Warm up You have 15 minutes to finish your business that you created with a partner last class!

FRQ You have 20 minutes to do this free response question. You may use your notes, and you may ask me questions. When you finish, get on your computer. I put a webquest in the economic geography section under lesson 4.

Warm Up! 1.What is capitalism? 2.What is communism? 3.What is the primary sector of production? 4.Secondary? 5.Tertiary? 6.What is the core periphery model?

Rostow’s Stages of Development

First Stage—Traditional Economy Economy based on primary activities Per capita income very low No new technology Low production Largely subsistence based economy Ex.--Afghanistan

Second Stage—Preconditions for Takeoff Commercialization of agriculture—turning agriculture into a business Exploiting raw materials for larger profits Investment in infrastructure begins (roads, electrification) Ex.--Colombia

Third Stage—Take Off Lots of foreign investment comes in (money from companies from other countries) Country gets outsourced jobs Country begins industrialization Country still largely agricultural, but becomes more urbanized Ex.--Mexico

Fourth Stage—Drive to Maturity Technology diffuses throughout the country Way fewer people in traditional economy, increase in manufacturing Increased in skilled labor, better jobs Increase in education Ex--Chile

Fifth Stage—Mass Consumption Finally, high per capita income Leads to mass consumption-people buying lots of goods Service based economies Education and skill levels very high Ex.--USA

Rostow vs. Wallerstein Rostow—Countries move through these stages as they develop (capitalism good) Foreign Direct Investment (FDI) is good to allow countries to industrialize Wallerstein—Core countries exploit periphery countries, periphery countries are not improving (communism good)

Review—Which level, AND why? Mexico (think of maquiladoras) United States Yemen—Very poor country, almost no development Costa Rica—Large coffee and banana plantations Chile—One of the richest countries in South America, almost no traditional economies Qatar—Highest GDP per capita in the world India—Think of call centers Afghanistan—Most of population involved in nomadic herding and subsistence agriculture Kenya—Exports wheat, coffee, and oil Malaysia—Mechanized agriculture and increasing service economy

Asian Tigers You get to read about Asian tigers for homework!