61) In the United States, the smallest percentage of the labor force is engaged in
A) primary activities.
B) secondary activities.
C) tertiary activities.
D) quaternary activities.
62) According to W. W. Rostow’s model of economic development, in order for a country to be
ready for “take-off” it must have
A) an investment in manufacturing equal or greater than 10 percent of national income.
B) a physical infrastructure and a social/political elite.
C) comparative advantages in international trade, which it exploits.
D) a majority of the population engaged in tertiary activities.
E) a democratic form of government.
63) Rostow’s model of economic development
A) is equally applicable to the countries of today as it was to Western countries in the 19th
century.
B) claims that all countries can reach high GDP per capita if they follow the right path.
C) is accepted as valid by most geographers.
D) takes into account the interdependence of countries.
E) is accepted as valid by most geographers and takes into account the interdependence of
countries.
64) Agglomeration effects
A) have limited the growth of the computer industry in Silicon Valley.
B) typically slow down regional economic development.
C) are a form of external economy.
D) occur when businesses are located near each other, but are not interdependent with each
other.
E) include both A and B.
65) New companies that arrive in a region to provide a growing industry with supplies,
components, services, and facilities are in the process of
A) forming forward linkages.
B) forming backward linkages.
C) creating ancillary industries.
D) deindustrialization.
E) reindustrialization.
66) The process of cumulative causation
A) was developed by W.W. Rostow.
B) leads to growth in regions affected by the backwash effect.
C) involves a buildup of economic activity based on external economies and localization
economies.
D) critiques the core-periphery concept as meaningless in today’s economically interdependent
world.
67) The process of regional economic growth through cumulative causation leads to
A) an expansion of taxes the regional government can collect.
B) a drop in the amount of skilled labor in the region.
C) corresponding rapid growth in distant areas with economic difficulties.
D) the increased formation of forward linkages and the eventual ending of backward linkages.
68) Of the following, which has benefited at the expense of all of the others in the global shift
toward open markets and free trade through neoliberal policies propagated by core countries?
A) corporate businesses
B) the environment
C) public investment in transportation and public utility infrastructure
D) the power and influence of labor unions
E) role of central and local governments as mediators and regulators
69) According to your text, corporate chains are causing the monthly closure of over 50
________ in Britain.
A) villages
B) schools
C) specialist shops
D) hospitals
E) farmers markets
70) ________ saw a decrease in manufacturing employment from 1960 to 1990.
A) France
B) United Kingdom
C) Belgium
D) Sweden
E) France, United Kingdom, Belgium, and Sweden
71) Which of the following is a way that governments can promote economic growth in a
region?
A) invest in infrastructure
B) provide tax breaks that reduce the cost of labor
C) provide subsidies for private investment
D) invest in infrastructure, provide tax breaks that reduce the cost of labor, and provide subsidies
for private investment
E) provide tax breaks that reduce the cost of labor and invest in infrastructure
72) Growth poles
A) work best with propulsive industries.
B) work best without governmental intervention.
C) seek to thwart the process of cumulative causation.
D) rely on primary industries.
73) In the global assembly line, manufacture and assembly is most likely to take place where
A) taxes are low.
B) labor is cheap.
C) resources are nearby.
D) democracies are solid.
E) human rights are highly valued.
74) Transnational corporations
A) were not initially based in Japan and South Korea.
B) first appeared in the middle of the twentieth century.
C) are, by definition, not conglomerate corporations.
D) have declined in number over the last three decades.
E) first appeared in the early nineteenth century.
75) The growth in the number and scale of transnational corporations
A) peaked in the 1970s.
B) has increased over the last four decades.
C) has retarded the globalization of the economy.
D) has been independent of changes in the international economy.
E) is the most important factor in improving welfare for the global South.
76) Companies in which of the following categories entirely own all of their own manufacturing
facilities and do not outsource?
A) car industry (like Toyota).
B) clothing industry (like Benetton).
C) shoe industry (like Nike).
D) retail sales (like Wal-Mart).
E) None — they all outsource a lot.
77) Nestle is the world’s largest packaged food manufacturer and Switzerland’s largest company.
How much of its revenue comes from Switzerland?
A) less than 2%
B) about 20%
C) around 50%
D) over 80%
78) Which of the following is an advantage to a manufacturer’s operating transnational
commodity chains?
A) economies of scale
B) able to use world’s cheapest labor costs
C) lack of dependence upon a single supplier
D) economies of scale, the ability to use the world’s cheapest labor costs, and the lack of
dependence upon a single supplier
79) Most of the daily international flow of money is due to
A) trade in goods.
