Ch. 1 Introduction, continued

Ch. 1 Introduction, continued • Economic Geography of the World Economy • Globalization • Globalization versus local diversity • Problems of World Development

GDP Per Capita GDP = Consumption + Investment + Government

GDP Growth by Region

Figure 1.7 The Global North and the Global South

Variations in Economic Structure Gross National Income - Source: World Bank (2012) World Development Indicators GNI (Gross National Income) = GDP + foreign income receipts (such as dividends and interest) – foreign income payments

Global Shares of Population and Gross National Income (2009)

Structure of Production (% of GDP) Hollowing of Industry Growing Inequality Decrease in Agriculture, Services Growth

The Clark-Fisher Model of Structural Change Services Share of Output Manufacturing Agriculture Time Is This Model Inevitable?

Distribution of Gross Domestic Product (%) GDP = Final Sales to Government, Consumers & Investment Why so high & why the decline? Global Increase in Trade Note: 2008 Exports includes services

Imports/Exports 2006 ($ billions) The U.S. Share of Services Trade is very high High Income have much stronger trade in services than Low and Middle Income

Structure of Merchandise Exports (%)

Structure of Merchandise Imports (%)

Origin and Destination of Merchandise Exports (%)

Globalization • “Essentially an expansion in the scope, scale, and velocity of international transacations” p. 12 • Culture and consumption • Telecommunications • Economic Dimensions – finance, TNC’s, FDI, regional specialization in production, tertiary sector, office activity, tourism

TNC Sales and Selected Country GDP

FDI in the U.S. – similar diagram could be drawn for any country

Another view of FDI

An Example of Global Trade –United’s Business First Amenity Kit China, USA, Thailand

Globalization vs. Local Diversity • The desire to preserve local diversity • But the inevitable outside pressures • Producing “glocalization”

Problems In World Development • Structural changes in low, medium & high income countries • Environmental Constraints • Disparities in wealth and well-being • Internal trends: growing income disparity in many nations • The cycle of poverty • The Core-Periphery Model – developed in chapter 14

The Cycle of Poverty in Third-World Countries

Ch. 1 Introduction, continued

Ch. 1 Introduction, continued

Presentation Transcript

Ch – 1 Introduction

Ch 1: Definitions (continued)

Ch.1 Introduction

Ch 1. Introduction

Ch. 1 Introduction

Ch. 17 Continued

Ch 1 - Introduction

Ch-1 Introduction

CH.1 Introduction 1-1 Introduction

Ch. 1 - Introduction

Introduction, Continued

CH 1 Introduction

Ch 7 Continued

Ch. 16 Continued

Ch.1. Introduction

Ch-1 Introduction

CH. 25.1 continued

CH 1 INTRODUCTION

Ch. 4 continued

ch.1 Introduction