GLOBAL AWARENESS FINAL EXAM UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

GLOBAL AWARENESS FINAL EXAM UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS

Question:
1. Difference between GDP and GNI
Answer:
- GDP: Gross Domestic Product ’ PRODUCTION
- GNI: Gross National Income ’ INCOME (includes wages, salaries, and property income)

Question:
2. What is HDI?
Answer:
- Human Development Index
- Accounts for life expectancy, educational attainment, and personal income

Question:
3. Concept of Purchasing Power Parity (PPP)
Answer:
- Purchasing Power Parity: corrective measure, the economic theory that allows the comparison of the
purchasing power of various world currencies to one another
- Meant to compare across countries with per capita measurement

Question:
4. The Proportion of the World's Resources the Richest 20% of People Use
Answer:
76.6% of World's Private Consumption

Question:
5. The Proportion of the World's Resources the Poorest 20% of People Use
Answer:
1.5% of World's Private Consumption

Question:
6. Who is Associated with Modernization Theory
Answer:
Associated with Walt Whitman Rostow and his non-communist manifesto

Question:
7. Stages of Modernization
Answer:
- Traditional Society
- Preconditions for Takeoff
- Takeoff
- Drive to Maturity
- Mass Consumption

, Question:
8. Modernization Beliefs
Answer:
- "West Knows Best"
- Modernization is Possible - we should be optimistic about making a better world
- Places can change fast with correct incentives and inputs
- Necessary to abandon tradition
- Replicate successful structures from wealthy nations
- Need foreign expertise to change
- Foreign investment is always good
- (There is a fairly uniform idea of development)

Question:
9. Who is Associated with Dependency Theory
Answer:
Raul Prebisch, Andre Gunter Frank, and Fernando Cardoso, among others

Question:
10. Dependency Theory Beliefs
Answer:
- Dependency theory questions everyone's ability to benefit equally from the rise of global capitalism
- At the heart of dependency theory is the idea of the core and the periphery
- Countries in the periphery cannot meet their potential because their economies are dependent on the core
- Suggested that economic activity in the richer countries often led to serious economic problems in the
poorer countries.
- A dependency on the West/Core countries keeps nations from developing to their true potential

Question:
11. Development Policies of Dependency Theories
Answer:
- GOAL: redress inequality among nations and find remedies to increase the ability of less powerful
nations to make decisions that are not dependent on First World Nations
- Developing nations must follow their own paths to industrialization; their history and context prevent
them from industrializing in an identical manner to the US and Europe
- The state must play a key role in development, particularly with respect to key industries like steel and
petroleum
- The state must enact large tariffs The state must protect domestic industries from foreign competition
until they are stable
- Foreign investments must be severely restricted
- Any development plans enacted must be clearly in the national interest
- Investment in agriculture, particularly as a mono-crop export, should be discouraged
- The core/periphery relationship must shift to a more equal relationship

Question:
12. World Systems Theory Originator
Answer:
Immanuel Wallerstein is the chief architect of the world-systems theory