Question 1

Indebtedness became a major problem in the world economy in the 1980s. Debt service must be met before other obligations of governments. Why did this happen?

Accepted Answer

A)   recycled dollars from oil purchases were lent recklessly and rising interest rates later trapped borrowers
B)   economic growth goals were too ambitious
C)   banks raised interest rates and refused to negotiate new ones
D)   previously colonial powers paid off debts A

Question 2

What are "barter terms of trade"?

Accepted Answer

A)   relative prices of primary products to manufactured goods in world trade
B)   how much it costs to buy a raw material
C)   changes in raw material process
D)   how much it costs to replace manufactured goods in world trade A

Question 3

After that of the North Atlantic, which steamship route was most important to the world economy in 1913?

Accepted Answer

A)   around Cape Horn
B)   from the English Channel to India via the Red Sea and the Suez Canal
C)   from North America to Japan
D)   from India to Australia B

Question 4

1830-1876 saw the largest increase in the number of colonies and of people under colonial rule. Why did this happen then?

Accepted Answer

A)   rise of competitive colonialism as a result of economic stagnation in Europe
B)   religious fervor
C)   the rise of the "Atlantic system"
D)   improved transportation

Question 5

The global division of labour did not arise out of simple local choices freely given but in the historical context of colonialism and domination by the industrial core over the rest of the world. As a result, the best concept to understand this is:

Accepted Answer

A)   comparative advantage
B)   absolute advantage
C)   competitive advantage
D)   relative advantage

Exam 8: Dynamics of Interdependence: Transformation of the Periphery

Indebtedness became a major problem in the world economy in the 1980s. Debt service must be met before other obligations of governments. Why did this happen?

What are "barter terms of trade"?

After that of the North Atlantic, which steamship route was most important to the world economy in 1913?

1830-1876 saw the largest increase in the number of colonies and of people under colonial rule. Why did this happen then?

The global division of labour did not arise out of simple local choices freely given but in the historical context of colonialism and domination by the industrial core over the rest of the world. As a result, the best concept to understand this is: