CH-8 Global Stratification – Sociology in Our Times: The Essentials : Exam Guide

CHAPTER 8 - GLOBAL STRATIFICATION MULTIPLE CHOICE SECTION 1. __________ stratification refers to the unequal distribution of wealth, power, and prestige on a worldwide basis, resulting in people having vastly different lifestyles and life chances both within and among the nations of the world. A. Universal B. Planetary C. Global D. Cosmic Answer: C 2. The income gap between the richest and the poorest 20 percent of the world population __________. A. is greater in urban than in rural areas B. has significantly decreased C. is beginning to decline D. continues to widen Answer: D 3. In 1960, the highest-income 20 percent of the world’s population received $30 for each dollar received by the lowest-income 20 percent of the world’s population. By 2000, the disparity had __________. A. increased to $45 for each dollar B. decreased to $25 for each dollar C. increased to $74 for each dollar D. remained stable at $30 for each dollar Answer: C 4. The income gaps between the richest and the poorest countries of the world are __________ than they are in the United States. A. more pronounced B. less pronounced C. more equal D. less stratified Answer: A 5. __________ are nations characterized by highly industrialized economies; technologically advanced industrial, administrative, and service occupations; and relatively high levels of national and per capita income. A. Middle-income countries B. Low-income countries C. High-income countries D. Relative-income countries Answer: C 6. __________ are nations with industrializing economies, particularly in urban areas, and moderate levels of national and personal income. A. Relative-income countries B. Middle-income countries C. High-income countries D. Low-income countries Answer: B 7. Low-income countries are primarily __________ with little industrialization and low levels of national and personal income. A. service-oriented nations B. pastoral nations C. urbanized nations D. agrarian nations Answer: D 8. The gap in global income differences between rich and poor countries has __________ over the past 50 years. A. continued to widen B. decreased slightly C. decreased significantly D. remained stable with basically no change Answer: A 9. In 1960, the highest income 20 percent of the world’s population received $30 for each dollar received by the lowest-income 20 percent. By 2000, the difference had increased from $___ to $1. A. 40 B. 55 C. 74 D. 92 Answer: C 10. In 1960, the wealthiest 20 percent of the world population had more than 30 times the income of the poorest 20 percent of the world population. By 2000, the wealthiest 20 percent of the world population had almost __________ the income of the poorest 20 percent of the world population. A. 50 times B. 67 times C. 80 times D. 95 times Answer: C 11. __________ has become the primary means used in attempts to reduce social and economic inequalities and alleviate the worst effects of poverty in the less industrialized nations of the world. A. Evolution B. Development C. Evaluation D. Degeneration Answer: B 12. The international poverty line is A. $1 per day. B. $20 per day. C. $50 per month. D. $750 per year. Answer: A 13. Approximately ______ people worldwide live on less than $1 per day. A. 50 million B. 150 million C. 400 million D. 1 billion Answer: D 14. One problem encountered by social scientists studying __________ and social and economic inequality is what terminology should be used to refer to the distribution of resources in various nations. A. cosmic stratification B. universal stratification C. planetary stratification D. global stratification Answer: D 15. After __________, the terms “First World,” “Second World,” and “Third World” were introduced by social analysts. A. World War I B. the Korean War C. World War II D. the Vietnam War Answer: C 16. The ___________ was introduced by social analysts to distinguish among nations on the basis of their levels of economic development and the standard of living of their citizens. A. levels of development approach B. three worlds approach C. classification of economies approach D. global distinction approach Answer: B 17. __________ were said to consist of the rich, industrialized nations that primarily had capitalist economic systems and democratic political systems. A. Fourth world nations B. Second world nations C. Third world nations D. First world nations Answer: D 18. The most frequently noted __________ nations are the United States, Canada, Japan, Great Britain, Australia, and New Zealand. A. third world B. second world C. first world D. fourth world Answer: C 19. __________ are said to be countries with at least a moderate level of economic development and a moderate standard of living. A. First world nations B. Second world nations C. Third world nations D. Fourth world nations Answer: B 20. __________ nations include China, North Korea, Vietnam, Cuba, and portions of the former Soviet Union. A. Second world B. Fourth world C. First world D. Third world Answer: A 21. People living in the __________, the poorest countries, have little or no industrialization and the lowest standards of living, shortest life expectancies, and highest rates of mortality. A. first world B. second world C. third world D. fourth world Answer: C 22. The _______ plan, named after a U.S. Secretary of State provided massive sums of money in direct aid and loans to rebuild the European economic base destroyed during World War II. A. Albright Plan B. Baker Plan C. Southern Plan D. Marshall Plan Answer: D 23. Ideas regarding underdevelopment were popularized by __________ in his 1949 inaugural address. He stated that nations in the Southern Hemisphere were “underdeveloped areas” because of their low gross national product. A. President Roosevelt B. President Eisenhower C. President Truman D. President Kennedy Answer: C 24. The term ________ refers to all of the goods and services produced in a country within a given year, plus the net income earned outside the country by individuals and corporations. A. gross societal income (GSI) B. gross goods income (GDI) C. gross national income (GNI) D. gross economic income (GEI) Answer: C 25. The term __________ refers to material well-being that can be measured by the quality of goods and services that may be purchased by the per capita national income. A. standard of living B. standard of development C. standard of the economy D. standard of life Answer: A 26. An increase in the __________ means that a nation is moving toward economic development, which typically includes the improved exploitation of natural resources by industrial development. A. standard of the economy B. standard of living C. standard of development D. standard of life Answer: B 27. Some analysts in developed nations have begun to link growing social and economic inequality on a global basis to relatively high rates of __________ taking place in the underdeveloped nations. A. divorce B. infant mortality C. population growth D. marriage Answer: C 28. As a result of the 1992 U.N. Conference on Environment and Development in Rio de Janeiro, terms such as underdevelopment have largely been dropped in Favor of measurements such as sustainable development, and economies are now classified by their __________. A. material well-being B. levels of economic development C. levels of income D. standard of living Answer: C 29. The World Bank focuses on these three development themes in classifying nations into economic categories: __________. A. people, the environment, and health care B. people, the economy, and health care C. people, the economy, and political stability D. people, the environment, and the economy Answer: D 30. About ______ of the world's population lives in the sixty-four low-income economies, where most people engage in agricultural pursuits, reside in nonurban areas, and are impoverished. A. 25 percent B. 33 percent C. 50 percent D. 75 percent Answer: C 31. Low-income economies are primarily found in countries in __________, where half of the world’s population resides. A. Eastern Europe and Africa B. Africa and Asia C. Asia and South America D. South America and Africa Answer: B 32. Among those most affected by poverty in low-income economies are __________. A. women and children B. adult men and women C. aged men and women D. aged women Answer: A 33. Many poor women worldwide do not have access to commercial credit and have been trained only in traditionally female skills that produce low wages. These factors have contributed to the __________, whereby women around the world tend to be more impoverished than men. A. global feminization stratification B. global feminization of labor C. global feminization of poverty D. global feminization of economics Answer: C 34. Nations with low-income economies include __________. A. Brazil, Honduras, and Afghanistan B. Vietnam, Tanzania, and South Africa C. Bangladesh, Mexico, and Nigeria D. Rwanda, Mozambique, and Ethiopia Answer: D 35. About _________ of the world's population resides in the ninety-three nations with middle-income economies. A. one-half B. one-third C. one-fourth D. one-fifth Answer: B 36. The World Bank divides middle-income economies into lower-middle income and upper-middle income. Bolivia, Columbia, Guatemala, and El Salvador are classified as ____________. A. high-income countries B. upper-middle-income countries C. lower-middle-income countries D. low-income countries Answer: C 37. According to the World Bank, some nations have been more successful than others in implementing key elements