Question 1

Why would state-centered theorists be critical of market-oriented theorists?

Accepted Answer

State-centered theorists believe that state intervention in the economy can play a key role in development, whereas market-oriented theorists believe the market is the best method for economic development. This fundamental difference in perspective can lead to criticism or disagreement between the two theories.

Question 2

Yessenia studies mid-twentieth-century India. In her studies, she notes how Great Britain established direct rule over India for profit. She is taking note of what process?

Accepted Answer

Yessenia is noting the process of colonialism, which is the establishment and maintenance of political and economic control by one country over another. In this case, Great Britain established direct rule over India for profit. Participatory planning, assembly making, and communization are not relevant to Yessenia's studies of colonialism in mid-twentieth-century India.

Question 3

State-centered theories of global inequality and economic development argue:

Accepted Answer

State-centered theories of global inequality and economic development argue that appropriate government policies do not interfere with economic development but rather can play a key role in bringing it about. These theories emphasize the importance of state intervention in the economy, such as investing in infrastructure and education, regulating markets, and promoting domestic industries. This view stands in contrast to theories emphasizing the importance of free markets and minimal government intervention.

Question 4

Mustafa is a world-systems theorist who studies the world's most powerful countries and outlines how those nations take the largest shares of the world's wealth. He is studying what kind of countries?

Accepted Answer

Mustafa is specifically studying the world's most powerful countries that take the largest shares of the world's wealth, which are characteristics of core countries in world-systems theory.

Question 5

Country A has been able to apply existing technologies to the production of goods. Country B has created many different technologies and is able to make a large profit by making these technologies available to other nations, including Country A. Country B is an example of:

Accepted Answer

Country B is creating new technologies and making a profit by sharing them with other countries. This is the definition of a technology innovator. Countries that apply existing technologies are known as technology adopters, while countries that have limited access or knowledge of technology are considered to have a technological disconnect. A technology dominant country is a term used to describe a country that dominates a particular industry or technology.

Question 6

The doctrine of neoliberalism asserts that underdeveloped countries can develop by freeing up markets and allowing foreign corporations to operate within their borders. Why might dependency theorists critique this idea?

Accepted Answer

Dependency theorists reject the idea of neoliberalism, arguing that it does not lead to sustainable development in underdeveloped countries. They believe that these nations need to challenge and transform the political and economic structures that keep them dependent on foreign capital. Thus, dependency theorists would argue that revolutionary changes are necessary to push out foreign corporations, rather than welcoming them in as an avenue for development.

Question 7

Carolina is using world-systems theory to research resource-rich countries that tend to send resources to the wealthiest nations, which then sell them back to those countries for a profit. She is studying what kind of countries?

Accepted Answer

Peripheral countries are those that are resource-rich but economically less developed and often exploited by core countries, which are wealthier and more industrialized.

Question 8

Dependency theories can be described as:

Accepted Answer

Dependency theories are typically Marxist theories that argue that poverty in low-income countries is caused by their exploitation by wealthy countries and multinational corporations.

Question 9

The approach that examines how networks of labor, production, and consumption span the entire world is called:

Accepted Answer

The approach that examines how networks of labor, production, and consumption span the entire world is called global commodity chains. This approach explores how goods are produced, processed, and distributed across the globe, with different stages of production often located in different countries. The global commodity chain approach helps us understand the complex ways in which globalization and economic interdependence impact workers, communities, and the environment.

Question 10

In a short paragraph, explain how the World Bank measures global inequality. What are some of the problems with measuring global inequality in this way?

Accepted Answer

The answer of In a short paragraph, explain how the...

Question 11

Famine and hunger are caused by both natural and social forces. In a short paragraph, explain some of the social forces that cause hunger, malnutrition, and starvation.

Accepted Answer

The answer of Famine and hunger are caused by both...

Question 12

Morgan takes the common view that economics must be viewed as independent nations engaged in diplomatic and economic relations with one another. Why would world-systems theorists critique this idea?

