Question 1

Critics of modernization suggest that underdevelopment is the result of neo-colonialism, and that poor countries today remain underdeveloped because the global economic system is structured to extract and transfer what to developed nations?

Accepted Answer

Critics of modernization argue that poor countries remain underdeveloped because the global economic system is structured to extract and transfer their natural resources to developed nations, thus draining their economies and hindering their development. This is often referred to as neo-colonialism, a system that perpetuates the legacy of colonialism through economic and political means.

Question 2

Henry Ford is known for refining the assembly line and the Model T. He also adopted an attitude that came to be known as Fordism. What was a central tenet in his system?

Accepted Answer

Fordism was based on the idea that workers should be paid higher wages and work shorter hours in order to create a new pool of consumers who could afford to buy the products they were producing. This helped to drive economic growth and increase demand for goods, which in turn led to further expansion and production. By offering his workers higher wages, Ford was able to reduce turnover, improve morale, and increase productivity, all of which contributed to the success of his company.

Question 3

What major event set the stage for the success of national independence movements?

Accepted Answer

World War II weakened European powers and left their colonies vulnerable to independence movements. It also sparked global anti-colonial sentiment and bolstered the idea of self-determination.

Question 4

The European desire to participate in the world economy of the 1500s led to a frenzied effort among European nations to procure what commodity?

Accepted Answer

The answer of The European desire to participate in the...

Question 5

Wallerstein's world systems theory divides the nations of the world into:

Accepted Answer

Wallerstein's world systems theory divides the nations of the world into three categories: core, periphery, and semi-periphery. The core includes the wealthy and developed countries, the periphery includes the poor and underdeveloped countries, and the semi-periphery includes countries that are in between the core and periphery in terms of development and prosperity.

Question 6

What is one caveat of world systems theory?

Accepted Answer

One caveat of world systems theory is that there is not always geographical isolation between core and peripheral areas. Some countries may be considered part of the periphery despite being located in close proximity to core countries, while others may be considered part of the core despite being located far away from other core countries. This highlights the importance of considering other factors beyond just geographical location when analyzing global economic systems.

Question 7

The Triangle Trade that emerged in the 1500s resulted in an unprecedented level of economic, social, and military activity between Europe, Africa, and the Americas. The expansion of sugar cane plantations in South America and the Caribbean proved unsustainable due to a shortage of what essential commodity?

Accepted Answer

The expansion of sugar cane plantations in South America and the Caribbean required a large amount of labor, which proved unsustainable due to the shortage of available workers. This demand for labor led to the transatlantic slave trade, which was a major component of the Triangle Trade.

Question 8

Why is Haiti considered a significant former colony?

Accepted Answer

Haiti is considered a significant former colony because it was the first independent former colony to be ruled by people of African descent. It was also the second nation in the Americas to gain independence from a colonial power (after the United States). While Haiti was a profitable colony for France due to its sugar and coffee production, it is primarily recognized for its historical significance as a successful slave revolt leading to the establishment of an independent black-led country. There was no significant migration from Haiti to Britain after independence.

Question 9

The European Industrial Revolution of the eighteenth and nineteenth centuries relied on colonies for:

Accepted Answer

The European Industrial Revolution relied heavily on colonies for raw materials, such as cotton from India and rubber from Africa, as well as cheap labor to extract and process these materials. Additionally, European powers used their colonies as markets for goods produced in their factories, further boosting their economies.

Question 10

Last week, your roommate washed your dirty mug along with his dishes. Yesterday, he left you exactly one dirty glass of his to wash along with a mildly passive-aggressive note explaining why this was fair. This is an example of:

Accepted Answer

This is an example of balanced reciprocity, where both parties exchange goods or services of roughly equal value. In this case, your roommate washed your mug (a service) and in return, he left you one dirty glass to wash (a good). This exchange was deemed fair by both parties as they both received and gave something of equal value.