of change and bringing about a higher standard of living for their citizens. Which of the following factors was not cited as visible signs of problems in the transition toward a free market economy? A. high rates of inflation B. high life-expectancy rates C. growing gap between the rich and the poor D. homeless children Answer: B 38. As compared with lower-middle-income economies, nations having upper-middle-income economies typically __________. A. have a somewhat higher standard of living B. have high levels of indebtedness C. export manufactured goods, raw materials and fuels D. have low levels of indebtedness Answer: D 39. The World Bank divides middle-income economies into lower-middle and upper-middle. Argentina, Chile, Hungary, Mexico, and Saudi Arabia are considered nations with __________ economies. A. upper-middle-income B. high-income C. lower-middle-income D. low-income Answer: A 40. Which statement concerning south to south migrants is false? A. These immigrants are often poorer than those who migrate from south to north. B. They are more likely to travel without paper documentation. C. They are more vulnerable to (unscrupulous) people. D. Unlike south to north migrants, they tend not to send money back to their families. Answer: D 41. South to south migrants are those who move from A. one part of the country to another. B. South American countries to southern Latin American countries. C. one developing country to another. D. a lower income nation to a country with a high-income economy. Answer: C 42. What is one major result of requiring middle-income countries to make payments on their debts to lending agencies? A. They limit their exports of raw materials and fuels resulting in global fuel and raw material shortages. B. They make spending cuts in programs that were intended to help the poor, creating poverty in their country. C. A large proportion of the resources for private housing are cut, resulting in housing shortages. D. The World Bank places the monies in education funds for the children in that country. Answer: B 43. __________ economies are found in fifty-four nations, including Portugal, Ireland, Israel, Italy, Norway, and Germany. A. Low-income B. Lower-middle-income C. Upper-middle-income D. High-income Answer: D 44. Nations with __________ continue to dominate the world economy, despite the fact that shifts in the global marketplace have affected some workers who have found themselves without work due to capital flight. A. lower-middle-income economies B. low-income economies C. higher-income economies D. upper-middle-income economies Answer: C 45. _____ is the movement of jobs and economic resources from one nation to another. A. Deindustrialization B. Economic mobility C. Capital flight D. Capital movement Answer: C 46. __________ is the closing of plants and factories because of their obsolescence or the fact that workers in other nations are being hired to do the work more cheaply. A. Reindustrialization B. Capital flight C. Decapitalization D. Deindustrialization Answer: D 47. The only significant group of middle-and lower-income economies to close the gap with the high-income economies over the past few decades has been the nations of __________. A. East Asia B. Latin America C. West Africa D. Europe Answer: A 48. What country has experienced a 270 percent increase in per capita income over the past twenty years? A. South Korea B. China C. Thailand D. Malaysia Answer: B 49. The United Nations and the World Bank now use the term ___________ to indicate all of the goods and services produced with a country's economy during a given year. A. business national products (BNP) B. gross national product (GNP) C. gross domestic product (GDP) D. gross product assessment (GPA) Answer: C 50. What is the major distinctive characteristic of using the gross domestic product (GDP) versus the gross national index (GNI) as a measure of economic growth? A. The GDP does not include income earned by individuals or corporations if the revenue comes from sources outside the country. B. The GDP includes income earned by corporations from sources outside the country, but not earned by individuals. C. The GDP includes individual income earned from sources outside the country, but not earned by corporations. D. The GDP includes incomes earned by both individuals and corporations regardless of source. Answer: A 51. Using the gross domestic product (GDP) as a measure of economic growth, a recent World Bank report concluded that nations such as _________ were well on their way to becoming economic powerhouses in the next twenty-five years. A. China, Myanmar, and Brazil B. Russia, Brazil, and Indonesia C. China, India, and Indonesia D. India, Indonesia, and North Korea Answer: C 52. A condition in which people do not have the means to secure the most basic necessities of life is called __________. A. standard poverty B. absolute poverty C. relative poverty D. subjective poverty Answer: B 53. __________ poverty is measured by comparing personal or household income or expenses with the cost of buying a given quantity of goods and services. A. Relative B. Subjective C. Standard D. Absolute Answer: D 54. The World Bank has defined __________ as living on less than a dollar a day. A. absolute poverty B. standard poverty C. relative poverty D. subjective poverty Answer: A 55. _________ exists when people may be able to afford basic necessities but are still unable to maintain an average standard of living. A. Relative poverty B. Absolute poverty C. Subjective poverty D. Standard poverty Answer: A 56. __________ poverty is measured by comparing one person’s income with the incomes of others. A. Absolute B. Subjective C. Relative D. Standard Answer: C 57. _________ poverty would be measured by comparing the actual income against the income earner's expectations and perceptions. A. Absolute B. Relative C. Standard D. Subjective Answer: D 58. For low-income nations in a state of economic transition, data on income and levels of consumption are typically difficult to obtain and are often ambiguous when they are available. Defining levels of poverty involves several dimensions. Which of the following was not a dimension cited? A. how many people are poor B. how far above the poverty line people’s incomes fall C. how long they have been poor D. how far below the poverty line people’s incomes fall Answer: B 59. The World Bank uses as its measure of income inequality what is known as the __________, which ranges from zero (meaning that everyone has the same income) to 100 (meaning that one person receives all the income). A. Helmick coefficient B. Georgia equation C. Gyro formula D. Gini coefficient Answer: D 60. It is estimated that 652 million of Asia’s people are poor and that 448 million of them live in __________. A. India B. China C. the Philippines D. North Korea Answer: A 61. In 1990, the United Nations introduced the __________, establishing three new criteria, in addition to the gross domestic product, for measuring the level of advancement in a country: life expectancy, education, and living standards. A. national resource product (NRP) B. personal socialization index (PSI) C. Gini coefficient D. human development index (HDI) Answer: D 62. According to the __________, human development is the process of “expanding choices that people have in life, to lead a life to its full potential and indignity, through expanding capabilities and through people taking action themselves to improve their lives.” A. Peace Corps B. American Red Cross C. United Nations D. North American Trade Organization Answer: C 63. According to the United Nations, __________ is the process of “expanding choices that people have in life, to lead a life to its full potential and in dignity, through expanding capabilities and through people taking action themselves to improve their lives.” A. life expectancy B. life span C. human development D. global development Answer: C 64. The World Bank calculates that __________ of the population in low- and middle-income countries lack the essentials of well-being. A. 25% B. 37% C. 52% D. 60% Answer: B 65. __________ account for most of the 700 million “income poor” people in the world. A. Women B. Children C. Men D. Adolescents Answer: A 66. Average life expectancy has increased by about a third in the past three decades and is now more than 70 years in __________ countries. A. 53 B. 66 C. 75 D. 87 Answer: D 67. Average life expectancy has increased by about a third in the past three decades. Although no country has a life expectancy rate of 80 years for men, __________ some countries now have a life expectancy rate of 80 years or more for women. A. 12 B. 19 C. 25 D. 33 Answer: B 68. The average life expectancy at birth of people in middle-income countries remains about ________ years less than that of people in high-income countries. A. 5 B. 12 C. 18 D. 25 Answer: B 69. The average life expectancy at birth of people in low-income countries is about __________ years less than that of people in high-income nations. A. 15 B. 23 C. 30 D. 35 Answer: B 70. One major cause of shorter life expectancy in low-income nations is the high _______ rate. A. crude-birth B. fertility C. infant mortality D. crude-death Answer: C 71. The __________ (deaths per thousand live births) is more than eight times higher in low-income countries than in high-income countries. A. infant mortality rate B. crude-birth rate C. fertility rate D. crude-death rate Answer: A 72. Low-income countries typically have higher rates of illness and disease, and they do not have adequate health care