POLITSC 3220 Lecture Notes - Lecture 1: Product Lifecycle

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11 Sep 2015
Professor
Pol. Sci. 3220- Politics of the Developing World
Lecture Two- 8/27
Hard to become rich, and just as hard to become poor once you are rich
HUGE gap between rich and poor countries (45,000 GDP per capita vs. 2,000 GDP per
capita)
Scholars come in two groups
Liberal/ Neo- classic/ Free-market/ Orthodox
Nationalist/ Structuralist/ Developmentalist/ Protectionist
Liberal (Less government intervention) ------------------- Structuralist (more governmental
intervention)
The more or less settled question:
State socialism is not all that it was cracked up to be (North Korea)
Unsettled questions:
Is globalization/ free trade good for all?
Is globalization bad for all?
Is globalization only good for rich countries?
Even if unfettered global markets are (sometimes?) a problem, should governments do
anything?
Modernization Theory: (One of the first explanations)
There is a path to economic development; all countries will follow the same path, just at
different times.
Global integration is to the benefit of all underdeveloped countries
1. Traditional Society- the “before” condition
2. Pre-conditions to takeoff- the diffusion of ideas
3. The takeoff- new values become dominant
4. Drive to maturity- industrialization process
5. High mass consumption- the promised land
The Product Cycle: A Non- Cultural Approach
A theory about the stages of industrialization
Stages are defined by technology of production
Innovation- very few competitors, high profit, unique technology
Mass production- productivity via scale economics, technology more standard
Mature markets- many producers, technology is low cost
-Industries move globally, not people, industries (cars, computer chips, textiles)
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