Agribusiness

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Agribusiness

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– the new international division of labor that encompasses the integrated corporate system that involves all aspects of agriculture from the production of foods, to the processing and distribution.

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Beef Boom

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1960s -70s a heightened demand for beef from fast-food franchises looked at central America for low-quality, cheap costing beef.

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CAP

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Common Agricultural Policy – EU agriculture subsidy policy; stabilize agriculture in of the EU as a whole. Stabilize the agricultural market, fair standard of living for the farmers. Setting minimum prices for agriculture and promoting subsidizing agriculture.

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Capital Deepening

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keep your product in cycles of innovation to keep reselling the same but improved profit to your costumers.

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Capital Widening

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– Steve Hymer – getting your product to as many consumer as possible to reach the optimal sales in distribution

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CEPAListal

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One of the “third world” responses to the development doctrines of IMF and WB. These are economists who argue that unequal exchange and poor terms of trade are the main reasons poor countries remain poor. They focus on import substitution and national economic independence as a way of developing poor countries.

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CODEX

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With the WTO on international agricultural trade, CODEX sets the standards of grading for meat. Less strict than European meat standards.

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Collectivization of Agriculture

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This is where the Gov’t takes peasants to a common plot of land to cultivate the nation’s agricultural sector. It is commonly found within Communist countries

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Common Code for the coffee Community (4C)

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what it is, why it is opposed by Indian Coffee Growers. – Industries’ shared code that is a set of attempts of environmental protection in the growth of coffee. Smaller growers in India. India does not produce coffee with the green revolution tactic, this would force them to use technology that is not compatible with their smaller scale growing, increase the scale of production and increase deforestation to comply with green revolution. By doing all this they would collect so much debt by complying with the green revolution. The CCCC is imposing the green revolution on India.

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Common Market

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A form of economic international trade where all tariffs and trade barriers are eliminated, and the creation of common trade agreements are established to lubricate and prompt trade.

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Crossover system of trade

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This is when N. America and Western Europe (Britain) extracted raw materials from LCDs and then exported manufactured goods to those LCDs

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Customs union

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a group of states that eliminate some trade barriers among those states, and protects that union of states by placing trade barriers for those who non-state members

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Dependistas

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Thinkers who focus on unequal social relations and class relations—they argue that poor countries often have exploitative social relations, which guarantee that only the rich classes get the benefits of trade. They likewise criticize rich countries and IMF WB for reinforcing those relations by doing business with poor, dependent countries that fall in this category.
Lock-in of dependency relations (relates to CEPAListas as well).

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Diffusion of Semiconductor production in East Asia—three stages

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1) 1960s-70s – US firms were looking for cheap areas to produce micro conductors
2) 1980’s-85- US firms upgrade, these east Asian countries now have a new role of R&D – semiconductors are a rapidly changing industry. Now these countries9—0i have a more of an inventive and important role
3) 1985-90s – these East Asian semiconductor firms get ahead and now are the worlds leading R+D sectors of this industry

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Economic Union

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involves integrated economic policies, common currency, elimination of all trade barriers among the those who are within the union, and a set of trade regulations put in place against the non-state members.

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EPZs

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– Export Processing Zones – zones where gov’t designate foreign companies manufacturers – drawing them in with low tariffs, exemption of exchange rate, and exporting the manufactured goods at a cheaper rate. this essential stimulates economic growth and international rapport

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EU-be able to trace the 5 stages of economic integration

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1) Free trade association
2) Customs Union
3) Common Market
4) Economic Union
5) Supranational Political Union – political structure that takes over a lot of ket functions that nation-state have

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Fairchild Semiconductors

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Created the normalcy of the innovative process of fracturing engineers creating their own company in Silicon Valley to improve the innovation of technology of sharing. (Xerox, Intel, Home Brew Computer Club)

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FDIC

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Federal Deposit Insurance Corp. – 1933 created by the Glass Steagal act prohibited banks to invest in risky investments thus protecting deposits of the members. Rebuilt the confidence within banking and what the banks do with their money.

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Fiduciary money

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Gov’t instated currency that makes it the only form of currency to pay all debt under that government.

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Free Trade Association

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allow states to join together to eliminate some trade regulation but gives the liberties to those states involved to set their own tariff rates, quotas, and regulations

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Fredrick Terman

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MIT alum who interned at Fed Telephone Company who established the R+D area of Silicon Valley. From Stanford, he opt the creation of Stanford Industrial Park and sponsored HP’s creation to spark Silicon Valley

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Freeze-drying & Vacuum packing

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With food brand advertising such as coffee, this innovation of 1920 allowed coffee companies to put their product on the selves to preserve the coffee grounds, as well as put a label on it.

