Industrialisation

Question 1

How did the Meiji emperor kickstart development in Japan

Answer 1

He rapidly expanded education, created a national army, large expansion in technical education and services and committed to improving industrialisation

Question 2

What is the key to increasing GDP per capita?

Answer 2

Technological progress

Question 3

How does technological progress lead to increased GDP per capita?

Answer 3

Technological progress can lead to accumulation of capital so that a growing population won’t push down GDP per capita.

Question 4

Why don’t all countries industrialise?

Answer 4

• people in poor countries lack the money to invest in inventions
• people aren’t incentivised to invent since they are worried people will steal their idea or no one will have the money to invest in it

Question 5

What is necessary for a country to successfully industrialise

Answer 5

Must be a good protection of property rights, good education and financial sectors, the government must accumulate capital in the interest of its citizens. Also need access to open markets and good transport infrastructure

Question 6

Globalisation

Answer 6

The growing interdependence of the worlds economies, culture and populations, brought about by cross border trade, movement of people and information

Question 7

Limits to globalisation

Answer 7

• regional trade has been increasing rather than global trade
• there has been very little globalisation of labour, with only 3% of people living outside their country of origin
• inward looking politics result in deglobalisation
• there has been a retreat from freedom of capital movements with controls on short term capital flows in some countries

Question 8

Benefits and positives of globalisation

Answer 8

+a world of open economies performs better than a world of closed ones

• workers in rich countries can struggle with import competition from low wage countries
• the biggest reason for anti globalisation is migration diluting national and cultural identity

Question 9

Countries grow faster in the early stages of industrialisation because…
A) they have a government that adopts pro growth policies
B) they experience faster technological progress
C) they are lucky
D) their growth is propelled by both technological progress and capital accumulation

Answer 9

D) their growth is propelled by both technological progress and capital accumulation

Question 10

Industrialisation is a pre requisite for the emergence of sustained economic growth because…
A) capital accumulation is the main engine of growth in the LR and it only occurs in industrialised economies
B) agricultural economies do not experience technological progress
C) technological progress is faster in industrial economies than agricultural ones
D) technological progress is the main engine of growth in the long run, but it only leads to sustained economic growth in industrial economies

Answer 10

D) technological progress is the main engine of growth in the long run, but it only leads to sustained economic growth in industrial economies

Question 11

Before the 19th century…
A) SEG was non existent because there was no technological progress
B) SEG was non existent because technological growth was completely absorbed by population growth
C) there were periods of SEG alternated with periods of lack of growth
D) there was sustained economic growth due to fast technological progress

Answer 11

B) SEG was non existent because technological growth was completely absorbed by population growth