Study Guide for Imperialism, Globalization, and Global Trade:

Imperialism
Justification and Impacts of Imperialism: Economic gain was one major reason why Europeans wanted to claim Africa. The forced labor of Africans helped turn the Industrial Revolution into a manufactured/industry based economy. Europeans took the raw
materials found in Africa for their own personal gain. Many Europeans believed that whites were superior to black and believed there were biological differences between people of different races. Europeans saw how the Africans were living and thought that these people
needed to be improved.
Berlin Conference - goals and impacts: The Berlin Conference of 1884-85, created by German Chancellor Otto von Bismarck, was to reduce the possibility of conflict among the European powers. The countries agreed on a set of rules for “carving up” Africa.
Representatives from fourteen countries came together for this conference. No African representative came to the conference. The Berlin Conference set guidelines for Europe’s colonization of Africa. According to the Berlin Treaty, countries would need to have their
claims to territory in Africa ratified by other European powers. European countries were now required to occupy the territories they claimed.
Superimposed borders on Africa territories by Europeans: European leaders drew new boundaries and grouped together diverse and sometimes rival societies in their colony. The borders divided the territory of an African society or ethnic group. The Europeans
established European culture in the colonies, forcing the Africans to leave their own culture behind.
Legacies of superimposed borders in Africa today: The borders made by the Europeans have continued to stay the same. Within the borders, some of the European culture has been kept the same while other borders brought back African culture.
Impacts of WWI and WWII: Anti Colonial leaders focused more on working within the colonial system, pressing for reforms that would improve conditions for Africans. International events and the Europeans’ power unwillingness to make significant changes
would eventually push Africans to demand independence in the years after World War II. It brought economic disruption in Africa.
WWI: It turned Africa into a battleground. Africans were able to defeat the Euroepans as the Europeans were fighting against themselves and the Africans were trained along with the Europeans. The war drew many European soldiers and officials away from their
colonial posts. Some African communities took advantage of the instability to rise up against the authorities, and some were able to regain a great deal of independence during the war.
WWII:
Anti-Colonial Nationalism: Marcus Garvey, a man from Jamaca established the UNIA (Universal Negro Improvement Association) which brought change and attention for issues impacting Africans and Negros such as slavery, racism, discrimination and putting an
end to them. This inspired many Africans to join Anti Colonial groups.
Pan-Africanism: This was a time period for people of African descent to realize they have a great deal of things in common and should be noticed, celebrated, and unified. Pan Africanism inspired more Africasn to join Anti Colonial groups.
Legacy of Colonialism: In many African countries, French and English are the main languages of that country and the culture has been kept the same. Take Ivory Coast. In French, it is Cote d”ivore. The culture and the language has been kept the same. The
composition/borders of the countries have been kept the same in order to group African/ethnic groups. Africa is mostly a crop/agricultural based economy because of the forced labor by the Europeans.
Globalization: the process by which businesses or other organizations develop international influence or start operating on an international scale.
Examples of Globalization Over Time:
● Silk Road
○ Trade started during the Han Dynasty (207 BCE - 220 CE)
○ Trade route across Eurasia
● Trans-Saharan Trade Route
○ Mostly Gold and Salt
○ Emerged during the 4th century CE and were at their peak from the 8th century to the 17th century
● Oceanic Trade Routes
○ 500 - 1000 AD
○ As ship building technology increased, the range and payloads increased
○ This equated to increase economic growth & wealth (more resources being imported & exported; more trade routes open)
○ Economic growth: quality and quantity of resources
● Bantu Migration
○ Movement of the Bantu people across Sub-Saharan Africa
○ Shared cultures and tech
● Columbian Exchange (not a trade network)
○ 1492 - 1800
○ The exchange of diseases, ideas, food, crops, and populations between the New World and the Old World following the journey of Christopher Columbus
● Triangle Trade
○ Europeans traded manufactured goods for captured Africans, who were shipped across the Atlantic Ocean to become slaves in the Americas.
○ It was a trade between three ports/regions: Europe, the Americas, and Africa
○ This allowed an increase in access of raw goods and growth of the shipping industry which led to an increased economic growth
Imports vs. Exports:
● Imports are goods and services that are purchased from the rest of the world by a country’s residents, rather than buying domestically produced items.
