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HUG Unit 5 Economic Development and Industrialization Test
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Basic vocabulary: infrastructure, GDP, GNP, the Four Tigers, TNCs, HDI, IMF, World Bank, UN, EU,
NAFTA, WTO (developed from GATT), informal economy (not included in GNP), neocolonialism,
EPZ, ecotourism, GEM
The Industrial Revolution
When and where did it begin in the West (Europe), in the East (Asia)?
What was the major fuel source?
Industrial areas
Where is the Black Triangle?
What are the primary industrial areas of the world?
Which area in the US has been most dramatically affected by deindustrialization?
What is the most usual result/next step in an area affected by deindustrialization?
Development (modernization liberal theories vs structural dependency theories vs self sufficiency…)
Which general, international regions of the world are high – middle – low HDI?
What are the characteristics of the three economic sectors?
What are the major characteristics of Rostow’s theory of development?
What are the major characteristics and the basis of core-periphery models of development (such as
Wallerstein’s World Theory Systems and the structural dependency theory).
What are the major characteristics of the self sufficiency theory?
Be able to identify countries that are core, semi-periphery and periphery.
How have India and China decided to “develop” their economies?
In what general type of company have each country (India/China) tended to specialize?
Where did the Soviet Union locate its major industry in the 1950s and 1960s?
What characteristics allowed Japan to develop so fast after WWII?
Where are the greatest deposits of fossil fuels located (general international region)?
Which area has the lowest GEM? Why?
Location
How is a decision made about where to locate industry / how is the distribution of industry explained?
(situation: bulk-gaining, bulk reducing, perishable; site: labor-intensive, capital-intensive)
What are the major characteristics of theories that are used to determine location of businesses (Hotelling,
agglomeration, Weber)?
How has the new international division of labor affected the North American Manufacturing Belt (the Rust
Belt also)?
What factors led to the South in the US attracting manufacturing industries?
What is the relationship between agglomeration and just-in-time manufacturing?
What is the advantage of maquiladoras to the producers?
International and supranational economic organizations
What are the criticisms of the World Bank, the WTO?
What are the criticisms and positives of globalization?
Could Mexico’s export processing zones also be called NAFTA zones?
Sample multiple choice questions:
1. What has most contributed to the deindustrialization of textiles in the US?
a. more women in the labor force
b. new international division of labor
c. environmental legislation
d. the decline of labor unions
2. In which region do the lowest percentage of laborers work in the tertiary sector of the economy?
a. Central America b. SW Asia
c. Central Africa
d. Australia
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HUG Unit 5 Economic Development and Industrialization Test
3. Which is not a criticism of the World Trade Organization?
a. Systems are based on WTO rules instead of power
b. The WTO serves the interests of multinational corporations
c. If decisions of the WTO conflict with a country’s laws, the country’s law will be changed
d. The WTO favors international trade over local industries.
4. What is a major benefit of maquiladoras to producers?
a. levels the economic playing field for factories in the US and China
b. Concentrates production in the biggest forward thrust cities
c. Moves production closer to the market than traditional manufacturing areas in the US
d. allow duty free production in a low wage country
5. On a global scale, in which sector do most people work?
a. primary b. secondary
c. tertiary
d. quaternary
6. What is the largest sector in postindustrial countries?
a. primary b. secondary
c. tertiary
d. quaternary
7. Which US city is not in a major manufacturing region?
a. New York b. Chicago c. Atlanta
d. Birmingham
e. Miami
8. Which stage of Thompson’s Demographic Transition Model (DTM) is most associated with the
industrialization of a country’s economy?
a. Stage 1
b. Stage 2
c. Stage 3
d. Stage 4
9. Which theory proposes that the relationship between MDCs and LDCs will permanently keep the LDC
at a disadvantage?
a. liberal modernization b. dependency c. sustainable development d. Weber’s Least Cost
10. A clustering of tire and windshield producers near an automobile assembly plant is best explained by
the benefits of:
a. agglomeration
b. just in time
c. deindustrialization
d. dependency
11. Which strategy is most consistent with Rostow’s preconditions for take-off stage?
a. build hydroelectric dam and roads
b. debt reduction to increase income and currency stability
c. increase international trade of manufactured goods
d. increase tariffs to protect local industry and keep out competition
e. exploit complementarity with poorer countries
12. Ecotourism is more closely associated with which theory?
a. Rostow
b. dependency
c. neocolonial
d. sustainable development
e. self sufficiency
13. What is the main purpose of alliances such as NAFTA, EU, and the WTO?
a. develop common defense policies in case of invasion of a member state
b. create common policies for member states that lead to lowering the cost of trade in the alliance
c. member countries work together to increase the cost of resources to non-member countries
d. develop a common currency between all member states as a centripetal force
e. to try to improve automobile manufacturing on a global scale to improve infrastructure
14. Which activity is not part of the informal economy?
a. organized crime
b. barter system (yard work for baby sitting)
c. teacher
d. cash paid for labor
HUG Unit 5 Economic Development and Industrialization Test
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1. What has most contributed to the deindustrialization of textiles in the US?
b. new international division of labor
2. In which region do the lowest percentage of laborers work in the tertiary sector of the economy?
c. Central Africa
3. Which is not a criticism of the World Trade Organization?
a. Systems are based on WTO rules instead of power
4. What is a major benefit of maquiladoras to producers?
d. allow duty free production in a low wage country
5. On a global scale, in which sector do most people work?
a. primary
6. What is the largest sector in postindustrial countries?
c. tertiary
7. Which US city is not in a major manufacturing region?
e. Miami
8. Which stage of Thompson’s Demographic Transition Model (DTM) is most associated with the
industrialization of a country’s economy?
c. Stage 3
9. Which theory proposes that the relationship between MDCs and LDCs will permanently keep the LDC
at a disadvantage?
b. dependency
10. A clustering of tire and windshield producers near an automobile assembly plant is best explained by
the benefits of:
b. just in time
11. Which strategy is most consistent with Rostow’s preconditions for take-off stage?
a. build hydroelectric dam and roads
12. Ecotourism is more closely associated with which theory?
d. sustainable development
13. What is the main purpose of alliances such as NAFTA, EU, and the WTO?
b. create common policies for member states that lead to lowering the cost of trade in the alliance
14. Which activity is not part of the informal economy?
c. teacher