GEOG 322W Lecture Notes - Lake Superior, Sulfur Dioxide, Cyanobacteria

62 views3 pages
26 Nov 2012
Department
Course
Professor
Geog 322- Oct 23, 12
RESOURCE CURSE:
Staples Trap
- countries rich in natural resources specialize in resources and get stuck.
- Import knowledge of the staple is a large expense.
- branch plants and external control
- global, not local linkages
- debt overhang, transfer pricing
Why do they get trapped?
- not making own decisions, some one else making decisions from great
distance- Multi national corporations- MNC’s
- money, power concentrated where “decisions” are made- location of decision
maker- US city for a resource in pnom penh, Thailand. Toronto and Calgary
are other decision making centers.
Linkages:
- capital equipment- made in country or imported?
- ownership structure and which owners have control
Transfer Pricing:
- administrative pricing, where subsidiary company sells to bigger company-
convenient non market transaction done by contract
Enclave economies:
- Enclaves set up to link outsides more than inside
- corporations run major pieces of the country, by which can control country,
such as by establishing Shah’s- who took commands
eg. Banana Republic- Guatemala and Honduras
Dutch disease- traps when resource price rises- eg . oil
regional overdependence on a single industry.
- high returns and high wages in one sector draw capital and labor from other
sectors
- other industries and exports atrophy
- Niger delta- most polluted, hazardous environment due to oil industry
- discovery of natural gas in Netherlands- resulted in fall off in agriculture loss of
labor
-one sector booms, causing loss in other sectors.
Distortion in exchange rates
- exchange rates rise
- raise of Canadian $ due to rise in oil? Did it destroy Ottawa auto industry?
Results- yes- currency due to Dutch disease- expansion of oil- Increase in currency:
due to petro currency-40%; other reasons- 60%, US $ drops. Can look at who is
going shopping where (Canadians now heading to states) to see whose currency is
stronger.
- benefits transporters, retailers, real estate- cheap condos , roads, building- quick
development=untrained workers, cheaply done
Unlock document

This preview shows page 1 of the document.
Unlock all 3 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Notes+

Unlimited access to class notes and textbook notes.

YearlyBest Value
75% OFF
$8 USD/m
Monthly
$30 USD/m
You will be charged $96 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.