In: Economics
7. According the critical theory perspective, the main cause of the abuses by MCN’s lies in which of the following?
A. The lagging technological level of developing countries
B. the corrupt local government protect the interest of the MCN’s
C. The greedy owners/capitalists of the MCN’s do not care
D. The global system itself is exploitive
8. Which of the following is the critical theory’s understanding of Western development?
A. Modernization normally means Westemization
B. Other countries cannot develop like Western countries because geography and demography appear to favor the Western countries
C. It is not a product of Western ideas, institutions, and competition, but rather a consequence of the systematic exploitation of other countries.
D. Other countries have to implement the Western rules and institutions of specialization
9. Which of the following is NOT one of the reasons that the realist perspective attributes for the ascendance of Europe?
A. Europeans have a unique religion
B. European population grew vigorously which made the Europeans to explore more space to grow grain and raise animals.
C. Europe had a large choice of wild plants and animals available for domestication.
D. Europe had the decentralized competition for “ships and firepower”
10. According to the world systems theory, a division of labor exists between different groups of states. Which of the following states produce most of the leading products, which enjoy an initial monopoly?
A. Semi-peripheral states
B. Core states
C. Developing states
D. Peripheral states
7. c] The greedy owners/capitalists of the MCNs do not care about the people.
Due to this much of the production is outsourced to countries like China and parts of Southeast Asia where the standards of working conditions are much lower compared to those of the west and hence the companies get away with a lower production cost.
8. C. It is not a product of Western ideas, institutions, and competition, but rather a consequence of the systematic exploitation of other countries.
The idea of western development stems from the systemic exploitation of the smaller/ poorer countries (i.e. countries at the periphery). This has been the norm of western development since the imperialist era.
9. B. European population grew vigorously which made the Europeans to explore more space to grow grain and raise animals.
This statement that the population of Europe rose is false in itself. In the 11th century, the population dipped because of Vikings invasion and in the 14th century, the population dipped due to the black plague. So the population boom is not a factor that contributed to Europe's ascendence. A mono religion of Europe made them travel to more places in order to spread their religion. The wide range of animals in Europe ensured the ease of traveling to longer distances by land.
10. B. Core states enjoy the initial monopoly
Core states enjoy the initial monopoly on producing the most of the leading products since these core countries have a technological edge over the others and moreover, they can outsource the production in order to further reduce the cost of production. Few other methods of maintaining the monopoly are via patents and other market restrictions.