Download Unit 3- North

Unit 3- North- South
Globalization
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Process of the world seeming smaller due to
increases in communications and technology
Eg. To travel to Europe now is only 7 hours by
plane. Before it was weeks on a boat.
Can also refer to country boundaries no longer
being a restriction in things such as global
business
The world countries seeming more like one unit
instead of separate countries
Post WW2 Classification of
Countries
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1st World = developed market economy
countries (eg. Canada and US)
2nd World = command economy countries
(eg. USSR)
3rd World = non aligned countries, began
referring to poorer countries (eg. Africa,
South America)
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Post WW2 industrial bomb lead to a
steady growth of the 1st world
The 2nd world struggled to keep up when
their economy focused around military
developments
3rd world saw a steady decline in social
standards, political instability, increased
number of poor people
North South Gap
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Term used to describe the economic gap
between the rich northern countries of the
world and the south poorer countries of
the world
80% of the world’s population live in the
south and own about 20% of the world’s
wealth
These people deal with malnutrition, no
clean water and food, no health care, etc.
What are some other problems in
Southern Countries?
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Overpopulation- the population is growing
at a rapid rate, too many people for the
land to support
Problems in trying to provide social
services like health care and education
Rich countries would pay for this by
increasing taxes, poorer countries cannot
do this due to high rates of unemployment
and low wages
Colonialism
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Control by one power over a dependant area or
people
Eg. Europe took colonies in Africa and Asia
meaning they took over the land and people and
treated it as their own
The colony country supplied raw materials, and
agricultural products to the “mother country”
Mother country provided the direction,
organization, capital investments and
technological aid
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Colonalism was beneficial to the South at
first because they now gained access to
the global market
This lead to economic growth for them
Drawbacks to Colonialism
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Money became the main mean of exchange
(before they could barter and trade)
This means that the rest of the world
measured the Southern countries success
based on how much money they could earn
Southern country was fully dependant on
the mother country to keep their economy
going (eg. For roads, schools, etc)
Balance of Trade
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Equal or unequal value places on products
being traded among countries
Balance of trade was not in favor of
Southern countries
Their raw products were worth a lot less
than the manufactured products of
European nations they were bringing into
their country
Trade Deficit
What you are spending to bring goods into
your country is a greater sum that what
you are making by selling products in the
global economy
You are loosing money
Southern countries suffered from this
Trade Surplus
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What you are spending on bringing goods
into your country is less than what you are
making by selling goods in the global
economy
You are making money
Mother countries had this
Tariff
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Special tax placed on goods not made in
your country to make that product the
same or more value than the same
product produced in your country
Encourages people to buy the product
made in their country
Tariffs hurt the Southern countries,
because their goods may not be bought
globally
Natural Resources
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Products which come from the land or sea that
can be sold for a profit
Eg. Wood, fish, minerals, etc
Renewable resources – natural resources that
can be grown over and over again. Eg. Fish,
crops
Non-renewable resources – natural resources
that can not be regenerated. Eg. Oil
Southern countries main source of income is
from natural resources, which don’t make as
much money in the global economy as
manufactured goods
What happened when the mother
countries left?
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Post WW2 colonies began gaining independence
Southern countries were dependant on the
mother countries for their economics
Most countries did not have the structure to
simply take over from the mother country
Instead economic control was shifted to MNC
(multinational corporations)
Eg. Shell, Unilever, General Foods, Nike
Headquarters are in northern countries, but they
have offices all over the world
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MNC’s goals were mainly economic, so
they were not concerned about social
conditions in countries
New technologies, roads, bridges, etc.
were built, but only to profit the MNC’s
Employment was created, but with very
low wages
Land was taken over, and traditional
means of agriculture were replaced with
large scale mechanical methods- farmers
lost their form of livelihood
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Their products were loosing money in the
global economy, so they needed to
increase production
The only way they could do this was to
borrow money from the rich northern
countries
This put them in debt