#2 Global Economy

Question 1

Factors Affecting Global Economy

Answer 1

Economic Policy
Technology
Global Trade
Natural Resources
Demographics
Political Stability
Environmental
Social & Cultural

Question 2

Modern World-System Theory

Answer 2

It seeks to explain the emergence and evolution of the capitalist world economy and its impact on the world’s social, political, and economic systems.

Question 3

Three Interconnected Zones

Answer 3

Core - dominant capitalist countries that control and exploit resources of the peripheral countries

Periphery - underdeveloped and relies on the core countries for economic support

Semi-periphery - transitional and have characteristics of both core and peripheral countries

Question 4

Social Problems

Answer 4

Rising Inflation on a Global Scale
International Trade Disputes
Economic Deprivation in Peripheral Countries

Question 5

Causes of Inflation

Answer 5

Rapid Changes in Demand
Excessive Expenditure by the Government
Distribution within the supply chain

Question 6

Effects of Inflammation

Answer 6

Reduced Purchasing Power
Significant Decline in International Trade
Redistribution of Wealth

Question 7

Causes of International Disputes

Answer 7

Inequitable Import and Export Patterns
Competition among Entities or Nations to obtain Valuable Resources
Strained Diplomatic Relations between Nations

Question 8

Effects of International Disputes

Answer 8

Elevated Level of Import Duties
Heightened Constraints or regulations on Goods and Services Abroad
Indirect Adverse Effects on Bystander Nations due to a particular Event or Issue

Question 9

Causes of Economic Deprivation in Peripheral Countries

Answer 9

Unethical or Inequitable Trading Practices
Exploitive Practices by Core Countries
Lack of Sustainable Development Policies and Practices

Question 10

Effects of Economic Deprivation

Answer 10

Extremely Low Per Capita Income
Limited Availability of High-Quality Education Opportunities
Inadequate Healthcare