Accepted Answer

World-systems theorists critique the idea that economics should be viewed as independent nations engaged in diplomatic and economic relations with one another because it oversimplifies the complex global economic system. They argue that the interconnection between nations is not merely a series of individual relationships but must be seen as a single-world system. In this view, the world is divided into core, semi-periphery, and periphery regions, each with its own role in the global economy. By focusing solely on individual nations, Morgan's view fails to account for the dynamics and inequities of the world capitalist system.

Question 13

World-systems theory argues that natural resources flow from ________ to ________.

Accepted Answer

World-systems theory posits that resources flow from the periphery (less developed countries) to the core (more developed countries), reinforcing the dominance of the core over the periphery.

Question 14

________ argues that the world capitalist economic system is not merely a collection of independent countries engaged in diplomatic and economic relations with one another but rather must be understood as a single unit.

Accepted Answer

World-systems theory, developed by Immanuel Wallerstein, argues that the global economy should be understood as a single unit rather than a collection of independent countries engaging in relations with one another. According to this theory, countries are divided into a hierarchy of core, semi-peripheral, and peripheral regions, with wealthy core countries exploiting and dominating poorer peripheral countries through economic ties. This theory challenges the notion of a purely free market and emphasizes the impact of historical colonialism and imperialism on the modern global economy.

Question 15

________ examine(s) the key role that state policies play in economic development of particular countries.

Accepted Answer

State-centered theories focus on the role of government policies in promoting economic development. They argue that the state has the power to shape the economy through policies such as subsidies, taxation, and regulation. This approach emphasizes the importance of state intervention in economic development and contrasts with theories that focus on market-driven approaches or external factors such as global capitalism (world-systems theory) or historical relationships of dependency (dependency theories). Modernization theory, while also emphasizing the role of the state in promoting economic growth, tends to prioritize cultural change and technological modernization over the specifics of state policy.

Question 16

Alejandra believes that poverty in Colombia is largely due to exploitation by the United States and multinational corporations originating in the United States. Her view is best described as corresponding to what theory or set of theories?

Accepted Answer

Dependency theories argue that poverty in developing countries is caused by the exploitation and dependency on developed countries and multinational corporations. Alejandra's view aligns with this perspective as she believes the United States and its multinational corporations are responsible for poverty in Colombia.

Question 17

The United States would be considered one of the ________ countries in world-systems theory.

Accepted Answer

According to world-systems theory, the core countries are the most economically and politically powerful nations, while the peripheral countries are the least. The United States is considered a core country due to its dominant position in the global economy and its significant political influence.

Question 18

Why might dependency theorists criticize modernization theory?

Accepted Answer

Dependency theorists argue that traditional societies are typically low income because of a history of colonialism and exploitation by more developed countries. They also criticize modernization theory for assuming that Western-style development is the only way for societies to improve their economic conditions. Dependency theorists contend that developed countries continue to exploit developing countries through economic policies and exploitation of resources. They also argue that the market alone cannot solve development problems and that state intervention is often necessary to promote economic growth and protect the interests of the poor.

Question 19

The process whereby Western nations established their rule in parts of the world away from their home territories is called:

Accepted Answer

Colonialism refers to the practice of establishing and maintaining political, economic, and cultural domination over a foreign territory and its people by a foreign power. This process was undertaken by many Western nations during the period of European imperialism, which began in the late 15th century and lasted until the mid-20th century. The colonizing powers established colonies in various parts of the world, including Africa, Asia, and the Americas, and imposed their own laws, customs, and values on the indigenous populations. Colonialism was often accompanied by the use of force and the suppression of local cultures and traditions.

Question 20

After studying the political economy of modern Germany, Fran concludes that we must consider the world capitalist economy as a single unit instead of looking at individual countries. Her view is best described by what theory or set of theories?

Accepted Answer

Fran's view aligns with world-systems theory, which posits that the world capitalist economy should be viewed as a single unit, with rich countries exploiting poorer countries for their resources and labor. Dependency theories also address issues of unequal power relations between countries, but focus more on how poorer countries are dependent on richer ones. State-centered theories and modernization theories both emphasize the role of individual countries and their governments in shaping their own economies, and are not as focused on the interconnectedness of the global economy.

Quiz 8: Global Inequality