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POLS 260 Final

Terms in this set (90)

1. Historical Explanation (16th-20th century)
*colonialism
*counter arguments about colonialism:
- for the core, the periphery was peripheral
- all regions grew economically during and after the colonial period
- colonizers actually brought some degree of economic progress
- Modernization Theory: internal changes are more important, capitalism + democracy = economic development

2. Dependency Explanation
*dependency on the export of one or two raw materials or commodities
*Protectionist barriers of rich countries for primary products
*Prices of primary products are unstable
*foreign aid serves the interest of the North and builds up debts
*International power structure supports the dominance of rich countries

3. Role of MNCs in Developing Countries
*Positive effects:
- create jobs
- supply much-needed capital to developing economies
- help improve balance of payments issues
- multiplier effect of the original investments
- technology and management techniques transfer
*Negative effects:
- repatriated profits, and additional fees -> little investment in the local economy
- adversely affects the local culture
- MNCs co-opt the leadership and small elites of poor countries -> inequality
- may weaken host country's political autonomy/sovereignty
- violation of labor rights and unethical treatment of workers
- environmental damages ->need for corporate responsibility

4. The Economic Liberal Explanation of Underdevelopment
*Economic liberalization will benefit both rich and poor
*comparative advantage
*positive effects of MNCs
*succesful economic development of East Asian countries

5. The "Economic Miracle" of East Asia
*Asian Tigers/NIEs
1) South Korea
2) Singapore
3) Hong Kong
4) Taiwan
*outward looking, export oriented development strategy
*diversification of exports of manufactures goods ->successfully severed dependence
*Government-directed management
*Authorization regimes
*homogenous societies
*Confucius values