Discussion
Points:
Chapter 16: Work in a Global Economy
There are three theories mentioned in the text that address Industrial Development but greatest
emphasis is placed on World Systems
Theory.
1.) Modernization Theory (post WW II) states that all societies advance from an agricultural to an industrial means of production through well-defined stages based upon their own internal characteristics. (In some ways, it is like Marx’s theory of societal evolution). The major problem with modernization theory is that it overlooks the impact of a global economy where no nation is an island. Nations in the world economy do interact and influence each other. (The richest nations generally have the greatest impact).
2.) Dependency Theory plays upon the unequal relationships between industrialized and less industrialized countries. Rich, powerful industrialized nations (core nations) import raw materials from poor, weak, unindustrialized countries (peripheral nations). In turn, the peripheral nations import finished, manufactured goods from the core nations. This keeps the peripheral nations from industrializing, themselves, and makes them dependent upon the core nations. A prime example is colonialism. In the short term, peripheral nations benefit, but the benefits are lost when foreign investment becomes very large, when raw materials are exported in great numbers, and when prices fluctuate greatly. The real down side of this relationship is that peripheral nations’ educational systems and professional service systems are not advanced as they basically become suppliers of raw materials to and consumers of finished goods from industrial nations. Also important, here is the notion that the industrialized nations act aggressively to keep the peripheral nations dependent upon them by not allowing them to evolve into developed nations—(conflict theory).
3.) World Systems Theory builds upon dependency theory. Besides the strong emphasis on the dependency between industrialized (core) and non-industrialized (peripheral) nations, it stresses that there is a functional interdependence between them. Under this perspective, the world economy is an integrated economic system-- (functionalism). Emphasis is placed on stability and equilibrium in the world system with the implication that inequality between nations exists as a part of this equilibrium. The interrelationship of the roles of developed and undeveloped nations is continually under scrutiny. Also important is the role of nations that serve as centers for production for simple goods and components that will later be combined or assembled in industrialized nations. The text calls these “developing” or semi-peripheral nations. World systems theory also stresses the movement of both capital and of people (migration) in the world, today.
Discuss the importance of the Dutch trading empire in the emergence of an integrated world economy in the 1600s—What is primitive accumulation? How is it a “necessary step in the development of capitalism?
How did subsistence agriculture come to be replaced by the production of a narrow range of agricultural products (specialization) during colonialism? Use examples (e.g. The North American South, and Jamaica and the West Indies). What were the ramifications of this for subsistence farmers?
What is “neo-imperialism” (1945s-1965) and how did it differ from older forms of imperialism ending with the second World War as exemplified by England?
Discuss the role of multinational corporations in the world economy. What are the primary concerns about these large and powerful organizations?
“Why did the U.S. decline as the leading industrial nation in the world, especially given all its advantages of market power and technological leadership?” Do you agree with the text’s answer to this question? (p. 422). Explain.
|
The April 24, 2000 issue of Business Week Online has an article summarizing the pros and cons of globalization for the United States. From your reading of Chapter 16 of Hodson and Sullivan, do you find support for these plusses and minuses with regard to the U.S.? Explain PLUSES -- Productivity
grows more quickly when countries produce goods and services in which they
have a comparative advantage. Living standards can go up faster. -- Global
competition and cheap imports keep a lid on prices, so inflation is less
likely to derail economic growth. -- An open economy
spurs innovation with fresh ideas from abroad. -- Export jobs
often pay more than other jobs. -- Unfettered
capital flows give the U.S. access to foreign investment and keep interest
rates low. MINUSES -- Millions of
Americans have lost jobs due to imports or production shifts abroad. Most
find new jobs--that pay less. -- Millions of
others fear losing their jobs, especially at those companies operating under
competitive pressure. -- Workers face
pay-cut demands from employers, which often threaten to export jobs. -- Service and
white-collar jobs are increasingly vulnerable to operations moving offshore. -- U.S. employees
can lose their comparative advantage when companies build advanced factories
in low-wage countries, making them as productive as those at home. SOURCE: Business
Week On-Line, (April 24, 2000) “The Pros and Cons of Globalization.” <http://www.businessweek.com/> |
What does the text mean when it says that less developed countries have experienced “combined and uneven development”? What role do multi-national corporations have in this phenomenon? What is the commodification of agriculture and how is it harmful to less developed nations?
What are trading blocks and what are they designed to do? Name some examples.
Compare and contrast work practices in the following: least developed nations; developing nations; state-regulated capitalism; Japan; Germany; Scandinavian countries; Eastern Europe and the Former Soviet Union.
Top of
Page
Main
Page