facilities. __________ is a common problem among children, many of whom are underweight, stunted, and have anaemia. A. Alcohol abuse B. Drug abuse C. Obesity D. Malnutrition Answer: D 73. Which part of the world has the lowest life expectancy? A. Middle East B. Latin America C. South Asia D. Sub-Saharan Africa Answer: D 74. Which part of the world (at 47%) has the highest percentage of the world’s illiterate population age 15 and older? A. Middle East B. Latin America C. South Asia D. Sub-Saharan Africa Answer: C 75. Approximately ____ percent of the world’s illiterate population age 15 and older live in South Asia. A. 23 B. 38 C. 47 D. 60 Answer: C 76. Health is defined in the Constitution of the World Health Organization as __________. A. a state of complete physical, mental, and social well-being B. merely the absence of disease or infirmity C. a state of optimum health D. a state of complete happiness Answer: A 77. Many people in low-income nations remain in poor health. In fact, about __________ million people die each year from diarrhoea, malaria, tuberculosis, and other infections and parasitic illnesses. A. 5 B. 17 C. 33 D. 75 Answer: B 78. The United Nations Educational, Scientific and Cultural Organization (UNESCO) defines a _________ person as “someone who can, with understanding, both read and write a short, simple statement on their everyday life”. A. functional illiterate B. functional literate C. literate D. basic illiterate Answer: C 79. The adult literacy rate in the low-income countries is about half that of the high-income countries. __________ constitute about two-thirds of those who are illiterate in the low-income countries. A. Men B. Women C. Children D. Adolescents Answer: B 80. There are approximately __________ literate women for every 100 literate men. Literacy is crucial for women because it has been closely linked to decreases in childbirth, improved child health, and increased earnings potential. A. 55 B. 67 C. 74 D. 90 Answer: C 81. The gap between some richer and middle- or lower-income nations has __________ for life expectancy, adult literacy, and daily calorie supply. A. continued to widen B. narrowed significantly C. remained the same for three decades D. narrowed only within the past decade Answer: B 82. Poverty, food shortages, hunger, and rapidly growing populations are pressing problems for at least __________ people, most of them women and children living in a state of absolute poverty. A. 4.7 billion B. 500 million C. 800 million D. 1.3 billion Answer: D 83. According to some social scientists, global wealth and poverty are linked to the level of __________ and economic development in a given society. It almost inevitably brings with it a higher standard of living in a nation and some degree of social mobility for individual participants in the society. A. industrialization B. capitalization C. urbanization D. welfare socialism Answer: A 84. The most widely known development theory is __________, which is a perspective that links global inequality to different levels of economic development and suggests that low-income economies can move to middle- and high-income economies by achieving self-sustained economic growth. A. dependency theory B. world systems theory C. modernization theory D. the new international division of labor theory Answer: C 85. According to __________, the low-income, less-developed nations can improve their standard of living only with a period of intensive economic growth and accompanying changes in people’s beliefs, values, and attitudes toward work. A. the new international division of labor theory B. modernization theory C. dependency theory D. world systems theory Answer: B 86. The number of hours that people work at their jobs each week is one measure of the extent to which individuals subscribe to the work ethic, which is a core value widely believed to be of great significance in the __________ process. A. urbanization B. modernization C. dependency D. capitalization Answer: B 87. According to Walt Rostow, economic advisor to U.S. President Kennedy, one of the largest barriers to development in low-income nations was the __________ held by people, particularly beliefs that are fatalistic, such as viewing extreme hardship and economic deprivation as inevitable and unavoidable facts of life. A. traditional cultural values B. degree of ethnocentrism C. nontraditional cultural norms D. level of cultural relativism Answer: A 88. According to economic advisor Walt Rostow, all countries go through four stages of economic development. Which of the following represents the correct sequence of economic development stages? A. take-off, traditional, high mass consumption, and technological maturity B. traditional, technological maturity, take-off, and high mass consumption C. high mass consumption, technological maturity, take-off, and traditional D. traditional, take-off, technological maturity, and high mass consumption Answer: D 89. According to Walt Rostow, economic advisor to U.S. President Kennedy, all countries go through four stages of economic development. The first stage is the __________, in which very little social change takes place, and people do not identify a need to change their current circumstances. A. traditional stage B. high mass consumption stage C. take-off stage D. technological maturity stage Answer: A 90. According to economic advisor Walt Rostow, societies in the __________ stage are slow to change because the people hold a fatalistic value system, do not subscribe to the work ethic, and save very little money. A. take-off B. technological maturity C. traditional D. high mass consumption Answer: C 91. Mary is currently working as a teller in a local bank and she does not believe that she will ever be promoted beyond that position. In fact, she has adopted a belief that she will probably die in her current position. According to Walt Rostow, this exemplifies the __________ of economic development. A. high mass consumption stage B. take-off stage C. technological maturity stage D. traditional stage Answer: D 92. According to Walt Rostow, economic advisor to U.S. President Kennedy, all countries go through four stages of economic development. The second stage is the __________ stage, which is a period of economic growth accompanied by a growing belief in individualism, competition, and achievement. A. traditional B. take-off C. technological maturity D. high mass consumption Answer: B 93. According to economic advisor Walt Rostow, people in the __________ start to look toward the future, to save and invest money, and to discard traditional values. A. take-off stage B. high mass consumption stage C. nontraditional stage D. technological stage Answer: A 94. According to Walt Rostow, economic advisor to U.S. President Kennedy, all countries go through four stages of economic development. In the third stage referred to as the __________, the country reinvests in new industries, and embraces the beliefs, values, and social institutions of the high-income, developed nations. A. high mass consumption stage B. traditional stage C. take-off stage D. technological maturity stage Answer: D 95. In the fourth stage of economic development referred to as __________, economic advisor Walt Rostow stated that there would be a corresponding high standard of living. A. technological maturity stage B. traditional stage C. high mass consumption stage D. take-off stage Answer: C 96. __________ is based on a market-oriented perspective which assumes that “pure” capitalism is good and that the best economic outcomes occur when governments follow the policy of laissez-faire (hands-off) business, giving capitalists the opportunity to make the “best” economic decisions. A. World systems theory B. Dependency theory C. Modernization theory D. New International Division of Labor theory Answer: C 97. In relation to economic inequality, the dependency theory, world systems theory, and the new international division of labor theory are perspectives rooted in the __________ approach. A. postmodern B. functionalist C. symbolic interactionist D. conflict Answer: D 98. The __________ states that global poverty can at least partially be attributed to the fact that the low-income countries have been exploited by the high-income countries. A. new international division of labor theory B. dependency theory C. world systems theory D. modernization theory Answer: B 99. According to the __________, poorer nations are trapped in a cycle of structural reliance on the richer nations due to their need for infusions of foreign capital and external markets for their raw materials, making it impossible for the poorer nations to pursue their own economic and human development. A. modernization theory B. world systems theory C. dependency theory D. new international division of labor theory Answer: C 100. According to sociologist Immanuel Wallerstein, the _________ theory suggests that what exists under capitalism is a truly global system that is held together by economic ties. A. dependency B. new international division of labor C. world systems D. modernization Answer: C TRUE-FALSE SECTION 1. Global stratification refers to the unequal distribution of wealth, power, and prestige on a global basis, resulting in people having vastly different lifestyles and life chances both within and among the nations of the world. Answer: True 2. Low-income countries are primarily hunting and gathering nations with some industrialization and moderate levels of national and personal income. Answer: False Rejoinder: Low-income countries are primarily agrarian nations with little industrialization and low levels of national and personal income. 