B) trade in services.
C) the buying and selling of bonds, securities, currencies, and other financial instruments.
D) tourism.
80) Offshore financial centers
A) are usually located on the European continent.
B) often charge taxes on the interest the deposits earn.
C) have developed a set of international regulations that have prevented most money laundering.
D) only work with countries in the periphery.
81) Logging is a ________ sector activity.
A) primary
B) secondary
C) tertiary
D) quaternary
82) According to our text, increasing the share of household income controlled by women
changes spending in ways that increase benefits to
A) children.
B) men.
C) pets.
D) businesses.
83) With over 20% of the total value, the most important trade commodity in world trade is
A) oil.
B) coffee.
C) cocoa.
D) lumber.
E) cotton.
84) The goal of the Fair Trade movement is to
A) encourage sustainable production.
B) promote social justice.
C) ensure living wages for producers.
D) value women’s work.
E) encourage sustainable production, promote social justice, ensure living wages for producers,
and value women’s work.
85) According to our text, ________ is (are) currently the company associated most with
political-economic power and the negative cultural consequences of globalization.
A) Wal-Mart
B) the New York Yankees
C) Coca-Cola
D) Starbucks
E) Crazy Jim’s Blimpy Burgers of Ann Arbor, MI
86) Countries whose economies are dominated by primary-sector activities tend to have a
relatively low per capita GDP. The exceptions are
A) some oil-rich countries (Saudi Arabia, Qatar, Venezuela).
B) tourism-based countries (Jamaica, Kenya, Thailand).
C) manufacturing-based countries (Germany, Italy, Japan).
D) service-based countries (United States, Canada, Austria).
E) primary commodity-producing countries (Mexico, China, Turkey).
87) According to our text, the greatest single obstacle to sustainable development is
A) the lack of adequate, integrated political economic structures and systems.
B) population growth.
C) absurd reliance on fossil fuels.
D) disruptive involvement of NGOs.
88) Secretive and hidden from taxation, as much as 60% of the world’s money lies in offshore
financial centers distributed throughout the world’s
A) smaller countries and islands.
B) rogue states.
C) core.
D) periphery.
E) export processing zones.
89) The Bahamas, Bahrain, Liechtenstein and Luxembourg all specialize in discreetly run
A) financial services.
B) sex tourism.
C) back-office outsourcing.
D) intellectual property management.
90) Deng Xiaoping launched China’s “Four Modernizations” in the 1980s to reorganize and
revitalize its
A) economy.
B) political system.
C) Olympic program.
D) international reputation.
E) human rights policies.
91) In the international division of labor, one reason for China’s role as a major producer of
everything from shoes to toys is the endless supply of people who will work for ________ an
hour.
A) nothing
B) 6 cents
C) 60 cents
D) 6 dollars
E) 60 dollars
92) The fifth, most recent, and still evolving phase in the 200+-year history of our current
technology system is characterized by ________ energy/power.
A) solar
B) nuclear
C) coal
D) oil and gas
E) water
93) The Fair Trade movement is designed to fairly compensate farmers — mostly in the
periphery — for their efforts. In this way, he or she gets ________ of an average fairly traded
100-gram chocolate bar sold for $3.10.
A) 9 cents
B) 29 cents
C) 90 cents
D) $1.09
94) The key concept in neo-Fordist production systems is
A) flexibility.
B) externality.
C) localization.
D) disintegration.
E) elasticity.
95) Its growth and development strategy made it an expert in logistics the movement and
storage of goods and the management of the entire supply chain.
A) “Big Box” superstores such as Wal-Mart
B) General Motors
C) Nike
D) The clothing sector
E) OPEC
96) World’s largest owner of retail property.
A) McDonald’s
B) Wal-Mart
C) Nestle
D) Benetton
97) The concentration of the United States auto industry in and around Detroit, MI is an example
of a(n)
A) localization economy.
B) external economy.
C) ancillary activity.
D) regional economy.
98) Localization economies are cost savings that a firm achieves by
A) using local rather imported than labor.
B) clustering with other similar firms.
C) locating in rural areas.
D) locating in multiple areas.
E) avoiding globalization.
99) External economies (typically achieved in urban areas) result from all of the following except
A) shared labor markets.
B) shared information and innovation.
C) shared infrastructure.
D) shared fixed social capital.
E) shared profits.