World-System Theory Quiz

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Questions and Answers

What is the central focus of the world-system theory according to the passage?

  • The relations between core, semi-periphery, and periphery countries should be the focus (correct)
  • Contradictions within a system are the most important aspect to analyze
  • Individual states should be the basic unit of social analysis
  • The crisis that leads to the end of a system is the key consideration

What is the defining characteristic of peripheral countries according to the passage?

  • They are middle-income countries with closer ties to the global economic core
  • They have underdeveloped industry and are dependent on core countries for capital (correct)
  • They are high-income nations that are the manufacturing base of the world
  • They share characteristics of both core and peripheral countries

What is the role of the core countries according to the world-system theory?

  • They are low-income countries that support the wealthier countries
  • They are dominant capitalist countries that exploit peripheral countries for labor and raw materials (correct)
  • They are countries that have experienced a crisis leading to the end of their system
  • They are middle-income countries with closer ties to the global economic core

What is the key aspect of the temporal features of a world-system according to the passage?

<p>The crisis that brings about the end of the system (D)</p> Signup and view all the answers

What is the relationship between semi-periphery and core countries according to the passage?

<p>Semi-periphery countries are middle-income with closer ties to the global economic core (A)</p> Signup and view all the answers

What is the defining characteristic of core countries according to the world-system theory?

<p>They are high-income nations that are the manufacturing base of the planet (C)</p> Signup and view all the answers

What is the main effect of global market integration on price differences between countries?

<p>Eliminates them (B)</p> Signup and view all the answers

What influences the entry to a market according to the text?

<p>Price differences advantage (C)</p> Signup and view all the answers

In a market with a single price for a commodity, what helps equalize prices?

<p>Movement of sellers (A)</p> Signup and view all the answers

What are the main objectives of horizontal integration as described in the text?

<p>Reduce competition, gain market share, increase profits (C)</p> Signup and view all the answers

How can firms perform horizontal integration in the market sequence?

<p>Gaining control of other firms at the same market level (B)</p> Signup and view all the answers

What is one of the outcomes of horizontal integration in terms of market competition?

<p>Reduced effective number of competitors (A)</p> Signup and view all the answers

What is the key characteristic of vertical integration according to the passage?

<p>A firm performing multiple functions in the marketing process (A)</p> Signup and view all the answers

What are the two main types of vertical integration discussed in the passage?

<p>Forward integration and backward integration (D)</p> Signup and view all the answers

What is the primary effect of conglomeration according to the passage?

<p>Risk reduction through diversification (D)</p> Signup and view all the answers

Which of the following is NOT mentioned as an effect of vertical integration in the passage?

<p>Acquisition of financial leverage (A)</p> Signup and view all the answers

What is the key difference between ownership integration and contract integration?

<p>Ownership integration involves complete assumption of a firm by another, while contract integration involves an agreement between firms (A)</p> Signup and view all the answers

What is the primary driver of conglomeration according to the passage?

<p>Empire-building urge (C)</p> Signup and view all the answers

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