MATCHING -Global Commodity Chains

question 3

Multiple Choice

MATCHING
-Global commodity chains

• A)The process whereby Western nations established their rule in parts of the world away from their home territories
• B)The economic belief that free-market forces, achieved by minimizing government restrictions on business, provide the only route to economic growth
• C)The world economy is made up of core, semiperiphery, and periphery countries
• D)Marxist theory of economic development
• E)Worldwide networks of labor and production processes yielding a finished product
• F)Argues that low-income societies can develop economically only if they adopt modern economic institutions, technologies, and cultural values
• G)Under certain circumstances, poor countries can still develop economically, although only in ways shaped by their reliance on wealthier countries

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Definitions:

Volatility

is a statistical measure of the dispersion of returns for a given security or market index, often used as a measure of risk.

Normal Distribution

A probability distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Risk Premium

The additional return expected by an investor for holding a risky asset, over and above the risk-free rate.

Semi-Strong Form

A form of the Efficient Market Hypothesis suggesting that stock prices reflect all publicly available information, making it impossible to consistently achieve higher returns.