Dependence Theory
Read this article, which lays out the role of dependency theory in global development and trade. It also includes historical perspectives and critiques of the theory.
Definitions
Global North & Global South
A perspective on the global divide in wealth and power between broadly North American and European states in the Global North, and Asian, African, and Latin American countries in the Global South.
Neocolonialism
Literally "new colonialism", this refers to primarily economic ways in which countries in the Global North exhibit control over former colonies without direct military occupation or political control.
Imperialism
Closely associated with colonialism, this refers to the raiding and exploitation of states in the Global South by those in the Global North, primarily in Western Europe.
Liberalisation
A process by which markets are made 'more free', usually meaning the removal of government interference; in trade, this means the elimination of import taxes (known as tariffs) and quotas, which limit the quantity of imports.
Protectionism
The opposite of liberalisation, in which a government seeks to support businesses in its own country by making it harder and more expensive to import foreign products.
Specialisation
An economic term referring to the ability of different countries or firms to be more productive by focusing on a particular type or area of economic activity, e.g. a country with fertile soils can gain more by focusing on agricultural production.
Market Power
The idea that rich countries and large firms have strong negotiating power in global markets, so are able to negotiate agreements and prices strongly in their favour.
Value Added
The difference between the cost of inputs to a manufacturing process and the sale value of outputs, for example the cost of plastic inputs against the value of a children’s toy as output.
Primary Sector
The primary sector of an economy consists of the extraction of raw materials from the environment, including mining, logging, and agriculture.
Secondary Sector
The secondary sector of an economgy consists of the transformation of raw materials from primary sector processes into manufactured goods.