3. In 1960, the wealthiest 20 percent of the world population had more than 30 times the income of the poorest 20 percent of the world population. By 2000, the wealthiest 20 percent of the world population had almost 80 times the income of the poorest 20 percent of the world population. Answer: True 4. Third world nations consist of the rich, industrialized nations that have capitalist economic systems and democratic political systems. Answer: False Rejoinder: The correct response is First world nations. Third world nations are the poorest countries with little or no industrialization and the lowest standards of living, shortest life expectancies, and highest rates of mortality. 5. Following the Vietnam War, the Marshall Plan provided massive sums of money in direct aid and loans to rebuild the Southeast Asian economic base destroyed during the war. Answer: False Rejoinder: The Marshall Plan was actually devised following World War II and provided money in direct aid and loans to rebuild the European economic base destroyed during the war. 6. Today, gross national income (GNI) is a term that refers to all the goods and services produced in a country in a given year, plus the net income earned outside the country by individuals or corporations. Answer: True 7. About one-half of the world’s population lives in the ninety-three high-income economies, where most people engage in agricultural pursuits, reside in nonurban areas, and are impoverished. Answer: False Rejoinder: The correct information is as follows: about half of the world’s population lives in the sixty-one low-income economies; about one-third of the world’s population resides in the ninety-three nations with middle-income economies; and high-income economies are found in fifty-four economies. 8. Today, the World Bank focuses on three development themes: people, the environment, and the economy. Answer: True 9. Many poor women worldwide also do not have access to commercial credit and have been trained only in traditionally female skills that produce low wages. These factors have contributed to the global feminization of poverty, whereby women around the world tend to be more impoverished than men. Answer: True 10. As middle-income nations have been required to make payments on their debts, the requisite structural adjustments have necessitated that the countries make spending cuts in areas that formally helped some of the poor, including subsidized food, education, and health care. Answer: True 11. Nations with high-income economies continue to dominate the world economy, despite capital flight (the movement of jobs and economic resources from one nation to another) and deindustrialization (closing plants and factories because of their obsolescence or the fact that workers in other nations are being hired to do the work more cheaply). Answer: True 12. South to south migrants consist of people who have moved from one developing nation to another. Answer: True 13. Research shows that migrants from a poor country to a less poor one are better off economically than those who move from lower-income to higher-income nations. Answer: False Rejoinder: Rather than being better off, they are actually worse off. 14. According to social scientists, absolute poverty exists when people may be able to afford basic necessities but are still unable to maintain an average standard of living; it is measured by comparing the actual income against the income earner’s expectations and perceptions. Answer: False Rejoinder: Absolute poverty is a condition in which people do not have the means to secure the most basic necessities of life and it is measured by comparing personal or household income or expenses with the cost of buying a given quantity of goods and services; relative poverty exists when people are able to afford basic necessities but are still unable to maintain an average standard of living, it is measured by comparing one person’s income with the incomes of others; and subjective poverty would be measured by comparing the actual income against the income earner’s expectations and potential. 15. In 1990 the United Nations Development Program introduced the Human Development Index (HDI), establishing three new criteria—in addition to gross domestic product (GDP) —for measuring the level of development in a country: life expectancy, health, and education. Answer: True 16. The average life expectancy at birth of people in middle-income countries remains about 12 years less than that of people in high-income countries; moreover, the life expectancy of people in low-income countries is as much as 23 years less than that of people in high-income countries. Answer: True 17. According to the United Nations, women constitute about 40 percent of those who are illiterate. Literacy is crucial for women because it has been closely linked to increases in fertility, improved child health, and decreased earnings potential. Answer: False Rejoinder: Women actually constitute about two-thirds (67 percent) of those who are illiterate. Literacy is crucial for women because it has been closely linked to decreases in fertility, improved child health, and increased earnings potential. 18. Analysts using a development framework typically view industrialization and economic development as essential steps that nations must go through in order to reduce poverty and increase life chances for their citizens. Answer: True 19. According to the dependency theory, the high-income, more-developed nations can improve their standard of living only with a period of intensive economic growth and accompanying changes in people’s beliefs, values, and attitudes toward work. Answer: False Rejoinder: The correct response is the modernization theory and it involves the low-income, less-developed nations. 20. U.S. President John F. Kennedy’s economic advisor Walt W. Rostow suggested that all countries go through four stages of economic development. He stated that the second stage is the take-off stage—a period of economic growth accompanied by a growing belief in individualism, competition, and achievement. Answer: True 21. The new international division of labor theory states that the poorer nations are trapped in a cycle of structural dependency on the richer nations due to their need for infusions of foreign capital and external markets for their raw materials. Answer: False Rejoinder: The correct response is the dependency theory which also states that global poverty can at least partially be attributed to the fact that the low-income countries have been exploited by the high-income countries. 22. According to sociologist Immanuel Wallerstein’s world systems theory, the capitalist world economy is a global system divided into a hierarchy of three major types of nations in which upward or downward mobility is conditioned by the resources and obstacles that characterize the international system. Answer: True 23. Most low-income countries in Africa and South America are core nations that are dependent on peripheral nations for capital, have little or no industrialization, and have uneven patterns of urbanization. Answer: False Rejoinder: The correct response is peripheral nations are dependent on core nations for capital. Core nations are dominant capitalist centres characterized by high levels of industrialization and urbanization. Core nations such as the United States, Japan, and Germany possess most of the world’s capital and technology. 24. According to the new international division of labor theory, commodity production is being split into fragments that can be assigned to whichever part of the world can provide the most profitable combination of capital and labor. Answer: True 25. Buyer-driven commodity chains is the term used to describe industries in which transnational corporations play a central part in controlling the production process. Industries that produce automobiles, computers, and other capital- and technology-intensive products are examples. Answer: False Rejoinder: The correct response is producer-driven commodity chains. In contrast, buyer-driven commodity chains is the term used to refer to industries in which large retailers, brand-name merchandisers, and trading companies set up decentralized production networks. This type of chain is most common in labour-intensive, consumer-goods industries such as toys, garments, and footwear. SHORT RESPONSE SECTION 1. Summarize wealth and poverty in global perspective. Answer: Global stratification refers to the unequal distribution of wealth, power, and prestige on a global basis, resulting in people having vastly different lifestyles and life chances both within and among the nations of the world. The world is divided into unequal segments characterized by extreme differences in wealth and poverty. High-income countries are nations characterized by highly industrialized economies, technologically advanced industrial, administrative, and service occupations; and relatively high levels of national and per capita (per person) income. In contrast, middle-income countries are nations with industrializing economies, particularly in urban areas and moderate levels of national and personal income. Low-income countries are primarily agrarian nations with little industrialization and low levels of national and personal income. Just as the differences between the richest and poorest people in the world have increased, the gap in global income differences between rich and poor countries has continued to widen over the past fifty years. In 1960, the wealthiest 20 percent of the world population had more than thirty times the income of the poorest 20 percent. By 2000, the wealthiest 20 percent of the world population had almost eighty times the income of the poorest 20 percent. 2. Describe the “three worlds” approach that is used to classify nations of the world. Answer: After World War II, the “three worlds” approach was introduced by social analysts to distinguish among nations on the basis of their levels of economic development and the standard of living of their citizens. First World nations were said to consist of the rich, industrialized nations that primarily had capitalist economic systems and democratic political systems. The most frequently noted First World nations were the United States, Canada, Japan, Great Britain, Australia, and New Zealand. Second World nations were said to be countries with at least a moderate level of economic development and a moderate standard of living. These nations included China, North Korea, Vietnam, Cuba, and portions of the former Soviet Union. Third World nations are the poorest countries, with little or no industrialization and the lowest standards of living, shortest life expectancies, and highest rates of mortality. 3. Explain the levels of development approach used for describing global stratification. Answer: Following World War II, the concepts of underdevelopment and underdeveloped nations emerged out of the Marshall Plan, which provided massive sums of money in direct aid and loans to rebuild the European economic base destroyed in World War II. Given the Marshall Plan’s success in rebuilding much of Europe, U.S. political leaders decided that the Southern Hemisphere nations that had recently been released from European colonialism could also benefit from a massive financial infusion and rapid economic development. Leaders of the developed nations argued that urgent problems such as poverty, disease, and famine could be reduced through the transfer of finance, technology, and experience from the developed nations to lesser-developed countries. From this viewpoint, economic development is the primary way to solve the poverty problem. Ideas regarding underdevelopment were popularized by President Harry S. Truman in his 1949 inaugural address. According to Truman, the nations in the Southern Hemisphere were “underdeveloped areas” because of their low gross national product, which today is referred to as gross national income (GNI) – a term that refers to all the goods and services produced in a country in a given year, plus the net income earned outside the country by individuals or corporations. If nations could increase their GNI, then social and economic inequality among the citizens within the country could also be reduced. Accordingly, Truman believed that it was necessary to assist the people of economically underdeveloped areas to raise their standard of living, by which he meant material well-being that can be measured by the quality of goods and services that may be purchased by the per capita national income. After several decades of economic development fostered by organizations such as the United Nations and the World Bank, it became apparent by the 1970s that improving a country’s GNI did not tend to reduce the poverty of the poorest people in that country. In fact, global poverty and inequality were increasing, and the initial optimism of a speedy end to underdevelopment faded. 4. In relation to classification of economies by income, describe low-income economies. Answer: About half of the world’s population lives in the sixty-one low-income economies, where most people engage in agricultural pursuits, reside in nonurban areas and are impoverished. The World Bank identifies low-income economies as having a GNI per capita of $765 or less in 2003. Low-income economies are primarily found in countries in Asia and Africa, where half of the world’s population resides. In some of these nations, civil war is both a cause and a product of the poverty in which much of the population lives. Among those most affected by poverty in low-income economies are women and children. Many poor women worldwide also do not have access to commercial credit and have been trained only in traditionally female skills that produce wages. These factors have contributed to the global feminization of poverty, whereby women around the world tend to be more impoverished than men. 5. What is south to south and south to north migration? What are the typical characteristics of people who move from one poor nation to a slightly less poor one? Answer: South to south migration is the movement of people from one developing nation to another. South to north migration is the movement from a lower-income nation to a country with a high-income economy. South to south migrants are often poorer than those who migrate from lower-income to high-income nations. South to south migrants are also more likely to travel without proper documentation. They are also more vulnerable to unscrupulous people. Many send money back home to family members who typically live in remote rural areas. 6. In relation to classification of economies by income, describe middle-income economies. Answer: About one-third of the world’s population resided in the ninety-three nations with middle-income economies. The World Bank divides middle-income economies into lower-middle-income ($766 to $3,035 in 2003) and upper-middle-income ($3,036 to $9,385 in 2003). According to the World Bank, some nations have been more successful than others in implementing key elements of change and bringing about a higher standard of living for their citizens. Among other factors, high rates of inflation, the growing gap between the rich and the poor, low life-expectancy rates, and homeless children have been visible signs of problems in the transition toward a free market economy in countries such as the United States. As compared with lower-middle-income economies, nations having upper-middle-income economies typically have a somewhat higher standard of living and export diverse goods and services, ranging from manufactured goods to raw materials and fuels. As middle-income nations have been required to make payments on their debts, the requisite structural adjustments have necessitated that the countries make spending cuts in areas that formerly helped some of the poor, including subsidized food, education, and health care. 7. In relation to classification of economies by income, describe high-income economies. Answer: The World Bank states that high-income economies have a GNI per capita of more than $9,385 in 2003. High-income economies are found in fifty-four nations. According to the World Bank, people in high-income economies typically have a higher standard of living and continue to dominant the world economy, despite the fact that some workers found themselves without work due to capital flight—movement of jobs and economic resources from one nation to another—and deindustrialization—closing plants and factories because of their obsolescence or that workers from other nations are being hired to do the work more cheaply. 8. In relation to measuring global wealth and poverty, distinguish among absolute, relative, and subjective poverty. Answer: Although gross national income (GNI) continues to be one of the most widely used measures of national income, in recent years the United Nations and the World Bank have begun to use the gross domestic product (GDP). The gross domestic product is all the goods and services produced within a country’s economy during a given year. Unlike the GNL, the GDP does not include any income earned by individuals or corporations if the revenue comes from sources outside of the country. According to social scientists, defining poverty involves more than comparisons of personal or household income: It also involves social judgments made by researchers. From this point of view, absolute poverty—previously defined as a condition in which people do not have the means to secure the most basic necessities of life—would be measured by comparing personal or household income or expenses with the cost of buying a given quantity of goods and services. The World Bank has defined absolute poverty as living on less than a dollar a day. Similarly, relative poverty—which exists when people may be able to afford basic necessities but are still unable to maintain an average standard of living—would be measured by comparing one person’s income with the incomes of others. Finally, subjective poverty would be measured by comparing the actual income against the income earner’s expectations and perceptions. Defining levels of poverty involves several dimensions: (1) how many people are poor, (2) how far below the poverty line people’s incomes fall, and (3) how long they have poor (is the poverty temporary or long term?) 9. Identify and explain the use of the Gini coefficient and global quality of life issues. Answer: The World Bank uses as its measure of income inequality what is known as the Gini coefficient, which ranges from zero (meaning that everyone has the same income) to 100 (one person receives all the income). Using this measure, the World Bank has concluded that inequality has increased in nations such as Bulgaria, the Baltic countries, and the Slavic countries of the former Soviet Union to levels similar to those in the less-equal industrial market economies, such as the United States. Stark contrasts also exist in countries such as India, where abject poverty still exists side by side with lavish opulence in Calcutta. It is estimated that 652 million of Asia’s people are poor and that 448 million of them live in India alone. Similar disparities between the rich and the poor can be seen in other nations. 