● Exports are goods and services that are produced domestically but then sold to customers residing in other countries.
Scarcity: the gap between limited amount of resources to limitless wants
Surplus and Deficit:
● Surplus means one country will benefit more, export more than it imports.
● Deficit is when one country will benefit less, more imports than exports
Protectionism vs. Free Trade:
● Protectionism is the restriction of trade with other nations in order to protect domestic firms by taxing firms
○ Trump Administration’s tariffs on steel and aluminum in 2018
● Free Trade is the elimination of barriers to trade to create a large open marketer for goods and services.
○ No restrictions on imports and exports
Tariffs:
● A tax imposed by one country on the goods and services imported from another country
○ Protects domestic industries
○ Examples of tariffs include steel
Subsidies:
● A benefit given to an individual, business, or institution, usually by the government
○ Removes some type of burden
○ Example: electric cars, green energy, oil and gas
Sanctions:
● A threatened penalty for disobeying a law or rule
○ Punishment for countries
Inflation:
● General rise in the level of prices; a general fall in the price level
Economic Sectors of the Economy:
● Primary
○ Extraction and harvesting of natural resources such as agriculture and mining
● Secondary
○ Comprises construction, manufacturing, processing, utilities (gas and electricity)
● Tertiary
○ Retail, financial services, communication, real estate, information technology
● Quaternary
○ Education. Research and development
Multinational Corporations:
● A large corporation that is operated in more than one country
Regulations:
● Rules made by a government or other authority in order to control the way something is done or the way people behave
Fair Trade:
● A way of buying and selling products that allow the farmers to be paid a fair price for their produce, and have better working conditions
Comparative Advantage:
● The ability of an actor to produce a good or service for a lower opportunity cost than a competitor
○ Country exports goods they have an advantage in and imports others
Opportunity cost:
● The cost/benefit of the thing you didn’t do
○ What you’re missing
Supply Chain:
● Comprised of all the businesses and individual contributors involved in creating a product, from raw materials to finished merchandise
○ Examples of this include farming, refining, design, manufacturing, packaging, and transportation
GDP (Gross Domestic Product):
● Standard measure of the value added created through the production of goods and services in a country during a certain period
○ Net exports
○ Government spending
○ Consumption
○ Business investments
GDP per Capita:
● Measures a country’s economic output per person and is calculated by dividing the GDP of a country by its population
HDI (Human Development Index):
● Summary measure of average achievement in key dimension of human development: a long and healthy life, being knowledgeable and have a decent standard of living (measure of quality of life)
Gender Inequality Index:
● Composite measure of gender, reflecting inequality in achievements between
WTO (World Trade Organization):
● Deals with the rules of trade between nations and ensures that trade flows smoothly, predictably, and freely as possiblea
G7/8 (Group of 7/8):
● A group of the world industrialized, wealthiest, and most powerful nations
● Russia was removed after invading Crimea
○ United States
○ Canada
○ Italy
○ Japan
○ United Kingdom
○ France
○ Germany
● Aren’t really helping people
G20 (Group of Twenty):
● A collection of twenty of the world’s largest economies
○ Argentina
○ Australia
○ Brazil
○ Canada
○ China
○ France
○ Germany
○ India
○ Indonesia
○ Italy
○ Japan
○ Mexico
○ Russia
○ Saudi Arabia
○ South Africa
○ South Korea
○ Turkey
○ United Kingdom
○ United States
○ European Union
● Overlooks poor countries
World Bank:
● An international organization that provides financing, advice, and research to developing nations to help advance their economies.
○ Makes loans to other countries
IMF (International Monetary Fund):
● An organization of 190 countries, promotes international financial cooperation. It also facilities international trade, promotes employment and sustainable economic growth and helps reduce global poverty.
Modernization Theory:
● A theory used to explain the process of modernization that a nation goes through as it transitions from a traditional society to a modern one.
○ Based on cultural differences
○ Western development is due to the columbian exchange and industrial revolution
○ Rich countries or rich because they were willing to take the risk of new technology
○ Rich countries can help the poor countries
Rostow’s Stages of Economic Growth:
● Traditional Society
● Preconditions for take-off
● Take-Off
● Drive to Maturity
● Age of High Mass Consumption
Wallerstein’s World System Theory:
●