According to the World Systems Theory, What Is the Result

question 15

Multiple Choice

According to the world systems theory, what is the result when core countries extract resources from poor ones, use cheap labor to manufacture goods from those resources, and then sell the products to markets in those same periphery countries?

• A) Poor countries stay poor.
• B) All countries eventually improve.
• C) Periphery countries become core.
• D) Rich countries share the wealth.

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Definitions:

Inflation

Inflation denotes the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Capacity Utilization

A measure of how effectively an entity uses its production capacity to produce goods, expressed as a percentage of total potential output.

Cyclical Industry

An industry highly sensitive to the economic cycle, experiencing rapid growth in booming economies and significant declines during recessions.

Automobile Industry

The automobile industry encompasses the wide range of companies and activities involved in the design, manufacturing, marketing, and selling of motor vehicles.