10. Discuss global poverty and its effects upon human development issues of life expectancy, health, and education. Answer: In 1990 the United Nations Development Program introduced the Human Development Index (HDI), establishing three new criteria—in addition to GDP—for measuring the level of development in a country: life expectancy, education, and living standards. According to the United Nations, human development is the process of “expanding choices that people have in life, to lead a life to its full potential and in dignity, through expanding capabilities and through people taking action themselves to improve their lives.” Regarding life expectancy, on the plus side, average life expectancy has increased by about a third in the past three decades and is now more than 70 years in 87 countries. On a less positive note, the average life expectancy at birth of people in middle-income countries remains about 12 years less than that of people in high-income countries. Moreover, the life expectancy of people in low-income nations is as much as 23 years less than that of people in high-income nations. One major cause of shorter life expectancy in lower-income nations is the high rate of infant mortality. The infant mortality rate (deaths per thousand live births) is more than eight times higher in low-income countries than in high-income countries. Low-income countries typically have higher rates of illness and disease, and they do not have adequate health care facilities. Malnutrition is a common problem among children, many of whom are underweight, stunted, and have anaemia—a nutritional deficiency with serious consequences for child mortality. Health is defined in the Constitution of the World Health Organization as “a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity. Many people in low-income nations are far from having physical, mental and social well-being. In fact, about 17 million people die each year from diarrhoea, malaria, tuberculosis, and other infectious and parasitic illnesses. According to the Human Development Report, education is fundamental to reducing both individual and national poverty. As a result, school enrolment is used as one measure of human development. The United Nations Educational, Scientific and Cultural Organization (UNESCO) defines a literate person as “someone who can, with understanding, both read and write a short, simple statement on their everyday life.” The adult literacy rate in the low-income countries is about half that of the high-income countries, and for women the rate is even lower. Women constitute about two-thirds of those who are illiterate. Literacy is crucial for women because it has been closely linked to decreases in fertility, improved child health, and increased earnings potential. The gap between the poorest nations and the middle-income nations has continued to widen. Poverty, food shortages, hunger, and rapidly growing populations are pressing problems for at least 1.3 billion people, most of them women and children living a state of absolute poverty. 11. In relation to theories of global inequality, discuss development and modernization theory. Answer: Global wealth and poverty are linked to the level of industrialization and economic development in a given society. Although the process by which a nation industrializes may vary somewhat, industrialization almost inevitably brings with it a higher standard of living in a nation and some degree of social mobility for individual participants in the society. As societies industrialize, they also urbanize as workers locate their residents near factories, offices, and other places of work. Analysts using a development framework typically view industrialization and economic development as essential steps that nations must go through in order to reduce poverty and increase life chances for their citizens. The most widely known development theory is modernization theory—a perspective that links global inequality to different levels of economic development and suggests that low-income economies can move to middle- and high-income economies by achieving self-sustained economic growth. According to modernization theory, the low-income, less-developed nations can improve their standard of living only with a period of intensive economic growth and accompanying changes in people’s beliefs, values, and attitudes toward work. As a result of modernization, the values of people in developing countries supposedly become more similar to those of people in high-income nations. The number of hours that people work at their jobs each week is one measure of the extent to which individuals subscribe to the work ethic, a core value widely believed to be of great significance in the modernization process. 12. Summarize Walt Rostow’s perspective on global inequality. Answer: Perhaps the best-known modernization theory is that of Walt W. Rostow, who, as an economic advisor to U.S. President John F. Kennedy, was highly instrumental in shaping U.S. foreign policy toward Latin America in the 1960s. To Rostow, one of the largest barriers to development in low-income nations was the traditional cultural values held by people, particularly beliefs that are fatalistic, such as viewing extreme hardship and economic deprivation as inevitable and unavoidable facts of life. In cases of fatalism, people do not see any need to work in order to improve their lot in life. Rostow suggested that all countries go through four stages of economic development. The first stage is the traditional stage, in which very little social change takes place, and people do not think much about changing their current circumstances. According to Rostow, societies in this stage are slow to change because the people hold a fatalistic value system, do not subscribe to the work ethic, and save very little money. The second stage is the take-off stage—a period of economic growth accompanied by a growing belief in individualism, competition, and achievement. During this stage, people start to look toward the future, to save and invest money, and to discard traditional values. According to Rostow’s modernization theory, the development of capitalism is essential for the transformation from a traditional, simple society to a modern, complex one. In the third stage, the country moves toward technological maturity. At this point, the country will improve its technology, reinvest in new industries, and embrace the beliefs, values, and social institutions of the high-income, developed nations. In the fourth stage, the country reaches the phase of high mass consumption and a correspondingly high standard of living. 13. In relation to theories of global inequality, discuss the dependency theory. Answer: The dependency theory states that global poverty can at least partially be attributed to the fact that the low-income countries have been exploited by the high-income countries. Dependency theorists see the greed of the rich countries as a source of increasing impoverishment of the poorer nations and their people. Dependency theory disputes the notion of the development approach, and modernization theory specifically, that economic growth is the key to meeting important human needs in societies. In contrast, the poorer nations are trapped in a cycle of structural dependency on the richer nations due to their need for infusions of foreign capital and external markers for their raw materials, making it impossible for the poorer nations to pursue their own economic and human development agendas. Dependency theory has been most often applied to the newly industrializing countries (NICs) of Latin America. Dependency theory makes a positive contribution to our understanding of global poverty by noting that “underdevelopment” is not necessarily the cause of inequality. Rather, it points out that exploitation not only of one country by another but of countries by transnational corporations may limit or retard economic growth and human developments in some nations. 14. Summarize sociologist Immanuel Wallerstein’s world systems theory of global inequality. Answer: World systems theory suggests that what exists under capitalism is a truly global system that is held together by economic ties. From this approach, global inequality does not emerge solely as a result of the exploitation of one country by another. Instead, economic domination involves a complex world system in which the industrialized, high-income nations benefit from other nations and exploit their citizens. This theory is most closely associated with sociologist Immanuel Wallerstein, who believed that a country’s mode of incorporation into the capitalistic work economy is the key feature in determining how economic development takes place in that nation. According to world systems theory, the capitalist world economy is a global system divided into a hierarchy of three major types of nations—core, semi peripheral, and peripheral—in which upward or downward mobility is conditioned by the resources and obstacles that characterize the international system. Core nations are dominant capitalist centres characterized by high levels of industrialization and urbanization. Core nations such as the United States, Japan, and Germany possess most of the world’s capital and technology. Even more importantly for their position of domination, they exert massive control over world trade and economic agreements across national boundaries. Semi peripheral nations are more developed than peripheral nations but less developed than core nations. Nations in this category typically provide labor and raw materials to core nations within the world system. These nations constitute a midpoint between the core and peripheral nations that promotes the stability and legitimacy of the three-tiered world economy. These nations include South Korea and Taiwan in East Asia, Mexico and Brazil in Latin America, India in South Asia, and Nigeria and South Africa in Africa. Most low-income countries in Africa, South America, and the Caribbean are peripheral nations—nations that are dependent on core nations for capital, have little or no industrialization (other than what may be brought in by core nations) and have uneven patterns of urbanization. According to Wallerstein, the wealthy in peripheral nations benefit from the labor of poor workers and from their own economic relations with core nation capitalists, whom they uphold in order to maintain their own wealth and position. 