Intro Global Economy

• Aardrijkskunde
• Middelbare school
• vwo
• Leerjaar 3

Global Economy

Chapter 1 Intro

What to expect?

Chapter 1 Intro

1.2 Is the economic global situation shifting?
1.3 Development of the trade flows
1.4 Development at different speeds
1.7 Winners and losers

1.9 Winners and losers in Europe

Global Economy

Global Shift

Recap:

Why is the global economy changing?

The global economy is now different because of:

1. MNCs

2. Open borders

3. The world is shrinking

Dutch MNC's

Brands Unilever

Would the MNC's rather move to the Semi-Periphery or Periphery?

MNC's

MNCs are moving to low-wage countries.

Important: work, knowledge and money.

As a result, the economic center of gravity is slowly moving towards China.

Why here?

Multinational corporation (MNC)

Core	Semi- periphery
Advertisement	Assembling products
Design	Making parts
improving techniques

2. Open Borders

 E.g. European Union: free movement of people and goods

3. The world is "Shrinking"

In which three groups can we divide the world into?

core, semi-periphery and periphery

What are the characteristics? 

Primary sector

Primary sector: Work that focuses on growing products

Agriculture: keeping animals or growing crops for human use

• Agriculture
• Cattle breeding
• Horticulture, gardening

Secundary sector

Secondary sector = industrial sector

Raw materials are processed into a product

(or semi-finished product)

Tertiairy sector

Companies engaged in the provision of services    -> service sector

For example, serving in the hospitality industry

Quaternary sector

• non-profit service companies
• schools, hospitals, fire brigade, defense

What is the secundary sector?

1. Industry
2. Service
3. Agriculture
4. Commercial service

Which profession belongs with the quaternary sector?

1. Dairy farmer
2. Train operator
3. Geography teacher
4. Welder in steel factory

Which sector does this pig farmer belong to?

1. Primary
2. Secundary
3. Tertiairy
4. Quaternary

Primaire sector

Secundaire sector

Tertiaire sector

Angola Model