What is Rostow’s Development Model? Bell Ringer 3/8/2017 To NOT lose your points, within 23 seconds after the bell you should: Be SITTING in your assigned seat Silent Have your pink bell ringer sheet OUT Be COMPLETING your bell ringer FOR EXTRA CREDIT Be prepared to comment What is Rostow’s Development Model? SL: Loux

SWBAT… Analyze how cost of living differs according to level of development

Our Plan…

Assign Study Guide & Vocab Tuesday Collect Projects Watch video Assign KI #4 R&Q Wednesday Finish Video Notes / Discuss KI #4 Assign Study Guide & Vocab Thursday Rostow’s Model Review Review Game Friday Ch 9 Test

Chapter 9 KI #4

The Problems with Plan 1: What is the Solution? PLAN 1: Self-Sufficiency Spread investment in all sector and all regions in country. Limit Imports and Exports (tariffs, quantity, license). Government subsides to help some areas. Examples? The Problems with Plan 1: 1. Inefficient Capitalism: Even the weak survive? 2. Bureaucracy: Waste of time & money. Black market?

What is the Solution? Is it working? PLAN 2: Development Through International Trade Sell what you have on the world markets! Take that $$$ and finance in other areas of development. The Problems with Plan 2: 1. Uneven Resource Distribution 2. Market Stagnation 3. Increase Dependence on MDC’s Examples? Four Asian Tigers (SK, S, T, HK) - What did they sell? Arabian Peninsula Is it working?

World Trade Organization To promote the international trade development model, countries representing 97 percent of world trade established the World Trade Organization (WTO) in 1995. The WTO works to reduce barriers to international trade in two principal ways. First, through the WTO, countries negotiate reduction or elimination of international trade restrictions on manufactured goods and restrictions on the international movement of money by banks, corporations, and wealthy individuals. Second, the WTO promotes international trade by enforcing agreements.

WTO Opponents The WTO has been sharply attacked by liberal and conservative critics. Liberal critics charge that the WTO is antidemocratic, because decisions made behind closed doors promote the interest of large corporations rather than the poor. Conservatives charge that the WTO compromises the power and sovereignty of individual countries because it can order changes in taxes and laws that it considers unfair trading practices. Protesters routinely gather in the streets outside high-level meetings of the WTO.

Foreign Direct Investment Investment made by a foreign company in the economy of another country. Majority sources of FDI are transnational corporations.

Foreign Investment Flows Fig. 9-21: Three-quarters of foreign investment flows from one MDC to another. Only one-quarter goes from an MDC to an LDC.

Fair Trade

WHY? Producer Standards Worker Standards FAIR?