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FTC

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Federal Telegraph Co. creates the incentive to create these R+D sectors, it allowed Silicon Valley to rise.

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GATS

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General Agreement of Trades of Services – establishes the trading of services amongst many countries. This initially creates services as a commodity to the WTO. (tourism)

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GATT

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General Agreement on Tariffs and Trade – WTO regulations that require a state to lower their tariffs in reciprocity if another lowers tariff to them, not to discriminate on who you trade with, and finally to not discriminate against foreign investment, treat them as if they were a national firm.

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Genetic engineering and intellectual property law

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1982 Monsanto received property law of living crop seeds as research for genetic engineering which gave that corporation intellectually property rights, giving them a monopoly on those seeds. Securing their competitive advantage in agri-business.

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Glass-Steagal Act

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1933 – created to prevent another depression by separating investment banking from ordinary commercial banking. Prohibits risky investments on loans or mortgages and forbids banks to buy bids on the stock market. This stabilizes the banks.

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Global Sourcing

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the multiple sourcing of materials from many countries to contribute in the assembly of a product in a different location

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Gramm-Leach-Bliley Act

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1999) – this appealed the Glass-Steagal act allowing the banks to invest freely. This was the foreman of the creation of INVESTMENT BANKS that made high-risk investments

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Green Revolution- 5 key points

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1) production should be favored more and production should always be increased
2) Economies of scale should always be favored
3) Agriculture should be mechanized
4) Modern technologies should be favored
5) Cash Crops should always be favored as means of generating surpluses

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ITO

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International Trade Organization – Bretton Woods creation that regulated international trade before the WTO took its place. It spawned the IMF and world bank.

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JECC

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Japan Electronic Computer Company – governmental company that secures loans that allow corporations to rent out computers. This is an example of Japanese government subsidizing electronics in development for economic growth and technological innovation.

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Land Reform

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1) Political Stability – reforming land to make it more equitable
2) Creating a capitalist class – create a more dynamic and more open upper class that can maximize returns
3) Populous – small farm are more better (efficient) than larger farms
4) Radical – peasants are more vulnerable to starving

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Latifundia

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Land Holding – Found in Latin America where large farms or estates that are owned by the imperial countries. People invest in foreign land in agriculture and peasants manage that land.

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Lomé Convention

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the EU extended their limited trade with its former colonies, APC countries (African, Persian, Caribbean). US contested this agreement to the WTO saying that it created an uneven advantage over trade.

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Lost Decade (Latin America)

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This was the Latin American financial crisis in the 1980s where Mexico relied on its income primarily on the exportation of petroleum to the US during the 70s. Once the petroleum shortage to US stopped, Mexico’s source of income stopped. Mexico went through major inflation due to the fact that they could not sell the over production Mexico had to inflate the Peso up to 500%. Finally the president decided to nationalize most industries, which dug themselves deeper into economic recession.

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Millennium development goals

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1) Eradicate extreme poverty and hunger
2) Achieve universal primary education
3) Promote gender equality and empower women
4) Reduce child mortality
5) Improve maternal health
6) Combat HIV/AIDS, Malaria, and other diseases
7) Ensure environmental sustainability
8) Develop a global partnership for development

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MITI

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Ministry of International Trade and Industry – shows the different ways of collecting capital: governmental establishment that was geared toward collective initiatives of Japanese corporation international trade.

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Moral Hazard

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Banks give loans out but those who are receiving the loans think of it as there is nothing to lose with these investments. If you succeed, its good, but if it fails, declare bankruptcy and the bank loses all the money.

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NAFTA

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North Atlantic Free Trade Association(1993) – Supernatural trade agreement.
US – Labor that comes out of NAFTA
Canada – Natural resources
Mexico – labor, human rights, environmental issues, FDI

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Narmada Valley

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WB Indian dam project of development without environmental assessments. 200 thousand displaced, $170 USD funded then lost, project was not environmentally or politically sustainable. WB pulls out and leaves it as is.

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Non-aligned Movement

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Founded in 1944 international organization that nations involved do not align themselves with the major power bloc in protest of imperialism, colonialism, etc…

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Planned obsolescence

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The expected life span of a product built into the product. The producer knows of this and takes it into advantage for the consumer to buy more or updated version of product.

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Polonoreste

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WB project in Brazil where they built a highway for a push for development of locations around brazil. The plan was governmentally backed but once the highway was completed, there was much deforestation and on top of it all, there were no finished locations that the highway led to

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Primate cities

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This is a city within a nation that carries the country economically and politically. It has the highest population and the most economic activity and the most political influence within its nation.