Question 11

Your office has performed the traditional "Secret Santa" exchange for many years. In this event, every office mate brings a gift worth no more than $20 dollars to be anonymously given at the annual holiday party. This an example of:

Accepted Answer

Balanced reciprocity refers to a direct exchange where something of equal value is given in return within a specific time frame. The "Secret Santa" exchange fits this definition as participants give a gift and receive one in return, both of a similar value.

Question 12

Market exchange is characterized by:

Accepted Answer

Market exchange is typically characterized by the use of an exchange medium such as money (in the form of US dollars, for example) to facilitate the exchange of goods and services between buyers and sellers. While barter (A) and exchanges of goods/services for other goods/services (C) can occur in some markets, they are not necessarily defining characteristics. Option D, the exchange of goods/resources/services to create social relationships, is not typically a defining characteristic of market exchange as it is more closely associated with gift-giving and reciprocity in gift economies.

Question 13

Development is frequently considered to be a way to spur economic growth and a path toward what?

Accepted Answer

Development is often seen as a means to address poverty and improve living standards, leading to a better quality of life for individuals and communities. While economic growth can be a part of development, it is not the only goal and must be balanced with environmental sustainability and social progress. Achieving these objectives can also contribute to financial stability and more equitable trade relations.

Question 14

The "Triangle Trade" that emerged in the 1500s resulted in the exchange of goods, people, wealth, food, disease and ideas between

Accepted Answer

The Triangle Trade involved the exchange of goods and people between Africa, Europe, and the Americas. African slaves were taken to the Americas, where they were forced to work on plantations producing cash crops like sugar, tobacco, and cotton. These goods were then shipped back to Europe, where they were sold for a profit. This trade also resulted in the spread of disease and ideas between the three regions.

Question 15

In the late 1400s, China was the world leader in the production and export of goods such as silk, porcelain, tea, fruit, drugs, cotton, weapons, etc., which Europeans desired; however, Europe produced few products of interest to the Chinese. Why did this encourage the European exploration of the Americas?

Accepted Answer

The trade deficit created by Europe's lack of valuable exports to China encouraged European nations to seek new sources of precious metals, which they hoped to find in the Americas. This desire for new sources of wealth was one of the factors that led to European exploration and colonization of the New World.

Question 16

The concept of flexible accumulation describes an overall strategy of multinational corporations to increase profitability. What is one of the keys to the success of this strategy?

Accepted Answer

Offshoring, or moving production and operations to countries with lower labor costs, is a key aspect of flexible accumulation as it allows for lower production costs and higher profits for multinational corporations.

Question 17

Your parents have never charged you for groceries and labor for all the meals you consumed at home at their expense. This is an example of:

Accepted Answer

Generalized reciprocity is the exchange of goods and services without the expectation of an immediate return or compensation. In this case, the parents provide for their child without the expectation of receiving anything in return.

Question 18

The pickpocket who stole your phone during your vacation engaged in an act of:

Accepted Answer

The pickpocket's act of stealing your phone without your knowledge or consent is an example of negative reciprocity, in which one party benefits at the expense of another, without regard for the other's well-being or the common good.

Question 19

In its critique of modernization, modern world systems analysis argues that the source of raw materials today is ________ nations, the same as it was during the height of colonial expansion.

Accepted Answer

Modern world systems analysis argues that the source of raw materials in today's global economy comes from periphery nations, which are seen as the least developed and most exploited countries. This is the same pattern that existed during the height of colonial expansion when European powers extracted resources from their colonized territories. The core, on the other hand, refers to the advanced industrialized nations that dominate the world economy and have historically benefited from the exploitation of peripheral nations. Therefore, options A and B are incorrect, while option D is too vague and subjective to be the best answer.

Question 20

According to the author, what conditions led to the emergence of dependency theory?

Accepted Answer

The author states that Latin American scholars observed the global economic structure as extracting resources from less developed nations and transferring them to industrialized nations, which led to dependency theory. None of the other options presented are mentioned in the passage.

Quiz 11: The Global Economy