Globalization and Economic Theories Quiz

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Questions and Answers

What is the main characteristic of relative poverty?

Having an income that fails to meet societal standards of living (correct)

Possessing enough income for basic living requirements

Lacking the minimum income required for basic survival needs

Experiencing long-term deprivation of essential resources

Which term describes a situation where an individual does not meet the minimum income requirements for basic living over time?

Relative poverty

Subjective poverty

Absolute poverty (correct)

Economic inequality

How is subjective poverty defined?

Meeting but not exceeding basic living standards

Not being able to afford the necessities of life

Being part of a lower economic class

Income perceptions not aligning with actual income (correct)

Which economist is associated with the idea of wealth accumulation through wage labor?

Adam Smith Signup and view all the answers

What does global stratification refer to?

The hierarchical arrangement of individuals and groups within societies Signup and view all the answers

What does economic globalization primarily involve?

The integration of economies through the movement of goods, services, and capital across borders Signup and view all the answers

Which typology is used to categorize countries based on their economic development?

Developed, Developing, Undeveloped Signup and view all the answers

What impact have the WTO trade talks had on tariffs?

They have led to unprecedented reductions in tariffs and trade barriers Signup and view all the answers

According to Dependency Theory, why did poor nations struggle for economic growth?

They were conquered and colonized by wealthier nations Signup and view all the answers

What characteristic defines a commodity in the context of economic globalization?

It must be the same type and grade to be traded on the markets Signup and view all the answers

Which theory suggests that some nations modernize by exploiting others?

World System Theory Signup and view all the answers

What factor contributes to the uneven process of economic globalization?

The varying benefits received by countries, corporations, and individuals Signup and view all the answers

Which group is classified as the Third World?

Nations in Central and South America, Africa, and Asia Signup and view all the answers

What term describes the global circulation of money through banks?

FINANCESCAPES Signup and view all the answers

Which aspect of globalization involves the movement of labor and its impact on production costs?

Migration Patterns Signup and view all the answers

What is the primary effect of industrial globalization?

Development of worldwide production markets Signup and view all the answers

Which typology refers to the Western capitalist democracies?

First World Signup and view all the answers

What major historical period is associated with the origins of the global economy?

The Long Sixteenth Century Signup and view all the answers

What is a characteristic of economic globalization?

Technological progress and innovation Signup and view all the answers

Which aspect of globalization is characterized by the diffusion of production methods?

Spread Technology Signup and view all the answers

Which term describes the realm where political ideas circulate?

IDEOSCAPE Signup and view all the answers

What does financial globalization primarily relate to?

Development of worldwide financial markets Signup and view all the answers

Which of the following best defines economic globalization?

Integration of national markets into a larger market Signup and view all the answers

What is primarily concerned with the movement of people and ideas across borders?

Cultural globalization Signup and view all the answers

Which concept describes the increase in information flows between geographically remote locations?

Informational globalization Signup and view all the answers

What is meant by the term 'ethnoscapes' in globalization?

Global movement of people Signup and view all the answers

Which of the following is NOT one of the five 'scapes' of globalization?

Demographics Signup and view all the answers

What do trade agreements aim to achieve?

Reduce or eliminate trade barriers Signup and view all the answers

Which type of globalization focuses on the flow of print media and culture?

Mediascapes Signup and view all the answers

Study Notes

Globalization

Refers to the increasing integration of economies around the world.
Involves the movement of goods, services, capital, people, knowledge, and ideas across borders.
Is driven by technological advancements and innovation.

Economic Globalization

Refers to the establishment of a global common market based on free exchange of goods and capital.
Has led to unprecedented reductions in tariffs and trade barriers through the World Trade Organization (WTO)
Can be unequal with some countries, corporations, and individuals benefiting more than others.

Theories of Global Stratification

Modernization Theory: Wealthy nations became wealthy due to developing the right beliefs, values, and practices early on.
Dependency Theory: Poor nations were unable to pursue economic growth due to being conquered and colonized by European nations.
World System Theory: Some nations become modernized by exploiting others.

Types of Global Poverty

Relative Poverty: Lacking the minimum income needed to maintain the average standard of living in a society.
Absolute Poverty: Lacking the minimum income needed to meet basic living needs over an extended period of time.
Subjective Poverty: Income does not meet personal expectations and perceptions.

Typology for Global Stratification

First Typology:
- First World: Western capitalist democracies of North America and Europe, and other nations like Australia, New Zealand, and Japan.
- Second World: Nations belonging to the Soviet Union.
- Third World: Remaining nations, mostly from Central and South America, Africa, and Asia.
Replacement Typology:
- Developed: High-income nations.
- Developing: Middle-income nations.
- Undeveloped: Low-income nations.
Popular Typology:
- Wealthy (or high income):
- Middle-income:
- Poor or low-income:

Global Economy

Refers to the system of trade and industry across the world that emerged due to globalization.
Its origins can be traced back to the expansion of long-distance trade during the "long sixteenth century" (1450-1640).

Elements of Globalization

Trade Agreements: Bilateral, regional, or multilateral economic arrangements designed to reduce or eliminate trade barriers.
Capital Flow: Measurement of increases or decreases in a nation's domestic or foreign assets.
Information Transfer: Communication trends help mitigate asymmetric functioning of markets and economies.
Migration Patterns: Impact of labor market fluidity on production costs through emigration or immigration of skilled workers.
Spread of Technology: Rapid diversion of means and methods for producing goods and services.

Labor Market

Refers to the supply and demand for labor, where employees provide supply and employers provide demand.

Aspects of Globalization

Industrial Globalization: Development of worldwide production markets and broader access to foreign products for companies and consumers.
Financial Globalization: Development of worldwide financial markets and better access to external financing.
Economic Globalization: Establishment of a global common market.
Political Globalization: Creation of international organizations to regulate relationships among governments and guarantee rights stemming from social and economic globalization.
Informational Globalization: Increase in information flows between geographically remote locations.
Cultural Globalization: Sharing ideas, attitudes, and values across national borders.

"Scapes" of Globalization (Arjun Appadurai)

Ethnoscapes: Global movement of people, e.g., migration, studying abroad.
Mediascapes: Flow of culture, e.g., print media, magazines.
Technoscapes: Circulation of mechanical goods and software, e.g., television, mobile phones.
Financescapes: Global circulation of money, e.g., through banks.
Ideoscapes: Realm where political ideas move around.

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Description

Explore the concepts of globalization, economic integration, and the theories behind global stratification. This quiz will test your understanding of modern economic dynamics and the impact of globalization on different nations. Assess your knowledge on capitalism, poverty, and international trade.