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Regulatory state

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a state that has enough influence amongst the global community to regulate and enforce regulations set out by NGOs

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Rostow’s 5 stages of development

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1) Traditional societies are at a zero degree stage in terms of economic development
2) Ideas spread that allow for the take-off from tradition to modernity
3) “Old-blocs” of resistance are overcome a biological idea of development
4) “Drive to maturity” – 40 years or so following initial take-off
5) High consumption – Fordism

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Schockley Transistor Company

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William Shockley hired by Terman in Stanford that created this engineering company that was one of the first in Palo Alto. From this, his dicipals all bolted from this company to form their own R+D companies in Palo Alto – Fairchild – thus creating this pattern of leaving a company to start your own.

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SEMANTEC

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semiconductor developer that is financed with public and private money. It created opportunities to partnership with European firms.

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Semiconductors: three-state diffusion in Asia.

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1) 1960s 1970s: US firms seek low-cost production venues.
2) 1980-1985: US forms are upgraded; emerge with wider responsibilities in testing and evaluation.
3) 1985-early 1990s: Local firms gain much greater responsibility and autonomy in sourcing key components.

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Seven limits to industrialization in the periphery

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1) Profit Cycles
2) Protectionism
3) Access to Technology
4) Debt and Creditworthiness
5) Research and Development Capacity
6) Polarization and Instability
7) Weight of Population Growth

Front 53

Sharecropping

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farmers or workers pay their land rent in the product they are cultivating. They get paid through the crops they grow. It is a good idea to keep the pay low to keep desperation up.

Front 54

Supranational Political union

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Political structure that takes over a lot of key functions, (economic, political) which the nation-states have. E.g. EU

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Technology transfers

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technology that is transferred from the core economy to the periphery economy. The trade consists of low-level workers technology and isn’t high end. All technology that is transferred tends to be copyrighted.

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Terms of trade

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with export driven economies, the ratio of prices of which goods are exchanged, what you are able to obtain with the goods you have to trade. Helps push for industrialization – the better products, the better you receive.

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Three myths of industrialization

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1) Agriculture is viewed as having more limited stimulus effects on other economic activity
2) Farmers have a reputation for conservatism – but they do respond to the commercial incentives
3) Industry is seen as the only productive sector, not agriculture.

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Three “tests” of industrialization

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1) At least 25% of GDP is in industry
2) At least 60% of industrial output is in manufacturing
3) At least 10% of total population is employed in industry

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Three private/public partnerships at Stanford

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Stanford Research Unit—defense industry.
Honors Cooperative program-engineers in the classroom.
Stanford Industrial Park.

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Trade deficits

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When a country import more than they export.

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Transfer pricing (GlaxoSmithKilne’s $3.1 billion settlement with IRS)

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referring to the prices from the transfers within their own companies. In some cases, they manipulate the prices sold within their own firm for a cheaper price. These are invisible prices.

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Treaty of Rome

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1957 established the free trade in coal and steel for war efforts. Essentially this opens up in time to welcome more European countries, thus the forming of the EU

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TRIMs

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Trade Related Aspects of Investment Measures – WTO set of regulations that forces countries to open boundaries to all FDI and not discriminate on where they invest

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TRIPs

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Trade Related Aspects of Intellectual Property Rights – WTO set of regulations on enforcing countries to prevent stealing or pirating of intellectual property

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Truman’s 4 points

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1) US will back the creation of the UN
2) Marshall Plan money will be used to rebuild Europe after WWII
3) NATO will organize militarily to meet the Soviet Union
4) Technical assistance marked for Latin America

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Unequal exchange and unequal terms of trade

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Biases in choice of country to trade with within the international market, which results in some countries gaining more and others less. In addition, unequal terms of trade refers to the amount of labor the periphery countries puts forth in a product may be unequal to the value that they are traded with between core countries.

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Very Large Scale Integration (VLSI) project

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reorganize the semiconductor industry through administrative efforts, and to maximize economies of scale. Reduce the firms in Japanese developmental state producing semi-conductors to concentrate all efforts to improve production of semiconductors.

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WTO – World Trade Organization

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organization that spawned out of WWII that regulates international trade amongst the world. A loose set of democratic, supranational court where every member country has a vote on the agreements of trade, and WTO has the power, through voting, of sanctioning countries that do no abide to any of the agreements.

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Washington Consensus on Development

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a set of guidelines of what it is a LDC needs to do to develop within globalization
1) Lowering of tariffs
2) Floating your currency – it should be traded
3) Companies to operate outside the mechanism of state
a. It should be denationalized
b. Private sector increased
Ex. Jamaica – with what they need to do to become more integrated within the globalized world, this backfired