Chapter 9 - Globalization, Inequality, and Development

Question 1

Globalization

Answer 1

occurs as people become increasingly aware of, and dependent on, one another

Question 2

Imperialism

Answer 2

the economic domination of one country by another

Question 3

Global Commodity Chain

Answer 3

a worldwide network of labour and production processes whose end result is a finished commodity

Question 4

Transnational Corporations (3)

Answer 4

• large businesses with head offices in rich countries
• rely on foreign labour and foreign production; skills and advances in design, technology, and management; world markets; and massive advertising campaigns
• autonomous from national governments

Question 5

Mcdonaldization (3)

Answer 5

• form of rationalization

- refers to the spread of the principles of fast-food restaurants to all spheres of life

Question 6

Glocalization

Answer 6

the simultaneous homogenization of some aspects of life and the strengthening of some local differences under the impact of globalization

Question 7

Regionalization

Answer 7

the division of the world into different and often competing economic, political, and cultural areas

Question 8

Colonialism

Answer 8

the direct political control of one country by another

Question 9

Modernization Theory (2)

Answer 9

• holds that economic underdevelopment results from poor countries lacking Western attributes, including Western values, business practices, levels of investment capital, and stable governments
• variant of functionalism

Question 10

Dependant Theory (2)

Answer 10

• views economic underdevelopment as the result of exploitative relations between rich and poor countries
• variant of conflict theory

Question 11

Core Capitalist Countries (definition and examples)

Answer 11

• rich countries that are the world’s major sources of capital and technology
• examples: the United States, Japan, and Germany

Question 12

Peripheral Capitalist Countries

Answer 12

former colonies that are poor and are major sources of raw materials and cheap labour

Question 13

Semiperipheral Capitalist Countries (definition and examples)

Answer 13

• former colonies that are making considerable headway in their attempts to industrialize
• examples: South Korea, Taiwan, and Israel

Question 14

Neoliberal Globalization

Answer 14

policy that promotes private control of industry; minimal government interference in running of economy; removal of taxes, tariffs, and restrictive regulations that discourage international buying and selling of goods and services; and encouragement of foreign investment

Question 15

Downsides of Globalization (3)

Answer 15

• large inequality between rich and poor countries
• negative effect on local cultures and the natural environment
• allows one countries to dominate others economically, politically, and culturally

Question 16

Roots of Globalization (3)

Answer 16

• Technological (quickly and inexpensively move goods and information over long distances, airplanes shorten international travel time, telephone, fax, email, inexpensive and instant international/global contact
• Political
• Economic (transnational Corporations are the chief agents of globalization in the world today)

Question 17

5 Ways in Which Transnational Corporations Differ From Traditional Corporations

Answer 17

1. Depend increasingly on foreign labour and foreign production
2. Increasingly emphasize skills and advances in design, technology, and management
3. Depend increasingly on world markets
4. Depend increasingly on massive advertising campaigns
5. Are increasingly autonomous from national governments

Question 18

What effect did colonization have on the colonies?

Answer 18

It prevented industrialization

Question 19

What causes poverty according to the Modernization theory? (4)

Answer 19

• Lack capital to invest in Western-style agriculture and industry
• Lack rational, Western-style business techniques of marketing, accounting, sales, and finance
• Lack Western-style stable governments that could provide secure environment for investment
• Lack Western mentality that emphasizes need for savings, investment, innovation, education, high achievement, and self-control in having children

Question 20

What are solutions to poverty according to the Modernization theory? (4)

Answer 20

• Transfer of capital and Western cultural values
• Government-to-government foreign aid
• Direct investment by Western businesses
• Trade between rich and poor countries

Question 21

What causes poverty according to the Dependancy theory?

Answer 21

Colonialism

Question 22

Effects of foreign investment according to Dependancy theory?

Answer 22

foreign investment drains wealth out of poor countries

Question 23

Recommendations to reduce poverty in developing countries

Answer 23

• Strict oversight of foreign aid
• Debt cancellation by rich countries and banks
• Tariff reduction by rich countries
• Democratic globalization