What Is One Caveat of World Systems Theory

question 47

Multiple Choice

What is one caveat of world systems theory?

• A) There is not always geographical isolation between core and peripheral nations.
• B) Globalization creates geographical isolation between core and peripheral nations.
• C) Both core and peripheral nations are developing more rapidly.
• D) Semiperipheral nations are major contributors to continued poverty.

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Definitions:

Bubbles

Economic phenomena characterized by rapid increases in asset prices to levels significantly above their fundamental values, followed by abrupt crashes.

Demand

The desire combined with the ability to purchase a specific quantity of a good or service at a particular price and time.

Supply

The total amount of a product or service available for purchase at any given price point in a market.

Purchasing Power Parity

A theory in economics that suggests that in the absence of transaction costs and other barriers, identical goods should have the same price in different countries when prices are expressed in a common currency.