5 key elements of bretton woods system
1. Fixed 4. Rates
2. Change 5. United States
3. Exchange
World Trade Organizations - is an international
organizations that deals with the global rules of
trade between nations.
- established on January 1, 1995 and it replaced
the general agreement on tariffs and trade (GATT)
which had been place since 1947.
International Monetary Fund (IMF) - established
on July 1944
-the IMF and the world bank complement each
other. Its goal was to help countries that were in
trouble at the time. They are for reconstruction and
development of the country.
- 44 countries from start, 190 countries now
- Dec. 25 1945 philippines joined IMF
World Bank
- founded after WWII, it was established mainly for
peace advocacy after the war.
- it has more long term approach than the IMF. Its
main goals were to eradicate poverty and fund
specific projects especially in poor countries.
Organizations for Economic Cooperation and
Development (OECD)
- the most encompassing club of the richest
countries with 35 member states as of 2016, and
as of 2023 it ha 39 members Dominican Rep. And
Costa Rica.
- highly influential despite the group having little
formal power this imitates from the member
countries resources and economic power.
- its purpose is to work together to find solutions to
common challenges develop global standards,
share experience, and identify best practice to
promote policies for better lives.
The Organizations of Petroleum Exporting
Countries (OPEC) - build on sept. 1960, it is highly
influential due to member countries resources and
economic power international cartel , baghdad iraq
created conference sept. 10th -14, 1960.
The European Union (EU)
- consisting of 28 members states adopted the euro
as its basic currency
- but some western european nation did not.
The North American Free Trade Agreement
(NAFTA)
- created on January 1, 1994 between Canada,
U.S, and Mexico.but 1989 it was only canada and
U.S.
- helps in developing and expanding world trade
and to aims to increase cooperation for improving
working conditions by producing barriers to trade
as it expands the market of the 3 market.
- it has caused manufacturing jobs from develop
country to less develop nations in order to reduce
the cost of product.
History of Global Market Integration - before the
rise of modern economy people only produced their
family nowadays, economy demands the different
sectors to work together in order to produce,
distribute and exchange product and services.
The Agricultural Revolution and the Industrial
Revolution - when people learned how to
domesticated plants and animals they realized that
is was much more productive than hunter gatherer
societies this became the new agricultural
economy.