1. Global Economics Enormous gaps between the rich and poor countries of the world- 25,000 die of hunger each day (most under 5). Some states are still subsistence based while others have moved beyond manufacturing to tertiary economies. Even within the wealthy or First World nations there are often areas of economic disparity within regions

2. Measuring Development Gross National Product (GNP) Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year. Includes things produced inside and outside a country ’ s territory. Gross Domestic Product (GDP) Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year. Gross National Income (GNI) Measure of the monetary worth of what is produced within a country plus income received from investments outside the country. ** Most common measurement used today.

3. Concepts & Approaches Gross National Product-all goods & services produced by the economy per year both inside & outside the nation Gross Domestic Product-all goods & services produced by the economy per year with in the nation GNP or GDP does not reflect regional variations-it also doesn ’ t count the informal economy-black market, illegal drug trade & underground economy Developed Countries-(DCs) have high levels of industrialization, urbanization & standard of living Underdeveloped (UDCs) or Developing Countries are moving toward developed status-not as highly industrialized or urbanized with a lower standard of living

4. Measures of Development National Product per person-the total income divided by total population- Core (developed) about $25,000 while Periphery (developing) as low as $100. Occupational Structure of the Labor Force-% of workers in each section- high number in agriculture signals low development Consumption of Energy per Person-the greater the use of electricity-the higher the development Productivity per Worker-production of all goods divided by the total labor force

5. Measures of Development Transportation & Communication per person-railroad, road miles and airline connections per person as well as telephone, radio, television or computers per person. Consumption of Manufactured Metal per Person-the greater the amount of steel, iron, copper, aluminum etc. used per person Other Rates- – Literacy – Caloric intake – % of income spent on food – Amount of savings per person

6. Issues with Measuring Economic Development All measurements count the: – Formal Economy – the legal economy that governments tax and monitor. All measurements do not count the: – Informal Economy – the illegal or uncounted economy that governments do not tax or keep track of.

7. Core-Periphery Model Immanuel Wallerstein proposed the World Systems Theory with promoted the Core-Periphery concept. Unlike the term-developed and developing, the Core- Periphery Model does not imply that change will occur. Core-Periphery regionalism got its start during the period of colonialism was re-enforced by the Industrial Rev. and continues in the age of globalization.

8. Core-Periphery Model New approach to developed or underdeveloped idea Core-Periphery also used in a political context Core-the nations with a high level of prosperity with dominant economies globally Periphery-poor nations that are dependent on the core as markets for raw materials and sources of technology Semi-Periphery-better off than periphery, but still dominated by the core to some degree