Unit 7: Industry & Development

What is the advantage of using a free-trade-zone?

• Reduced or eliminated tariffs, streamlined customs procedures, and increased trade opportunities
• Decreased trade opportunities and limited market access
• Complicated customs procedures and restrictions
• Increased taxes and tariffs

Why are factory jobs being outsourced to India?

• Higher labor costs and lack of skilled workforce
• Government incentives and tax breaks
• Rising demand for products in India
• Lower labor costs and access to a skilled workforce

What the goal of the United Nations Sustainable Development Goals?

• Promote consumerism and materialism
• Encourage discrimination and inequality
• Ignore environmental issues and focus on economic growth
• Address global challenges such as poverty, inequality, climate change, environmental degradation, peace, and justice.

Farming, mining, fishing, and forestry are all considered to be

• Primary Economic Activities
• Secondary Economic Activities
• Tertiary Economic Activities
• Quaternary Economic Activities

Newly industrialized countries (NICs) like Brazil and Mexico are considered part of the 

• Core
• Periphery
• Semi-Periphery
• External

GE, Coca-cola, Nokia, Samsung, Pepsi, Walt-Disney represent the many 

• World Bank contributors.
• World Trade Organizations.
• Transnational Corporations.
• Fairtrade Labeling Organizations .

Which of the following best describes Rostow’s model of economic development?

• Countries should outsource industrial production to periphery countries in order to lower the cost of goods in the “Core”.
• Countries will proceed through a series of stages in which a country focuses on the development of industries in which it has a comparative advantage.
• Governments should purchase and create companies within their border and slowly build the company.
• A country should invest equally across all sectors of the economy and protect new industries from international competition.

When a country suffers from a “brain drain” it means the country has experienced

• an emigration of working age males.
• an emigration of educated professionals
•  an emigration of political leaders.
• an emigration of female executives

Which of the following statements best explains a limitation of the political map shown in conveying economic information?

• In the context of currency, the borders between the member states are irrelevant.

• In the context of free trade, the borders between the member states are irrelevant.

• In terms of an international division of labor, there are no variations in wage rates across the borders of member states.

• In terms of manufacturing, there are no variations in production costs across the borders of member states.

All of the following statements about worldwide patterns of development are correct EXCEPT:

• On average, population growth is higher in peripheral countries than in core nations.

• Per capita income in the United States is higher than in China.

• The largest concentration of the least-developed countries in the world today is in North America

• Several Asian countries, so-called Asian Tigers, made enormous strides in per capita income and levels of development in the past 30 years.