1. Ch. 1 Introduction, continued
Economic Geography of the World Economy
Globalization
Globalization versus local diversity
Problems of World Development

2. GDP Per Capita
FIGURE 1.3
GDP = Consumption + Investment + Government

3. FIGURE 1.3a

4. FIGURE 1.3b

5. FIGURE 1.5

6. FIGURE 1.6

7. FIGURE 1.8

9. Figure 1.7 The Global North and the Global South

10. Variations in Economic Structure
Gross National Income -
Source: World Bank (2012) World Development Indicators
GNI (Gross National Income) = GDP + foreign income receipts
(such as dividends and interest) – foreign income payments

11. Income Inequality
Source: Wikipedia, but attributed to the World Bank

12. Calculating Gini Coefficient
The graph shows that
the Gini coefficient is equal to
the area marked A divided by
the sum of the areas marked
A and B. that is,
Gini = A / (A + B).
It is also equal to 2*A due
to the fact that A + B = 0.5
(since the axes scale from 0 to 1).

13. Global Shares of Population and Gross National Income (2009)

14. Structure of Production (% of GDP)
Growing
Inequality
Hollowing of
Industry
Decrease in
Agriculture,
Services Growth

15. The Clark-Fisher Model of Structural Change
Services
Share of Output
Manufacturing
Agriculture
Time
Is This Model Inevitable?

16. Distribution of Gross Domestic Product (%)
GDP = Final Sales to Government, Consumers & Investment
Why so high &
why the decline?
Global
Increase
in Trade
Note: Exports includes services

17. Imports/Exports 2006 ($ billions)
The U.S. Share of
Services Trade is
very high
High Income have
much stronger trade
in services than Low
and Middle Income

18. Structure of Merchandise Exports (%)

19. Structure of Merchandise Imports (%)

20. Origin and Destination of Merchandise Exports (%)

21. Globalization
“Essentially an expansion in the scope, scale, and velocity of international transacations” p. 12
Culture and consumption
Telecommunications
Economic Dimensions – finance, TNC’s, FDI, regional specialization in production, tertiary sector, office activity, tourism

22. TNC Sales and Selected Country GDP
FIGURE 1.9

23. FDI in the U.S. – similar diagram could be drawn for any country

24. Another view of FDI

25. An Example of Global Trade – United’s Business First Amenity Kit
China, USA, Thailand

26. Globalization vs. Local Diversity
The desire to preserve local diversity
But the inevitable outside pressures
Producing “glocalization”

27. Problems In World Development
Structural changes in low, medium & high income countries
Environmental Constraints
Disparities in wealth and well-being
Internal trends: growing income disparity in many nations
The cycle of poverty
The Core-Periphery Model – developed in chapter 14

28. The Cycle of Poverty in Third-World Countries
FIGURE 1.10