Question 1

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 peripheral nations still hold the role of providing raw materials, just as they did during the colonial expansion era. Core nations, on the other hand, are considered to be the dominant powers in the global economy, while developed nations have transitioned from being dependent on raw material exports to producing and exporting manufactured goods. Impoverished nations may also provide raw materials, but they are typically not as significant in the global economy. Therefore, the best choice is C: peripheral nations.

Question 2

What is the commodity most closely associated with early Chinese trade routes?

Accepted Answer

Silk was the most valuable and sought after commodity on early Chinese trade routes, particularly the Silk Road. It was first produced in China and traded to neighboring countries and eventually made its way to Europe. It played a significant role in the development of trade and cultural exchange between East and West.

Question 3

Henry Ford is known for the introduction of the assembly line and the Model T. As his manufacturing effort expanded, however, he also adopted an attitude that came to be known as Fordism. What was one of the central tenets in his system?

Accepted Answer

One of the central tenets of Fordism was that workers should earn higher wages and work shorter hours. This would create a new pool of consumers with the income and leisure to purchase the cars they were producing. Ford believed that by paying his workers more, they would be able to afford the goods they were producing and create a virtuous cycle of economic prosperity.

Question 4

What is one caveat of world systems theory?

Accepted Answer

One caveat of world systems theory is that there is not always clear geographical isolation between core and peripheral nations. Some nations may exist in a semiperipheral state, and economic relationships between nations can be more complex than the simplified model presented in the theory.

Question 5

As a result of the China-Europe trade imbalance, European nations sought to acquire needed resources in order to participate fully in the world economy of that time. The major advantage they had-advanced weaponry and strong military strategies-resulted in what lasting legacy?

Accepted Answer

European nations used their military power to colonize and exploit resources from countries in Asia, Africa, and the Americas. This legacy of colonialism has had lasting impacts on global power dynamics, economic systems, and cultural exchange.

Question 6

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 is a key component of the flexible accumulation strategy as it allows multinational corporations to tap into lower cost labor and resources in other countries, ultimately reducing production costs and increasing profitability.

Question 7

The origins of the current global economic system are found in the late 1400s, when China was the world leader in the production and export of goods such as silk. The result of this position created what problem that fostered European exploration of the Americas?

Accepted Answer

China's dominance in trade created a trade deficit for European countries, as they were importing more goods from China than they were exporting. This led European countries to seek out new trading routes and territories, leading to the exploration and colonization of the Americas.

Question 8

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 economy was structured to extract resources from less developed nations and transfer them to industrialized nations, which led to the emergence of dependency theory. Option A is incorrect as it focuses on East Africa and not Latin America. Option B is incorrect as it mentions inadequate natural resources, but doesn't relate to dependency theory. Option D is incorrect as it talks about flows of migrants, which does not relate to dependency theory.

Question 9

Prior to the European exploration of the Americas, how were trade routes between China and Europe accomplished?

Accepted Answer

Before the European exploration of the Americas, trade routes between China and Europe were accomplished primarily through long-distance overland routes through Asia and eastern Europe, commonly known as the Silk Road. While there were also maritime trade routes, they were not as developed as the overland routes until later in history.

Question 10

The Triangle Trade that emerged in the early 1500s resulted in an unprecedented level of economic, social, and military activity between Europe, Africa, and the Americas. The European effort to expand their own economic power in the Caribbean quickly proved unsustainable due to a shortage of what essential commodity?

Accepted Answer

The answer of The Triangle Trade that emerged in the...

Question 11

What major event set the stage for the end of European colonialism?

Accepted Answer

World War II weakened the European powers both economically and politically, making it difficult for them to maintain their colonies. Additionally, the war sparked nationalist movements in the colonies and increased demands for independence. Many colonial powers found it necessary to grant independence to their colonies in the aftermath of the war.

Question 12

Critics of modernization suggest that underdevelopment is the result of postcolonialism, and that poor countries today cannot participate in the global economy because it is structured to extract and transfer what to developed nations?

Accepted Answer

Critics of modernization argue that underdevelopment is caused by postcolonialism, which means that wealthy nations extract and transfer resources from poorer nations for their own benefit. Thus, the global economy is structured to extract and transfer resources, not money, people, or energy.

Question 13

The position that the free market and free trade rather than the state are the main mechanisms for ensuring economic growth is associated with which theorist?

Accepted Answer

The position that the free market and free trade rather than the state are the main mechanisms for ensuring economic growth is associated with Adam Smith, the father of modern economics and author of "The Wealth of Nations."

Question 14

How are today's privatization programs, often associated with neoliberalism, an unsurprising result of Adam Smith's perspective on economic growth?

Accepted Answer

Adam Smith's perspective on economic growth emphasized laissez-faire economics, which advocates for minimal government intervention in the economy and a free market system. Privatization, which involves transferring ownership and control of state-owned assets and services to the private sector, aligns with this perspective by reducing government control and allowing for greater competition in the market. Therefore, today's privatization programs can be seen as a logical result of Smith's ideas on economic growth.  Option A is incorrect as it is in opposition to Smith's belief in laissez-faire economics. Option B is incorrect as Smith did not call for government assistance to ensure unfettered competition in the market. Option D is incorrect as Smith's position on colonialism is not directly related to privatization.

Question 15

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. This was a significant achievement given the widespread slavery and racism during colonial times.

Question 16

What argument did Keynes advance about how capitalism works best?

Accepted Answer

Keynes argued that for capitalism to work effectively, the government needs to intervene to moderate the boom and bust cycles of the economy, essentially reigning in the excesses of capitalism to prevent economic downturns and ensure stability.

Question 17

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 way to achieve progress, which can encompass economic, social, and environmental advancements. While economic growth may be a part of this overall development, it is not necessarily the only or primary goal. Environmental sustainability and financial stability may also be important factors in achieving long-term progress.

Question 18

The European drive to enter the world economy of the 1500s led to a frenzied effort to procure what commodity?

Accepted Answer

The answer of The European drive to enter the world...

Question 19

Why did some critics question the economic development strategies used by Western nations after World War II to address structural imbalances in the global economy?

Accepted Answer

Critics questioned the economic development strategies used by Western nations after World War II to address structural imbalances in the global economy because former colonies did not experience the expected levels of growth. The critics argued that Western nations were not adequately addressing the underlying causes of poverty and were instead perpetuating the global economic disparities.

Question 20

Immanuel Wallerstein's modern world systems analysis sees nations and regions as divided into different groups in terms of economic dominance. These include core, semiperiphery, and periphery groups. What is one defining characteristic of the periphery group?

Accepted Answer

One defining characteristic of periphery group, according to Wallerstein's modern world systems analysis, is cheap labor. Periphery nations are typically exploited for their low-cost labor, and they tend to have fewer economic opportunities and more limited access to resources and infrastructure than core or semiperiphery nations.

Quiz 12: The Global Economy