15. Explain the new international division of labor theory and compare the use of global commodity chains. Answer: According to the new international division of labor theory, commodity production is split into fragments that can be assigned to whichever part of the world can provide the most profitable combination of capital and labor. Consequently, the new international division of labor has changed the pattern of geographic specialization between countries, whereby high-income countries have now become dependent on low-income countries for labor. The low-income countries provide transnational corporations with a situation in which they can pay lower wages and taxes and face fewer regulations regarding workplace conditions and environmental protection. Overall, a global manufacturing system has emerged in which transnational corporations establish labour-intensive, assembly-oriented export production, ranging from textiles and clothing to technologically sophisticated exports such as computers, in middle- and lower-income nations. The global nature of these activities has been referred to as global commodity chains, a complex pattern of international labor and production processes that result in a finished commodity ready for sale in the marketplace. Some commodity chains are producer-driven whereas others are buyer-driven. Producer-driven commodity chains is the term used to describe industries in which transnational corporations play a central part in controlling the production process. Industries that produce automobiles, computers, and other capital- and technology-intensive products are typically producer-driven. In contrast, buyer-driven commodity chains is the term used to refer to industries in which large retailers, brand-name merchandisers, and trading companies set up decentralized production networks in various middle- and low-income countries. This type of chain is most common in labour-intensive, consumer-goods industries such as toys, garments, and footwear. Athletic footwear companies such as Nike and Reebok and clothing companies like The Gap and Liz Claiborne are examples of the buyer-driven model. Since these products tend to be labor intensive at the manufacturing stage, the typical factory system is very competitive and globally decentralized. Workers in buyer-driven commodity chains are often exploited by low wages, long hours, and poor working conditions. ESSAY SECTION 1. Summarize wealth and poverty from a global perspective. Answer: Wealth and Poverty from a Global Perspective: Wealth and poverty are distributed unevenly across the globe, with stark contrasts between rich and poor nations. Wealthy countries, primarily in North America, Europe, and parts of Asia, possess a disproportionate share of global wealth, characterized by high GDP per capita, advanced infrastructure, and access to quality healthcare and education. In contrast, poor countries, largely located in Africa, South Asia, and parts of Latin America, struggle with low GDP per capita, inadequate infrastructure, and limited access to essential services. Global poverty is measured by indicators such as income levels, access to basic necessities, and quality of life. According to the World Bank, extreme poverty is defined as living on less than $1.90 per day. Despite progress in reducing extreme poverty, significant disparities remain, with millions of people lacking access to clean water, sanitation, healthcare, and education. Wealth is often concentrated in the hands of a few, with the richest individuals and corporations holding a significant portion of global assets. This concentration of wealth exacerbates inequality and limits opportunities for economic mobility in poorer nations. Global efforts to address poverty include international aid, development programs, and policies aimed at promoting sustainable economic growth and reducing inequality. 2. Discuss problems in studying global inequality. Answer: Problems in Studying Global Inequality: 1. Data Availability and Accuracy: Reliable and comprehensive data on income, wealth, and living conditions are often lacking, particularly in developing countries. Inconsistent data collection methods and reporting standards complicate the analysis of global inequality. 2. Definitional Variations: Definitions of poverty and wealth can vary significantly between countries and cultures, making it challenging to create standardized measures of inequality. What constitutes a basic necessity in one region may differ in another. 3. Informal Economy: A substantial portion of economic activity in developing countries occurs in the informal sector, which is often underreported and difficult to measure. This leads to an incomplete picture of economic conditions and inequality. 4. Political and Social Factors: Political instability, corruption, and social unrest can distort economic data and hinder efforts to study inequality. These factors can also affect the implementation and effectiveness of policies aimed at reducing inequality. 5. Multidimensional Nature of Inequality: Inequality is not solely about income and wealth; it also encompasses access to education, healthcare, and opportunities. Capturing the full scope of inequality requires multidimensional measures, which can be complex and resource-intensive to develop. 6. Globalization and Trade: The impact of globalization and international trade on inequality is complex and multifaceted. While globalization can drive economic growth and reduce poverty in some regions, it can also exacerbate inequality by benefiting certain sectors and populations over others. 3. Discuss the issue of migration of people from one poor country to another. Do their efforts make a difference in their economic status? Will this kind of migration continue in the future? Answer: Migration of People from One Poor Country to Another: Migration between poor countries, often referred to as South-South migration, is a significant and growing phenomenon. Migrants typically move in search of better economic opportunities, escaping political instability, or environmental challenges. Economic Impact on Migrants: 1. Income Improvement: Migration can lead to improved economic status for migrants, as they may find better-paying jobs and send remittances back home. These remittances can be a vital source of income for families in the origin country, contributing to poverty reduction and economic development. 2. Challenges: Migrants often face challenges such as exploitation, poor working conditions, and limited access to social services in the destination country. These challenges can mitigate the economic benefits of migration. Future Trends: 1. Continued Migration: Given ongoing disparities in economic opportunities, political instability, and environmental issues, South-South migration is likely to continue. Migrants will continue to seek better living conditions and economic prospects. 2. Policy Responses: Effective policies in both origin and destination countries are crucial to maximizing the benefits of migration and protecting migrants' rights. This includes improving labor rights, providing social services, and facilitating legal migration channels. 4. Outline classifications of economies by income. Answer: Classifications of Economies by Income: The World Bank classifies economies based on gross national income (GNI) per capita, which helps in understanding the economic status and development levels of different countries. The classifications are: 1. Low-Income Economies: Countries with a GNI per capita of $1,085 or less. These economies typically face significant challenges, including high poverty rates, low levels of industrialization, and limited access to healthcare and education. 2. Lower-Middle-Income Economies: Countries with a GNI per capita between $1,086 and $4,255. These economies are often in transition, with growing industrial and service sectors but still facing substantial poverty and development issues. 3. Upper-Middle-Income Economies: Countries with a GNI per capita between $4,256 and $13,205. These economies generally have more developed infrastructure and industries, higher education levels, and better healthcare systems, though inequality and poverty can still be significant. 4. High-Income Economies: Countries with a GNI per capita of $13,206 or more. These economies are characterized by advanced infrastructure, high standards of living, comprehensive healthcare and education systems, and lower levels of poverty. 