The Effects of Global Stratification

Many ways are used to classify nations based on their economic status. These are usually based on Gross Domestic Item (Gross domestic product) per capita.

Historically, nations SOC 100 Topic 3 The Effects of Global Stratification classified as First World, Second World, and Third World. The terms are currently falling out of use, yet the basic classification still applies: wealthy nations, middle-income nations, and poor nations.

Core Nations

1. Center Nations are those that possess a high level of wealth, stability and status. They are often considered to be the leaders of the global economy and have a considerable impact on economic trends worldwide. This gathering of nations also includes the OECD (Organization for Economic and Cooperative Development) nations, which are developed economies that cooperate to advance economic growth.

2. Semi-Peripheral Nations are those that don't possess the same level of wealth, stability and status as the center nations. This gathering of nations does not include the developing economies of Asia and Latin America. They are often seen as a source of cheap labor for center nations. For example, Mexico provides abundant cheap agricultural labor to the United States market while PSYCH 645 Assignment 2 Myers-Briggs Personality Test goods to the US marketplace at a rate dictated by the USA and without the constitutional protections offered to American workers.

3. Peripheral Nations are those that are struggling to reach the standards of the center and semi-peripheral nations. This gathering of nations is often seen as being poor or failing to develop economically. This gathering includes many of the developing economies of Africa and Latin America.

4. The Movement of Capital

The free movement of capital is a major influence on the economic structure of a nation. This allows investors to place money in a nation that has the potential for rapid economic development, and can provide the capital expected to help a struggling nation become PSYCH 655 Week 3 Understanding Test Anxiety. Conversely, the movement of capital also can have negative effects on a nation's economy. For example, when investors withdraw their funds from a nation, that nation may have to pay higher interest rates to lenders, and its economy will suffer as a result.

5. Global Inequality

A global level of inequality exists when resources are distributed unequally among the world's nations. This kind of inequality affects the social class and standing of individuals in a nation, while it also may have an impact on the environment, health and lifestyle. Global inequality can be caused by various factors, including the movement of capital and the effects of colonialism. HUM 1150 Assessment 4 Creative Process of Creating and Interpreting Cultural Artifacts are several theories attempting to explain the causes of global inequality, such as modernisation theory, reliance theory and world systems theory. Social stratification is another factor that can lead to global inequality. Specifically, social stratification is the allocation of individuals and groups into hierarchies that differ in power, status and prestige. Historical examples of social stratification include slavery, caste systems and apartheid. However, it is important to take note of that global inequality has two dimensions: gaps among nations and gaps within a nation.

Peripheral Nations

The periphery nations are those that are less developed and receive a small share of global wealth. They are reliant and, according to some, exploited by center countries. Center nations gain access to natural resources, such as oil, and the cheap labor that these NR 103 Transition to the Nursing Profession Week 7 Mindfulness Reflection Template offer, which allow them to stay competitive in the world market.

Nations on the periphery typically have little industrialization. What little they truly do have often represents the outdated castoffs of center nations, or factories and means of production claimed by companies from center countries. Peripheral nations also will generally have unstable governments and inadequate social programs, making them economically subject to center nations for jobs writink services aid.

As a result of their limited industrialization, individuals living in peripheral nations often live in poverty. However, this definition of poverty is subjective and varies by individual. Some may consider themselves poor if they can't afford the same lifestyle as those living in the center nation, while others would argue that it's not poverty if they can't afford the basics, such as food and shelter.

In the past, the development of peripheral nations was primarily driven by natural resource mining and other types of exploitative trade MAT FPX 2001 Assessment 6 Interpretation of Survey Results. However, this is changing as the periphery becomes more developed and its economies move away from natural resources towards higher-valued industries. The rise of China is one example of this pattern. Later on, this shift will likely continue as other emerging economies begin to develop into semi-peripheral and center nations.