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59 Cards in this Set
- Front
- Back
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After WW2 why did the US become interested in 3rd world countries? |
-to combat communism -became interested in resources, political and strategic reasons |
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Africana Studies was created for what reason? |
To train Americans for the US Consolate for diplomatic missions |
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15% of Africa's land mass is |
Tropical forest |
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Africa is said to |
-be the cradle of humanity -be the oldest continent -have a proud past |
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What is the most common language in Africa? |
Swahili |
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Africa takes up how much of the world's land mass? |
22% |
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Main rivers in Africa |
-Nile -Congo -Zambezi -Niger |
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Deserts take up how much of Africa |
25% |
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What are the three deserts |
-Namib -Kalahari -Sahara |
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Rainforest takes up |
15% |
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What takes up over 50% of Africa's land mass |
-Savannah (treeless grassland) -Sahel (semi desert) |
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Main occupations |
Nomads & Farmers |
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Minerals in Africa |
-Gold -Diamond -Oil -Ivory -Silver -Copper |
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Africa is the ____ largest continent |
2nd |
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Africa is the ____ most populated |
2nd |
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How many independent countries are in Africa |
54 |
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Two reasons why Africa can't reach economic success |
-Internal -Corruption, Ethic conflict, Low capital, Climate -External -Slavery, Exploitation |
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Most populated |
Nigeria |
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3 Climatic Zones |
-Wet -Dry -Wet & Dry |
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Diseases in Africa |
Malaria, Ebola, AIDS, Tuberculosis, Dysentery, Cholera |
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Development |
A sustainable increase in living standards that encompass material consumption, education, health, and environmental protection |
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Ghana received political independence in |
1957 |
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Economic development started in |
1939 with Colin Clarks' 3rd World Study |
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Joseph Schumpeter said the key motivators of economic development were |
-credit, capital, money market, and leaders |
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Central element of his theory was |
The entrepreneur because they own tools of production and they used these tools to provide jobs and product |
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4 parts of Schumpeter's definition of economic development |
-Changes are not forced from outside and happen from initiative within -Every concrete process rests upon preceding development -Mere growth of the economy is not development -Leaders are the key motivators of economic development |
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Why Ahmad Abu Baker agree and disagree? |
Felt that development should bring structural change like elevating poverty |
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Theories are |
Generalizations that try to explain why something occurs |
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Why do theories and models exist? |
-to show how the economy develops over time -to identify barriers of growth -to create solutions for the barriers -to create policies |
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Absolute advantage |
-free trade is advantageous in trade -country has advantage in one commodity |
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Comparative advantage |
-Country has advantage over all |
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Wealth of Nations |
If a country makes something for cheaper than we make ourselves, let's use their resources and then use our scarce resources to produce a separate commodity that provides us an advantage |
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Opportunity Cost |
Cost we pay when we give up something to get something else |
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5 stages of Rostow's Model |
-Traditional -Transitional -Take Off -Drive to Maturity -High Mass Consumption |
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Traditional Society |
-Farmers produce for families -Exchange any surplus -Agriculture is most important industry -Production: Labor intensive |
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Transitional |
-Starts to specialize in one thing for trade -Entrepreneurs emerge -Income comes from saving money, then investing |
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Take Off |
-increase in industrialization -switch from agriculture to manufacturing -growth of self sustaining industries -manufacturing begins to contribute to government -more saving, further investment |
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Drive to Maturity |
-Diversification of economy -technological innovations -less reliance on imports |
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High Mass Consumption |
Service industry CRITICAL Service sector dominant |
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Harold Domar Model |
-Savings funds investments -used to explain business circle, then used to analyze economic growth -depends on amount of labor -Economy's rate of of growth depends on -level of savings -capital (equipment)- output (product ) ratio |
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Lewis Dual Sector Model |
1954 -based on assumption that LDC have dual economy -Agriculture: less productivity, less income, more labor -Industrial: technologically advanced -industrial sector will attract workers from agricultural -increase in savings and investments -Money will trickle down |
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Dependency theory |
-LDC rely on advanced countries -technological and industrial advantage of MDC -powerful advanced nations would dominant because of the capitalist system (money, government) -World Bank beneficial to MDC -creating a level playing field -becomes impossible b/c LDC have no technological or capitalistic advantage |
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Solutions for dependency theory |
-reform the world capitalist system -redistribution of assets -Eliminate debts from World Bank from LDC by introducing Tobin tax |
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Tobin tax |
Taxes from international trade |
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Criticisms of dependency theory |
-doesn't hold MDC accountable for colonial impacts -doesn't hold LDC accountable for own economic hardships |
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Entrepreneurship |
Process of creating new combinations of factors to produce economic growth |
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Entrepreneurship postulated in the |
1700s |
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Creative Destruction |
-economic growth occurs only when the existing equilibrium of production is destroyed |
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1) Most profitable in the world |
-Net income from US investment was $1.092 million -hate rates of return, high profitability -Average annual return was 28% compared to 8.5% worldwide |
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2) Population can't be ignored |
-imported $99 billion worth of goods -Sub Saharan imported $63.3 billion -major imports: capital goods, intermediate consumption goods, transport goods -countries in SS Africa represent total import market of $81 billion -1990-per capita income was more than 6 times the Chinese -imports and exports exceed that of China |
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3) African countries are working on political and economic reforms |
-Create business friendly markets -more than 30 African countries undertook the IMF and World Bank economic stabilization and structural adjustment programs -growing recognition that Africa has enormous potential |
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4) Africa is the ultimate emerging market |
-extensive labor supply, natural resource base, unique geographic location -5 reasons Africa is the ultimate choice for investors |
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5 reasons |
-Africa trades more with US |
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5) Major companies |
-Already there -Coca-Cola, Exxon, Texaco, Chevron, IBM |
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6) US Government has increased support for American firms in African business |
-established imitative and created resources to encourage US business in Africa -trade and investment bill to establish expanded trade and investment ties |
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7) American governmental and non-governmental orgs are more supportive |
-private sector seeking to increase foreign business -Constituency for Africa, Africa American Chamber of Commerce, Rev. Sullivan's biannual African- African American Summit -African Development Bank financed projects create opportunities for US business to increase in Africa |
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8) International orgs provide rules and safeguards |
-reduction of global tariffs -removal of trade inhibiting rules -reduction of agricultural subsides -new protections for intellectual property -Phasing out quotas on textiles and clothing -established of World Trade Org to oversee provisions of agreement and resolve trade disputes -Multilateral Investment Guarantee Agency: promote flow of private foreign investment to developing countries |
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9) End European domination and monopoly of African market |
-Entrepreneur's interest to increase competitive advantage |
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10) African business will be beneficial to Americans and Africans |
-Africa needs trade and investment -increased business will bring economic growth |
