Chapter 19 reading guide

Question 1

Rostow’s economic growth model

Answer 1

All countries want to modernize.
1.traditional society 2.preconditions to take off
3.take off
4.drive to maturity

Question 2

Wallerstein’s world systems theory

Answer 2

The core countries get rich by exploiting poor countries

Question 3

Dependency theory

Answer 3

The idea that countries don’t exist in isolation and instead are a part of the word system

Question 4

Commodity

Answer 4

a raw material to be bought or sold

Question 5

Commodity dependence

Answer 5

when at least 60% of a county’s exports are raw materials

Question 6

Comparative advantage

Answer 6

the ability for a company to produce a product at a lower price than others

Question 7

Complementarity

Answer 7

when a country has something that other countries desire

Question 8

EU

Answer 8

European Union. Purpose: Open trading borders

Question 9

WTO

Answer 9

World trade organization. Purpose: Trading on the global scale

Question 10

Mercosur

Answer 10

Trading relationship specifically for South American countries

Question 11

OPEC

Answer 11

Organization of the Petroleum Exporting Countries. Purpose: coordinate and unify petroleum policies

Question 12

IMF

Answer 12

International monetary fund: created to aid countries that need financial assistance.

Question 13

IMF

Answer 13

International Monetary Fund: created to help countries in need of financial assistance, 190 member countries