Chapter 8

Question 1

As a result of globalization, national borders are becoming

Answer 1

both more and less relevant

Question 2

Why are national borders are becoming both more and less relevant

Answer 2

Less relevant in terms of a (domestic) market for goods, services and labor
-globalization is increasing the quantity and speed of flows across borders

international borders may become more relevant in terms of their symbolic importance in terms of national identity

Question 3

Globalization appears to be diminishing working conditions
and living standards in various places around the world:

Answer 3

American workers and other places in the north have seen many jobs outsourced to
countries where wages are much lower

Question 4

We all take part in this process as consumers of
commodities, many of which are

Answer 4

produced in the poorer
countries of the world where labor and raw materials are
cheape

Question 5

The Natural Environment:
Perhaps most important is the

Answer 5

unsustainability of the model of consumption and standard of living in “Third World”

The planet simply cannot afford this level of consumption and waste

Question 6

Gross Domestic Product (GDP)

Answer 6

This is one measure of “development” or the health of a
nation’s economy.

It is defined by the World Bank as the total value (or price) of all marketable goods and paid services that are produced by the formal sector within a country in a single
year

Question 7

Adjusting for Population and Purchasing
Power: Most economists agree that a better estimate of the health
of an economy would calculate the GDP based(Two)

Answer 7

on the size of the population.

Also, this figure is often adjusted for the
cost of living in a particular nation.

per
capita gives you a better sense of how the national
economic output relates to both the size of the population
and its cost of living

Question 8

Gini Index

Answer 8

One (of many) things that statistics related to GDP fail to measure is the distribution of
wealth within a nation.

The Gini Index ranges from 0-1 or 0-100
The lower the number, the more equal the
distribution of wealth; the higher the number the more
inequality

Question 9

Human Development Index (HDI)

Answer 9

The Human Development Index takes into account
indicators that go beyond simple economic calculations

to include such things as the overall health and life
expectancy of a population, as well as access to education
within the general population

Question 10

Democracy Index

Answer 10

The Democracy Index attempts to measure the political
freedom within a particular nation. It is based on the
electoral process and pluralism; civil liberties; functioning of
govt.; democratic political culture; and political participation

Question 11

Modernization Theory

Answer 11

Earliest and probably still the most influential theory of
development, at least within the mainstream

• Stages theory based on progress from traditional to
  modern society
• Development entails both economic-technological and
  cultural modernization
• The Western, industrialized nations as the model to be
  attained through adoption of Western technology and
  values

Question 12

Dependency Theory

Answer 12

This theory stresses the unequal power relations between
the Rich and Poor nations of the world (North/South
Core/Periphery

Question 13

Three forms of dependency

Answer 13

• 1. Colonialism: direct exploitation of resources, labor and markets
     followed by;
• 2. Dependency on raw materials from (former) colonies (Export
     Monoculture);
• 3. Technological and industrial dependence on foreign investment
     due to lack of capital, technology, market, and machinery

Economic and political elite within poor countries unable or unwilling
to break their dependency on foreign investment (corruption