5. Describe how global wealth and poverty are measured. Answer: Measuring Global Wealth and Poverty: 1. Gross Domestic Product (GDP): GDP measures the total value of goods and services produced within a country in a given period. It is a primary indicator of a country's economic performance but does not account for income distribution or non-market activities. 2. Gross National Income (GNI): GNI includes GDP plus net income from abroad (such as remittances and foreign investments). It provides a broader measure of a country's economic activity and the total income of its residents. 3. Poverty Line: The international poverty line, set by the World Bank, is currently $1.90 per day. It is used to identify individuals living in extreme poverty. Countries may also have their own national poverty lines, which consider local living costs and standards. 4. Human Development Index (HDI): The HDI combines indicators of life expectancy, education, and per capita income to assess the overall development and quality of life in different countries. It provides a more comprehensive measure of well-being than income alone. 5. Gini Coefficient: The Gini coefficient measures income inequality within a country, ranging from 0 (perfect equality) to 1 (perfect inequality). It highlights disparities in income distribution and is used to assess economic inequality. 6. Multidimensional Poverty Index (MPI): The MPI assesses poverty based on multiple factors, including health, education, and living standards. It provides a more nuanced view of poverty by considering various dimensions of deprivation. 7. Household Surveys: National and international organizations conduct household surveys to collect data on income, consumption, and living conditions. These surveys provide detailed information on poverty and inequality at the household level. By using these various measures, policymakers and researchers can gain a more comprehensive understanding of global wealth and poverty, helping to inform strategies for economic development and poverty reduction. 6. Discuss personal perspective on global poverty and human development issues. Answer: Personal Perspective on Global Poverty and Human Development Issues: Global poverty and human development are deeply interconnected issues that require a multifaceted approach. From my perspective, addressing global poverty necessitates tackling both immediate needs and long-term structural challenges. This includes providing basic necessities such as food, clean water, and healthcare to those in dire need, while also investing in education, infrastructure, and economic opportunities to enable sustainable development. Human development should focus on enhancing individuals' capabilities and opportunities. Education is a critical factor, as it empowers people with the knowledge and skills needed to improve their lives and contribute to their communities. Additionally, access to healthcare ensures a healthy population capable of participating fully in economic and social activities. Tackling global poverty also involves addressing inequality, both within and between countries. Wealth concentration in the hands of a few exacerbates poverty and limits opportunities for many. Policies promoting equitable wealth distribution, fair labor practices, and social protection can help reduce disparities. International cooperation and aid are essential, but they must be complemented by local initiatives that consider cultural and contextual factors. Sustainable development goals (SDGs) provide a comprehensive framework for addressing these issues, but achieving them requires concerted efforts from governments, NGOs, and the private sector. 7. Detail global inequality in relation to development and modernization theory. Answer: Global Inequality in Relation to Development and Modernization Theory: Modernization theory suggests that global inequality arises because some countries have not yet developed the social, economic, and cultural characteristics necessary for economic growth and development. According to this theory, development follows a linear path from traditional to modern societies, characterized by industrialization, urbanization, and improved living standards. The theory posits that developing countries can achieve progress by adopting Western values, technologies, and institutions. This involves moving away from traditional agricultural economies towards industrial and service-based economies, increasing literacy rates, and improving infrastructure. Criticisms of Modernization Theory: 1. Eurocentrism: It often imposes Western values and models of development, ignoring the unique cultural and historical contexts of developing nations. 2. Dependency and Exploitation: It overlooks how historical colonization and ongoing economic exploitation by developed countries have contributed to underdevelopment. 3. Internal Inequalities: Modernization can exacerbate inequalities within developing countries, benefiting elites while marginalizing the poor. Despite these criticisms, modernization theory has influenced many development policies and initiatives, promoting industrialization, education, and technological adoption as pathways to reducing global inequality. 8. Explain global inequality in relation to the dependency theory. Answer: Global Inequality in Relation to the Dependency Theory: Dependency theory argues that global inequality is a result of the exploitative relationships between developed (core) countries and developing (peripheral) countries. This theory, rooted in Marxist thought, suggests that the economic prosperity of wealthy nations is built on the exploitation and underdevelopment of poorer nations. Key Points of Dependency Theory: 1. Historical Context: It emphasizes the historical impact of colonialism, where colonizing countries extracted resources and wealth from their colonies, leaving them impoverished and dependent. 2. Economic Exploitation: Peripheral countries often export raw materials and agricultural products to core countries, which then manufacture and sell finished goods at a higher value. This creates an unequal exchange, perpetuating poverty in the periphery. 3. Structural Barriers: The global economic system is structured to benefit core countries, with international institutions and trade agreements favouring their interests over those of developing nations. Dependency theory advocates for structural changes, such as reducing reliance on exports to core countries, fostering regional cooperation among developing nations, and pursuing policies of self-reliance and economic diversification. 9. Summarize global inequality in relation to the world systems theory. Answer: Global Inequality in Relation to the World Systems Theory: World-systems theory, developed by sociologist Immanuel Wallerstein, extends dependency theory by examining the global economic system as a complex, interconnected structure divided into core, semi-periphery, and periphery nations. Key Points of World-Systems Theory: 1. Core Nations: These are wealthy, industrialized countries that dominate global trade and economic activities. They control the most advanced technologies and have strong political and military power. 2. Semi-Periphery Nations: These countries occupy an intermediate position, having both developed and underdeveloped characteristics. They often serve as a buffer zone, stabilizing the system by providing cheap labor and resources to core nations while aspiring to join their ranks. 3. Periphery Nations: These are the least developed countries, providing raw materials, labor, and markets for core countries. They are economically dependent on and often exploited by core and semi-periphery nations. World-systems theory suggests that global inequality is systemic and structural, rooted in the historical development of the capitalist world economy. It emphasizes that meaningful change requires altering the global economic system to create more equitable relationships and opportunities for all nations. 10. Describe global inequality in relation to the new international division of labor theory. Answer: Global Inequality in Relation to the New International Division of Labor Theory: The new international division of labor (NIDL) theory examines how globalization and technological advancements have reorganized production processes across the world, leading to new patterns of global inequality. Key Points of NIDL: 1. Global Production Chains: Multinational corporations (MNCs) increasingly outsource and offshore production to countries with lower labor costs, creating global supply chains. This has shifted manufacturing from developed to developing countries. 2. Labor Market Segmentation: The global labor market is segmented, with high-skill, high-wage jobs concentrated in developed countries and low-skill, low-wage jobs in developing countries. This perpetuates income inequality and limits economic mobility. 3. Technological Advancements: Advances in communication and transportation technologies have facilitated the fragmentation of production processes, allowing MNCs to exploit wage differentials and regulatory environments in developing countries. While NIDL can lead to economic growth and job creation in developing countries, it also results in exploitative labor practices, environmental degradation, and the concentration of wealth and power in MNCs. Addressing global inequality requires fair trade practices, stronger labor protections, and policies that promote sustainable and inclusive economic development. Test Bank for Sociology in Our Times: The Essentials Diana Kendall 9781337109659, 9781111305505, 9781305094154